WGU C211 STUDY GUIDE QUESTIONS AND ANSWERS (ACTUAL EXAM 2023/2023) GLOBAL ECONOMICS FOR MANAGERS

WGU C211 STUDY GUIDE QUESTIONS AND ANSWERS (ACTUAL EXAM 2023/2023) GLOBAL ECONOMICS FOR MANAGERS Views of globalization (Chp 1.4) - CORRECT ANSWER-1. It's a new phenomenom, starting in the late 20th century. 2. It's a long term part of human history. 3. Neither recent nor one directional, it's a pendulum that swings back and forth. Strategic goal = Natural resource—seeking - CORRECT ANSWER-Location specific advantage = Possession of natural resources and related transport and communication infrastructure Strategic goal = Market-seeking - CORRECT ANSWER-Location specific advantage = Abundance of strong market demand and customers willing to pay Strategic goal = Efficiency-seeking - CORRECT ANSWER-Location specific advantage = Economies of scale and abundance of low-cost factors Strategic goal = Innovation-seeking - CORRECT ANSWER-Location specific advantage = Abundance of innovative individuals, firms, and universities Name first mover advantages: (Chp 10.3) - CORRECT ANSWER-1. Proprietary, technological leadership 2. Pre-emption of scarce resources 3. Establishment of entry barriers for late entrants 4. Avoidance of clash with dominant firms at home 5. Relationships with key stakeholders such as governments Name late mover advantages: (Chp 10.3) - CORRECT ANSWER-1. Opportunity to free ride on first-mover investments 2. Resolution of technological and market uncertainty 3. First mover's difficulty to adapt to market changes Name strategic goals supported by location specific advantages (Chp 10.2) - CORRECT ANSWER-1. Natural resources 2. Market 3. Efficiency 4. Innovation Proposition (1) underpinning an institution based view of global business. - CORRECT ANSWER-Managers and firms rationally pursue their interests and make choices within the formal and informal constraints in a given institutional framework Proposition (2) underpinning an institution based view of global business. - CORRECT ANSWER-While formal and informal institutions combine to govern firm behavior, in situations where formal constraints are unclear or fail, informal constraints will play a larger role in reducing uncertainty and providing constancy to managers and firms Market economy - CORRECT ANSWER-An economy that is characterized by the "invisible hand" of market forces. Command economy - CORRECT ANSWER-An economy that is characterized by government ownership and control of factors of production. Mixed economy - CORRECT ANSWER-An economy that has elements of both a market economy and a command economy. Property rights - CORRECT ANSWER-The legal rights to use an economic property (resource) and to derive income and benefits from it.