WGU - C211 GLOBAL ECONOMICS FOR MANAGERS
EXAM WITH QUESTIONS AND CORRECT ANSWERS|
ACCURATE ACTUAL WITH FREQUENTLY TESTED
QUESTIONS AND RATIONALE|ALREADY A
GRADED|GUARANTEED PASS| 2025-2026 UPDATE.
Define gross domestic product(GPD). What does it measure?
Correct Answer The market value of all final goods and service
produced within a country in a given period of time.
Describe the four components of GDP and explain how they
affect aggregate demand. Correct Answer (1)Consumption: can
change for a number of reasons, including movements in income,
taxes, expectations about future income, and changes in wealth
levels
(2)Investment: Can change in response to its expected profitibility,
which in turn is shaped by expectations about future economic
growth, the creation of new technologies, the price of key inputs,
and tax incentives for investment. Investment can also change
when interest rates rise or fall.
(3) Government Purchases: Spending and taxes are determined
by political considerations
(4) Net exports: Exports and imports change according to relative
growth rates and prices between two economies.
,Why are transfer payments such as social security not counted in
government expenditures? Correct Answer Transfer payments are
not made in exchange for a currently produced goods/services,
transfer payments alter household income, but they do not reflect
the economy's production, because GDP is intended to easure
income from, and expenditure on the production of
groups/services transfer payments are not counted as
government purchases.
What is the difference between real and nominal GDP? Why do
we need to measure GDP in real terms? Correct Answer Real
GDP: What would be the value of goods and services produced
this year if we valued these goods and services at the prices that
prevailed in some specific year in the past.
Nominal GDP: The production of goods and services values at
current prices.
Nominal GDP uses current prices to place a value on the
economy's production of goods and services. Real GDP uses
constant base-year prices to place value on the economy's
production of goods and services.
Views on Globalization Correct Answer New, Evolutionary, and
Pendulum
Explain the New, Evolutionary, and Pendulum views of
Globalization. How do these differ from one another? Correct
Answer New globalization is a new force sweeping through the
,world in recent times. Pendulum globalization is a pendulum that
swings from one extreme to the the other from time to time.
Evolutionary globalization is a long historical evolution since the
dawn of human history.
What is Foreign Direct Investment? Correct Answer Investment in
controlling and managing value-added activities in other
countries.
What different political views exist on FDI? Correct Answer
Radical - hostile to FDI, roots to Marxism, treates FDI as an
instrument of imperialism and as a vehicle for exploitation of
domestic resources by foreign capitalists and firms.
Free Market - suggests that FDI unrestricted by government
intervention will enable countries to tap into their absolute
comparative advantages by specializing in the production of
certain goods and services.. win-win logic FDI friendly polices
Brazil, China, Hungary, India, Ireland, Russia.
Pragmatic Nationalism - Practiced by most countries. Viewing FDI
as having both pros and cons and only aprroving FDI when its
benefits outweigh costs.
What benefits exist to a country receiving FDI? Correct Answer
Capital inflow - can help improve a host country's balance of
payments
Technology - can create technology spillovers that benefit
domestic firms and industries
, Advanced managment - know-how may be highly valued.
FDI creates jobs both directly and indirectly. Direct benefits arise
when MNEs employ individuals locally. Indirect benefits include
jobs created when local suppliers increase hiring and when MNE
employees spend money locally resulting in more jobs.
Repatriated earnings from profits from FDI. Increased exports of
components and services to host countries. Learning via FDI from
operations abroad.
What costs exist to a country receiving FDI? Correct Answer -
Loss of sovereignty because of decisions to invest, produce and
market products and/or to close plants and lay off workers in a
host country are being made by foreigners.
-Adverse effects on competiton. May drive some domestic firms
out of business. Having driven domestic firms out of business
MNE's in theory may be able to monopolize local markets.
-Capital outflow when MNE's make profits in host countries and
repatriate (send back) such earnings to headquarters in home
countries, host countries experience a net outflow in the capital
account in their balance of payments.
How do resources and capabilities influence the competitive
dynamics of a business? Correct Answer Strong resources and
capabilities help to compete and/or cooperate more effectively.
What is resource similarity and how does this impact competitive
dynamics? Correct Answer Extent to which a given competitor
EXAM WITH QUESTIONS AND CORRECT ANSWERS|
ACCURATE ACTUAL WITH FREQUENTLY TESTED
QUESTIONS AND RATIONALE|ALREADY A
GRADED|GUARANTEED PASS| 2025-2026 UPDATE.
Define gross domestic product(GPD). What does it measure?
Correct Answer The market value of all final goods and service
produced within a country in a given period of time.
Describe the four components of GDP and explain how they
affect aggregate demand. Correct Answer (1)Consumption: can
change for a number of reasons, including movements in income,
taxes, expectations about future income, and changes in wealth
levels
(2)Investment: Can change in response to its expected profitibility,
which in turn is shaped by expectations about future economic
growth, the creation of new technologies, the price of key inputs,
and tax incentives for investment. Investment can also change
when interest rates rise or fall.
(3) Government Purchases: Spending and taxes are determined
by political considerations
(4) Net exports: Exports and imports change according to relative
growth rates and prices between two economies.
,Why are transfer payments such as social security not counted in
government expenditures? Correct Answer Transfer payments are
not made in exchange for a currently produced goods/services,
transfer payments alter household income, but they do not reflect
the economy's production, because GDP is intended to easure
income from, and expenditure on the production of
groups/services transfer payments are not counted as
government purchases.
What is the difference between real and nominal GDP? Why do
we need to measure GDP in real terms? Correct Answer Real
GDP: What would be the value of goods and services produced
this year if we valued these goods and services at the prices that
prevailed in some specific year in the past.
Nominal GDP: The production of goods and services values at
current prices.
Nominal GDP uses current prices to place a value on the
economy's production of goods and services. Real GDP uses
constant base-year prices to place value on the economy's
production of goods and services.
Views on Globalization Correct Answer New, Evolutionary, and
Pendulum
Explain the New, Evolutionary, and Pendulum views of
Globalization. How do these differ from one another? Correct
Answer New globalization is a new force sweeping through the
,world in recent times. Pendulum globalization is a pendulum that
swings from one extreme to the the other from time to time.
Evolutionary globalization is a long historical evolution since the
dawn of human history.
What is Foreign Direct Investment? Correct Answer Investment in
controlling and managing value-added activities in other
countries.
What different political views exist on FDI? Correct Answer
Radical - hostile to FDI, roots to Marxism, treates FDI as an
instrument of imperialism and as a vehicle for exploitation of
domestic resources by foreign capitalists and firms.
Free Market - suggests that FDI unrestricted by government
intervention will enable countries to tap into their absolute
comparative advantages by specializing in the production of
certain goods and services.. win-win logic FDI friendly polices
Brazil, China, Hungary, India, Ireland, Russia.
Pragmatic Nationalism - Practiced by most countries. Viewing FDI
as having both pros and cons and only aprroving FDI when its
benefits outweigh costs.
What benefits exist to a country receiving FDI? Correct Answer
Capital inflow - can help improve a host country's balance of
payments
Technology - can create technology spillovers that benefit
domestic firms and industries
, Advanced managment - know-how may be highly valued.
FDI creates jobs both directly and indirectly. Direct benefits arise
when MNEs employ individuals locally. Indirect benefits include
jobs created when local suppliers increase hiring and when MNE
employees spend money locally resulting in more jobs.
Repatriated earnings from profits from FDI. Increased exports of
components and services to host countries. Learning via FDI from
operations abroad.
What costs exist to a country receiving FDI? Correct Answer -
Loss of sovereignty because of decisions to invest, produce and
market products and/or to close plants and lay off workers in a
host country are being made by foreigners.
-Adverse effects on competiton. May drive some domestic firms
out of business. Having driven domestic firms out of business
MNE's in theory may be able to monopolize local markets.
-Capital outflow when MNE's make profits in host countries and
repatriate (send back) such earnings to headquarters in home
countries, host countries experience a net outflow in the capital
account in their balance of payments.
How do resources and capabilities influence the competitive
dynamics of a business? Correct Answer Strong resources and
capabilities help to compete and/or cooperate more effectively.
What is resource similarity and how does this impact competitive
dynamics? Correct Answer Extent to which a given competitor
