WGU C211 Global Economics for Managers Exam
210 Questions with Verified Answers
Net losses that occurs in an economy as a result of tariffs - CORRECT ANSWER
Deadweight Cost
A conversion that determines the equivalent amount of goods and services
different currencies can purchase. An adjustment to reflect the differences in the
cost of living in various countries - CORRECT ANSWER Purchasing Power Parity
(PPP)
North America, Western Europe, and Japan - CORRECT ANSWER Triad
An organization's resources and capabilities, NOT external conditions, should be
the basis for strategic decisions - CORRECT ANSWER Resource Based View
Success and failure are enabled and contained by institutions - CORRECT ANSWER
Institution Based View
When the central bank buys or sells bonds - CORRECT ANSWER Open Market
Operations (OMO)
Free Market and Pragmatic Nationalism - CORRECT ANSWER Primary Political
Views on FDI
1) Launch products in multiple markets
,2) Secure patents on key products
3) Hold a dominant position in key markets - CORRECT ANSWER How do firms
create value when engaging rivals?
1) A pendulum that swings from one extreme to another from time to time
2) A new force sweeping through the world in recent times
3) A long run historical evolution since the dawn of human history - CORRECT
ANSWER Globalization can be viewed as:
Subsidies, import quotas, export restraints, local content requirement,
administrative policies and antidumping duties - CORRECT ANSWER Non tariff
Trade Barrier (NTB)
The idea that market forces should determine how much to trade with little or no
government intervention - CORRECT ANSWER Free Trade
1) National Security
2) Environment and Social Responsibility
3) Consumer Protection - CORRECT ANSWER Political Arguments for Free Trade
David Ricardo - CORRECT ANSWER Who advocated for Comparative Advantage?
Views international trade as a zero sum game - CORRECT ANSWER Mercantilism
1) Product Life Cycle
,2) Strategic Trade
3) National Competitive Advantage of Industries - CORRECT ANSWER Modern
Theories of International Trade
1) Mercantilism
2) Absolute Advantage
3) Comparative Advantage - CORRECT ANSWER Classical Theories of International
Trade
Modern = Dynamic
Classical = Static - CORRECT ANSWER Modern Theory vs Classical Theory
1) New
2) Maturing
3) Standardized - CORRECT ANSWER Critical features of Product Life Cycle
1) Radical
2) Free Market
3) Pragmatic Nationalism - CORRECT ANSWER Political Views on Foreign Direct
Investment (FDI)
1) Capital inflow
2) Technology Spillover
3) Advance Management Know-How
, 4) Job Creation - CORRECT ANSWER Benefits of a country receiving FDI
1) Loss of Sovereignty
2) Adverse effects on competition
3) Capital Outflow - CORRECT ANSWER Costs to a country receiving FDI
A transaction that protects traders and investors from exposure to the fluctuations
of the spot rate - CORRECT ANSWER Hedging
1) Proprietary
2) Technological Leadership
3) Preemption of scarce resources
4) Establishment of entry barriers
5) Avoidance of clash with dominant firms at home
6) Relationships with key stakeholders - CORRECT ANSWER Advantages with First
Mover
1) Opportunity to free ride on first mover investments
2) Resolution of technological and market uncertainty - CORRECT ANSWER
Advantages with Late Mover
1) Regulatory
2) Normative
3) Cognitive - CORRECT ANSWER What are the three pillars
210 Questions with Verified Answers
Net losses that occurs in an economy as a result of tariffs - CORRECT ANSWER
Deadweight Cost
A conversion that determines the equivalent amount of goods and services
different currencies can purchase. An adjustment to reflect the differences in the
cost of living in various countries - CORRECT ANSWER Purchasing Power Parity
(PPP)
North America, Western Europe, and Japan - CORRECT ANSWER Triad
An organization's resources and capabilities, NOT external conditions, should be
the basis for strategic decisions - CORRECT ANSWER Resource Based View
Success and failure are enabled and contained by institutions - CORRECT ANSWER
Institution Based View
When the central bank buys or sells bonds - CORRECT ANSWER Open Market
Operations (OMO)
Free Market and Pragmatic Nationalism - CORRECT ANSWER Primary Political
Views on FDI
1) Launch products in multiple markets
,2) Secure patents on key products
3) Hold a dominant position in key markets - CORRECT ANSWER How do firms
create value when engaging rivals?
1) A pendulum that swings from one extreme to another from time to time
2) A new force sweeping through the world in recent times
3) A long run historical evolution since the dawn of human history - CORRECT
ANSWER Globalization can be viewed as:
Subsidies, import quotas, export restraints, local content requirement,
administrative policies and antidumping duties - CORRECT ANSWER Non tariff
Trade Barrier (NTB)
The idea that market forces should determine how much to trade with little or no
government intervention - CORRECT ANSWER Free Trade
1) National Security
2) Environment and Social Responsibility
3) Consumer Protection - CORRECT ANSWER Political Arguments for Free Trade
David Ricardo - CORRECT ANSWER Who advocated for Comparative Advantage?
Views international trade as a zero sum game - CORRECT ANSWER Mercantilism
1) Product Life Cycle
,2) Strategic Trade
3) National Competitive Advantage of Industries - CORRECT ANSWER Modern
Theories of International Trade
1) Mercantilism
2) Absolute Advantage
3) Comparative Advantage - CORRECT ANSWER Classical Theories of International
Trade
Modern = Dynamic
Classical = Static - CORRECT ANSWER Modern Theory vs Classical Theory
1) New
2) Maturing
3) Standardized - CORRECT ANSWER Critical features of Product Life Cycle
1) Radical
2) Free Market
3) Pragmatic Nationalism - CORRECT ANSWER Political Views on Foreign Direct
Investment (FDI)
1) Capital inflow
2) Technology Spillover
3) Advance Management Know-How
, 4) Job Creation - CORRECT ANSWER Benefits of a country receiving FDI
1) Loss of Sovereignty
2) Adverse effects on competition
3) Capital Outflow - CORRECT ANSWER Costs to a country receiving FDI
A transaction that protects traders and investors from exposure to the fluctuations
of the spot rate - CORRECT ANSWER Hedging
1) Proprietary
2) Technological Leadership
3) Preemption of scarce resources
4) Establishment of entry barriers
5) Avoidance of clash with dominant firms at home
6) Relationships with key stakeholders - CORRECT ANSWER Advantages with First
Mover
1) Opportunity to free ride on first mover investments
2) Resolution of technological and market uncertainty - CORRECT ANSWER
Advantages with Late Mover
1) Regulatory
2) Normative
3) Cognitive - CORRECT ANSWER What are the three pillars
