WGU C211 Global Econ Study Guide & Cohort Questions with
Verified Answers (Correct Update)
Question 1: Views of globalization (Chp 1.4)
Answer: 1. It's a new phenomenon, starting in the late 20th
century.
2. It's a long term part of human history.
3. Neither recent nor one directional, it's a pendulum that swings back and forth.
Question 2: Location specific advantage of Natural resource-seeking
Answer: Strategic goal - Possession of
natural resources and related transport and communication infrastructure
Question 3: Location specific advantage of Market-seeking
Answer: Strategic goal - Abundance of strong
market demand and customers willing to pay
Question 4: Location specific advantage of Efficiency-seeking
Answer: Strategic goal - Economies of scale and
abundance of low-cost factors
Question 5: Location specific advantage of Innovation-seeking
Answer: Strategic goal - Abundance of
innovative individuals, firms, and universities
Question 6: Name first mover advantages: (Chp 10.3)
Answer: 1. Proprietary, technological leadership
2. Pre-emption of scarce resources
3. Establishment of entry barriers for late entrants
4. Avoidance of clash with dominant firms at home
5. Relationships with key stakeholders such as governments
Question 7: Name late mover advantages: (Chp 10.3)
Answer: 1. Opportunity to free ride on first-mover
investments
2. Resolution of technological and market uncertainty
3. First mover's difficulty to adapt to market changes
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, Question 8: Name strategic goals supported by location specific advantages (Chp 10.2)
Answer: 1. Natural
resources
2. Market
3. Efficiency
4. Innovation
Question 9: Proposition (1) underpinning an institution based view of global business.
Answer: Managers and
firms rationally pursue their interests and make choices within the formal and informal
constraints in a given institutional framework
Question 10: Proposition (2) underpinning an institution based view of global business.
Answer: While formal
and informal institutions combine to govern firm behavior, in situations where formal constraints
are unclear or fail, informal constraints will play a larger role in reducing uncertainty and
providing constancy to managers and firms
Question 11: Market economy
Answer: An economy that is characterized by the "invisible hand" of market
forces. No country has embraced Adam Smith's Laissez faire model
Question 12: Command economy
Answer: Supply, Demand, and price are planned by the government.
An economy that is characterized by government ownership and control of factors of production.
Question 13: Mixed economy
Answer: An economy that has elements of both a market economy and a
command economy.
Question 14: Property rights
Answer: The legal rights to use an economic property (resource) and to derive
income and benefits from it.
Page 2
Verified Answers (Correct Update)
Question 1: Views of globalization (Chp 1.4)
Answer: 1. It's a new phenomenon, starting in the late 20th
century.
2. It's a long term part of human history.
3. Neither recent nor one directional, it's a pendulum that swings back and forth.
Question 2: Location specific advantage of Natural resource-seeking
Answer: Strategic goal - Possession of
natural resources and related transport and communication infrastructure
Question 3: Location specific advantage of Market-seeking
Answer: Strategic goal - Abundance of strong
market demand and customers willing to pay
Question 4: Location specific advantage of Efficiency-seeking
Answer: Strategic goal - Economies of scale and
abundance of low-cost factors
Question 5: Location specific advantage of Innovation-seeking
Answer: Strategic goal - Abundance of
innovative individuals, firms, and universities
Question 6: Name first mover advantages: (Chp 10.3)
Answer: 1. Proprietary, technological leadership
2. Pre-emption of scarce resources
3. Establishment of entry barriers for late entrants
4. Avoidance of clash with dominant firms at home
5. Relationships with key stakeholders such as governments
Question 7: Name late mover advantages: (Chp 10.3)
Answer: 1. Opportunity to free ride on first-mover
investments
2. Resolution of technological and market uncertainty
3. First mover's difficulty to adapt to market changes
Page 1
, Question 8: Name strategic goals supported by location specific advantages (Chp 10.2)
Answer: 1. Natural
resources
2. Market
3. Efficiency
4. Innovation
Question 9: Proposition (1) underpinning an institution based view of global business.
Answer: Managers and
firms rationally pursue their interests and make choices within the formal and informal
constraints in a given institutional framework
Question 10: Proposition (2) underpinning an institution based view of global business.
Answer: While formal
and informal institutions combine to govern firm behavior, in situations where formal constraints
are unclear or fail, informal constraints will play a larger role in reducing uncertainty and
providing constancy to managers and firms
Question 11: Market economy
Answer: An economy that is characterized by the "invisible hand" of market
forces. No country has embraced Adam Smith's Laissez faire model
Question 12: Command economy
Answer: Supply, Demand, and price are planned by the government.
An economy that is characterized by government ownership and control of factors of production.
Question 13: Mixed economy
Answer: An economy that has elements of both a market economy and a
command economy.
Question 14: Property rights
Answer: The legal rights to use an economic property (resource) and to derive
income and benefits from it.
Page 2
