WGU C211 Cengage Text Global Economics
for Managers (Latest Update )
Questions with Correct Answers {Grade A}
100% Verified
Agglomeration - correct answer Clustering of economic activities in certain locations.
Foreign Portfolio Investment (FPI) - correct answer Investment in a portfolio of foreign
securities such as stocks and bonds.
Demonstration effect - correct answer The reaction of local firms to rise to the
challenge demonstrated by mnes through learning and imitation.
Expropriation - correct answer Governments confiscation of foreign assets
Obsolescing bargain - correct answer The deal struck by MNE's and host governments,
which change their requirements after the initial FDI industry.
,Blue ocean strategy - correct answer Strategy that focusses on developing new
markets ("blue ocean") and avoids attacking core markets defended by rivals, which is
likely the result in a bloody price war or a "red ocean".
Predatory pricing - correct answer An attempt to monopolize a market by setting
prices below cost and intending to raise prices to cover losses in the long run after
eliminating rivals.
Antitrust law - correct answer Law that outlaws cartels (trusts).
Cartel - correct answer An output and price fixing entity involving multiple
competitors.
Competitor analysis - correct answer The process of anticipating rivals' actions in
order to both revise a firms plan and prepare to deal with rivals response.
Capacity to punish - correct answer sufficient resources possessed by a price leader
to deter and combat defection.
,Market commonality - correct answer The overlap between two rivals' markets
Resource similarity - correct answer The extent to which a given competitor
possesses strategic endowment comparable, in terms of both type and amount, to
those local firm.
Competition policy - correct answer Government policy governing the rules of the
game in competition.
Explicit collusion - correct answer firms directly negotiate output pricing and divide
markets.
Antitrust policy - correct answer government policy designed to combat monopolies
and cartels
Concentration ratio - correct answer the percentage of total industry sales accounted
for by the top four, eight, or twenty firms.
, Mutual forbearance - correct answer multimarket firms respect their rivals' spheres
of influence in certain markets, and their rivals reciprocate, leading to tactic collusion.
Antidumping laws - correct answer law that makes it illegal for an exporter to sell
goods below cost abroad with the intent to raise prices after eliminating local rivals.
Competitive dynamics - correct answer actions and responses undertaken by
competing firms.
Dodger - correct answer strategy that centers on cooperating through joint ventures
with MNE's and sell offs to MNE's.
Defender - correct answer strategy that centers on local assets in areas in which
MNE's are weak.
Multimarket competition - correct answer firms engage the same rivals in multiple
markets
for Managers (Latest Update )
Questions with Correct Answers {Grade A}
100% Verified
Agglomeration - correct answer Clustering of economic activities in certain locations.
Foreign Portfolio Investment (FPI) - correct answer Investment in a portfolio of foreign
securities such as stocks and bonds.
Demonstration effect - correct answer The reaction of local firms to rise to the
challenge demonstrated by mnes through learning and imitation.
Expropriation - correct answer Governments confiscation of foreign assets
Obsolescing bargain - correct answer The deal struck by MNE's and host governments,
which change their requirements after the initial FDI industry.
,Blue ocean strategy - correct answer Strategy that focusses on developing new
markets ("blue ocean") and avoids attacking core markets defended by rivals, which is
likely the result in a bloody price war or a "red ocean".
Predatory pricing - correct answer An attempt to monopolize a market by setting
prices below cost and intending to raise prices to cover losses in the long run after
eliminating rivals.
Antitrust law - correct answer Law that outlaws cartels (trusts).
Cartel - correct answer An output and price fixing entity involving multiple
competitors.
Competitor analysis - correct answer The process of anticipating rivals' actions in
order to both revise a firms plan and prepare to deal with rivals response.
Capacity to punish - correct answer sufficient resources possessed by a price leader
to deter and combat defection.
,Market commonality - correct answer The overlap between two rivals' markets
Resource similarity - correct answer The extent to which a given competitor
possesses strategic endowment comparable, in terms of both type and amount, to
those local firm.
Competition policy - correct answer Government policy governing the rules of the
game in competition.
Explicit collusion - correct answer firms directly negotiate output pricing and divide
markets.
Antitrust policy - correct answer government policy designed to combat monopolies
and cartels
Concentration ratio - correct answer the percentage of total industry sales accounted
for by the top four, eight, or twenty firms.
, Mutual forbearance - correct answer multimarket firms respect their rivals' spheres
of influence in certain markets, and their rivals reciprocate, leading to tactic collusion.
Antidumping laws - correct answer law that makes it illegal for an exporter to sell
goods below cost abroad with the intent to raise prices after eliminating local rivals.
Competitive dynamics - correct answer actions and responses undertaken by
competing firms.
Dodger - correct answer strategy that centers on cooperating through joint ventures
with MNE's and sell offs to MNE's.
Defender - correct answer strategy that centers on local assets in areas in which
MNE's are weak.
Multimarket competition - correct answer firms engage the same rivals in multiple
markets
