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Which view claims that the phenomenon of globalization was initially driven by the
desire of Western economies to exploit their power through multinational enterprise? -
ANSWERS-The new-force view
What is the easiest method nonfinancial companies use to handle currency
fluctuations? - ANSWERS-Currency diversification
Which strategy minimizes the risk of unanticipated changes in future exchange rates? -
ANSWERS-Currency swap
A company is looking for a location with an abundance of ground-breaking individuals,
firms, and universities. Which type of strategic goal is this company demonstrating? -
ANSWERS-Innovation-seeking
What advantage comes with not sharing benefits with late entrants? - ANSWERS-First-
mover advantage
Which entry mode is a non-equity arrangement for a company entry into a foreign
market? - ANSWERS-Licensing
What size commitment is required for a non-equity mode of entry into a foreign market?
- ANSWERS-Small commitment
What are two supportive pillars for an informal institution? - ANSWERS-Cognitive,
Normative
, What is the key role of an institution, according to the institution-based view? -
ANSWERS-To reduce uncertainty
What are the rules, enforcement mechanisms, and organizations that support market
transactions? - ANSWERS-Institutions
What is a core proposition underpinning an institutional-based view of global business?
- ANSWERS-Bounded rationality
Economic gains come from international trade because one country's exported goods,
services, or other items are unique, valuable, and difficult to duplicate to the importing
countries. Which view does this statement portray? - ANSWERS-Resource-based view
What is the aggregation of importing and exporting that leads to the country-level trade
surplus or deficit? - ANSWERS-Balance of trade
What is a cost of foreign direct investment? - ANSWERS-Developing countries may be
exploited by multinational enterprises (MNE).
What may precious, rare, and hard-to-duplicate resources and capabilities lead to for a
firm? - ANSWERS-Sustained comparative advantage
Which theory states that patterns of international trade change across new, maturing,
and standardized states? - ANSWERS-Product life cycle theory
What is the financial environment in which exchange rates and payments for goods and
services are conducted? - ANSWERS-International monetary system
What happens to a country's real exchange rate and nominal interest rate as the price
level increases, assuming all other factors are unchanged? - ANSWERS-Exchange
rates depreciate; interest rates increase