2ND ATTEMPT STUDY QUESTIONS FOR C211 QUESTIONS
WITH CORRECT ANSWERS 2026
What is Foreign Direct Investment? - correct answer-
Putting money in activities that control and manage value-added activities in other countries
Explain the New, Evolutionary, and Pendulum views of Globalization. How do these differ from one
another? - correct answer-- new force in recent times
- long-running historical evolution
- pendulum swinging between extremes
What different political views exist on FDI? - correct answer-Radical view
Treats FDI as an instrument of imperialism and a vehicle for exploiting domestic resources, industri
es, and people by foreign capitalists and firms
Free market view
Unrestricted by government Intervention FDI will enable countries to tap into their absolute or co
mparative advantages by specializing in the production of certain goods and services
Pragmatic nationalism
Considering both the pros and cons of FDI and approving FDI only when its benefits outweigh its
costs
What benefits exist to a country receiving FDI? Elaborate. - correct answer-
Capital inflow, technology, management, job creation
What costs exist to a country receiving FDI? Elaborate. - correct answer-
Loss of sovereignty, competition and capital outflow
How do resources influence competitive dynamics of a business? - correct answer-
How do capabilities impact the competitive dynamics of a firm? - correct answer-
, What is resource similarity and how does this impact competitive dynamics? - correct answer-
Give a description of the classical theory of international trade. - correct answer-
How would the modern theory compare to the classical theory? - correct answer-
Compare absolute advantage to comparative advantage. What differences exist? - correct answer-
What is mercantilism and why is this an important term? - correct answer-
What are the critical features of the product life cycle? - correct answer-
How wouldv youv describev strategicv trade?v -v correctv answer-
Howv arev supplyv andv demandv relatedv tov thev exchangev ratev ofv av countryv -
v correctv answer-
Whichv theoryv camev first,v mercantilismv orv modern-dayv protectionismv -v correctv answer-
Ifv av companyv seeksv tov limitv foreignv exchangev ratev exposurev inv thev forwardv direction,v whatv isv thev
m
ostv effectivev wayv tov dov thisv -v correctv answer-
Whatv isv transactionv riskv -v correctv answer-
Explainv thev conceptv ofv "hedging"v asv itv relatesv tov reducingv variousv typesv ofv risk.v -
v correctv answer-
Whatv isv thev differencev betweenv currencyv hedgingv andv strategicv hedging?v -v correctv answer-
Whatv advantagesv existv withv firstv mover?v -v correctv answer-
WITH CORRECT ANSWERS 2026
What is Foreign Direct Investment? - correct answer-
Putting money in activities that control and manage value-added activities in other countries
Explain the New, Evolutionary, and Pendulum views of Globalization. How do these differ from one
another? - correct answer-- new force in recent times
- long-running historical evolution
- pendulum swinging between extremes
What different political views exist on FDI? - correct answer-Radical view
Treats FDI as an instrument of imperialism and a vehicle for exploiting domestic resources, industri
es, and people by foreign capitalists and firms
Free market view
Unrestricted by government Intervention FDI will enable countries to tap into their absolute or co
mparative advantages by specializing in the production of certain goods and services
Pragmatic nationalism
Considering both the pros and cons of FDI and approving FDI only when its benefits outweigh its
costs
What benefits exist to a country receiving FDI? Elaborate. - correct answer-
Capital inflow, technology, management, job creation
What costs exist to a country receiving FDI? Elaborate. - correct answer-
Loss of sovereignty, competition and capital outflow
How do resources influence competitive dynamics of a business? - correct answer-
How do capabilities impact the competitive dynamics of a firm? - correct answer-
, What is resource similarity and how does this impact competitive dynamics? - correct answer-
Give a description of the classical theory of international trade. - correct answer-
How would the modern theory compare to the classical theory? - correct answer-
Compare absolute advantage to comparative advantage. What differences exist? - correct answer-
What is mercantilism and why is this an important term? - correct answer-
What are the critical features of the product life cycle? - correct answer-
How wouldv youv describev strategicv trade?v -v correctv answer-
Howv arev supplyv andv demandv relatedv tov thev exchangev ratev ofv av countryv -
v correctv answer-
Whichv theoryv camev first,v mercantilismv orv modern-dayv protectionismv -v correctv answer-
Ifv av companyv seeksv tov limitv foreignv exchangev ratev exposurev inv thev forwardv direction,v whatv isv thev
m
ostv effectivev wayv tov dov thisv -v correctv answer-
Whatv isv transactionv riskv -v correctv answer-
Explainv thev conceptv ofv "hedging"v asv itv relatesv tov reducingv variousv typesv ofv risk.v -
v correctv answer-
Whatv isv thev differencev betweenv currencyv hedgingv andv strategicv hedging?v -v correctv answer-
Whatv advantagesv existv withv firstv mover?v -v correctv answer-
