Views on Globalization - correct answer ✅New, Evolutionary, and Pendulum
"New" view on globalization - correct answer ✅A force sweeping through the
... [Show More] world in recent times.
"Evolutionary" view on globalization - correct answer ✅A long-run historical evolution since the dawn of human history
"Pendulum" view on globalization - correct answer ✅One that swings from one extreme to another from time to time
Foreign Direct Investment - correct answer ✅Direct investment in, control, and management of value-added activities in other countries
Political views on FDI - correct answer ✅Radical View, Free Market View, Pragmatic Nationalism
Benefits to a country receiving FDI - correct answer ✅Capital Inflow, Technology Spillover, Advanced Management Know-How, Job creation
Costs to a country receiving FDI - correct answer ✅Loss of Sovereignty, Adverse effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business? - correct answer ✅Resource similarity and market commonality can yield a powerful framework for competitor analysis.
Resource similarity - correct answer ✅The extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm.
How does resource similarity impact competitive dynamics? - correct answer ✅Firms with a high degree are likely to have similar competitive actions. (Starbuck's instant coffee & McDonald's iced coffee)
Classical theories of international trade - correct answer ✅Mercantilism, Absolute advantage, and Comparative advantage
Modern theory view - correct answer ✅Dynamic
Classical theory view - correct answer ✅Static
Absolute advantage - correct answer ✅The economic advantage one nation enjoys that is superior to other nations
Comparative advantage - correct answer ✅The advantage one economic activity nation enjoys in comparison with other nations (relative, not absolute)
Mercantilism - correct answer ✅A theory that suggests that the wealth of the world is fixed and that a nation that exports more and imports less will be richer.
Features of the product life cycle? - correct answer ✅New, Maturing, and Standardized
Strategic trade - correct answer ✅Intervention by governments in certain industries can enhance their odds for international success.
How are supply and demand related to the exchange rate of a country? - correct answer ✅The price of a commodity, a country's currency, is fundamentally determined by this. Strong demand leads to price hikes; oversupply results in price drops.
Which theory came first? - correct answer ✅Mercantilism (although both are of the idea that governments should actively protect domestic industries from imports and vigorously promote exports)
If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the most effective way to do this? - correct answer ✅Forward transactions, an act know as currency hedging.
Transaction risk - correct answer ✅The exchange rate risk associated with the time delay between entering into a contract and settling [Show Less]