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C211 OA - Global Economics (C211)
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Partial OA
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Which political view of foreign direct investment (FDI) is most widely used by governments in the
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current international business environment?
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Radicalism
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Protectionism
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Communism
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nationalism sh
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Which factors predict the degree of rivalry between a pair of competitors? 2 choices
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Market commonality
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Cost structure
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Resource similarity
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Organizational structure
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Which factors predicts how local firms in emerging economics will respond to multinational competitors?
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Competitive assets and industry pressures to globalize
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Formal and informal institutions
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Market dominance and market fragmentation
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Cooperation and signaling
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During which stage of the product life cycle do sales and profits gradually increase before seeing more
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dramatic increases?
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Introduction
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Maturity
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Growth
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Decline
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Which factor determines the foreign exchange rate any currency?
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Universal trade of the currency
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Supply and demand for the currency
The age of the currency
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, lOMoAR cPSD| 15424936
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Business economics of the currency
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Which risk must a corporation minimize if it is to effectively manage short-term currency fluctuations?
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Beta risk la
Hedging
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Alpha risk
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Transaction risk
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Which policy does a country use to determine the exchange rate of their currency in relationship to
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another country's currency if they do not rely on market forces?
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Clean float rate policy
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Fixed rate policy
Flexible rate policy
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Floating rate policy
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Which term refers to trading currencies and currency derivatives in order to earn profits and help make
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prices efficient?
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Investing
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Brokering
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Day trading
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Speculation
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