WGU C211 Global Economics for Managers Exam
136 Questions with Verified Answers
New, Evolutionary, and Pendulum - CORRECT ANSWER Views on Globalization
A force sweeping through the world in recent times. - CORRECT ANSWER "New"
view on globalization
A long-run historical evolution since the dawn of human history - CORRECT
ANSWER "Evolutionary" view on globalization
One that swings from one extreme to another from time to time - CORRECT
ANSWER "Pendulum" view on globalization
Direct investment in, control, and management of value-added activities in other
countries - CORRECT ANSWER Foreign Direct Investment
Radical View, Free Market View, Pragmatic Nationalism - CORRECT ANSWER
Political views on FDI
Capital Inflow, Technology Spillover, Advanced Management Know-How, Job
creation - CORRECT ANSWER Benefits to a country receiving FDI
Loss of Sovereignty, Adverse effects on competition,
Capital outflow. - CORRECT ANSWER Costs to a country receiving FDI
,Resource similarity and market commonality can yield a powerful framework for
competitor analysis. - CORRECT ANSWER How do resources and capabilities
influence the competitive dynamics of a business?
The extent to which a given competitor possesses strategic endowment
comparable, in terms of both type and amount, to those of the focal firm. -
CORRECT ANSWER Resource similarity
Firms with a high degree are likely to have similar competitive actions. (Starbuck's
instant coffee & McDonald's iced coffee) - CORRECT ANSWER How does resource
similarity impact competitive dynamics?
Mercantilism, Absolute advantage, and Comparative advantage - CORRECT
ANSWER Classical theories of international trade
Dynamic - CORRECT ANSWER Modern theory view
Static - CORRECT ANSWER Classical theory view
The economic advantage one nation enjoys that is superior to other nations -
CORRECT ANSWER Absolute advantage
The advantage one economic activity nation enjoys in comparison with other
nations (relative, not absolute) - CORRECT ANSWER Comparative advantage
, A theory that suggests that the wealth of the world is fixed and that a nation that
exports more and imports less will be richer. - CORRECT ANSWER Mercantilism
New, Maturing, and Standardized - CORRECT ANSWER Features of the product life
cycle?
Intervention by governments in certain industries can enhance their odds for
international success. - CORRECT ANSWER Strategic trade
The price of a commodity, a country's currency, is fundamentally determined by
this. Strong demand leads to price hikes; oversupply results in price drops. -
CORRECT ANSWER How are supply and demand related to the exchange rate of a
country?
Mercantilism (although both are of the idea that governments should actively
protect domestic industries from imports and vigorously promote exports) -
CORRECT ANSWER Which theory came first?
Forward transactions, an act know as currency hedging. - CORRECT ANSWER If a
company seeks to limit foreign exchange rate exposure in the forward direction,
what is the most effective way to do this?
The exchange rate risk associated with the time delay between entering into a
contract and settling it. - CORRECT ANSWER Transaction risk
A transaction, such as forward transactions, that protects traders and investors
from exposure to the fluctuations of the spot rate. - CORRECT ANSWER Hedging
136 Questions with Verified Answers
New, Evolutionary, and Pendulum - CORRECT ANSWER Views on Globalization
A force sweeping through the world in recent times. - CORRECT ANSWER "New"
view on globalization
A long-run historical evolution since the dawn of human history - CORRECT
ANSWER "Evolutionary" view on globalization
One that swings from one extreme to another from time to time - CORRECT
ANSWER "Pendulum" view on globalization
Direct investment in, control, and management of value-added activities in other
countries - CORRECT ANSWER Foreign Direct Investment
Radical View, Free Market View, Pragmatic Nationalism - CORRECT ANSWER
Political views on FDI
Capital Inflow, Technology Spillover, Advanced Management Know-How, Job
creation - CORRECT ANSWER Benefits to a country receiving FDI
Loss of Sovereignty, Adverse effects on competition,
Capital outflow. - CORRECT ANSWER Costs to a country receiving FDI
,Resource similarity and market commonality can yield a powerful framework for
competitor analysis. - CORRECT ANSWER How do resources and capabilities
influence the competitive dynamics of a business?
The extent to which a given competitor possesses strategic endowment
comparable, in terms of both type and amount, to those of the focal firm. -
CORRECT ANSWER Resource similarity
Firms with a high degree are likely to have similar competitive actions. (Starbuck's
instant coffee & McDonald's iced coffee) - CORRECT ANSWER How does resource
similarity impact competitive dynamics?
Mercantilism, Absolute advantage, and Comparative advantage - CORRECT
ANSWER Classical theories of international trade
Dynamic - CORRECT ANSWER Modern theory view
Static - CORRECT ANSWER Classical theory view
The economic advantage one nation enjoys that is superior to other nations -
CORRECT ANSWER Absolute advantage
The advantage one economic activity nation enjoys in comparison with other
nations (relative, not absolute) - CORRECT ANSWER Comparative advantage
, A theory that suggests that the wealth of the world is fixed and that a nation that
exports more and imports less will be richer. - CORRECT ANSWER Mercantilism
New, Maturing, and Standardized - CORRECT ANSWER Features of the product life
cycle?
Intervention by governments in certain industries can enhance their odds for
international success. - CORRECT ANSWER Strategic trade
The price of a commodity, a country's currency, is fundamentally determined by
this. Strong demand leads to price hikes; oversupply results in price drops. -
CORRECT ANSWER How are supply and demand related to the exchange rate of a
country?
Mercantilism (although both are of the idea that governments should actively
protect domestic industries from imports and vigorously promote exports) -
CORRECT ANSWER Which theory came first?
Forward transactions, an act know as currency hedging. - CORRECT ANSWER If a
company seeks to limit foreign exchange rate exposure in the forward direction,
what is the most effective way to do this?
The exchange rate risk associated with the time delay between entering into a
contract and settling it. - CORRECT ANSWER Transaction risk
A transaction, such as forward transactions, that protects traders and investors
from exposure to the fluctuations of the spot rate. - CORRECT ANSWER Hedging
