WGU C211 Cengage Text Global Economics
for Managers (Latest Update )
Questions with Correct Answers {Grade A}
100% Verified
Oligopoly - correct answer Industry dominated by a small number of players
Free market view - correct answer A political view that suggests that FDI unrestricted
by government intervention is the best.
Upstream vertical FDI - correct answer A type of vertical FDI in which a firm engages
in an upstream stage of the value chain in a host country.
OLI advantages - correct answer A firms quest for (O) ownership advantages, (L)
location advantages, and internalization (I) advantages via FDI.
Pragmatic nationalism - correct answer A political view that only approves FDI when
its benefit outweighs its costs.
,Horizontal FDI - correct answer A type of FDI in which a firm duplicates its home
country-based activities at the same value chain stage in a host country.
FDI Outflow - correct answer Outbound FDI moving out of a country in a year.
Radical view - correct answer A political view that is hostile to FDI
Market imperfections (market failure) - correct answer The imperfection of the market
mechanisms that make transactions prohibitively costly and sometimes make
transactions unable to take place.
Location - correct answer Advantages enjoyed by firms operating in a certain location.
FDI Stock - correct answer Total accumulation of inbound FDI in a country or outbound
FDI from a country across a given period (usually several years)
Downstream vertical FDI - correct answer A type of vertical FDI in which a firm
engages in a downstream stage of the value chain in a host country.
,Ownership - correct answer An MNE's possession of leveraging of certain valuable,
rare, hard to imitate, and organizationally embedded (VRIO) assets overseas in the
context of FDI.
Knowledge spillovers - correct answer Knowledge diffused from one firm to others
among closely located firms.
FDI inflow - correct answer Inbound FDI moving into a country in a year.
Intrafirm trade - correct answer International transactions between two subsidiaries
in two countries controlled by the same MNE.
Bargaining power - correct answer Ability to extract a favorable outcome from
negotiations due to one party's strength.
FDI flow - correct answer The amount of FDI moving in a given period (usually a year)
in a certain direction.
, Greenfield operations - correct answer building factories and offices from scratch (on
a proverbial piece of "green field" formerly used for agricultural purposes).
Cultural distance - correct answer the difference between two cultures along
identifiable dimensions such as individualism.
Scale of entry - correct answer the amount of resources committed to entering a
foreign market.
Law of demand - correct answer the claim that, other things being equal, the quantity
demanded of a good falls when the price of the good rises.
Demand curve - correct answer a graph of the relationship between the price of a
good and the quantity demanded; typically slopes downward.
for Managers (Latest Update )
Questions with Correct Answers {Grade A}
100% Verified
Oligopoly - correct answer Industry dominated by a small number of players
Free market view - correct answer A political view that suggests that FDI unrestricted
by government intervention is the best.
Upstream vertical FDI - correct answer A type of vertical FDI in which a firm engages
in an upstream stage of the value chain in a host country.
OLI advantages - correct answer A firms quest for (O) ownership advantages, (L)
location advantages, and internalization (I) advantages via FDI.
Pragmatic nationalism - correct answer A political view that only approves FDI when
its benefit outweighs its costs.
,Horizontal FDI - correct answer A type of FDI in which a firm duplicates its home
country-based activities at the same value chain stage in a host country.
FDI Outflow - correct answer Outbound FDI moving out of a country in a year.
Radical view - correct answer A political view that is hostile to FDI
Market imperfections (market failure) - correct answer The imperfection of the market
mechanisms that make transactions prohibitively costly and sometimes make
transactions unable to take place.
Location - correct answer Advantages enjoyed by firms operating in a certain location.
FDI Stock - correct answer Total accumulation of inbound FDI in a country or outbound
FDI from a country across a given period (usually several years)
Downstream vertical FDI - correct answer A type of vertical FDI in which a firm
engages in a downstream stage of the value chain in a host country.
,Ownership - correct answer An MNE's possession of leveraging of certain valuable,
rare, hard to imitate, and organizationally embedded (VRIO) assets overseas in the
context of FDI.
Knowledge spillovers - correct answer Knowledge diffused from one firm to others
among closely located firms.
FDI inflow - correct answer Inbound FDI moving into a country in a year.
Intrafirm trade - correct answer International transactions between two subsidiaries
in two countries controlled by the same MNE.
Bargaining power - correct answer Ability to extract a favorable outcome from
negotiations due to one party's strength.
FDI flow - correct answer The amount of FDI moving in a given period (usually a year)
in a certain direction.
, Greenfield operations - correct answer building factories and offices from scratch (on
a proverbial piece of "green field" formerly used for agricultural purposes).
Cultural distance - correct answer the difference between two cultures along
identifiable dimensions such as individualism.
Scale of entry - correct answer the amount of resources committed to entering a
foreign market.
Law of demand - correct answer the claim that, other things being equal, the quantity
demanded of a good falls when the price of the good rises.
Demand curve - correct answer a graph of the relationship between the price of a
good and the quantity demanded; typically slopes downward.
