WGU C211 OA Global Economics Exam 2023/2024 Q&A

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WGU C211v




OAGlobal
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Economics
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Exam
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2023/2024
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Q&A

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4. Which political view of foreign direct investment (FDI) is most widely used by governments in the current
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vinternational business environment? v v


Radicalism
Protectionism
v


Communism
v


nationalism
v




5. Which factors predict the degree of rivalry between a pair of competitors? 2 choices
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vMarket commonality v


Cost structure
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vResource similarity v


vOrganizational
structure
v




6. Which factors predicts how local firms in emerging economics will respond to multinational competitors?
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vCompetitive assets and industry pressures to globalize
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Formal and informal institutions
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Market dominance and market fragmentation
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vCooperation and signaling v v




7. During which stage of the product life cycle do sales and profits gradually increase before seeing more
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vdramatic increases? v


Introduction
vMaturity
vGrowth
vDecline

8. Which factor determines the foreign exchange rate any currency?
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vUniversal trade of the currency v v v v


Supply and demand for the currency
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vThe age of the currency
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Business economics of the currency v v v v




9. Which risk must a corporation minimize if it is to effectively manage short-term currency fluctuations?
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vBeta risk v


Hedging v


v Alpha risk v


vTransaction
risk
v




10. Which policy does a country use to determine the exchange rate of their currency in relationship to
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vanother country's currency if they do not rely on market forces?
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Clean float rate policy
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vFixed rate policy
v v


vFlexible rate policy v v


vFloating rate policy v v




11. Which term refers to trading currencies and currency derivatives in order to earn profits and help make
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vprices efficient? v

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