WGU C211 GLOBAL ECONOMICS FOR
MANAGERS 2026 FINAL EXAM
◉ Import quota. Answer: A limit on the number of products in
certain categories that a nation can import
◉ Emerging economy. Answer: Nations with social or business
activity in the process of rapid growth and industrialization
◉ Global economic pyramid. Answer: Pyramid that consists of all of
the world's economies, comprised of three parts
◉ New view of Globalization. Answer: New force of globalization
that started in the 20th Century, viewing Western expansion of
MNE's as vital to growth
◉ Reverse innovation. Answer: Innovations created for or by
emerging-economy markets and then imported to developed-
economy markets
◉ Evolutionary view of globalization. Answer: Long-run view of
globalization that states it has been with mankind since the
beginning
,◉ Pendulum view of globalization. Answer: View of globalization
which states it is neither recent or one-directional and is constantly
changing
◉ Trade deficit. Answer: A situation in which a country imports
more than it exports
◉ Export restraints. Answer: Limitations on the quantity of
exports—usually imposed by the exporting country at the importing
country's request
◉ Antidumping Policies. Answer: Designed to punish foreign firms
that engage in dumping and thus protect domestic producers from
unfair foreign competition
◉ Trade embargo. Answer: A government order that forbids trade
with a specified nation
◉ Bargaining power. Answer: The power of labor and management
to achieve their goals through economic, social, or political influence
◉ Horizontal FDI. Answer: A type of FDI in which a firm duplicates
its home country-based activities at the same value chain stage in a
host country
,◉ Agglomeration. Answer: Grouping together of many firms from
the same industry in a single area for collective or cooperative use of
infrastructure and sharing of labor resources
◉ Collusion. Answer: Secret agreement or cooperation used to
restrict competition
◉ Vertical FDI. Answer: A type of FDI in which a firm moves
upstream or downstream at different value chain stages in a host
country
◉ Trade surplus. Answer: A situation in which a country exports
more than it imports
◉ Foreign Direct Investment (FDI). Answer: Investment made by a
firm or individual in one country into business interest located in
another country; MNE's use this
◉ Multinational Enterprise (MNE). Answer: A firm that engages in
foreign direct investment (FDI) when doing business abroad
◉ Benefits received when receiving Foreign Direct Investment (FDI).
Answer: 1. Capital inflow improve the host country balance of
payment.
, 2. Technology, especially more advanced technology from abroad,
can create technology spillovers that benefits domestic firms and
industries. (Contagion effect)
3. Advanced management know how may be highly valued.
4. FDI creates jobs, both directly and indirectly.
◉ Costs incurred when receiving Foreign Direct Investment (FDI).
Answer: 1. Loss of sovereignty
2. Adverse effects on competition
3. Capital outflow
◉ Competitive dynamics. Answer: Actions and responses
undertaken by competing firms
◉ Resource similarity. Answer: Extent to which the firm's intangible
resources are comparable to a competitor's in terms of both type
and amount
◉ How resource similarity impacts competitive dynamics. Answer:
Firms with a high degree of resource similarity are likely to have
similar competitive actions
◉ Classic theory of international trade. Answer: Theory that states
that goods are exchanged against one another according to the
MANAGERS 2026 FINAL EXAM
◉ Import quota. Answer: A limit on the number of products in
certain categories that a nation can import
◉ Emerging economy. Answer: Nations with social or business
activity in the process of rapid growth and industrialization
◉ Global economic pyramid. Answer: Pyramid that consists of all of
the world's economies, comprised of three parts
◉ New view of Globalization. Answer: New force of globalization
that started in the 20th Century, viewing Western expansion of
MNE's as vital to growth
◉ Reverse innovation. Answer: Innovations created for or by
emerging-economy markets and then imported to developed-
economy markets
◉ Evolutionary view of globalization. Answer: Long-run view of
globalization that states it has been with mankind since the
beginning
,◉ Pendulum view of globalization. Answer: View of globalization
which states it is neither recent or one-directional and is constantly
changing
◉ Trade deficit. Answer: A situation in which a country imports
more than it exports
◉ Export restraints. Answer: Limitations on the quantity of
exports—usually imposed by the exporting country at the importing
country's request
◉ Antidumping Policies. Answer: Designed to punish foreign firms
that engage in dumping and thus protect domestic producers from
unfair foreign competition
◉ Trade embargo. Answer: A government order that forbids trade
with a specified nation
◉ Bargaining power. Answer: The power of labor and management
to achieve their goals through economic, social, or political influence
◉ Horizontal FDI. Answer: A type of FDI in which a firm duplicates
its home country-based activities at the same value chain stage in a
host country
,◉ Agglomeration. Answer: Grouping together of many firms from
the same industry in a single area for collective or cooperative use of
infrastructure and sharing of labor resources
◉ Collusion. Answer: Secret agreement or cooperation used to
restrict competition
◉ Vertical FDI. Answer: A type of FDI in which a firm moves
upstream or downstream at different value chain stages in a host
country
◉ Trade surplus. Answer: A situation in which a country exports
more than it imports
◉ Foreign Direct Investment (FDI). Answer: Investment made by a
firm or individual in one country into business interest located in
another country; MNE's use this
◉ Multinational Enterprise (MNE). Answer: A firm that engages in
foreign direct investment (FDI) when doing business abroad
◉ Benefits received when receiving Foreign Direct Investment (FDI).
Answer: 1. Capital inflow improve the host country balance of
payment.
, 2. Technology, especially more advanced technology from abroad,
can create technology spillovers that benefits domestic firms and
industries. (Contagion effect)
3. Advanced management know how may be highly valued.
4. FDI creates jobs, both directly and indirectly.
◉ Costs incurred when receiving Foreign Direct Investment (FDI).
Answer: 1. Loss of sovereignty
2. Adverse effects on competition
3. Capital outflow
◉ Competitive dynamics. Answer: Actions and responses
undertaken by competing firms
◉ Resource similarity. Answer: Extent to which the firm's intangible
resources are comparable to a competitor's in terms of both type
and amount
◉ How resource similarity impacts competitive dynamics. Answer:
Firms with a high degree of resource similarity are likely to have
similar competitive actions
◉ Classic theory of international trade. Answer: Theory that states
that goods are exchanged against one another according to the
