wgu c211 global economics BEST ALL VERSIONS 2025 | LATEST AND ACCURATE REAL EXAM QUESTIONS WITH DETAILED ANSWERS | VERIFIED FOR GUARANTEED PASS | LATEST UPDATE

This type of treatment only involves the subsidiary: A. Licensing B. Equity mode C. Franchising D. Turnkey project Correct Answer: B Rationale: Equity modes involve direct investment in subsidiaries, thus affecting only those entities. The following entry modes are considered equity methods: A. Exports and licensing B. Joint ventures and Greenfield investments C. Franchising and management contracts D. Licensing and turnkey projects Correct Answer: B Rationale: These involve ownership and control over foreign operations. Disneyland Tokyo became very popular because it played up its American image. This is an example of: A. Liability of foreignness B. Asset of foreignness C. Culture shock D. Local responsiveness Correct Answer: B Rationale: The American brand image became a unique selling point, turning a foreign origin into a competitive advantage. The Triad region includes: A. South America, Africa, and Asia B. Europe, Africa, and Asia C. North America, Asia, and Europe D. Europe, North America, and South America Correct Answer: C Rationale: The Triad represents the three major global economic powers. Some emerging economies' MNEs are using the LLL framework to challenge conventional international growth wisdom. The LLL framework stands for: A. Learning, Licensing, Leadership B. Linkage and Leverage C. Logistics, Learning, and Localization D. Location, Leadership, and Leverage Correct Answer: B Rationale: The LLL framework focuses on linking with global resources and leveraging them for advantage. Some people believe anything made in Asia is poorly made and not valuable. This bias negatively impacts Asian firms in global markets. These firms are: A. Enjoying home market advantages B. Experiencing economies of scale C. Suffering from the liability of foreignness D. Facing tariff barriers Correct Answer: C Rationale: Liability of foreignness reflects the disadvantages foreign firms face in unfamiliar markets. A Chinese game manufacturer acquires a respected Norwegian firm to break into high-end markets. It overcame the liability of foreignness by: A. Changing culture B. Lowering prices C. Using tangible resources D. Licensing brand names Correct Answer: C Rationale: Acquiring established firms provides tangible brand equity and market credibility. A Japanese toy firm creates unique animated characters and introduces them to the U.S. via TV shows and marketing. It overcame liability of foreignness by: A. Lowering production costs B. Changing informal institutions C. Licensing Disney characters D. Partnering with a U.S. firm Correct Answer: B Rationale: The firm altered consumer perceptions and cultural acceptance through media and branding. A French luxury brand expands by buying a chain of UAE luxury stores. This is an example of: A. Resource-seeking strategy B. Matching market-seeking goals with location C. Cultural misfit D. Defensive entry Correct Answer: B Rationale: The firm aligns market-seeking motives with strategic location and demand. An Australian firm chooses Bosnia over Germany for a plant due to lower labor costs. This shows: A. Innovation-seeking motive B. Risk aversion C. Matching efficiency-seeking goals with location D. Focus on local responsiveness Correct Answer: C Rationale: The decision reflects cost efficiency rather than innovation or quality. An example of a first-mover gaining a competitive advantage: A. A Chinese firm wins the first contract to mine Zimbabwe’s Vasco fields B. A U.S. company joins a saturated market C. An Indian firm copies a Western business model D. A German firm enters late but dominates Correct Answer: A Rationale: Securing early access to resources gives a strategic edge. Possible benefits of being a late mover include: A. Avoiding all competition B. Being unknown in the market C. First-mover’s difficulty adapting, tech uncertainty resolution, free-riding on investments D. Relying on outdated technology Correct Answer: C Rationale: Late movers can avoid first-mover mistakes and costs. An Italian auto company forms a joint venture with a South Korean firm. This is: A. Exporting B. Licensing C. Equity mode of entry D. Franchising Correct Answer: C Rationale: A joint venture involves equity sharing and is considered an equity mode. A firm needs low development cost and minimal risk. Best choice: A. Greenfield investment B. Exporting C. Contractual agreement D. Equity investment Correct Answer: C Rationale: Contractual modes like licensing or franchising are low risk and cost-effective. A tech firm wants to avoid sharing core innovations. Best market entry: A. Franchising B. Exporting C. Licensing D. Wholly owned subsidiary Correct Answer: D Rationale: A wholly owned subsidiary allows full control and protects IP. Kenyan coffee enjoyed in the U.S. for its exoticism is an example of: A. Liability of foreignness B. Positive country-of-origin effect C. Negative branding D. Domestic bias Correct Answer: B Rationale: Consumers perceive products more favorably based on origin. Beyond antitrust law enforcement, collusion faces issues because: A. It has tax implications B. It limits employment C. It has incentive problems tied to the prisoner’s dilemma D. It increases production Correct Answer: C Rationale: Collusion often fails due to firms acting in their own interest. Explicit collusion example: A. Price matching B. Creating a cartel and fixing prices C. Monitoring competitors D. Innovation race Correct Answer: B Rationale: Explicit collusion involves direct agreements among firms. Price setting by a monopolist above competitive levels is called: A. Fair pricing B. Dumping C. Collusive price setting D. Price discrimination Correct Answer: C Rationale: Collusive pricing restricts output to maintain high prices. A type of competitive attack: A. Mergers B. Price reduction, new product introduction, advertising C. Market withdrawal D. Legal action Correct Answer: B Rationale: These are aggressive strategies to gain market share. A firm uses Dead Sea components to differentiate from global competitors. This is a: A. Dodger strategy B. Defender strategy C. Blue Ocean strategy D. Accommodator strategy Correct Answer: B Rationale: Defender strategies leverage unique home-country advantages. Industry characteristic making collusion difficult: A. Few competitors B. High entry barriers C. Low entry barriers D. High concentration Correct Answer: C Rationale: Easy entry increases competitive pressure and reduces collusion. Correct statement about dumping: A. Exporters raise prices initially B. Exporters sell below cost abroad to eliminate local rivals and later raise prices C. It increases local competition D. It benefits domestic industries Correct Answer: B Rationale: Dumping is a predatory pricing tactic in foreign markets. Lowest rivalry intensity situation: A. High resource similarity and low market overlap B. Low resource similarity and high market commonality C. High resource similarity and high market commonality D. Low resource similarity and low market commonality Correct Answer: B Rationale: Despite market overlap, differing resources reduce direct threats. Local firms in emerging economies typically globalize when: A. Industry pressures are low B. Assets are globally adaptable C. Industry pressures are high and assets customized to home markets D. Entry costs are high Correct Answer: C Rationale: High pressure and non-transferable assets push for unique global strategies. If Google and Microsoft proposed a joint search engine, it would be blocked due to: A. IP issues B. Trade regulations C. Antitrust law D. Tax evasion Correct Answer: C Rationale: Such cooperation between giants would threaten market competition. Firms coordinating behavior without direct communication are engaging in: A. Oligopoly B. Tactic collusion C. Dumping D. Strategic alliance Correct Answer: B Rationale: Tactic collusion involves indirect coordination like signaling.