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Which view claims that the phenomenon of globalization was initially driven by the desire of Western economies to exploit their power through multinational enterprises? - ANSWER The new-force view
Economic gains come from international trade because one country's exported goods, services, or other items are unique, valuable, and difficult to duplicate to the importing countries - ANSWER Resource-based view
What is the aggregation of importing and exporting that leads to the country-level trade surplus or deficit? - ANSWER Balance of trade
What is a cost of foreign direct investment? - ANSWER Developing countries may be exploited by multinational enterprises (MNE).
What may precious, rare, and hard-to-duplicate resources and capabilities lead to for a firm?
- ANSWER Sustained comparative advantage
Which theory states that patterns of international trade change across new, maturing, and standardized stages? - ANSWER Product life cycle theory
What is the financial environment in which exchange rates and payments for goods and services are conducted? - ANSWER International monetary system 1 / 2
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What happens to a country's real exchange rate and nominal interest rate as the price level increases, assuming all other factors are unchanged? - ANSWER Exchange rates fall and interest rates rise.
What is the easiest method nonfinancial companies use to handle currency fluctuations? - ANSWER Currency diversification
Which strategy minimizes the risk of unanticipated changes in future exchange rates? - ANSWER Currency swap
A company is looking for a location with an abundance of ground-breaking individuals, firms, and universities.
Which type of strategic goal is this company demonstrating? - ANSWER Innovation- seeking
What advantage comes with not sharing benefits with late entrants? - ANSWER First- mover advantage
Which entry mode is a non-equity arrangement for a company contemplating entry into a foreign market? - ANSWER Licensing
What size commitment is required for a non-equity mode of entry into a foreign market? - ANSWER Small commitment
What are two supportive pillars for an informal institution?
Choose 2 ANSWERs - ANSWER Cognitive. Normative.
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