Which political view of foreign direct investment (FDI) is most widely used by governments in the current international business environment? - CORRECT ANSWER (pragmatic) Nationalism
Which factors predict the degree of rivalry between a pair of competitors? 2 choices - CORRECT ANSWER Mar...
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C211 OA Questions and answers 2023 With
Complete Solution Graded and Already
Passed.
Which political view of foreign direct investment (FDI) is most widely used by governments in the
current international business environment? - CORRECT ANSWER (pragmatic) Nationalism
Which factors predict the degree of rivalry between a pair of competitors? 2 choices - CORRECT
ANSWER Market commonality
Resource similarity
Which factors predicts how local firms in emerging economics will respond to multinational
competitors - CORRECT ANSWER Competitive assets and industry pressures to globalize
During which stage of the product life cycle do sales and profits gradually increase before seeing
more dramatic increases? - CORRECT ANSWER Growth
Which factor determines the foreign exchange rate any currency? - CORRECT ANSWER
Supply and demand for the currency
Which risk must a corporation minimize if it is to effectively manage short-term currency
fluctuations? - CORRECT ANSWER 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? - CORRECT ANSWER Fixed
rate policy
Which term refers to trading currencies and currency derivatives in order to earn profits and help
make prices efficient? - CORRECT ANSWER Brokering
Which type of advantage is gained by a company based on where it operates? - CORRECT
ANSWER Location-specific
Who gains from erecting significant entry barriers for other entrants? - CORRECT ANSWER
First movers
Which strategy for entering into a foreign market has the lowest degree of risk? - CORRECT
ANSWER Licensing
What is a non-equity mode involving some type of contractual agreement? - CORRECT
ANSWER Licensing
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? - CORRECT ANSWER Informal institution
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? - CORRECT ANSWER NAFTA
What is one of the core propositions underpinning an institution-based view of global business? -
CORRECT ANSWER If formal constraints are not in place, the informal constraints will guide
decision making
What is one of the core propositions underpinning an institution-based view of global business? -
CORRECT ANSWER Managers and corporations make rational decisions within their formal and
informal framework
Which type of system allows businesses to be privately owned with a strong individualistic profit
orientation? - CORRECT ANSWER Market Economy
Which legal system is based on a religious document and religious teachings? - CORRECT
ANSWER Theocratic Law
Which type of good has well-established property rights? - CORRECT ANSWER Private goods
Which activity disregards basic property rights? - CORRECT ANSWER Students play loud
music in the open area between dorms
What is one type of economy that uses the market system? - CORRECT ANSWER Mixed
economy
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