WGU C211 GLOBAL ECONOMICS FOR MANAGERS
(OA) 100+ EXAM QUESTIONS AND ANSWERS
GRADED A+
Views on Globalization
Correct Answer: New, Evolutionary, and Pendulum
"New" view on globalization
Correct Answer: A force sweeping through the world in recent times.
"Evolutionary" view on globalization
Correct Answer: A long-run historical evolution since the dawn of human history
"Pendulum" view on globalization
Correct Answer: One that swings from one extreme to another from time to time
Foreign Direct Investment
Correct Answer: Direct investment in, control, and management of value-added activities in
other countries
Political views on FDI
Correct Answer: Radical View, Free Market View, Pragmatic Nationalism
Benefits to a country receiving FDI
,Correct Answer: Capital Inflow, Technology Spillover, Advanced Management Know-How, Job
creation
Costs to a country receiving FDI
Correct Answer: Loss of Sovereignty, Adverse effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business?
Correct Answer: Resource similarity and market commonality can yield a powerful framework
for competitor analysis.
Resource similarity
Correct 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?
Correct 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
Correct Answer: Mercantilism, Absolute advantage, and Comparative advantage
Modern theory view
Correct Answer: Dynamic
Classical theory view
Correct Answer: Static
, Absolute advantage
Correct Answer: The economic advantage one nation enjoys that is superior to other nations
Comparative advantage
Correct Answer: The advantage one economic activity nation enjoys in comparison with other
nations (relative, not absolute)
Mercantilism
Correct 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?
Correct Answer: New, Maturing, and Standardized
Strategic trade
Correct Answer: Intervention by governments in certain industries can enhance their odds for
international success.
How are supply and demand related to the exchange rate of a country?
Correct Answer: The price of a commodity, a country's currency, is fundamentally determined
by this. Strong demand leads to price hikes; oversupply results in price drops.
Which theory came first?
Correct Answer: Mercantilism (although both are of the idea that governments should actively
protect domestic industries from imports and vigorously promote exports)
(OA) 100+ EXAM QUESTIONS AND ANSWERS
GRADED A+
Views on Globalization
Correct Answer: New, Evolutionary, and Pendulum
"New" view on globalization
Correct Answer: A force sweeping through the world in recent times.
"Evolutionary" view on globalization
Correct Answer: A long-run historical evolution since the dawn of human history
"Pendulum" view on globalization
Correct Answer: One that swings from one extreme to another from time to time
Foreign Direct Investment
Correct Answer: Direct investment in, control, and management of value-added activities in
other countries
Political views on FDI
Correct Answer: Radical View, Free Market View, Pragmatic Nationalism
Benefits to a country receiving FDI
,Correct Answer: Capital Inflow, Technology Spillover, Advanced Management Know-How, Job
creation
Costs to a country receiving FDI
Correct Answer: Loss of Sovereignty, Adverse effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business?
Correct Answer: Resource similarity and market commonality can yield a powerful framework
for competitor analysis.
Resource similarity
Correct 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?
Correct 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
Correct Answer: Mercantilism, Absolute advantage, and Comparative advantage
Modern theory view
Correct Answer: Dynamic
Classical theory view
Correct Answer: Static
, Absolute advantage
Correct Answer: The economic advantage one nation enjoys that is superior to other nations
Comparative advantage
Correct Answer: The advantage one economic activity nation enjoys in comparison with other
nations (relative, not absolute)
Mercantilism
Correct 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?
Correct Answer: New, Maturing, and Standardized
Strategic trade
Correct Answer: Intervention by governments in certain industries can enhance their odds for
international success.
How are supply and demand related to the exchange rate of a country?
Correct Answer: The price of a commodity, a country's currency, is fundamentally determined
by this. Strong demand leads to price hikes; oversupply results in price drops.
Which theory came first?
Correct Answer: Mercantilism (although both are of the idea that governments should actively
protect domestic industries from imports and vigorously promote exports)
