PRE-ASSESSMENT: GLOBAL
ECONOMICS FOR MANAGERS (UZC2).
WGU C211.QUESTIONS AND CORRECT
ANSWERS ONLY GRADED A+ 2026.
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
1
, 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
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
2
ECONOMICS FOR MANAGERS (UZC2).
WGU C211.QUESTIONS AND CORRECT
ANSWERS ONLY GRADED A+ 2026.
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
1
, 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
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
2
