C211-Global Economics for Managers (OA) Exam

1. Which two phrases represent the views of globalization? Choose two answers. a. A pendulum that swings from one extreme to another b. A competition among key financial centers and markets c. A continuing force sweeping through the world d. An unplanned result of corporate responses to a variety of opportunities e. A trading of goods and services between the most and least regulated countries 2. What are two trade barriers? Choose two answers. a. Nontariffs b. Foreign languages c. The ocean d. Tariffs e. Shipping 3. What is the effect of tariff on a particular product for the country imposing the tariff? a. Increases domestic production of the product b. Decreases the deadweight cost of the country c. Increases domestic consumption of the product d. Decreases government trade revenues 4. Which benefits come to the host country as a result of foreign direct investment? Choose two answers. a. Sovereign stability b. Capital outflow c. Domestic resource allocation d. Creation of domestic jobs 5. Which characteristic of firm resources affects competitive dynamics? a. Tractability b. Divisibility c. Imitability d. Intensity 6. Which characteristic of firm resources affects competitive dynamics, according to the VRIO framework? a. Variability b. Optimization c. Interpretability d. Rarity 7. Which theory is the forerunner to modern-day protectionism? a. Free trade b. Mercantilism c. Absolute advantage d. Comparative advantage 8. Which aspect creates the daily changes in a country’s exchange rate? a. Currency supply and demand b. Level of domestic output c. Balance of payments d. Domestic employment level 9. Which risk must a corporation minimize to effectively manage short-term currency fluctuations? a. Alpha risk b. Transaction risk c. Beta risk d. Asymmetric risk