CORRECT WELL DETAILED

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CORRECT WELL DETAILED

ANSWERS|LATEST

UPDATE!!!!2025/2026|GUARANTEED

View that claims phenomenon of globalization was initially driven by the desire of Western economies to exploit their power through MNE's - ANSWER new

View that claims globalization is a long-run historical evolution since the dawn of humanity.Says it is nothing new and that it will always exist - ANSWER evolutionary

View that claims globalization is swinging from one extreme to another from time to time - ANSWER pendulum

Investment in, controlling, and managing value-added activities in other countries - ANSWER foreign direct investment

Political view hostile to FDI. Believes it is an instrument of imperialism and vehicle for exploitation of domestic resources by foreign capitalists and firms - ANSWER radical

Suggests that FDI, unrestricted by government intervention, will enable countries to tap into their absolute or comparative advantages by specializing in the production of certain goods and services - ANSWER free market

Views FDI as having pros and cons and only approving FDI when its benefits outweigh costs - ANSWER pragmatic nationalis

What benefits exist to a country receiving FDI? - ANSWER capital inflow, technology spillovers, advanced management know-how, creates jobs 1 / 3

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What costs exist to a country receiving FDI? - ANSWER loss of sovereignty, adverse effects on competition, net outflow in the capital account

The aggregation of importing and exporting that leads to the country-level trade surplus or deficit. - ANSWER balance of trade

Firms with a _____ degree of resource similarity are likely to have similar competitive actions - ANSWER high

A high degree of resource similarity but low market commonality = _______ intensity of rivalry - ANSWER highest

Little resource similarity but high market commonality = _____ intensity of rivalry - ANSWER lowest

Mercantilism, absolute advantage and comparative advantage belong to what theory of international trade - ANSWER classical

Theory of international trade that relies on more realistic product life cycles and first mover advantages - ANSWER modern

Under free trade, a nation gains by specializing in economic activities in which it has _____advantage - ANSWER absolute

Focuses on the idea that if a country does not have absolute advantage, they can still choose to specialize in the production of one good where it has ______ advantage - ANSWER comparative

Comparative advantage and absolute advantage stem from - ANSWER factor endowments 2 / 3

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Theory that the wealth of the world is fixed and that a nation that imports more and exports less will be richer - ANSWER mercantilism

Stage of the product life cycle where production of a new product that commands a price premium will concentrate in the US - ANSWER new

Stage of the product life cycle where demand and ability to produce grow in other developed nations - ANSWER maturing

Stage of the product life cycle where the previously new product is commoditized and production will now move to low-cost developing nations - ANSWER standardized

Comparative advantage may change over time because patterns of ______ change over time

• ANSWER trade

Theory that suggests that intervention by governments in certain industries can enhance their odds for international success - ANSWER strategic trade

If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the most effective way to do this? - ANSWER currency hedging

Exchange rate risk associating with the time delay between entering a contract and settling it

• ANSWER transaction risk

Forward transaction that protects traders and investors from exposure to fluctuations of the spot rate - ANSWER hedging

A means of spreading out activities in different currency zones in order to offset the currency losses in certain regions through gains in other regions - ANSWER strategic heding

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