.
WGU C211 GLOBAL ECONOMICS FOR MANAGERS STUDY
GUIDE UPDATE 2024/2025
1. Cognitive pillar: the internalized, taken-for-granted values and beliefs that guide
individual and firm behavior
2. Formal institutions: include laws, regulations, and rules.
3. Informal institutions: include norms, cultures, and ethics.
4. Institutional framework: formal and informal institutions that govern individual and
firm behavior
5. Institution-based view: requires firms to constantly monitor, decode, and adapt to the
changing rules of the game to survive and prosper.
6. Institutions: popularly known as "the rules of the game."
7. Institutional transitions: fundamental and comprehensive changes introduced to
the formal and informal rules that affect firms as players.
8. Normative pillar: how the values, beliefs, and actions of other relevant players—
collectively known as norms —influence the behavior of local individuals and firms.
9. Regulatory pillar: is the coercive power of governments.
10. The key functions of institutions are to...: reduce uncertainty, curtail transaction
costs, and combat opportunism.
11. Opportunism: defined as self-interest seeking.
12. Transaction costs: costs associated with economic transactions—or more broadly,
costs of doing business.
13. Communist totalitarianism: centers on a communist party.
14. Democracy: political system in which citizens elect representatives to govern the
country on their behalf
15. Political risk: risk associated with political changes that may negatively impact
domestic and foreign firms
16. Right-wing totalitarianism: characterized by its intense hatred of communism. 17.
Theocratic totalitarianism: the monopolization of political power in the hands of
one religious party or group
18. Totalitarianism (dictatorship): a political system in which one person or party
exercises absolute political control over the population
19. Tribal totalitarianism: one tribe or ethnic group (which may or may not be the
majority of the population) monopolizing political power and oppressing other tribes or
ethnic groups.
20. Political Risk: risk associated with political changes that may negatively impact
domestic and foreign firms.
, .
21. Civil law uses...: comprehensive statutes and codes as a primary means to form
legal judgments
22. Common law is...: shaped by precedents and traditions from previous judicial
decisions
23 Copyrights: exclusive legal rights of authors and publishers to publish and
disseminate their work
24. Intellectual property: specifically refers to intangible property that results from
intellectual activity (such as books, videos, and websites)
25. Intellectual property rights (IPRs): rights associated with the ownership of
intellectual property. IPRs primarily include rights associated with (1) patents, (2)
copyrights, and (3) trademarks
26. Patents: legal rights awarded by government authorities to inventors of new
products or processes, who are given exclusive rights to derive income from such
inventions through activities such as manufacturing, licensing, or selling.
27. Piracy: unauthorized use of IPRs is widespread, ranging from unauthorized sharing
of music files to deliberate counterfeiting of branded products
28. Property rights: The legal rights to use an economic property (resource) and to
derive income and benefits from it.
29. Theocratic law: A legal system based on religious teachings.
30. Trademarks: exclusive legal rights of firms to use specific names, brands, and
designs to differentiate their products from others.
31. market economy: system characterized by the "invisible hand" of market forces:
government takes a hands-off approach known as the laissez faire.
32. mixed economies: mixed emphasis on market versus command forces.
33. command economy: government ownership and control of all means of production
34. State-owned enterprises (SOEs): firms that are at least 10% owned by the state
35. Sovereign wealth fund (SWF): is a state owned investment fund
36. Market transition debate: pertains to how to make the transitions work in a most
effective and least disruptive way.
37. Moral hazard: recklessness when people and organizations (including firms and
governments) do not have to face the full consequences of their actions.
38. Path dependency: the present choices of countries (as well as firms and individuals)
are constrained by the choices made previously
39. Washington Consensus: is a view centered on the unquestioned belief in the
superiority of private ownership over state ownership in economic policymaking that
is often spearheaded by two Washington-based international organizations: the
International Monetary Fund and the World Bank.
WGU C211 GLOBAL ECONOMICS FOR MANAGERS STUDY
GUIDE UPDATE 2024/2025
1. Cognitive pillar: the internalized, taken-for-granted values and beliefs that guide
individual and firm behavior
2. Formal institutions: include laws, regulations, and rules.
3. Informal institutions: include norms, cultures, and ethics.
4. Institutional framework: formal and informal institutions that govern individual and
firm behavior
5. Institution-based view: requires firms to constantly monitor, decode, and adapt to the
changing rules of the game to survive and prosper.
6. Institutions: popularly known as "the rules of the game."
7. Institutional transitions: fundamental and comprehensive changes introduced to
the formal and informal rules that affect firms as players.
8. Normative pillar: how the values, beliefs, and actions of other relevant players—
collectively known as norms —influence the behavior of local individuals and firms.
9. Regulatory pillar: is the coercive power of governments.
10. The key functions of institutions are to...: reduce uncertainty, curtail transaction
costs, and combat opportunism.
11. Opportunism: defined as self-interest seeking.
12. Transaction costs: costs associated with economic transactions—or more broadly,
costs of doing business.
13. Communist totalitarianism: centers on a communist party.
14. Democracy: political system in which citizens elect representatives to govern the
country on their behalf
15. Political risk: risk associated with political changes that may negatively impact
domestic and foreign firms
16. Right-wing totalitarianism: characterized by its intense hatred of communism. 17.
Theocratic totalitarianism: the monopolization of political power in the hands of
one religious party or group
18. Totalitarianism (dictatorship): a political system in which one person or party
exercises absolute political control over the population
19. Tribal totalitarianism: one tribe or ethnic group (which may or may not be the
majority of the population) monopolizing political power and oppressing other tribes or
ethnic groups.
20. Political Risk: risk associated with political changes that may negatively impact
domestic and foreign firms.
, .
21. Civil law uses...: comprehensive statutes and codes as a primary means to form
legal judgments
22. Common law is...: shaped by precedents and traditions from previous judicial
decisions
23 Copyrights: exclusive legal rights of authors and publishers to publish and
disseminate their work
24. Intellectual property: specifically refers to intangible property that results from
intellectual activity (such as books, videos, and websites)
25. Intellectual property rights (IPRs): rights associated with the ownership of
intellectual property. IPRs primarily include rights associated with (1) patents, (2)
copyrights, and (3) trademarks
26. Patents: legal rights awarded by government authorities to inventors of new
products or processes, who are given exclusive rights to derive income from such
inventions through activities such as manufacturing, licensing, or selling.
27. Piracy: unauthorized use of IPRs is widespread, ranging from unauthorized sharing
of music files to deliberate counterfeiting of branded products
28. Property rights: The legal rights to use an economic property (resource) and to
derive income and benefits from it.
29. Theocratic law: A legal system based on religious teachings.
30. Trademarks: exclusive legal rights of firms to use specific names, brands, and
designs to differentiate their products from others.
31. market economy: system characterized by the "invisible hand" of market forces:
government takes a hands-off approach known as the laissez faire.
32. mixed economies: mixed emphasis on market versus command forces.
33. command economy: government ownership and control of all means of production
34. State-owned enterprises (SOEs): firms that are at least 10% owned by the state
35. Sovereign wealth fund (SWF): is a state owned investment fund
36. Market transition debate: pertains to how to make the transitions work in a most
effective and least disruptive way.
37. Moral hazard: recklessness when people and organizations (including firms and
governments) do not have to face the full consequences of their actions.
38. Path dependency: the present choices of countries (as well as firms and individuals)
are constrained by the choices made previously
39. Washington Consensus: is a view centered on the unquestioned belief in the
superiority of private ownership over state ownership in economic policymaking that
is often spearheaded by two Washington-based international organizations: the
International Monetary Fund and the World Bank.
