WGU C211 GLOBAL ECONOMICS FULL
STUDY GUIDE BUNDLED QUESTIONS AND
CORRECT ANSWERS
●● "New Force" view on globalization
Answer: A force sweeping through the world in recent times.
●● Long-run evolution "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
●● Absolute advantage
Answer: The economic advantage one nation enjoys that is superior to
other nations
●● Comparative advantage
Answer: The advantage one economic activity nation enjoys in
comparison with other nations (relative, not absolute)
●● Mercantilism
Answer: A theory that suggests that the wealth of the world is fixed and
that a nation that exports more and imports less will be richer.
●● Features of the product life cycle?
Answer: New, Maturing, and Standardized
●● Strategic trade
STUDY GUIDE BUNDLED QUESTIONS AND
CORRECT ANSWERS
●● "New Force" view on globalization
Answer: A force sweeping through the world in recent times.
●● Long-run evolution "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
●● Absolute advantage
Answer: The economic advantage one nation enjoys that is superior to
other nations
●● Comparative advantage
Answer: The advantage one economic activity nation enjoys in
comparison with other nations (relative, not absolute)
●● Mercantilism
Answer: A theory that suggests that the wealth of the world is fixed and
that a nation that exports more and imports less will be richer.
●● Features of the product life cycle?
Answer: New, Maturing, and Standardized
●● Strategic trade
