WGU C211 - Global Economics for Managers Key Predicted Questions and Correct Answers 2024

***What Political views exist on Foreign Direct Investment (FDI)*** - ***answer includes radicalism*** Radical View - Hostile to foreign direct investment (FD) Free Market View - Suggests foreign direct investment (FDI) unrestricted by government intervention is the best. Pragmatic Nationalism - Only approves foreign direct investment (FDI) when its benefits outweigh its costs. ***What is Resource similarity*** - The extent to which a given competitor possesses strategic endowment comparable, in terms of both type & amount, to those of the focal firm. ***How are supply and demand related to the exchange rate of a country?*** - 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. ***What advantages exist with First-mover?*** - 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 ***How is global business affected by democracy?*** - An individual's right to freedom of expression and organization. For example, starting up a firm is an act of economic expression ***How is global business affected by totalitarianism?*** - These countries often experience wars, riots, protests, chaos, & breakdowns, which result in higher political risk. ***Democracy*** - Citizens elect representatives to govern the country on their behalf. Right to freedom of expression and organization. ***Totalitarianism*** - One person or party exercises absolute political control over the population. ***What is Property right?*** - The legal rights to use an economic resource & to derive income & benefits from it. ***Intellectual property is a right of?*** - right of ownership/right to derive income from it ***Market economy*** - Characterized by the "invisible hand" of market forces-all factors of production should be privately owned.