WGU C211 Global Economics for
Managers Questions and Answers Latest
() (Verified Answers)
+
−
Absolute Advantage
The economic advantage one nation enjoys that is absolutely superior to other nations.
Accounting Profit
Total revenue minus total explicit cost
Brainpower
,Acquisition
a wholly owned subsidiary is created through direct foreign investment.
Administrative Policy
Bureaucratic rules that make it harder to import foreign goods.
Agglomeration
Clustering of economic activities in certain locations. Beyond geographic advantages,
location-specific advantages also arise from the clustering of economic activities in
certain locations.
Antidumping Duty
Tariffs levied on imports that have been "dumped" (selling below costs to "unfairly" drive
domestic firms out of business).
Antidumping Law
Law 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
Law that outlaws cartels (trusts).
Antitrust Policy
Government policy designed to combat monopolies and cartels.
Attack
An initial set of actions to gain competitive advantage.
Automatic Stabilizers
changes in fiscal policy that stimulate aggregate demand when the economy goes into a
recession without policymakers having to take any deliberate action
Average fixed cost
Fixed cost divided by the quantity of output AFC = FC/Q
Average Revenue
total revenue divided by the quantity sold
Average total cost
Total cost divided by the quantity of output
ATC = TC / Q
Average variable cost
Variable cost divided by the quantity of output AVC = VC/Q
Balance of payments
a country's international transaction statement.
Balance of Trade
The aggregation of importing and exporting that leads to the country-level trade surplus
or deficit.
Bandwagon effect
the result of investors moving as a herd in the same direction at the same time. ٭
Bank Capital
,the resources a bank's owners have put into the institution
Bargaining Power
Ability to extract favorable outcome from negotiations due to one party's strengths.
Base of the Pyramid
Economies where people make less than $2,000 per capita per year.
Beijing Consensus
A view that questions Washington Consensus' belief in the superiority of private
ownership over state ownership in economic policy making, which is often associated
with the position held by the Chinese government.
Bid rate
the price offered to buy a currency.
Blue Ocean Strategy
Strategy that focuses on developing new markets ("blue ocean") and avoids attacking
core markets defended by rivals, which is likely to result in a bloody price war or a "red
ocean."
Bounded Rationality
The necessity of making rational decisions in the absence of complete information.
Bretton Woods system
a system in which all currencies were pegged at a fixed rate to the U.S. dollar.
BRIC
Brazil, Russia, India, and China.
Budget Constraint
the limit on the consumption bundles that a consumer can afford
Build-operate-transfer (BOT) agreement
a non-equity mode of entry used to build a longer-term presence.
Capacity to Punish
Sufficient resources possessed by a price leader to deter and combat defection.
Capital flight
a phenomenon in which a large number of individuals and companies exchange
domestic currencies for a foreign currency. ٭
Capital Requirement
a government regulation specifying a minimum amount of bank capital
Cartel (trust)
An output- and price-fixing entity involving multiple competitors.
Central Bank
an institution designed to oversee the banking system and regulate the quantity of
money in the economy
Civil Law
, A legal tradition that uses comprehensive statutes and codes as a primary means to
form legal judgments. It is "the oldest, the most influential, and the most widely
distributed around the world." ٭
Classical Trade Theories
The major theories of international trade that were advanced before the 20th century,
which consist of (1) mercantilism, (2) absolute advantage, and (3) comparative
advantage. (static) ٭
Clean (or free) float
a pure market solution to determine exchange rates. ٭
Cognitive Pillar
The internalized (or taken-for granted) values and beliefs that guide individual and firm
behavior. ٭
Collusion
Collective attempts between competing firms to reduce competition. An agreement
among firms in a market about quantities to produce or prices to charge
Collusive Price Setting
Price setting by monopolists or collusion parties at a level higher than the competitive
level.
Co-marketing
refers to efforts among a number of firms to jointly market their products and services.
Command Economy
An economy that is characterized by government ownership and control of factors of
production. All factors of production should be government-owned or state-owned, and
all supply, demand, and pricing are planned by the government. ٭
Commodity Wealth
money that takes the form of a commodity with intrinsic value
Common Law
A legal tradition that is shaped by precedents and traditions from previous judicial
decisions. ٭
Comparative Advantage
Relative (not absolute) advantage in one economic activity that one nation enjoys in
comparison with other nations. (produce at a lower relative opportunity cost) ٭
Competition Policy
Government policy governing the rules of the game in competition.
Competitive Dynamics
Actions and responses undertaken by competing firms.
Competitive Markets
a market with many buyers and sellers trading identical products so that each buyer and
seller is a price taker ٭
Competitor Analysis
Managers Questions and Answers Latest
() (Verified Answers)
+
−
Absolute Advantage
The economic advantage one nation enjoys that is absolutely superior to other nations.
Accounting Profit
Total revenue minus total explicit cost
Brainpower
,Acquisition
a wholly owned subsidiary is created through direct foreign investment.
Administrative Policy
Bureaucratic rules that make it harder to import foreign goods.
Agglomeration
Clustering of economic activities in certain locations. Beyond geographic advantages,
location-specific advantages also arise from the clustering of economic activities in
certain locations.
Antidumping Duty
Tariffs levied on imports that have been "dumped" (selling below costs to "unfairly" drive
domestic firms out of business).
Antidumping Law
Law 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
Law that outlaws cartels (trusts).
Antitrust Policy
Government policy designed to combat monopolies and cartels.
Attack
An initial set of actions to gain competitive advantage.
Automatic Stabilizers
changes in fiscal policy that stimulate aggregate demand when the economy goes into a
recession without policymakers having to take any deliberate action
Average fixed cost
Fixed cost divided by the quantity of output AFC = FC/Q
Average Revenue
total revenue divided by the quantity sold
Average total cost
Total cost divided by the quantity of output
ATC = TC / Q
Average variable cost
Variable cost divided by the quantity of output AVC = VC/Q
Balance of payments
a country's international transaction statement.
Balance of Trade
The aggregation of importing and exporting that leads to the country-level trade surplus
or deficit.
Bandwagon effect
the result of investors moving as a herd in the same direction at the same time. ٭
Bank Capital
,the resources a bank's owners have put into the institution
Bargaining Power
Ability to extract favorable outcome from negotiations due to one party's strengths.
Base of the Pyramid
Economies where people make less than $2,000 per capita per year.
Beijing Consensus
A view that questions Washington Consensus' belief in the superiority of private
ownership over state ownership in economic policy making, which is often associated
with the position held by the Chinese government.
Bid rate
the price offered to buy a currency.
Blue Ocean Strategy
Strategy that focuses on developing new markets ("blue ocean") and avoids attacking
core markets defended by rivals, which is likely to result in a bloody price war or a "red
ocean."
Bounded Rationality
The necessity of making rational decisions in the absence of complete information.
Bretton Woods system
a system in which all currencies were pegged at a fixed rate to the U.S. dollar.
BRIC
Brazil, Russia, India, and China.
Budget Constraint
the limit on the consumption bundles that a consumer can afford
Build-operate-transfer (BOT) agreement
a non-equity mode of entry used to build a longer-term presence.
Capacity to Punish
Sufficient resources possessed by a price leader to deter and combat defection.
Capital flight
a phenomenon in which a large number of individuals and companies exchange
domestic currencies for a foreign currency. ٭
Capital Requirement
a government regulation specifying a minimum amount of bank capital
Cartel (trust)
An output- and price-fixing entity involving multiple competitors.
Central Bank
an institution designed to oversee the banking system and regulate the quantity of
money in the economy
Civil Law
, A legal tradition that uses comprehensive statutes and codes as a primary means to
form legal judgments. It is "the oldest, the most influential, and the most widely
distributed around the world." ٭
Classical Trade Theories
The major theories of international trade that were advanced before the 20th century,
which consist of (1) mercantilism, (2) absolute advantage, and (3) comparative
advantage. (static) ٭
Clean (or free) float
a pure market solution to determine exchange rates. ٭
Cognitive Pillar
The internalized (or taken-for granted) values and beliefs that guide individual and firm
behavior. ٭
Collusion
Collective attempts between competing firms to reduce competition. An agreement
among firms in a market about quantities to produce or prices to charge
Collusive Price Setting
Price setting by monopolists or collusion parties at a level higher than the competitive
level.
Co-marketing
refers to efforts among a number of firms to jointly market their products and services.
Command Economy
An economy that is characterized by government ownership and control of factors of
production. All factors of production should be government-owned or state-owned, and
all supply, demand, and pricing are planned by the government. ٭
Commodity Wealth
money that takes the form of a commodity with intrinsic value
Common Law
A legal tradition that is shaped by precedents and traditions from previous judicial
decisions. ٭
Comparative Advantage
Relative (not absolute) advantage in one economic activity that one nation enjoys in
comparison with other nations. (produce at a lower relative opportunity cost) ٭
Competition Policy
Government policy governing the rules of the game in competition.
Competitive Dynamics
Actions and responses undertaken by competing firms.
Competitive Markets
a market with many buyers and sellers trading identical products so that each buyer and
seller is a price taker ٭
Competitor Analysis
