WGU C211 - Global Economics for
Managers questions and answers 2025\2026
A+ Grade
Views on Globalization
- correct answer New, Evolutionary, and Pendulum
"New" view on globalization
- correct answer A force sweeping through the world in recent times.
"Evolutionary" view on globalization
- correct answer A long-run historical evolution since the dawn of human history
"Pendulum" view on globalization
- correct answer One that swings from one extreme to another from time to time
Foreign Direct Investment
- correct answer Direct investment in, control, and management of value-added activities in other
countries
Political views on FDI
- correct answer Radical View, Free Market View, Pragmatic Nationalism
Benefits to a country receiving FDI
- correct answer Capital Inflow, Technology Spillover, Advanced Management Know-How, Job creation
Costs to a country receiving FDI
- correct answer Loss of Sovereignty, Adverse effects on competition,
,Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business?
- correct answer Resource similarity and market commonality can yield a powerful framework for
competitor analysis.
Resource similarity
- correct 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?
- correct 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
- correct answer Mercantilism, Absolute advantage, and Comparative advantage
Modern theory view
- correct answer Dynamic
Classical theory view
- correct answer Static
Absolute advantage
- correct answer The economic advantage one nation enjoys that is superior to other nations
Comparative advantage
- correct answer The advantage one economic activity nation enjoys in comparison with other nations
(relative, not absolute)
Mercantilism
- correct 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?
- correct answer New, Maturing, and Standardized
Strategic trade
- correct 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?
- correct 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?
- correct answer Mercantilism (although both are of the idea that governments should actively protect
domestic industries from imports and vigorously promote exports)
If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the most
effective way to do this?
- correct answer Forward transactions, an act know as currency hedging.
Transaction risk
- correct answer The exchange rate risk associated with the time delay between entering into a contract
and settling it.
Hedging
- correct answer A transaction, such as forward transactions, that protects traders and investors from
exposure to the fluctuations of the spot rate.
Currency hedging
- correct answer A way to protect traders and investors from being exposed to the fluctuations of the
spot rate
Strategic hedging
- correct answer A means of spreading out activities in different currency zones in order to offset the
currency losses in certain regions through gains in other regions (currency diversification)
Managers questions and answers 2025\2026
A+ Grade
Views on Globalization
- correct answer New, Evolutionary, and Pendulum
"New" view on globalization
- correct answer A force sweeping through the world in recent times.
"Evolutionary" view on globalization
- correct answer A long-run historical evolution since the dawn of human history
"Pendulum" view on globalization
- correct answer One that swings from one extreme to another from time to time
Foreign Direct Investment
- correct answer Direct investment in, control, and management of value-added activities in other
countries
Political views on FDI
- correct answer Radical View, Free Market View, Pragmatic Nationalism
Benefits to a country receiving FDI
- correct answer Capital Inflow, Technology Spillover, Advanced Management Know-How, Job creation
Costs to a country receiving FDI
- correct answer Loss of Sovereignty, Adverse effects on competition,
,Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business?
- correct answer Resource similarity and market commonality can yield a powerful framework for
competitor analysis.
Resource similarity
- correct 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?
- correct 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
- correct answer Mercantilism, Absolute advantage, and Comparative advantage
Modern theory view
- correct answer Dynamic
Classical theory view
- correct answer Static
Absolute advantage
- correct answer The economic advantage one nation enjoys that is superior to other nations
Comparative advantage
- correct answer The advantage one economic activity nation enjoys in comparison with other nations
(relative, not absolute)
Mercantilism
- correct 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?
- correct answer New, Maturing, and Standardized
Strategic trade
- correct 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?
- correct 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?
- correct answer Mercantilism (although both are of the idea that governments should actively protect
domestic industries from imports and vigorously promote exports)
If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the most
effective way to do this?
- correct answer Forward transactions, an act know as currency hedging.
Transaction risk
- correct answer The exchange rate risk associated with the time delay between entering into a contract
and settling it.
Hedging
- correct answer A transaction, such as forward transactions, that protects traders and investors from
exposure to the fluctuations of the spot rate.
Currency hedging
- correct answer A way to protect traders and investors from being exposed to the fluctuations of the
spot rate
Strategic hedging
- correct answer A means of spreading out activities in different currency zones in order to offset the
currency losses in certain regions through gains in other regions (currency diversification)
