WGU C211 OA Global Economics Exam With Answers

WGU C211 OA Global Economics Exam (Verified Answers) Which political view of foreign direct investment (FDI) is most widely used by governments in the current international business environment? - Correct answer Protectionism Which factors predict the degree of rivalry between a pair of competitors? 2 choices - Correct answer-Market commonality and Cost structure Which factors predicts how local firms in emerging economics will respond to multinational competitors? Competitive assets and industry pressures to globalize - Correct answer-Market dominance and market fragmentation During which stage of the product life cycle do sales and profits gradually increase before seeing more dramatic increases? - Correct answer-Growth Which factor determines the foreign exchange rate any currency? - Correct answer Supply and demand for the currency Which risk must a corporation minimize if it is to effectively manage short-term currency fluctuations? - Correct answer-Transaction risk Which policy does a country use to determine the exchange rate of their currency in relationship to another country's currency if they do not rely on market forces? - Correct answer-Fixed rate policy Which term refers to trading currencies and currency derivatives in order to earn profits and help make prices efficient? - Correct answer-Speculation Which type of advantage is gained by a company based on where it operates - Correct answer-Location-specific Who gains from erecting significant entry barriers for other entrants? - Correct answer First movers Which strategy for entering into a foreign market has the lowest degree of risk? Wholly owned subsidiary - Correct answer-Wholly-owned subsidiary What is a non-equity mode involving some type of contractual agreement? - Correct answer-Direct exporting After the Lehman Brothers collapse, the federal Reserve stood ready to lend financial institutions funds. When the Federal reserve did this, it was acting in its role as a lender of last resort. Which type of group has this role? - Correct answer-Nongovernmental organization What is the comprehensive free-trade settlement among Canada, US, and Mexico, that addresses issues of protecting workers rights, the environment and reducing tariffs and non-tariff trade barriers? - Correct answer-NAFTA What is one of the core propositions underpinning an institution-based view of global business? A political system should establish controls of the financial sector - Correct answer-If formal constraints are not in place, the informal constraints will guide decision making What is one of the core propositions underpinning an institution-based view of global business? - Correct answer-Managers and corporations make rational decisions within their formal and informal framework T Which type of system allows businesses to be privately owned with a strong individualistic profit orientation? - Correct answer-Market economy Which legal system is based on a religious document and religious teachings? - Correct answer-Theocratic law Which type of good has well-established property rights? - Correct answer-Private goods Which activity disregards basic property rights? - Correct answer-Students play loud music in the open area between dorms What is one type of economy that uses the market system? - Correct answer-Mixed economy Which kind of outcome was Adam Smith referring to when describing the invisible hand? - Correct answer-Market outcomes What does the value of the marginal product of labor for a perfectly competitive, profit maximizing firm equal? - Correct answer-Rat