WGU C211 OA Global Economics for Managers Exam Questions and Verified Answers 2024

Which two phrases represent the views of globalization? Choose two answers. - - A pendulum that swings from one extreme to another. - A competition among key financial centers and markets. What are two trade barriers? - - Nontariffs - Tarriffs What is the effect of tariff on a particular product for the country imposing the tariff? - Increases domestic production of the product. Which benefits come to the host country as a result of foreign direct investment? - - Creation of domestic jobs - Domestic resource allocation Which characteristics of firm resources affects competitive dynamics? - Imitability (capable or worthy of being imitated or copied) Which characteristic of firm resources affects competitive dynamics, according to the VRIO framework? - Rarity Which theory is the forerunner to modern-day protectionism? - Mercantilism (favorable balance of trade, the development of agriculture and manufactures, and the establishment of foreign trading monopolies) Which aspect creates the daily changes in a country's exchange rate? - Currency supply and demand Which risk must a corporation minimize to effectively manage shortterm currency fluctuations? - Transaction Risk (the adverse effect that foreign exchange rate fluctuations can have on a completed transaction prior to settlement. It is the exchange rate, or currency risk associated specifically with the time delay between entering into a trade or contract and then settling it.) Which term describes using currency derivatives to reduce potential transaction, translation, and economic risks of currency movements that could lead to losses for a firm or investor? - Hedging (a means of protection or defense (as against financial loss) realization that common stocks are the best hedge against inflation What is the most effective method to limit foreign exchange rate exposure for future trade payments? - Forward Transaction (two people or other entities engage in a binding agreement to perform a trade in the future, rather than at the present.) What type of advantage do companies receive when operating in favorable areas within a given country? - Location-Specific Which entrant has the opportunity to free ride on first-mover investments? - Later Mover (Also called a late follower or a later market entrant, a late mover is a firm that enters a market some time after both the market pioneer(s) and after early follower firms.) Which strategy for entering a foreign market has the highest degree of risk? - Licensing (A business arrangement in which one company gives another company permission to manufacture its product for a specified payment.) Which mode of entry provides advantages to a multinational firm that can be transferred within the firm at very low cost? - Licensing Which pillar of uncertainty refers to te internalized behavior of an individual's belief and values? - Cognitive What are three pillars that support format regulatory institutions? Choose 3 answers. - - Laws - Regulations - Rules What are three aspects of a command economy? Choose 3 answers. - - Government-Owned Production - Planned system - Inefficient allocation of goods What is one of the core propositions underpinning an institutions-based view of global business? - A political system should establish controls of the financial sector. Which type of system allows businesses to be privately owned with a strong individualistic profit orientation? - Market Economy (an economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a country's individual citizens and businesses.) What countries based their legal traditions on either common law or civic law? - - Russia - Egypt What type of good has well-established property rights? - Private Goods Which body gudes economic activity in a command economy? - The Government What does the value of the marginal product of labor for a perfectly competitive, profit-maximizing firm equal? - Rate