WGU C211 Global Economics for Managers | Complete Exam Review & Practice Questions | 2026-2027
Base of the pyramid (BOP) Economies where people make less than $2,000 per capita per year.
BRICA Brazil, Russia, India, and China.
Emerging economies term that has gradually replaced the term "developing countries" since the 1990s.
Emerging markets A term that is often used interchangeably with "emerging economies."
Expatriate manager A manager who works abroad, or "expat" for short.
Foreign direct investment (FDI) Investment in, controlling, and managing value-added activities in other countries.
Global Business Business around the globe.
Globalization The close integration of countries and peoples of the world.
Gross domestic product (GDP) The sum of value added by resident firms, households, and governments operating
in an economy.
Gross national income (GNI) GDP plus income from non-resident sources abroad. The term used by the World
Bank and other international organizations to supersede the term GNP.
Gross national product (GNP) GDP plus income from non-resident sources abroad
Group of 20 (G-20) The group of 19 major countries plus the European Union (EU) whose leaders meet
on a biannual basis to solve global economic problems.
International business (IB) (1) A business (or firm) that engages in international (cross-border) economic
activities and/or (2) the action of doing business abroad.
International premium A significant pay raise when working overseas.
Liability of foreignness The inherent disadvantage that foreign firms experience in host countries because
of their non-native status.
,WGU C211 Global Economics for Managers | Complete Exam Review & Practice Questions | 2026-2027
Multinational enterprise (MNE) A firm that engages in foreign direct investment (FDI).
Nongovernmental organization (NGO) An organization that is not affiliated with governments.
Purchasing power parity (PPP) A conversion that determines the equivalent amount of goods and services that
different currencies can purchase.
Reverse innovation An innovation that is adopted first in emerging economies and is then diffused
around the world.
Risk management The identification and assessment of risks and the preparation to minimize the
impact of high-risk, unfortunate events.
Scenario planning A technique to prepare and plan for multiple scenarios (either high or low risk).
Semiglobalization A perspective that suggests that barriers to market integration at borders are high,
but not high enough to insulate countries from each other completely.
Triad North America, Western Europe, and Japan.
Purchasing power parity (PPP) adjustment made to the GDP to reflect differences in the cost of living
The bottom billion Concentrated in Africa and Central Asia - 58 small countries, stuck at the bottom in
terms of growth, incomes and human development
Enhance employability & advance career, better Why study global business?
preparation to be expat, competence in interacting with
foreign suppliers/partners/competitors/employees
Institution-based view A core perspective. Success and failure of firms are constrained by institutions
Formal rules requirements that treat domestic and foreign firms as equals enhance the potential
odds
for foreign firms' success or those that discriminate against foreign firms, would
undermine the chances for foreign entrants
Informal rules cultures, ethics, and norms play an important part in shaping the success and
failure of firms around the globe
Resource-based view A core perspective. Success and failure of firms is determined by their environment
, WGU C211 Global Economics for Managers | Complete Exam Review & Practice Questions | 2026-2027
New force in recent times, a long-running historical What are the three views of globalization?
evolution, a pendulum swinging between extremes
"Four Tigers" Hong Kong, Singapore, South Korea and Taiwan
Absolute advantage The economic advantage one nation enjoys that is absolutely superior to other
nations.
Administrative policy Bureaucratic rules that make it harder to import foreign goods.
antidumping duty Tariffs levied on imports that have been "dumped" (selling below costs to "unfairly"
drive domestic firms out of business).
Balance of Trade The aggregation of importing and exporting that leads to the country-level trade
surplus or deficit.
Classical trade theories The major theories of international trade that were advanced before the 20th
century, which consist of (1) mercantilism, (2) absolute advantage, and (3)
comparative advantage.
Comparative advantage Relative (not absolute) advantage in one economic activity that one nation enjoys in
comparison with other nations.
Deadweight cost Net losses that occur in an economy as a result of tariffs.
Export Selling abroad.
Factor endowment The extent to which different countries possess various factors of production such
as labor, land, and technology.
Factor endowment theory A theory that suggests that nations will develop comparative advantages based on
their locally abundant factors.
Heckscher-Ohlin theory Another name for factor endowment theory
First-mover advantage Advantage that first movers enjoy and do not share with late entrants.
Free trade The idea that free market forces should determine how much to trade with little or
no government intervention.
Base of the pyramid (BOP) Economies where people make less than $2,000 per capita per year.
BRICA Brazil, Russia, India, and China.
Emerging economies term that has gradually replaced the term "developing countries" since the 1990s.
Emerging markets A term that is often used interchangeably with "emerging economies."
Expatriate manager A manager who works abroad, or "expat" for short.
Foreign direct investment (FDI) Investment in, controlling, and managing value-added activities in other countries.
Global Business Business around the globe.
Globalization The close integration of countries and peoples of the world.
Gross domestic product (GDP) The sum of value added by resident firms, households, and governments operating
in an economy.
Gross national income (GNI) GDP plus income from non-resident sources abroad. The term used by the World
Bank and other international organizations to supersede the term GNP.
Gross national product (GNP) GDP plus income from non-resident sources abroad
Group of 20 (G-20) The group of 19 major countries plus the European Union (EU) whose leaders meet
on a biannual basis to solve global economic problems.
International business (IB) (1) A business (or firm) that engages in international (cross-border) economic
activities and/or (2) the action of doing business abroad.
International premium A significant pay raise when working overseas.
Liability of foreignness The inherent disadvantage that foreign firms experience in host countries because
of their non-native status.
,WGU C211 Global Economics for Managers | Complete Exam Review & Practice Questions | 2026-2027
Multinational enterprise (MNE) A firm that engages in foreign direct investment (FDI).
Nongovernmental organization (NGO) An organization that is not affiliated with governments.
Purchasing power parity (PPP) A conversion that determines the equivalent amount of goods and services that
different currencies can purchase.
Reverse innovation An innovation that is adopted first in emerging economies and is then diffused
around the world.
Risk management The identification and assessment of risks and the preparation to minimize the
impact of high-risk, unfortunate events.
Scenario planning A technique to prepare and plan for multiple scenarios (either high or low risk).
Semiglobalization A perspective that suggests that barriers to market integration at borders are high,
but not high enough to insulate countries from each other completely.
Triad North America, Western Europe, and Japan.
Purchasing power parity (PPP) adjustment made to the GDP to reflect differences in the cost of living
The bottom billion Concentrated in Africa and Central Asia - 58 small countries, stuck at the bottom in
terms of growth, incomes and human development
Enhance employability & advance career, better Why study global business?
preparation to be expat, competence in interacting with
foreign suppliers/partners/competitors/employees
Institution-based view A core perspective. Success and failure of firms are constrained by institutions
Formal rules requirements that treat domestic and foreign firms as equals enhance the potential
odds
for foreign firms' success or those that discriminate against foreign firms, would
undermine the chances for foreign entrants
Informal rules cultures, ethics, and norms play an important part in shaping the success and
failure of firms around the globe
Resource-based view A core perspective. Success and failure of firms is determined by their environment
, WGU C211 Global Economics for Managers | Complete Exam Review & Practice Questions | 2026-2027
New force in recent times, a long-running historical What are the three views of globalization?
evolution, a pendulum swinging between extremes
"Four Tigers" Hong Kong, Singapore, South Korea and Taiwan
Absolute advantage The economic advantage one nation enjoys that is absolutely superior to other
nations.
Administrative policy Bureaucratic rules that make it harder to import foreign goods.
antidumping duty Tariffs levied on imports that have been "dumped" (selling below costs to "unfairly"
drive domestic firms out of business).
Balance of Trade The aggregation of importing and exporting that leads to the country-level trade
surplus or deficit.
Classical trade theories The major theories of international trade that were advanced before the 20th
century, which consist of (1) mercantilism, (2) absolute advantage, and (3)
comparative advantage.
Comparative advantage Relative (not absolute) advantage in one economic activity that one nation enjoys in
comparison with other nations.
Deadweight cost Net losses that occur in an economy as a result of tariffs.
Export Selling abroad.
Factor endowment The extent to which different countries possess various factors of production such
as labor, land, and technology.
Factor endowment theory A theory that suggests that nations will develop comparative advantages based on
their locally abundant factors.
Heckscher-Ohlin theory Another name for factor endowment theory
First-mover advantage Advantage that first movers enjoy and do not share with late entrants.
Free trade The idea that free market forces should determine how much to trade with little or
no government intervention.
