4. Which political view of foreign direct investment FDI is most widely used by governments in the current

C211

• Which political view of foreign direct investment (FDI) is most widely used by governments in the current

international business environment?Radicalism Protectionism Communism nationalism

• Which factors predict the degree of rivalry between a pair of competitors? 2 choices

Market commonality Cost structure Resource similarity Organizational structure

• 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

• During which stage of the product life cycle do sales and profits gradually increase before seeing more

dramatic increases?Introduction Maturity Growth Decline

• 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

• Which risk must a corporation minimize if it is to effectively manage short-term currency fluctuations?

Beta risk Hedging Alpha risk Transaction risk

• 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

• Which term refers to trading currencies and currency derivatives in order to earn profits and help make

prices efficient?Investing Brokering This study source was downloaded by 100000843774152 from CourseHero.com on 11-19-2022 18:51:05 GMT -06:00

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2022 WGU C211 OA Global Economics Exam Review Questions and Answers 1 / 2

Day trading Speculation

• Which type of advantage is gained by a company based on where it operates?

Lifecycle-specific Innovation-specific Institution-specific Location-specific

• Who gains from erecting significant entry barriers for other entrants?

Late mover Early movers Laggard First movers

• Which strategy for entering into a foreign market has the lowest degree of risk?

Wholly-owned subsidiary Joint venture Foreign acquisition Licensing

• What is a non-equity mode involving some type of contractual agreement?

Minority joint venturing Direct exporting Licensing Acquisition

• After the Lehman Brothers collapse, the federal Reserve stood ready to lend financial institutions

funds. When the Federal reserve did this, it was acting in its role as a lender of last resort. Which type of group has this role?Informal institution Nongovernmental organization Formal institution Government agency

• What is the comprehensive free-trade settlement among Canada, US, and Mexico, that addresses

issues of protecting workers rights, the environment and reducing tariffs and non-tariff trade barriers?

NAFTA ASEAN AMEA Mercosur

• What is one of the core propositions underpinning an institution-based view of global business?

A political system should establish controls of the financial sector Countries should provide tariff protection If formal constraints are not in place, the informal constraints will guide decision making Investment in infrastructure provides a multiplier effect in a developing economy

• What is one of the core propositions underpinning an institution-based view of global business?

Investment in infrastructure provides a multiplier effect in a developing economy Government should provide tariff protection Managers and corporations make rational decisions within their formal and informal framework This study source was downloaded by 100000843774152 from CourseHero.com on 11-19-2022 18:51:05 GMT -06:00 https://www.coursehero.com/file/102537079/C211-OAdocx/

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