WGU C211 OA GLOBAL ECONOMICS FINAL
PAPER COMPLETE QUESTIONS AND ANSWERS
◉ "New" view on globalization.
Answer: A force sweeping through the world in recent times.
◉ "Evolutionary" view on globalization.
Answer: A long-run historical evolution since the dawn of human
history
◉ "Pendulum" view on globalization.
Answer: One that swings from one extreme to another from time to
time
◉ Foreign Direct Investment.
Answer: Direct investment in, control, and management of value-
added activities in other countries
◉ Political views on FDI.
Answer: Radical View, Free Market View, Pragmatic Nationalism
◉ Benefits to a country receiving FDI.
,Answer: Capital Inflow, Technology Spillover, Advanced Management
Know-How, Job creation
◉ Costs to a country receiving FDI.
Answer: Loss of Sovereignty, Adverse effects on competition,
Capital outflow.
◉ How do resources and capabilities influence the competitive
dynamics of a business?.
Answer: Resource similarity and market commonality can yield a
powerful framework for competitor analysis.
◉ Resource similarity.
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?.
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.
, Answer: Mercantilism, Absolute advantage, and Comparative
advantage
◉ Modern theory view.
Answer: Dynamic
◉ Classical theory view.
Answer: Static
◉ Absolute advantage.
Answer: The economic advantage one nation enjoys that is superior
to other nations
◉ Comparative advantage.
Answer: The advantage one economic activity nation enjoys in
comparison with other nations (relative, not absolute)
◉ Mercantilism.
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?.
Answer: New, Maturing, and Standardized
PAPER COMPLETE QUESTIONS AND ANSWERS
◉ "New" view on globalization.
Answer: A force sweeping through the world in recent times.
◉ "Evolutionary" view on globalization.
Answer: A long-run historical evolution since the dawn of human
history
◉ "Pendulum" view on globalization.
Answer: One that swings from one extreme to another from time to
time
◉ Foreign Direct Investment.
Answer: Direct investment in, control, and management of value-
added activities in other countries
◉ Political views on FDI.
Answer: Radical View, Free Market View, Pragmatic Nationalism
◉ Benefits to a country receiving FDI.
,Answer: Capital Inflow, Technology Spillover, Advanced Management
Know-How, Job creation
◉ Costs to a country receiving FDI.
Answer: Loss of Sovereignty, Adverse effects on competition,
Capital outflow.
◉ How do resources and capabilities influence the competitive
dynamics of a business?.
Answer: Resource similarity and market commonality can yield a
powerful framework for competitor analysis.
◉ Resource similarity.
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?.
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.
, Answer: Mercantilism, Absolute advantage, and Comparative
advantage
◉ Modern theory view.
Answer: Dynamic
◉ Classical theory view.
Answer: Static
◉ Absolute advantage.
Answer: The economic advantage one nation enjoys that is superior
to other nations
◉ Comparative advantage.
Answer: The advantage one economic activity nation enjoys in
comparison with other nations (relative, not absolute)
◉ Mercantilism.
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?.
Answer: New, Maturing, and Standardized
