C211 Second OA quizzes Complete
Questions And Answers
The term "emerging economies" has replaced the term _____. CORRECT ANSWERS
Developing countries
The gross domestic product plus the income from non-resident sources abroad gives
the ____. CORRECT ANSWERS gross national product
More than 25% of global GDP comes from _____. CORRECT ANSWERS BRICS
countries
Viewing the global economy as a pyramid, the Triad refers to _____. CORRECT
ANSWERS North America, Western Europe, and Japan
People who earn _____ a year comprise the base of the global economic pyramid.
CORRECT ANSWERS less than $2,000
Which of the following would be an example of a top down innovation? CORRECT
ANSWERS Lowering prices and features of existing products to meet emerging market
needs
Which of the following is true of the Group of 20 (G-20)? CORRECT ANSWERS It only
has 19 member countries.
Which of the following does the institution-based view of global business lay emphasis
on? CORRECT ANSWERS Understanding the laws and values of the firm's host nation.
The resource-based view of global business differs from the institution-based view of
global business in that the resource-based view _____. CORRECT ANSWERS focuses
on the internal strengths on the firm
The liability of foreignness is the inherent disadvantage faced by _____. CORRECT
ANSWERS foreign firms in host nations due to their non-native status
Which of the following is true of globalization according to the "new force" perspective?
CORRECT ANSWERS It is a western ideology focused on exploiting and dominating
the world through MNEs
The concept of _____ suggests that barriers to market integration at borders are high,
but not high enough to completely insulate countries from each other. CORRECT
ANSWERS Semiglobalization
,The strategy of treating each country as a unique market and in total isolation is referred
to as _____. CORRECT ANSWERS Localization
MNEs from the Triad dominate the list of the 500 largest MNEs; their share has been
_____. CORRECT ANSWERS Shrinking
A conversion that determines the equivalent amount of goods and services that different
currencies can buy is known as _____. CORRECT ANSWERS purchasing power parity
Which of the following countries would be characterized as an emerging economy?
CORRECT ANSWERS Brazil
Which of the following countries is represented in the Triad of the global economic
pyramid? CORRECT ANSWERS Japan
People who earn _____ a year comprise the base of the global economic pyramid.
CORRECT ANSWERS less than $2,000
A _____ is defined as an innovation that is adopted first in emerging economies and
then diffused around the world. CORRECT ANSWERS reverse innovation
The _____ view suggests that the success and failure of firms are largely determined by
their environments. CORRECT ANSWERS institution-based
The _____ view of global business focuses on internal factors that can help a firm
overcome its external environment. CORRECT ANSWERS resource-based
Which of the following is true of globalization according to the "pendulum view"
perspective? CORRECT ANSWERS Globalization is a not a one-directional
phenomenon
The concept of _____ suggests that barriers to market integration at borders are high,
but not high enough to completely insulate countries from each other. CORRECT
ANSWERS semiglobalization
_____ is the strategy of treating the entire world as one market. CORRECT ANSWERS
Standardization
Protectionism is similar to mercantilism as they both advocated _____. CORRECT
ANSWERS government involvement in international trade
The _____ principle advocated that governments should actively protect domestic
industries from imports and vigorously promote exports. CORRECT ANSWERS
Protectionism
, Which of the following is a modern trade theory? CORRECT ANSWERS National
competitive advantage
Which of the following trade theories divides the nations of the world into three
categories? CORRECT ANSWERS Product life cycle
Which of the following was the first international trade theory to account for changes in
the patterns of trade over time? CORRECT ANSWERS Product life cycle theory
In the third stage of the product life cycle theory, the _____. CORRECT ANSWERS
product is standardized
Which of the following describes resource mobility as assumed by the classical theories
of international trade? CORRECT ANSWERS It is the assumption that a resource used
in producing a product for one industry can be shifted and put to use in another industry
The theory of comparative advantage _____. CORRECT ANSWERS explains patterns
of trade based on factor endowments
Deadweight costs are net losses that occur when _____ are imposed. CORRECT
ANSWERS import tariffs
_____ are government payments to domestic firms. CORRECT ANSWERS Subsidies
Which of the following is true of voluntary export restraints? CORRECT ANSWERS It is
an export quota levied by a country on the quantity of its exports.
_____ are tariffs levied on imports sold below costs to drive domestic firms out of
business. CORRECT ANSWERS Antidumping duties
FPI refers to the _____. CORRECT ANSWERS investment in a portfolio of foreign
securities that do not entail the active management of foreign assets
A vertical FDI refers to a type of FDI in which _____. CORRECT ANSWERS a firm
moves upstream or downstream at different value chain stages in a host country
_____ refers to the total accumulation of inbound FDI in a country or outbound FDI from
a country. CORRECT ANSWERS FDI stock
OLI advantages refer to a firm's quest for _____via FDI. CORRECT ANSWERS
ownership advantages, location advantages, and internalization advantages
____ refers to the replacement of cross-border markets with one firm locating in two or
more countries. CORRECT ANSWERS Internalization
Questions And Answers
The term "emerging economies" has replaced the term _____. CORRECT ANSWERS
Developing countries
The gross domestic product plus the income from non-resident sources abroad gives
the ____. CORRECT ANSWERS gross national product
More than 25% of global GDP comes from _____. CORRECT ANSWERS BRICS
countries
Viewing the global economy as a pyramid, the Triad refers to _____. CORRECT
ANSWERS North America, Western Europe, and Japan
People who earn _____ a year comprise the base of the global economic pyramid.
CORRECT ANSWERS less than $2,000
Which of the following would be an example of a top down innovation? CORRECT
ANSWERS Lowering prices and features of existing products to meet emerging market
needs
Which of the following is true of the Group of 20 (G-20)? CORRECT ANSWERS It only
has 19 member countries.
Which of the following does the institution-based view of global business lay emphasis
on? CORRECT ANSWERS Understanding the laws and values of the firm's host nation.
The resource-based view of global business differs from the institution-based view of
global business in that the resource-based view _____. CORRECT ANSWERS focuses
on the internal strengths on the firm
The liability of foreignness is the inherent disadvantage faced by _____. CORRECT
ANSWERS foreign firms in host nations due to their non-native status
Which of the following is true of globalization according to the "new force" perspective?
CORRECT ANSWERS It is a western ideology focused on exploiting and dominating
the world through MNEs
The concept of _____ suggests that barriers to market integration at borders are high,
but not high enough to completely insulate countries from each other. CORRECT
ANSWERS Semiglobalization
,The strategy of treating each country as a unique market and in total isolation is referred
to as _____. CORRECT ANSWERS Localization
MNEs from the Triad dominate the list of the 500 largest MNEs; their share has been
_____. CORRECT ANSWERS Shrinking
A conversion that determines the equivalent amount of goods and services that different
currencies can buy is known as _____. CORRECT ANSWERS purchasing power parity
Which of the following countries would be characterized as an emerging economy?
CORRECT ANSWERS Brazil
Which of the following countries is represented in the Triad of the global economic
pyramid? CORRECT ANSWERS Japan
People who earn _____ a year comprise the base of the global economic pyramid.
CORRECT ANSWERS less than $2,000
A _____ is defined as an innovation that is adopted first in emerging economies and
then diffused around the world. CORRECT ANSWERS reverse innovation
The _____ view suggests that the success and failure of firms are largely determined by
their environments. CORRECT ANSWERS institution-based
The _____ view of global business focuses on internal factors that can help a firm
overcome its external environment. CORRECT ANSWERS resource-based
Which of the following is true of globalization according to the "pendulum view"
perspective? CORRECT ANSWERS Globalization is a not a one-directional
phenomenon
The concept of _____ suggests that barriers to market integration at borders are high,
but not high enough to completely insulate countries from each other. CORRECT
ANSWERS semiglobalization
_____ is the strategy of treating the entire world as one market. CORRECT ANSWERS
Standardization
Protectionism is similar to mercantilism as they both advocated _____. CORRECT
ANSWERS government involvement in international trade
The _____ principle advocated that governments should actively protect domestic
industries from imports and vigorously promote exports. CORRECT ANSWERS
Protectionism
, Which of the following is a modern trade theory? CORRECT ANSWERS National
competitive advantage
Which of the following trade theories divides the nations of the world into three
categories? CORRECT ANSWERS Product life cycle
Which of the following was the first international trade theory to account for changes in
the patterns of trade over time? CORRECT ANSWERS Product life cycle theory
In the third stage of the product life cycle theory, the _____. CORRECT ANSWERS
product is standardized
Which of the following describes resource mobility as assumed by the classical theories
of international trade? CORRECT ANSWERS It is the assumption that a resource used
in producing a product for one industry can be shifted and put to use in another industry
The theory of comparative advantage _____. CORRECT ANSWERS explains patterns
of trade based on factor endowments
Deadweight costs are net losses that occur when _____ are imposed. CORRECT
ANSWERS import tariffs
_____ are government payments to domestic firms. CORRECT ANSWERS Subsidies
Which of the following is true of voluntary export restraints? CORRECT ANSWERS It is
an export quota levied by a country on the quantity of its exports.
_____ are tariffs levied on imports sold below costs to drive domestic firms out of
business. CORRECT ANSWERS Antidumping duties
FPI refers to the _____. CORRECT ANSWERS investment in a portfolio of foreign
securities that do not entail the active management of foreign assets
A vertical FDI refers to a type of FDI in which _____. CORRECT ANSWERS a firm
moves upstream or downstream at different value chain stages in a host country
_____ refers to the total accumulation of inbound FDI in a country or outbound FDI from
a country. CORRECT ANSWERS FDI stock
OLI advantages refer to a firm's quest for _____via FDI. CORRECT ANSWERS
ownership advantages, location advantages, and internalization advantages
____ refers to the replacement of cross-border markets with one firm locating in two or
more countries. CORRECT ANSWERS Internalization
