4. Which political view of foreign direct investment (FDI) is most widely used by governments in the current international business environment? Radicalism Protectionism Communism nationalism 5. Which factors predict the degree of rivalry between a pair of competitors? 2 choices Market commonality Cost structure Resource similarity Organizational structure 6. Which factors predicts how local firms in emerging economics will respond to multinational competitors? Competitive assets and industry pressures to globalize Formal and informal institutions Market dominance and market fragmentation Cooperation and signaling 7. During which stage of the product life cycle do sales and profits gradually increase before seeing more dramatic increases? Introduction ALL THE BEST Maturity Growth Decline 8. Which factor determines the foreign exchange rate any currency? Universal trade of the currency Supply and demand for the currency The age of the currency Business economics of the currency 9. Which risk must a corporation minimize if it is to effectively manage short-term currency fluctuations? Beta risk Hedging Alpha risk Transaction risk 10. 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? Clean float rate policy Fixed rate policy Flexible rate policy Floating rate policy 11. Which term refers to trading currencies and currency derivatives in order to earn profits and help make prices efficient? Investing Day trading Speculation 12. Which type of advantage is gained by a company based on where it operates? ALL THE BEST Lifecycle-specific Innovation-specific Institution-specific Location-specific 13. Who gains from erecting significant entry barriers for other entrants? Late mover Early movers Laggard First movers 14. Which strategy for entering into a foreign market has the lowest degree of risk? Wholly-owned subsidiary Joint venture Foreign acquisition Licensing 15. What is a non-equity mode involving some type of contractual agreement? Minority joint venturing Direct exporting Licensing Acquisition 16. 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? Informal institution Nongovernmental organization Formal institution ALL THE BEST Government agency 17. 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? NAFTA ASEAN AMEA Mercosur 18. What is one of the core propositions underpinning an institution-based view of global business? A political system should establish controls of the financial sector Countries should provide tariff protection If formal constraints are not in place, the informal constraints will guide decision making Investment in infrastructure provides a multiplier effect in a developing economy 19. What is one of the core propositions underpinning an institution-based view of global business? Investment in infrastructure provides a multiplier effect in a developing economy Government should provide tariff protection Managers and corporations make rational decisions within their formal and informal framework A political system should establish controls of the financial sector 20. Which type of system allows businesses to be privately owned with a strong individualistic profit orientation? Market economy Democracy Command economy Totalitarianism 21. Which legal system is based on a religious document and religious teachings? Property law