WGU C211 PRE-ASSESSMENT: GLOBAL ECONOMICS FOR
MANAGERS (UZC2).. Correct Answers Only.
Which view claims that the phenomenon of globalization was initially driven by
the desire of Western economies to exploit their power through multinational
enterprises?
The new-force view
Economic gains come from international trade because one country's exported
goods, services, or other items are unique, valuable, and difficult to duplicate to
the importing countries
Resource-based view
What is the aggregation of importing and exporting that leads to the country-level
trade surplus or deficit?
Balance of trade
What is a cost of foreign direct investment?
Developing countries may be exploited by multinational enterprises (MNE).
What may precious, rare, and hard-to-duplicate resources and capabilities lead to
for a firm?
Sustained comparative advantage
Which theory states that patterns of international trade change across new,
maturing, and standardized stages?
Product life cycle theory
What is the financial environment in which exchange rates and payments for
goods and services are conducted?
International monetary system
What happens to a country's real exchange rate and nominal interest rate as the
price level increases, assuming all other factors are unchanged?
Exchange rates fall and interest rates rise.
What is the easiest method nonfinancial companies use to handle currency
fluctuations?
Currency diversification
Which strategy minimizes the risk of unanticipated changes in future exchange
rates?
Currency swap
A company is looking for a location with an abundance of ground-breaking
individuals, firms, and universities.
Which type of strategic goal is this company demonstrating?
Innovation-seeking
What advantage comes with not sharing benefits with late entrants?
First-mover advantage
Which entry mode is a non-equity arrangement for a company contemplating
entry into a foreign market?
Licensing
What size commitment is required for a non-equity mode of entry into a foreign
market?
MANAGERS (UZC2).. Correct Answers Only.
Which view claims that the phenomenon of globalization was initially driven by
the desire of Western economies to exploit their power through multinational
enterprises?
The new-force view
Economic gains come from international trade because one country's exported
goods, services, or other items are unique, valuable, and difficult to duplicate to
the importing countries
Resource-based view
What is the aggregation of importing and exporting that leads to the country-level
trade surplus or deficit?
Balance of trade
What is a cost of foreign direct investment?
Developing countries may be exploited by multinational enterprises (MNE).
What may precious, rare, and hard-to-duplicate resources and capabilities lead to
for a firm?
Sustained comparative advantage
Which theory states that patterns of international trade change across new,
maturing, and standardized stages?
Product life cycle theory
What is the financial environment in which exchange rates and payments for
goods and services are conducted?
International monetary system
What happens to a country's real exchange rate and nominal interest rate as the
price level increases, assuming all other factors are unchanged?
Exchange rates fall and interest rates rise.
What is the easiest method nonfinancial companies use to handle currency
fluctuations?
Currency diversification
Which strategy minimizes the risk of unanticipated changes in future exchange
rates?
Currency swap
A company is looking for a location with an abundance of ground-breaking
individuals, firms, and universities.
Which type of strategic goal is this company demonstrating?
Innovation-seeking
What advantage comes with not sharing benefits with late entrants?
First-mover advantage
Which entry mode is a non-equity arrangement for a company contemplating
entry into a foreign market?
Licensing
What size commitment is required for a non-equity mode of entry into a foreign
market?
