WGU C211 OA GLOBAL ECONOMICS FOR
MANAGERS EXAMINATION TEST 2026
COMPLETE QUESTIONS AND SOLUTIONS
⩥ "New" view on globalization. Answer: A force sweeping through the
world in recent times.
⩥ "Evolutionary" view on globalization. Answer: A long-run historical
evolution since the dawn of human history
⩥ "Pendulum" view on globalization. Answer: One that swings from one
extreme to another from time to time
⩥ Foreign Direct Investment. Answer: Direct investment in, control, and
management of value-added activities in other countries
⩥ Political views on FDI. Answer: Radical View, Free Market View,
Pragmatic Nationalism
⩥ Benefits to a country receiving FDI. Answer: Capital Inflow,
Technology Spillover, Advanced Management Know-How, Job creation
,⩥ Costs to a country receiving FDI. Answer: Loss of Sovereignty,
Adverse effects on competition,
Capital outflow.
⩥ How do resources and capabilities influence the competitive dynamics
of a business?. Answer: Resource similarity and market commonality
can yield a powerful framework for competitor analysis.
⩥ Resource similarity. Answer: The extent to which a given competitor
possesses strategic endowment comparable, in terms of both type and
amount, to those of the focal firm.
⩥ How does resource similarity impact competitive dynamics?. Answer:
Firms with a high degree are likely to have similar competitive actions.
(Starbuck's instant coffee & McDonald's iced coffee)
⩥ Classical theories of international trade. Answer: Mercantilism,
Absolute advantage, and Comparative advantage
⩥ Modern theory view. Answer: Dynamic
⩥ Classical theory view. Answer: Static
, ⩥ Absolute advantage. Answer: The economic advantage one nation
enjoys that is superior to other nations
⩥ Comparative advantage. Answer: The advantage one economic
activity nation enjoys in comparison with other nations (relative, not
absolute)
⩥ Mercantilism. Answer: 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.
⩥ Features of the product life cycle?. Answer: New, Maturing, and
Standardized
⩥ Strategic trade. Answer: Intervention by governments in certain
industries can enhance their odds for international success.
⩥ How are supply and demand related to the exchange rate of a
country?. Answer: 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.
⩥ Which theory came first?. Answer: Mercantilism (although both are of
the idea that governments should actively protect domestic industries
from imports and vigorously promote exports)
MANAGERS EXAMINATION TEST 2026
COMPLETE QUESTIONS AND SOLUTIONS
⩥ "New" view on globalization. Answer: A force sweeping through the
world in recent times.
⩥ "Evolutionary" view on globalization. Answer: A long-run historical
evolution since the dawn of human history
⩥ "Pendulum" view on globalization. Answer: One that swings from one
extreme to another from time to time
⩥ Foreign Direct Investment. Answer: Direct investment in, control, and
management of value-added activities in other countries
⩥ Political views on FDI. Answer: Radical View, Free Market View,
Pragmatic Nationalism
⩥ Benefits to a country receiving FDI. Answer: Capital Inflow,
Technology Spillover, Advanced Management Know-How, Job creation
,⩥ Costs to a country receiving FDI. Answer: Loss of Sovereignty,
Adverse effects on competition,
Capital outflow.
⩥ How do resources and capabilities influence the competitive dynamics
of a business?. Answer: Resource similarity and market commonality
can yield a powerful framework for competitor analysis.
⩥ Resource similarity. Answer: The extent to which a given competitor
possesses strategic endowment comparable, in terms of both type and
amount, to those of the focal firm.
⩥ How does resource similarity impact competitive dynamics?. Answer:
Firms with a high degree are likely to have similar competitive actions.
(Starbuck's instant coffee & McDonald's iced coffee)
⩥ Classical theories of international trade. Answer: Mercantilism,
Absolute advantage, and Comparative advantage
⩥ Modern theory view. Answer: Dynamic
⩥ Classical theory view. Answer: Static
, ⩥ Absolute advantage. Answer: The economic advantage one nation
enjoys that is superior to other nations
⩥ Comparative advantage. Answer: The advantage one economic
activity nation enjoys in comparison with other nations (relative, not
absolute)
⩥ Mercantilism. Answer: 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.
⩥ Features of the product life cycle?. Answer: New, Maturing, and
Standardized
⩥ Strategic trade. Answer: Intervention by governments in certain
industries can enhance their odds for international success.
⩥ How are supply and demand related to the exchange rate of a
country?. Answer: 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.
⩥ Which theory came first?. Answer: Mercantilism (although both are of
the idea that governments should actively protect domestic industries
from imports and vigorously promote exports)
