WGU C211 OA Global Economics Exam (2025 / 2026) Questions and Verified Answers, 100% Guarantee Pass

WGU C211 OA Global Economics Exam (2025 / 2026) Questions and Verified Answers, 100% Guarantee Pass Views on Globalization - ANSWER New, Evolutionary, and Pendulum "New" view on globalization - ANSWER A force sweeping through the world in recent times. "Evolutionary" view on globalization - ANSWER A long-run historical evolution since the dawn of human history "Pendulum" view on globalization - ANSWER One that swings from one extreme to another from time to time Foreign Direct Investment - ANSWER Direct investment in, control, and management of value-added activities in other countries Political views on FDI - ANSWER Radical View, Free Market View, Pragmatic Nationalism Benefits to a country receiving FDI - ANSWER Capital Inflow, Technology Spillover, Advanced Management Know-How, Job creation Costs to a country receiving FDI - ANSWER Loss of Sovereignty, Adverse effects on competition, Capital outflow. How do resources and capabilities influence the competitive dynamics of a business? - ANSWER Resource similarity and market commonality can yield a powerful framework for competitor analysis. Resource similarity - ANSWER The extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm. How does resource similarity impact competitive dynamics? - ANSWER Firms with a high degree are likely to have similar competitive actions. (Starbuck's instant coffee & McDonald's iced coffee) Classical theories of international trade - ANSWER Mercantilism, Absolute advantage, and Comparative advantage Modern theory view - ANSWER Dynamic Classical theory view - ANSWER Static Globalization - ANSWER Recent phenomenon sweeping the world. Evolutionary Globalization - ANSWER Ongoing historical process. Pendulum Globalization - ANSWER Swings between extremes of globalization and isolation. Foreign Direct Investment (FDI) - ANSWER Investment made by a company or individual in one country in business interests in another country. Radical View of FDI - ANSWER Hostile to FDI. Free Market View of FDI - ANSWER Minimal restrictions, win-win. Pragmatic Nationalism - ANSWER Weigh costs vs. benefits of FDI. FDI Pros - ANSWER Capital inflow, tech transfer, management skills, jobs. FDI Cons - ANSWER Loss of sovereignty, competition harm, capital outflow. Mercantilism - ANSWER Zero-sum game; export import. Absolute Advantage - ANSWER More efficient production. Comparative Advantage - ANSWER Lower opportunity cost. Product Life Cycle - ANSWER Shifts in location over time. Strategic Trade Theory - ANSWER Government intervention in trade. National Competitive Advantage (Diamond) - ANSWER Factor endowments, firm strategy, demand conditions, related/supporting industries. Currency Value - ANSWER Determined by supply and demand. Hedging - ANSWER Tools to reduce FX risk (forward transactions). Strategic Hedging - ANSWER Diversification across currencies. Indifference Curve - ANSWER All combos giving equal satisfaction. Budget Constraint - ANSWER Income limits. Optimal Consumption - ANSWER Where budget line = indifference curve. Marginal Cost (MC) - ANSWER Cost of producing one more unit. Average Total Cost (ATC) - ANSWER Fixed + Variable costs. Shutdown Rule - ANSWER Shut down if total revenue variable costs. Perfect Competition - ANSWER Price taker, identical products. Monopoly - ANSWER Price maker, barriers to entry. Monopolistic Competition - ANSWER Many sellers, product differentiation. Oligopoly - ANSWER Few sellers, interdependent (Prisoner's Dilemma). Price Elasticity - ANSWER Responsiveness to price changes. Income Elasticity - ANSWER Positive = normal good; Negative = inferior good. Cross-Price Elasticity - ANSWER Positive = substitutes; Negative = complements. GDP Components - ANSWER Consumption + Investment + Govt Spending + Net Exports. Real GDP - ANSWER Adjusted for inflation. Nominal GDP - ANSWER Not adjusted for inflation. Fiscal Policy - ANSWER Controlled by Congress. Globalization - ANSWER The close integration of countries and peoples of the world. Purchasing Power Parity (PPP) - ANSWER A conversion that determines the equivalent amount of goods and services that different currencies can purchase. Scenario Planning - ANSWER A technique to prepare and plan for multiple scenarios (either high or low risk). Risk management - ANSWER The identification and assessment of risks and the preparation to minimize the impact of high-risk , unfortunate events. Gross National Income (GNI) - ANSWER GDP + income from non-resident sources abroad. GNI is the term used by the World Bank and other international organizations to supersede the term GNP. Gross National Product (GNP) - ANSWER GDP + income from non-resident sources abroad. reverse innovation - ANSWER An innovation that is adopted first in emerging economies and is then diffused around the world. International Business (IB) - ANSWER (1) A business or firm that engages in international crossborder economic activities and/or (2) the action of doing business abroad. semiglobalization - ANSWER A perspective that suggests that barriers to market integration at borders are high, but not high enough to insulate countries from each other completely. BRIC - ANSWER Brazil, Russia, India, and China