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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 enterprises? -
ANSWERS-The new-force view
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 - 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 stages? - 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 fall and interest rates rise.
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 contemplating 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 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