WGU C211 OA LATEST 2022 RATED A+
view that claims phenomenon of globalization was initially driven by the desire of Western
economies to exploit their power through MNE's ✔✔new
view that claims globalization is a long-run historical evolution since the dawn of humanity. Says
it is nothing new and that it will always exist ✔✔evolutionary
view that claims globalization is swinging from one extreme to another from time to time
✔✔pendulum
investment in, controlling, and managing value-added activities in other countries ✔✔foreign
direct investment
political view hostile to FDI. believes it is an instrument of imperialism and vehicle for exploitation
of domestic resources by foreign capitalists and firms ✔✔radical
suggests that FDI, unrestricted by government intervention, will enable countries to tap into their
absolute or comparative advantages by specializing in the production of certain goods and services
✔✔free market
views FDI as having pros and cons and only approving FDI when its benefits outweigh costs
✔✔pragmatic nationalis
what benefits exist to a country receiving FDI? ✔✔capital inflow, technology spillovers, advanced
management know-how, creates jobs
what costs exist to a country receiving FDI? ✔✔loss of sovereignty, adverse effects on
competition, net outflow in the capital account
,The aggregation of importing and exporting that leads to the country-level trade surplus or deficit.
✔✔balance of trade
firms with a _____ degree of resource similarity are likely to have similar competitive actions
✔✔high
a high degree of resource similarity but low market commonality = _______ intensity of rivalry
✔✔highest
little resource similarity but high market commonality = _____ intensity of rivalry ✔✔lowest
mercantilism, absolute advantage and comparative advantage belong to what theory of
international trade ✔✔classical
theory of international trade that relies on more realistic product life cycles and first mover
advantages ✔✔modern
under free trade, a nation gains by specializing in economic activities in which it has
_____advantage ✔✔absolute
focuses on the idea that if a country does not have absolute advantage, they can still choose to
specialize in the production of one good where it has ______ advantage ✔✔comparative
comparative advantage and absolute advantage stem from ✔✔factor endowments
theory that the wealth of the world is fixed and that a nation that imports more and exports less
will be richer ✔✔mercantilism
, stage of the product life cycle where production of a new product that commands a price premium
will concentrate in the US ✔✔new
stage of the product life cycle where demand and ability to produce grow in other developed
nations ✔✔maturing
stage of the product life cycle where the previously new product is commoditized and production
will now move to low-cost developing nations ✔✔standardized
comparative advantage may change over time because patterns of ______ change over time
✔✔trade
theory that suggests that intervention by governments in certain industries can enhance their odds
for international success ✔✔strategic trade
if a company seeks to limit foreign exchange rate exposure in the forward direction, what is the
most effective way to do this? ✔✔currency hedging
exchange rate risk associating with the time delay between entering a contract and settling it
✔✔transaction risk
forward transaction that protects traders and investors from exposure to fluctuations of the spot
rate ✔✔hedging
a means of spreading out activities in different currency zones in order to offset the currency losses
in certain regions through gains in other regions ✔✔strategic heding
amount of resources committed to entering a foreign market ✔✔scale of entry
view that claims phenomenon of globalization was initially driven by the desire of Western
economies to exploit their power through MNE's ✔✔new
view that claims globalization is a long-run historical evolution since the dawn of humanity. Says
it is nothing new and that it will always exist ✔✔evolutionary
view that claims globalization is swinging from one extreme to another from time to time
✔✔pendulum
investment in, controlling, and managing value-added activities in other countries ✔✔foreign
direct investment
political view hostile to FDI. believes it is an instrument of imperialism and vehicle for exploitation
of domestic resources by foreign capitalists and firms ✔✔radical
suggests that FDI, unrestricted by government intervention, will enable countries to tap into their
absolute or comparative advantages by specializing in the production of certain goods and services
✔✔free market
views FDI as having pros and cons and only approving FDI when its benefits outweigh costs
✔✔pragmatic nationalis
what benefits exist to a country receiving FDI? ✔✔capital inflow, technology spillovers, advanced
management know-how, creates jobs
what costs exist to a country receiving FDI? ✔✔loss of sovereignty, adverse effects on
competition, net outflow in the capital account
,The aggregation of importing and exporting that leads to the country-level trade surplus or deficit.
✔✔balance of trade
firms with a _____ degree of resource similarity are likely to have similar competitive actions
✔✔high
a high degree of resource similarity but low market commonality = _______ intensity of rivalry
✔✔highest
little resource similarity but high market commonality = _____ intensity of rivalry ✔✔lowest
mercantilism, absolute advantage and comparative advantage belong to what theory of
international trade ✔✔classical
theory of international trade that relies on more realistic product life cycles and first mover
advantages ✔✔modern
under free trade, a nation gains by specializing in economic activities in which it has
_____advantage ✔✔absolute
focuses on the idea that if a country does not have absolute advantage, they can still choose to
specialize in the production of one good where it has ______ advantage ✔✔comparative
comparative advantage and absolute advantage stem from ✔✔factor endowments
theory that the wealth of the world is fixed and that a nation that imports more and exports less
will be richer ✔✔mercantilism
, stage of the product life cycle where production of a new product that commands a price premium
will concentrate in the US ✔✔new
stage of the product life cycle where demand and ability to produce grow in other developed
nations ✔✔maturing
stage of the product life cycle where the previously new product is commoditized and production
will now move to low-cost developing nations ✔✔standardized
comparative advantage may change over time because patterns of ______ change over time
✔✔trade
theory that suggests that intervention by governments in certain industries can enhance their odds
for international success ✔✔strategic trade
if a company seeks to limit foreign exchange rate exposure in the forward direction, what is the
most effective way to do this? ✔✔currency hedging
exchange rate risk associating with the time delay between entering a contract and settling it
✔✔transaction risk
forward transaction that protects traders and investors from exposure to fluctuations of the spot
rate ✔✔hedging
a means of spreading out activities in different currency zones in order to offset the currency losses
in certain regions through gains in other regions ✔✔strategic heding
amount of resources committed to entering a foreign market ✔✔scale of entry
