combo C211 Questions and Answers
1. Which view claims that the phenomenon of globalization was initially driven by the desire of Western
economies to exploit their power through multina- tional enterprises?: The new-force view
2. Economic gains come from international trade because one country's ex- ported goods, services, or other
items are unique, valuable, and difficult to duplicate to the importing countries: Resource-based view
3. What is the aggregation of importing and exporting that leads to the coun- try-level trade surplus or deficit?:
Balance of trade
4. What is a cost of foreign direct investment?: Developing countries may be exploited by multinational
enterprises (MNE).
5. What may precious, rare, and hard-to-duplicate resources and capabilities lead to for a firm?: Sustained
comparative advantage
6. Which theory states that patterns of international trade change across new, maturing, and standardized
stages?: Product life cycle theory
7. What is the financial environment in which exchange rates and payments for goods and services are
conducted?: International monetary system
8. What happens to a country's real exchange rate and nominal interest rate as the price level increases,
assuming all other factors are unchanged?: Ex- change rates fall and interest rates rise.
9. What is the easiest method nonfinancial companies use to handle currency fluctuations?: Currency
diversification
10.Which strategy minimizes the risk of unanticipated changes in future exchange rates?: Currency swap
11.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?: Innovation-seek- ing
12.What advantage comes with not sharing benefits with late entrants?: -
First-mover advantage
13.Which entry mode is a non-equity arrangement for a company contemplat- ing entry into a foreign market?:
Licensing
14.What size commitment is required for a non-equity mode of entry into a foreign market?: Small
commitment
15.What are two supportive pillars for an informal institution?
Choose 2 answers: Cognitive. Normative.
16.What is the key role of an institution, according to the institution-based view?: To reduce uncertainty
, combo C211 Questions and Answers
17.What are the rules, enforcement mechanisms, and organizations that sup- port market transactions?:
Institutions
18.What is a core proposition underpinning an institutional-based view of global business?: Bounded
rationality
19. In which type of political system do citizens elect representatives to govern the country on their behalf?:
Democracy
20.Which legal system uses comprehensive lists of rules and written codes?-
: Civil law
21.What are the legal privileges associated with the use of economic property to obtain income and other
benefits from its use?: Property rights
22.What is the purpose of having property rights and intellectual property rights?: To legally protect the use of
tangible and intangible property and allow its lawful owner to derive income and other benefits from it
23.What are the two polar types of economies?
Choose 2 answers: Centrally planned economies. Market economies.
24.In addition to encouraging efficiency, why might a government intervene in a market?: To promote equality
25.What is the relationship between total and marginal cost?: Marginal cost is the change in total cost divided by
the change in quantity.
26.A farmer sells wheat in a perfectly competitive market.
Which action should the farmer take to maximize profits?: Produce the quantity where the price equals the farmer's
marginal cost
27.What is the economic profit of a competitive firm?: The difference between total revenue and total cost
28.Which condition applies when a competitive firm decides to temporarily shut down?: Average variable
costs are above the price.
29.What is the producer's demand curve if the producer sells a differentiated product?: Downward sloping
30.Which statement describes a competitive firm's demand curve?: It is more elastic than a monopoly's demand
curve.
31.What is the point at which a monopoly maximizes profit?: Where marginal cost equals marginal revenue
32.What is a characteristic of monopolistic competition?: Many firms and differentiated products
33.What is a likely outcome of the standard prisoner's dilemma game?: Both prisoners confess.
1. Which view claims that the phenomenon of globalization was initially driven by the desire of Western
economies to exploit their power through multina- tional enterprises?: The new-force view
2. Economic gains come from international trade because one country's ex- ported goods, services, or other
items are unique, valuable, and difficult to duplicate to the importing countries: Resource-based view
3. What is the aggregation of importing and exporting that leads to the coun- try-level trade surplus or deficit?:
Balance of trade
4. What is a cost of foreign direct investment?: Developing countries may be exploited by multinational
enterprises (MNE).
5. What may precious, rare, and hard-to-duplicate resources and capabilities lead to for a firm?: Sustained
comparative advantage
6. Which theory states that patterns of international trade change across new, maturing, and standardized
stages?: Product life cycle theory
7. What is the financial environment in which exchange rates and payments for goods and services are
conducted?: International monetary system
8. What happens to a country's real exchange rate and nominal interest rate as the price level increases,
assuming all other factors are unchanged?: Ex- change rates fall and interest rates rise.
9. What is the easiest method nonfinancial companies use to handle currency fluctuations?: Currency
diversification
10.Which strategy minimizes the risk of unanticipated changes in future exchange rates?: Currency swap
11.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?: Innovation-seek- ing
12.What advantage comes with not sharing benefits with late entrants?: -
First-mover advantage
13.Which entry mode is a non-equity arrangement for a company contemplat- ing entry into a foreign market?:
Licensing
14.What size commitment is required for a non-equity mode of entry into a foreign market?: Small
commitment
15.What are two supportive pillars for an informal institution?
Choose 2 answers: Cognitive. Normative.
16.What is the key role of an institution, according to the institution-based view?: To reduce uncertainty
, combo C211 Questions and Answers
17.What are the rules, enforcement mechanisms, and organizations that sup- port market transactions?:
Institutions
18.What is a core proposition underpinning an institutional-based view of global business?: Bounded
rationality
19. In which type of political system do citizens elect representatives to govern the country on their behalf?:
Democracy
20.Which legal system uses comprehensive lists of rules and written codes?-
: Civil law
21.What are the legal privileges associated with the use of economic property to obtain income and other
benefits from its use?: Property rights
22.What is the purpose of having property rights and intellectual property rights?: To legally protect the use of
tangible and intangible property and allow its lawful owner to derive income and other benefits from it
23.What are the two polar types of economies?
Choose 2 answers: Centrally planned economies. Market economies.
24.In addition to encouraging efficiency, why might a government intervene in a market?: To promote equality
25.What is the relationship between total and marginal cost?: Marginal cost is the change in total cost divided by
the change in quantity.
26.A farmer sells wheat in a perfectly competitive market.
Which action should the farmer take to maximize profits?: Produce the quantity where the price equals the farmer's
marginal cost
27.What is the economic profit of a competitive firm?: The difference between total revenue and total cost
28.Which condition applies when a competitive firm decides to temporarily shut down?: Average variable
costs are above the price.
29.What is the producer's demand curve if the producer sells a differentiated product?: Downward sloping
30.Which statement describes a competitive firm's demand curve?: It is more elastic than a monopoly's demand
curve.
31.What is the point at which a monopoly maximizes profit?: Where marginal cost equals marginal revenue
32.What is a characteristic of monopolistic competition?: Many firms and differentiated products
33.What is a likely outcome of the standard prisoner's dilemma game?: Both prisoners confess.
