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

Views on Globalization - New, Evolutionary, and Pendulum "New" view on globalization - A force sweeping through the world in recent times. "Evolutionary" view on globalization - A long-run historical evolution since the dawn of human history "Pendulum" view on globalization - One that swings from one extreme to another from time to time Foreign Direct Investment - Direct investment in, control, and management of valueadded activities in other countries Political views on FDI - Radical View, Free Market View, Pragmatic Nationalism Benefits to a country receiving FDI - Capital Inflow, Technology Spillover, Advanced Management Know-How, Job creation Costs to a country receiving FDI - Loss of Sovereignty, Adverse effects on competition, Capital outflow. How do resources and capabilities influence the competitive dynamics of a business? - Resource similarity and market commonality can yield a powerful framework for competitor analysis. Resource similarity - 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? - Firms with a high degree are likely to have similar competitive actions. (Starbuck's instant coffee & McDonald's iced coffee) Classical theories of international trade - Mercantilism, Absolute advantage, and Comparative advantage Modern theory view - Dynamic