OA Global
Economics
Exam
2023/2024
Q&A
, C211
4. Which political view of foreign direct investment (FDI) is most widely used by governments in the
current international business environment?
Radicalism
Protectionism
Communism
nationalism
5. Which factors predict the degree of rivalry between a pair of competitors? 2
choices Market commonality
Cost structure
Resource similarity
Organizational structure
6. Which factors predicts how local firms in emerging economics will respond to multinational
competitors? Competitive assets and industry pressures to globalize
Formal and informal institutions
Market dominance and market fragmentation
Cooperation and signaling
7. During which stage of the product life cycle do sales and profits gradually increase before seeing
more dramatic increases?
Introduction
Maturity
Growth
Decline
8. Which factor determines the foreign exchange rate any
currency? Universal trade of the currency
Supply and demand for the currency
The age of the currency
Business economics of the currency
9. Which risk must a corporation minimize if it is to effectively manage short-term currency
fluctuations? Beta risk
Hedging
Alpha risk
Transaction
risk
10. Which policy does a country use to determine the exchange rate of their currency in relationship
to another country's currency if they do not rely on market forces?
Clean float rate policy
Fixed rate policy
Flexible rate policy
Floating rate policy
11. Which term refers to trading currencies and currency derivatives in order to earn profits and help
make prices efficient?
Investing
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