PRE-ASSESSMENT: GLOBAL ECONOMICS FOR MANAGERS
(UZC2). WGU C211 Exam Questions with Verified Answers (Correct
Update)
Question 1: Exam with Correct Answers Which view claims that the phenomenon of
globalization was initially driven by the desire of Western economies to exploit their power
through multinational enterprises?
Answer: The new-force view
Question 2: What is the aggregation of importing and exporting that leads to the country-level
trade surplus or deficit?
Answer: Balance of trade
Question 3: What is a cost of foreign direct investment?
Answer: Developing countries may be exploited by multinational enterprises (MNE).
Question 4: What may precious, rare, and hard-to-duplicate resources and capabilities lead to
for a firm?
Answer: Sustained comparative advantage
Question 5: Which theory states that patterns of international trade change across new,
maturing, and standardized stages?
Answer: Product life cycle theory
Page 1
, Question 6: What is the financial environment in which exchange rates and payments for
goods and services are conducted?
Answer: International monetary system
Question 7: What happens to a country's real exchange rate and nominal interest rate as the
price level increases, assuming all other factors are unchanged?
Answer: Exchange rates fall and interest rates rise.
Question 8: What is the easiest method nonfinancial companies use to handle currency
fluctuations?
Answer: Currency diversification
Question 9: Which strategy minimizes the risk of unanticipated changes in future exchange
rates?
Answer: Currency swap
Question 10: Which type of strategic goal is this company demonstrating?
Answer: Innovation-seeking
Question 11: What advantage comes with not sharing benefits with late entrants?
Answer: First-mover advantage
Question 12: Which entry mode is a non-equity arrangement for a company contemplating
entry into a foreign market?
Answer: Licensing
Page 2
(UZC2). WGU C211 Exam Questions with Verified Answers (Correct
Update)
Question 1: Exam with Correct Answers Which view claims that the phenomenon of
globalization was initially driven by the desire of Western economies to exploit their power
through multinational enterprises?
Answer: The new-force view
Question 2: What is the aggregation of importing and exporting that leads to the country-level
trade surplus or deficit?
Answer: Balance of trade
Question 3: What is a cost of foreign direct investment?
Answer: Developing countries may be exploited by multinational enterprises (MNE).
Question 4: What may precious, rare, and hard-to-duplicate resources and capabilities lead to
for a firm?
Answer: Sustained comparative advantage
Question 5: Which theory states that patterns of international trade change across new,
maturing, and standardized stages?
Answer: Product life cycle theory
Page 1
, Question 6: What is the financial environment in which exchange rates and payments for
goods and services are conducted?
Answer: International monetary system
Question 7: What happens to a country's real exchange rate and nominal interest rate as the
price level increases, assuming all other factors are unchanged?
Answer: Exchange rates fall and interest rates rise.
Question 8: What is the easiest method nonfinancial companies use to handle currency
fluctuations?
Answer: Currency diversification
Question 9: Which strategy minimizes the risk of unanticipated changes in future exchange
rates?
Answer: Currency swap
Question 10: Which type of strategic goal is this company demonstrating?
Answer: Innovation-seeking
Question 11: What advantage comes with not sharing benefits with late entrants?
Answer: First-mover advantage
Question 12: Which entry mode is a non-equity arrangement for a company contemplating
entry into a foreign market?
Answer: Licensing
Page 2
