WGU C211 Global Econ Study Guide & Cohort Questions with correct answers 2022

WGU C211 Global Econ Study Guide & Cohort Questions with correct answers 2022Views of globalization (Chp 1.4) 1. It's a new phenomenom, 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. Location specific advantage of Natural resource—seeking Strategic goal - Possession of natural resources and related transport and communication infrastructure Location specific advantage of Market-seeking Strategic goal - Abundance of strong market demand and customers willing to pay Location specific advantage of Efficiency-seeking Strategic goal - Economies of scale and abundance of low-cost factors Location specific advantage of Innovation-seeking Strategic goal - Abundance of innovative individuals, firms, and universities Name first mover advantages: (Chp 10.3) 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 Name late mover advantages: (Chp 10.3) 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 Name strategic goals supported by location specific advantages (Chp 10.2) 1. Natural resources 2. Market 3. Efficiency 4. Innovation Proposition (1) underpinning an institution based view of global business. Managers and firms rationally pursue their interests and make choices within the formal and informal constraints in a given institutional framework Proposition (2) underpinning an institution based view of global business. 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 Market economy An economy that is characterized by the "invisible hand" of market forces. No country has embraced Adam Smith's Laissez faire model Command economy Supply, Demand, and price are planned by the government. An economy that is characterized by government ownership and control of factors of production. Mixed economy An economy that has elements of both a market economy and a command economy. Property rights The legal rights to use an economic property (resource) and to derive income and benefits from it. Purpose of property rights The formal protection of property rights helps to facilitate economic growth. Civil Law A legal tradition that uses comprehensive statutes and codes as a primary means to form legal judgments. This is the oldest and dates back to the romans Common Law A legal tradition that is shaped by precedents and traditions from previous judicial decisions. Such as the U.S. Theocratic Law A legal system based on religious teachings. Suach as Jewish or Islamic States Democracy Right to freedom of expression and organization. Totalitarianism One person or party exercises absolute control. How do institutions reduce uncertainty? (Chp 2-2) By signaling which conduct is legitimate and which is not they constrain the range of