WGU C211 - Global Economics for Managers
Study online at https://quizlet.com/_2l2kv6
1. Views on Globalization New, Evolutionary, and Pendulum
2. "New" view on globaliza- A force sweeping through the world in recent times.
tion
3. "Evolutionary" view on A long-run historical evolution since the dawn of human history
globalization
4. "Pendulum" view on global- One that swings from one extreme to another from time to time
ization
5. Foreign Direct Investment Direct investment in, control, and management of value-added
activities in other countries
6. Political views on FDI Radical View, Free Market View, Pragmatic Nationalism
7. Benefits to a country receiv- Capital Inflow, Technology Spillover, Advanced Management
ing FDI Know-How, Job creation
8. Costs to a country receiving Loss of Sovereignty, Adverse effects on competition,
FDI Capital outflow.
9. How do resources and Resource similarity and market commonality can yield a powerful
capabilities influence the framework for competitor analysis.
competitive dynamics of a
business?
10. Resource similarity The extent to which a given competitor possesses strategic en-
dowment comparable, in terms of both type and amount, to those
of the focal firm.
11. How does resource similar- Firms with a high degree are likely to have similar competitive
ity impact competitive dy- actions. (Starbuck's instant coffee & McDonald's iced coffee)
namics?
, WGU C211 - Global Economics for Managers
Study online at https://quizlet.com/_2l2kv6
12. Classical theories of inter- Mercantilism, Absolute advantage, and Comparative advantage
national trade
13. Modern theory view Dynamic
14. Classical theory view Static
15. Absolute advantage The economic advantage one nation enjoys that is superior to
other nations
16. Comparative advantage The advantage one economic activity nation enjoys in comparison
with other nations (relative, not absolute)
17. Mercantilism 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.
18. Features of the product life New, Maturing, and Standardized
cycle?
19. Strategic trade Intervention by governments in certain industries can enhance
their odds for international success.
20. How are supply and de- The price of a commodity, a country's currency, is fundamentally
mand related to the ex- determined by this. Strong demand leads to price hikes; oversup-
change rate of a country? ply results in price drops.
21. Which theory came first? Mercantilism (although both are of the idea that governments
should actively protect domestic industries from imports and vig-
orously promote exports)
22. If a company seeks to lim- Forward transactions, an act know as currency hedging.
it foreign exchange rate ex-
posure in the forward direc-
, WGU C211 - Global Economics for Managers
Study online at https://quizlet.com/_2l2kv6
tion, what is the most effec-
tive way to do this?
23. Transaction risk The exchange rate risk associated with the time delay between
entering into a contract and settling it.
24. Hedging A transaction, such as forward transactions, that protects traders
and investors from exposure to the fluctuations of the spot rate.
25. Currency hedging A way to protect traders and investors from being exposed to the
fluctuations of the spot rate
26. Strategic hedging 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)
27. First mover advantages Proprietary, technological leadership, pre-emption of scarce re-
sources, establishment of entry barriers to late entrants, avoidance
of clash with dominant firms at home, relationships with key stake-
holders, (such as governments.)
28. Late mover advantages Opportunity to free ride on first-mover investments, Resolution
of technological and market uncertainty, First mover's difficulty to
adapt to market changes.)
29. Foreign market entries Non-equity and equity
types
30. Non-equity Reflects relatively smaller commitments to overseas markets. De-
termines firms MNE status.
31. Equity indicative of relatively larger, harder-to-reverse commitments. De-
termines firms MNE status.
Study online at https://quizlet.com/_2l2kv6
1. Views on Globalization New, Evolutionary, and Pendulum
2. "New" view on globaliza- A force sweeping through the world in recent times.
tion
3. "Evolutionary" view on A long-run historical evolution since the dawn of human history
globalization
4. "Pendulum" view on global- One that swings from one extreme to another from time to time
ization
5. Foreign Direct Investment Direct investment in, control, and management of value-added
activities in other countries
6. Political views on FDI Radical View, Free Market View, Pragmatic Nationalism
7. Benefits to a country receiv- Capital Inflow, Technology Spillover, Advanced Management
ing FDI Know-How, Job creation
8. Costs to a country receiving Loss of Sovereignty, Adverse effects on competition,
FDI Capital outflow.
9. How do resources and Resource similarity and market commonality can yield a powerful
capabilities influence the framework for competitor analysis.
competitive dynamics of a
business?
10. Resource similarity The extent to which a given competitor possesses strategic en-
dowment comparable, in terms of both type and amount, to those
of the focal firm.
11. How does resource similar- Firms with a high degree are likely to have similar competitive
ity impact competitive dy- actions. (Starbuck's instant coffee & McDonald's iced coffee)
namics?
, WGU C211 - Global Economics for Managers
Study online at https://quizlet.com/_2l2kv6
12. Classical theories of inter- Mercantilism, Absolute advantage, and Comparative advantage
national trade
13. Modern theory view Dynamic
14. Classical theory view Static
15. Absolute advantage The economic advantage one nation enjoys that is superior to
other nations
16. Comparative advantage The advantage one economic activity nation enjoys in comparison
with other nations (relative, not absolute)
17. Mercantilism 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.
18. Features of the product life New, Maturing, and Standardized
cycle?
19. Strategic trade Intervention by governments in certain industries can enhance
their odds for international success.
20. How are supply and de- The price of a commodity, a country's currency, is fundamentally
mand related to the ex- determined by this. Strong demand leads to price hikes; oversup-
change rate of a country? ply results in price drops.
21. Which theory came first? Mercantilism (although both are of the idea that governments
should actively protect domestic industries from imports and vig-
orously promote exports)
22. If a company seeks to lim- Forward transactions, an act know as currency hedging.
it foreign exchange rate ex-
posure in the forward direc-
, WGU C211 - Global Economics for Managers
Study online at https://quizlet.com/_2l2kv6
tion, what is the most effec-
tive way to do this?
23. Transaction risk The exchange rate risk associated with the time delay between
entering into a contract and settling it.
24. Hedging A transaction, such as forward transactions, that protects traders
and investors from exposure to the fluctuations of the spot rate.
25. Currency hedging A way to protect traders and investors from being exposed to the
fluctuations of the spot rate
26. Strategic hedging 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)
27. First mover advantages Proprietary, technological leadership, pre-emption of scarce re-
sources, establishment of entry barriers to late entrants, avoidance
of clash with dominant firms at home, relationships with key stake-
holders, (such as governments.)
28. Late mover advantages Opportunity to free ride on first-mover investments, Resolution
of technological and market uncertainty, First mover's difficulty to
adapt to market changes.)
29. Foreign market entries Non-equity and equity
types
30. Non-equity Reflects relatively smaller commitments to overseas markets. De-
termines firms MNE status.
31. Equity indicative of relatively larger, harder-to-reverse commitments. De-
termines firms MNE status.
