wgu c211 global economics exam questions with verified correct answers

which view claims that the phenomenon of globalization was initially driven by the Western economies to exploit their Powers through Multinational Enterprises "New" force view economic gaines from international trade because one countries exported Goods, services or other items are unique, valuable and difficult to duplicate to the important countries. which view does this statement portray? resource-based View what is the aggregation of importing and exporting that leads to the country level Trade Surplus or deficit balance of trade what is a cost of foreign direct investment developing countries may be exploited by Multinational Enterprises what may precious rare and hard to duplicate resources and capabilities lead to for a firm sustained comparative advantage which theory states that patterns of international trade change across a new maturing and standardized stages product life cycle Theory what is the financial environment in which exchange rates in payments for goods and services are conducted international monetary system what happens to a country's real exchange rate and nominal interest rate as the price level increases assuming all other factors are unchanged exchange rates depreciate interest rates increase what is the easiest method non-financial companies used to handle currency fluctuations currency diversification which strategy minimizes the risk of unanticipated changes in future exchange rates currency swap which country is looking for a location with an abundance of groundbreaking individuals firms and universities which type of strategic goal is the company demonstrating Innovation seeking which advantage comes from not sharing benefits with late entrants first-mover advantage which entry mode is a non-equity arrangement for company contemplating entry into a foreign market licensing what size commitment is required for a non Equity mode of entry into a foreign market small commitment what are two supported pillars for an informal Institution cognitive and normative what is the key role of an institution according to the institution based View to reduce uncertainty what are the rules enforcement mechanisms and organizations that support Market transactions institutions what is the core proposition under pining at institution-based view of global business bounded rationality in which type of political system do citizens elect representatives to govern the country on their behalf democracy which legal system uses comprehensive list of rules and written codes civil law what are the legal privileges associated with the use of economic property to obtain income and other benefits from its use property rights what is the purpose of having property rights and intellectual property rights to legally protect the use of tangible and intangible property and allow its lawful owner to derive income and other benefits from it what are the two polar types of economies Central planned economies and market economies in addition to encouraging efficiency why might a government intervene in a market to promote equality what is the relationship between total and marginal cost marginal cost is the change in total cost divided by the change in quantity a farmer sells wheat in a perfectly competitive market which action should the farmer take to maximize profits produce the quantity Where the price equals to Farmers marginal cost what is the economic profit of a competitive firm the difference between total revenue and total cost which condition applies when a competitive firm decides to temporarily shut down average variable cost above the price what is the producers demand curve is the producer sells a differentiated product downward sloping which statement describes a competitive firm's demand curve it is more elastic than a monopoly's demand curve what is the point at which Monopoly maximizes profit where marginal cost equals marginal revenue what is a characteristic of monopolistic competition many firms and differentiated products what is a likely outcome of the standard prisoner's dilemma game both prisoners confess how does the prisoner's dilemma help and understanding company behavior in a oligopoly company strategies must consider action by rival firms what do Economist use to represent a consumer's preference indifference curves what can we assume that the consumer will buy if it is observed that the consumer's budget constraint has shifted inward fewer normal goods and more inferior Goods what will happen to the market price and quantity in the short run if there is an increase in market demand in a perfectly competitive market the equilibrium price will increase and the equilibrium quantity will increase what will happen to the equilibrium quantity and price if both demand and Supply decrease quantity will decrease but price can either increase or decrease what happens to demand quantity for normal Goods as percentage change in income increases demand increases what do the positive or negative numbers of cross price elasticity of demand represent substitutes or complements what is one way the Federal Reserve influences the reserve ratio by altering reserve requirements which fiscal policy would be most effective at raising consumer spending and expanding aggregate demand enacting a permanent income tax cut what is the effect of an increase in the money supply in the short run interest rates decrease in aggregate demand for goods and services increase how is the consumer surplus represented on a graph the area below the demand curve in above price which two statements Define producer Surplus the amount the seller is paid minus the cost of production and the area below the price and above the Surplus curve on a graph a painter spends $200 on paint then he builds the homeowner $1,000 to cover his time and his expenses what is the amount of these transactions that is added to the gross domestic product 1000 a US state purchases a fleet of new highway patrol Vehicles manufactured in Japan which two statements correctly describe how the components of us gross domestic product are affected net exports decrease government expenditures increase the nation ends a tariff on bananas which is an imported product what will be the effect on banana prices within that Nation the price will match the global market price what effect does implementing a new tariff have on the government that implement it tax revenue increases foreign direct investment FDI investment in controlling and managing value-added activities in other countries gross domestic product GDP the sum of value added by Resident firms households and government operating in an economy gross national product GNP GDP + income from non-resident sources abroad first-mover advantage advantage that first movers enjoy and do not share with late entrants product life cycle Theory foreign portfolio investment fpi investment in a portfolio of foreign Securities such as stocks and bonds quantity demanded the amount that a consumer is willing and able to purchase at a given price demand, demand schedule, demand curve shows relationship between prices and quantities demanded consumption spending by households on goods and services with the exception of purchases of new housing investment spending on Capital Equipment inventories and structures including household purchases of new housing government purchases spending on goods and services by local state and federal governments net exports spending on domestically produced Goods by Foreign (exports) minus spending on foreign Goods by domestic residents (Imports) market failure the inability of some unregulated markets to allocate resources efficiently Market power the ability of a single buyer or seller to control market prices externalities a side effect to the market that is more than just the value obtained by the buyer and the costs incurred by the seller and example would be pollution and the pesticides used in farming the Invisible Hand of the marketplace created by Adam Smith takes all the information about buyers and sellers into account and guides everyone in the Market to the best outcome as judge by the standard of economic efficiency a multinational Enterprise nme is a firm that engages in foreign direct investment purchasing power parity is an adjustment made to the GDP to reflect differences in the cost of living what is an important reason to study Global business to gain confidence in interacting with foreign suppliers customers and partners to prepare for and expatriates assignment and to advance your career in an global economy a group of 20 G20 is a group of 19 countries plus the European Union whose leaders meet to solve global economic problems