WGU C211 Global Economics for Managers
Question and Answer | A+ Verified Answers |
Study Pack
• Economic gains come from international trade because one country's exported goods,
services, or other items are unique, valuable, and difficult to duplicate to the importing
countries. Which view does this statement portray? -✓✓Resource-based view
• What is the aggregation of importing and exporting that leads to the country-level trade
surplus or deficit? -✓✓Balance of trade
• What is a cost of foreign direct investment? -✓✓Developing countries may be
exploited by multinational enterprises (MNE).
• What may precious, rare, and hard-to-duplicate resources and capabilities lead to for a
firm? -✓✓Sustained comparative advantage
• Which theory states that patterns of international trade change across new, maturing,
and standardized states? -✓✓Product life cycle theory
• What is the financial environment in which exchange rates and payments for goods
and services are conducted? -✓✓International monetary system
• What happens to a country's real exchange rate and nominal interest rate as the price
level increases, assuming all other factors are unchanged? -✓✓Exchange rates
depreciate; interest rates increase
• What is the easiest method nonfinancial companies use to handle currency
fluctuations? -✓✓Currency diversification
• Which strategy minimizes the risk of unanticipated changes in future exchange rates?
-✓✓Currency swap
• A company is looking for a location with an abundance of ground-breaking individuals,
firms, and universities. Which type of strategic goal is this company demonstrating? -
✓✓Innovation-seeking
• What advantage comes with not sharing benefits with late entrants? -✓✓First-mover
advantage
• Which entry mode is a non-equity arrangement for a company entry into a foreign
market? -✓✓Licensing
Question and Answer | A+ Verified Answers |
Study Pack
• Economic gains come from international trade because one country's exported goods,
services, or other items are unique, valuable, and difficult to duplicate to the importing
countries. Which view does this statement portray? -✓✓Resource-based view
• What is the aggregation of importing and exporting that leads to the country-level trade
surplus or deficit? -✓✓Balance of trade
• What is a cost of foreign direct investment? -✓✓Developing countries may be
exploited by multinational enterprises (MNE).
• What may precious, rare, and hard-to-duplicate resources and capabilities lead to for a
firm? -✓✓Sustained comparative advantage
• Which theory states that patterns of international trade change across new, maturing,
and standardized states? -✓✓Product life cycle theory
• What is the financial environment in which exchange rates and payments for goods
and services are conducted? -✓✓International monetary system
• What happens to a country's real exchange rate and nominal interest rate as the price
level increases, assuming all other factors are unchanged? -✓✓Exchange rates
depreciate; interest rates increase
• What is the easiest method nonfinancial companies use to handle currency
fluctuations? -✓✓Currency diversification
• Which strategy minimizes the risk of unanticipated changes in future exchange rates?
-✓✓Currency swap
• A company is looking for a location with an abundance of ground-breaking individuals,
firms, and universities. Which type of strategic goal is this company demonstrating? -
✓✓Innovation-seeking
• What advantage comes with not sharing benefits with late entrants? -✓✓First-mover
advantage
• Which entry mode is a non-equity arrangement for a company entry into a foreign
market? -✓✓Licensing
