WGU C211 OA Global Economics Exam Latest (2024 /
2025) (Verified Answers)
absolute advantage - ANSThe economic advantage one nation enjoys that is absolutely superior to other
nations.
Administrative policies - ANSBureaucratic rules that make it harder to import foreign goods.
Administrative policy - ANSBureaucratic rules that make it harder to import foreign goods.
agglomeration - ANSClustering of economic activities in certain locations.
antidumping duties - ANSTariffs levied on imports that have been "dumped"
Antidumping duty - ANSTariffs levied on imports that have been "dumped" (selling below costs to unfairly
drive domestic firms out of business)
antidumping law - ANSlaw that makes it illegal for an exporter to sell goods below cost abroad with the
internet to raise price after eliminating local rivals.
antidumping laws - ANSlaw that makes it illegal for an exporter to sell goods below cost abroad with the
intent to raise prices after eliminating local rivals.
antitrust law - ANSLaw that outlaws cartels (trusts).
antitrust policy - ANSgovernment policy designed to combat monopolies and cartels
appreciation - ANSan increase in the value of currency
attack - ANSan initial set of actions to gain competitive advantage
balance of payments - ANSa country's international transaction statement, which includes merchandise
trade, service trade, and capital movement.
balance of trade - ANSThe aggregation of importing and exporting that leads to country-level trade
surplus or deficit.
bandwagon effect - ANSthe effect of investors moving in the same direction at the same time, like a herd
bargaining power - ANSAbility to extract a favorable outcome from negotiations due to one party's
strength.
base of the pyramid (BOP) - ANSEconomies where people make less than $2,000 per capita per year.
bid rate - ANSthe price to buy a currency
blue ocean strategy - ANSStrategy that focusses on developing new markets ("blue ocean") and avoids
attacking core markets defended by rivals, which is likely the result in a bloody price war or a "red ocean".
Bretton Woods System - ANSa system in which all currencies were pegged at a fixed rate to the US
dollar.
BRIC - ANSBrazil, Russia, India, and China
,WGU C211 OA Global Economics Exam Latest (2024 /
2025) (Verified Answers)
build-operate-transfer (BOT) agreement - ANSa non-equity mode of entry used to build a longer-term
presence by building and then operating a facility for a period of time between transferring operations to a
domestic agency or firm.
capacity to punish - ANSsufficient resources possessed by a price leader to deter and combat defection.
capital flight - ANSa phenomenon in which a large number of individuals and companies exchange
domestic currency for a foreign currency.
capital requirement - ANSa government regulation specifying a minimum amount of bank capital
cartel - ANSAn output and price fixing entity involving multiple competitors.
central bank - ANSan institution designed to oversee the banking system and regulate the quantity of
money in the economy
classical trade theories - ANSThe major theories of international trade that were advanced before the
20th century, which consist of (1) mercantilism, (2) absolute advantage, and (3) comparative advantage.
clean - ANSa pure market solution to determine exchange rates.
clean (free) float - ANSa pure market solution to determine exchange rates
co-marketing - ANSefforts amoung a number of firms to jointly market their products and services.
collusion - ANScollective attempts between competing firms to reduce competition.
collusive price setting - ANSprice setting by monopolists or collusion parties at a level higher than the
competitive level
commodity money - ANSmoney that takes the form of a commodity with intrinsic value
common denominator - ANSa currency of commodity to which the value of all currencies are pegged.
Comparative advantage - ANSRelative not absolute advantage in one economic activity that one nation
enjoys in comparison with other nations.
competition policy - ANSGovernment policy governing the rules of the game in competition.
competitive dynamics - ANSactions and responses undertaken by competing firms.
competitor analysis - ANSThe process of anticipating rivals' actions in order to both revise a firms plan
and prepare to deal with rivals response.
complements - ANStwo goods for which an increase in the price of one leads to a decrease in the
demand for the other.
concentration ratio - ANSthe percentage of total industry sales accounted for by the top four, eight, or
twenty firms.
,WGU C211 OA Global Economics Exam Latest (2024 /
2025) (Verified Answers)
consumer surplus - ANSThe consumers (WTP) willingness to pay minus what the consumer actually paid
for the goods, or services.
contender - ANSstrategy that centers on a firm engaging in rapid learning and then expanding overseas.
counterattack - ANSa set of actions in response to attack
country of origin effect - ANSthe positive or negative perception of firms and products from a certain
country
cross-market retaliation - ANSretaliatory attacks on a competitors other markets if this competitor attacks
a firms original market.
cross-price elasticity of demand - ANSa measure of how much the quantity demanded of one good
responds to a change in the price of another good, computed as the percentage change in quantity
demanded of the first good divided by the percentage change in price of the second good.
cultural distance - ANSthe difference between two cultures along identifiable dimensions such as
individualism.
currency - ANSthe paper bills and coins in the hands of the public
currency board - ANSa monetary authority that issues notes and coins convertible into a key foreign
exchange rate.
currency risks - ANSthe potential for loss associated with fluctuations in the foreign exchange market
currency swap - ANSa foreign exchange transaction between two firms in which one currency is
converted into another at Time 1, with an agreement to revert it back to the original currency at a
specified Time 2 in the future.
Deadweight cost - ANSNet losses that occur in an economy as a result of tariffs.
deadweight costs - ANSNet losses that occur in an economy as a result of tariffs.
defender - ANSstrategy that centers on local assets in areas in which MNE's are weak.
demand curve - ANSa graph of the relationship between the price of a good and the quantity demanded;
typically slopes downward.
demand deposits - ANSbalances in bank accounts that depositors can access on demand by writing a
check.
demonstration effect - ANSThe reaction of local firms to rise to the challenge demonstrated by MNEs
through learning and imitation.
depreciation - ANSthe loss in the value of the currency
dirty - ANSusing selective government intervention to determine exchange rates
, WGU C211 OA Global Economics Exam Latest (2024 /
2025) (Verified Answers)
dirty (managed) float - ANSusing selective government intervention to determine exchange rates
discount rate - ANSthe interest rate on the loans that the Fed makes to banks.
dissemination risks - ANSThe risk associated with unauthorized diffusion of firm specific know-how.
dodger - ANSstrategy that centers on cooperating through joint ventures with MNE's and sell offs to
MNE's.
downstream vertical FDI - ANSA type of vertical FDI in which a firm engages in a downstream stage of
the value chain in a host country.
dumping - ANSan exporter selling goods below cost
elasticity - ANSa measure of the responsiveness of quantity demanded or quantity supplied to a change
in one of its determinants.
emerging economies - ANSA term that has gradually replaced the term "developing countries" since the
1990's.
emerging markets - ANSA term that is often used interchangeably with "emerging economies"
equilibrium - ANSa situation in which the market price has reached the level at which quantity supplied
equals quantity demanded.
equilibrium price - ANSthe price that balances quantity supplied and quantity demanded.
equilibrium quantity - ANSthe quantity supplied and the quantity demanded at the equilibrium price.
equity modes - ANSa mode of entry (JV and WOS) that indicates relativity larger, harder-to-reverse
commitments to overseas markets.
Expatriate Manager - ANSA manager who works "abroad", or "expat" for short.
Expatriate Manager (expat) - ANSA manager who works abroad, or "expat" for short.
explicit collusion - ANSfirms directly negotiate output pricing and divide markets.
export - ANSselling abroad
expropriation - ANSGovernments confiscation of foreign assets
extender - ANSstrategy that centers on leveraging homegrown competencies abroad
factor endowment theory or Heckscher-Ohlin Theory - ANSA theory that suggests that nations will
develop comparative advantages based on their locally abundant factors.
factor endowments - ANSThe extent to which different countries possess various factors of production
such as labor, land and technology.
2025) (Verified Answers)
absolute advantage - ANSThe economic advantage one nation enjoys that is absolutely superior to other
nations.
Administrative policies - ANSBureaucratic rules that make it harder to import foreign goods.
Administrative policy - ANSBureaucratic rules that make it harder to import foreign goods.
agglomeration - ANSClustering of economic activities in certain locations.
antidumping duties - ANSTariffs levied on imports that have been "dumped"
Antidumping duty - ANSTariffs levied on imports that have been "dumped" (selling below costs to unfairly
drive domestic firms out of business)
antidumping law - ANSlaw that makes it illegal for an exporter to sell goods below cost abroad with the
internet to raise price after eliminating local rivals.
antidumping laws - ANSlaw that makes it illegal for an exporter to sell goods below cost abroad with the
intent to raise prices after eliminating local rivals.
antitrust law - ANSLaw that outlaws cartels (trusts).
antitrust policy - ANSgovernment policy designed to combat monopolies and cartels
appreciation - ANSan increase in the value of currency
attack - ANSan initial set of actions to gain competitive advantage
balance of payments - ANSa country's international transaction statement, which includes merchandise
trade, service trade, and capital movement.
balance of trade - ANSThe aggregation of importing and exporting that leads to country-level trade
surplus or deficit.
bandwagon effect - ANSthe effect of investors moving in the same direction at the same time, like a herd
bargaining power - ANSAbility to extract a favorable outcome from negotiations due to one party's
strength.
base of the pyramid (BOP) - ANSEconomies where people make less than $2,000 per capita per year.
bid rate - ANSthe price to buy a currency
blue ocean strategy - ANSStrategy that focusses on developing new markets ("blue ocean") and avoids
attacking core markets defended by rivals, which is likely the result in a bloody price war or a "red ocean".
Bretton Woods System - ANSa system in which all currencies were pegged at a fixed rate to the US
dollar.
BRIC - ANSBrazil, Russia, India, and China
,WGU C211 OA Global Economics Exam Latest (2024 /
2025) (Verified Answers)
build-operate-transfer (BOT) agreement - ANSa non-equity mode of entry used to build a longer-term
presence by building and then operating a facility for a period of time between transferring operations to a
domestic agency or firm.
capacity to punish - ANSsufficient resources possessed by a price leader to deter and combat defection.
capital flight - ANSa phenomenon in which a large number of individuals and companies exchange
domestic currency for a foreign currency.
capital requirement - ANSa government regulation specifying a minimum amount of bank capital
cartel - ANSAn output and price fixing entity involving multiple competitors.
central bank - ANSan institution designed to oversee the banking system and regulate the quantity of
money in the economy
classical trade theories - ANSThe major theories of international trade that were advanced before the
20th century, which consist of (1) mercantilism, (2) absolute advantage, and (3) comparative advantage.
clean - ANSa pure market solution to determine exchange rates.
clean (free) float - ANSa pure market solution to determine exchange rates
co-marketing - ANSefforts amoung a number of firms to jointly market their products and services.
collusion - ANScollective attempts between competing firms to reduce competition.
collusive price setting - ANSprice setting by monopolists or collusion parties at a level higher than the
competitive level
commodity money - ANSmoney that takes the form of a commodity with intrinsic value
common denominator - ANSa currency of commodity to which the value of all currencies are pegged.
Comparative advantage - ANSRelative not absolute advantage in one economic activity that one nation
enjoys in comparison with other nations.
competition policy - ANSGovernment policy governing the rules of the game in competition.
competitive dynamics - ANSactions and responses undertaken by competing firms.
competitor analysis - ANSThe process of anticipating rivals' actions in order to both revise a firms plan
and prepare to deal with rivals response.
complements - ANStwo goods for which an increase in the price of one leads to a decrease in the
demand for the other.
concentration ratio - ANSthe percentage of total industry sales accounted for by the top four, eight, or
twenty firms.
,WGU C211 OA Global Economics Exam Latest (2024 /
2025) (Verified Answers)
consumer surplus - ANSThe consumers (WTP) willingness to pay minus what the consumer actually paid
for the goods, or services.
contender - ANSstrategy that centers on a firm engaging in rapid learning and then expanding overseas.
counterattack - ANSa set of actions in response to attack
country of origin effect - ANSthe positive or negative perception of firms and products from a certain
country
cross-market retaliation - ANSretaliatory attacks on a competitors other markets if this competitor attacks
a firms original market.
cross-price elasticity of demand - ANSa measure of how much the quantity demanded of one good
responds to a change in the price of another good, computed as the percentage change in quantity
demanded of the first good divided by the percentage change in price of the second good.
cultural distance - ANSthe difference between two cultures along identifiable dimensions such as
individualism.
currency - ANSthe paper bills and coins in the hands of the public
currency board - ANSa monetary authority that issues notes and coins convertible into a key foreign
exchange rate.
currency risks - ANSthe potential for loss associated with fluctuations in the foreign exchange market
currency swap - ANSa foreign exchange transaction between two firms in which one currency is
converted into another at Time 1, with an agreement to revert it back to the original currency at a
specified Time 2 in the future.
Deadweight cost - ANSNet losses that occur in an economy as a result of tariffs.
deadweight costs - ANSNet losses that occur in an economy as a result of tariffs.
defender - ANSstrategy that centers on local assets in areas in which MNE's are weak.
demand curve - ANSa graph of the relationship between the price of a good and the quantity demanded;
typically slopes downward.
demand deposits - ANSbalances in bank accounts that depositors can access on demand by writing a
check.
demonstration effect - ANSThe reaction of local firms to rise to the challenge demonstrated by MNEs
through learning and imitation.
depreciation - ANSthe loss in the value of the currency
dirty - ANSusing selective government intervention to determine exchange rates
, WGU C211 OA Global Economics Exam Latest (2024 /
2025) (Verified Answers)
dirty (managed) float - ANSusing selective government intervention to determine exchange rates
discount rate - ANSthe interest rate on the loans that the Fed makes to banks.
dissemination risks - ANSThe risk associated with unauthorized diffusion of firm specific know-how.
dodger - ANSstrategy that centers on cooperating through joint ventures with MNE's and sell offs to
MNE's.
downstream vertical FDI - ANSA type of vertical FDI in which a firm engages in a downstream stage of
the value chain in a host country.
dumping - ANSan exporter selling goods below cost
elasticity - ANSa measure of the responsiveness of quantity demanded or quantity supplied to a change
in one of its determinants.
emerging economies - ANSA term that has gradually replaced the term "developing countries" since the
1990's.
emerging markets - ANSA term that is often used interchangeably with "emerging economies"
equilibrium - ANSa situation in which the market price has reached the level at which quantity supplied
equals quantity demanded.
equilibrium price - ANSthe price that balances quantity supplied and quantity demanded.
equilibrium quantity - ANSthe quantity supplied and the quantity demanded at the equilibrium price.
equity modes - ANSa mode of entry (JV and WOS) that indicates relativity larger, harder-to-reverse
commitments to overseas markets.
Expatriate Manager - ANSA manager who works "abroad", or "expat" for short.
Expatriate Manager (expat) - ANSA manager who works abroad, or "expat" for short.
explicit collusion - ANSfirms directly negotiate output pricing and divide markets.
export - ANSselling abroad
expropriation - ANSGovernments confiscation of foreign assets
extender - ANSstrategy that centers on leveraging homegrown competencies abroad
factor endowment theory or Heckscher-Ohlin Theory - ANSA theory that suggests that nations will
develop comparative advantages based on their locally abundant factors.
factor endowments - ANSThe extent to which different countries possess various factors of production
such as labor, land and technology.
