WGU C211 Global Economics for Manager Questions and Correct Answers 2024

Globalization - The process by which businesses or other organizations develop international influence or start operating on an international scale Import quota - A limit on the number of products in certain categories that a nation can import Emerging economy - Nations with social or business activity in the process of rapid growth and industrialization Global economic pyramid - Pyramid that consists of all of the world's economies, comprised of three parts New view of Globalization - New force of globalization that started in the 20th Century, viewing Western expansion of MNE's as vital to growth Reverse innovation - Innovations created for or by emerging-economy markets and then imported to developed-economy markets Evolutionary view of globalization - Long-run view of globalization that states it has been with mankind since the beginning Pendulum view of globalization - View of globalization which states it is neither recent or one-directional and is constantly changing Trade deficit - A situation in which a country imports more than it exports Export restraints - Limitations on the quantity of exports—usually imposed by the exporting country at the importing country's request Antidumping Policies - Designed to punish foreign firms that engage in dumping and thus protect domestic producers from unfair foreign competition Trade embargo - A government order that forbids trade with a specified nation Bargaining power - The power of labor and management to achieve their goals through economic, social, or political influence Horizontal FDI - A type of FDI in which a firm duplicates its home country-based activities at the same value chain stage in a host country Agglomeration - Grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources Collusion - Secret agreement or cooperation used to restrict competition Vertical FDI - A type of FDI in which a firm moves upstream or downstream at different value chain stages in a host country Trade surplus - A situation in which a country exports more than it imports Foreign Direct Investment (FDI) - Investment made by a firm or individual in one country into business interest located in another country; MNE's use this Multinational Enterprise (MNE) - A firm that engages in foreign direct investment (FDI) when doing business abroad Benefits received when receiving Foreign Direct Investment (FDI) - 1. Capital inflow improve the host country balance of payment. 2. Technology, especially more advanced technology from abroad, can create technology spillovers that benefits domestic firms and industries. (Contagion effect) 3. Advanced management know how may be highly valued.