WGU C211 - GLOBAL ECONOMICS FOR MANAGERS ACTUAL EXAM /2023/2024

WGU C211 - GLOBAL ECONOMICS FOR MANAGERS ACTUAL EXAM /2023/2024 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 ANSWERFirms 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) If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the most effective way to do this? - CORRECT ANSWER-Forward transactions, an act know as currency hedging. Transaction risk - CORRECT ANSWER-The exchange rate risk associated with the time delay between entering into a contract and settling it. Hedging - CORRECT ANSWER-A transaction, such as forward transactions, that protects traders and investors from exposure to the fluctuations of the spot rate. Currency hedging - CORRECT ANSWER-A way to protect traders and investors from being exposed to the fluctuations of the spot rate Strategic hedging - CORRECT ANSWER-A means of spreading out activities in different currency zones in order to offset the currency losses in certain regions through gains in other regions (currency diversification) First mover advantages - CORRECT ANSWER-Proprietary, technological leadership, pre-emption of scarce resources, establishment of entry barriers to late entrants,