UPDATED 2024/2025 C211 OA Questions and answers
With Complete Solution Graded and Already Passed.
new - ANSWER view that claims phenomenon of globalization was initially driven
by the desire of Western economies to exploit their power through MNE's
evolutionary - ANSWER 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
Pendulum - ANSWER view that claims globalization is swinging from one extreme
to another from time to time
foreign direct investment - ANSWER investment in, controlling, and managing
value-added activities in other countries
Radical - ANSWER political view hostile to FDI. believes it is an instrument of
imperialism and vehicle for exploitation of domestic resources by foreign capitalists
and firms
free market - ANSWER 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
pragmatic nationalism - ANSWER views FDI as having pros and cons and only
approving FDI when its benefits outweigh costs
what benefits exist to a country receiving FDI? - ANSWER capital inflow,
technology spillovers, advanced management know-how, creates jobs
what costs exist to a country receiving FDI? - ANSWER loss of sovereignty,
adverse effects on competition, net outflow in the capital account
balance of trade - ANSWER The aggregation of importing and exporting that leads
to the country-level trade surplus or deficit.
firms with a _____ degree of resource similarity are likely to have similar competitive
actions - ANSWER high
a high degree of resource similarity but low market commonality = _______ intensity
of rivalry - ANSWER highest
little resource similarity but high market commonality = _____ intensity of rivalry -
ANSWER lowest
mercantilism, absolute advantage and comparative advantage belong to what theory
of international trade - ANSWER classical
, theory of international trade that relies on more realistic product life cycles and first
mover advantages - ANSWER modern
under free trade, a nation gains by specializing in economic activities in which it has
_____advantage - ANSWER 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 -
ANSWER comparative
comparative advantage and absolute advantage stem from - ANSWER factor
endowments
theory that the wealth of the world is fixed and that a nation that imports more and
exports less will be richer - ANSWER mercantilism
stage of the product life cycle where production of a new product that commands a
price premium will concentrate in the US - ANSWER new
stage of the product life cycle where demand and ability to produce grow in other
developed nations - ANSWER maturing
stage of the product life cycle where the previously new product is commoditized and
production will now move to low-cost developing nations - ANSWER standardized
comparative advantage may change over time because patterns of ______ change
over time - ANSWER trade
theory that suggests that intervention by governments in certain industries can
enhance their odds for international success - ANSWER 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? - ANSWER currency hedging
exchange rate risk associating with the time delay between entering a contract and
settling it - ANSWER transaction risk
forward transaction that protects traders and investors from exposure to fluctuations
of the spot rate - ANSWER 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 - ANSWER
strategic heding
amount of resources committed to entering a foreign market - ANSWER scale of
entry
how do institutions reduce uncertainty? - ANSWER by signaling which conduct is
legit and which is not
With Complete Solution Graded and Already Passed.
new - ANSWER view that claims phenomenon of globalization was initially driven
by the desire of Western economies to exploit their power through MNE's
evolutionary - ANSWER 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
Pendulum - ANSWER view that claims globalization is swinging from one extreme
to another from time to time
foreign direct investment - ANSWER investment in, controlling, and managing
value-added activities in other countries
Radical - ANSWER political view hostile to FDI. believes it is an instrument of
imperialism and vehicle for exploitation of domestic resources by foreign capitalists
and firms
free market - ANSWER 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
pragmatic nationalism - ANSWER views FDI as having pros and cons and only
approving FDI when its benefits outweigh costs
what benefits exist to a country receiving FDI? - ANSWER capital inflow,
technology spillovers, advanced management know-how, creates jobs
what costs exist to a country receiving FDI? - ANSWER loss of sovereignty,
adverse effects on competition, net outflow in the capital account
balance of trade - ANSWER The aggregation of importing and exporting that leads
to the country-level trade surplus or deficit.
firms with a _____ degree of resource similarity are likely to have similar competitive
actions - ANSWER high
a high degree of resource similarity but low market commonality = _______ intensity
of rivalry - ANSWER highest
little resource similarity but high market commonality = _____ intensity of rivalry -
ANSWER lowest
mercantilism, absolute advantage and comparative advantage belong to what theory
of international trade - ANSWER classical
, theory of international trade that relies on more realistic product life cycles and first
mover advantages - ANSWER modern
under free trade, a nation gains by specializing in economic activities in which it has
_____advantage - ANSWER 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 -
ANSWER comparative
comparative advantage and absolute advantage stem from - ANSWER factor
endowments
theory that the wealth of the world is fixed and that a nation that imports more and
exports less will be richer - ANSWER mercantilism
stage of the product life cycle where production of a new product that commands a
price premium will concentrate in the US - ANSWER new
stage of the product life cycle where demand and ability to produce grow in other
developed nations - ANSWER maturing
stage of the product life cycle where the previously new product is commoditized and
production will now move to low-cost developing nations - ANSWER standardized
comparative advantage may change over time because patterns of ______ change
over time - ANSWER trade
theory that suggests that intervention by governments in certain industries can
enhance their odds for international success - ANSWER 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? - ANSWER currency hedging
exchange rate risk associating with the time delay between entering a contract and
settling it - ANSWER transaction risk
forward transaction that protects traders and investors from exposure to fluctuations
of the spot rate - ANSWER 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 - ANSWER
strategic heding
amount of resources committed to entering a foreign market - ANSWER scale of
entry
how do institutions reduce uncertainty? - ANSWER by signaling which conduct is
legit and which is not
