WGU C211

WGU C211 EXAM WITH 100% CORRECT ANSWERS Which view claims that the phenomenon of globalization was initially driven by the desire of Western economies to exploit their power through multinational enterprises? - correct answer The new force view Economic gains come from international trade because one country's exported goods, services or other items are unique, valuable, and difficult to duplicate to importing country - correct answer Resource-based view What is the aggregation of importing and exporting that leads to the country-level trade surplus or deficit? - correct answer Balance of Trade What is a cost of foreign direct investment? - correct answer Developing countries may be exploited by multinational enterprises (MNE) Which type of managerial capability is both challenging and difficult to imitate? - correct answer Intangible capability What may precious, rare and hard to duplicate resources and capabilities lead to for a firm? - correct answer Sustained comparative advantage Which theory of international trade states that poor countries often experience faster rates of economic growth compared to wealthy countries? - correct answer The catch-up effect What is the financial environment in which exchange rates and payments for goods and services are conducted? - correct answer Commodity Exchange What happens to a country's real exchange rates and nominal interest rate as the price level increases, assuming all other factors are unchanged? - correct answer Exchange rates depreciate, interest rates increase What is the easiest method non-financial companies use to handle currency fluctuations? - correct answer Commodity Trading Which strategy minimizes the risk for unanticipated changes in future exchange rates? - correct answer Currency Swap A company is looking for a location with an abundance of ground breaking individuals, firms and universities. Which type of strategic goal is this company demonstrating? - correct answer Innovation-seeking What advantage comes with not sharing benefits with late entrants? - correct answer First-mover advantage Which entry mode is a non-equity arrangement for a company contemplating entry into a foreign market? - correct answer Licensing What size commitment is required for a non-equity mode of entry into a foreign market? - correct answer Small commitment What are two supportive pillars for an informal institution? - correct answer Normative and Cognitive What is the key role of an institution, according to the institution-based view? - correct answer To reduce uncertainty What are the rules, enforcement mechanisms, and organizations that support market transactions? - correct answer Institutions What is a core proposition underpinning an institutional based view of global business? - correct answer Bounded Rationality In which type of political system do citizens elect representatives to govern the country on their behalf? - correct answer Democracy Which legal system uses comprehensive lists of rules and written codes? - correct answer Civil Law What are the legal privileges associated with the use of economic property to obtain income and other benefits from its use? - correct answer Property Rights What is the purpose of having property rights and intellectual property rights? - correct answer 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 two popular types of economies? - correct answer Mixed and Market In addition to encouraging efficiency, why might a government intervene in a market? - correct answer To increase profits What is the relationship between total and marginal cost? - correct answer Marginal cost is the change in the total cost divided by the change in quantity