WGU C211 OA GLOBAL ECONOMICS FINAL EXAM (2022/2023) QUESTIONS $ANSWERS QUALIFIED PASS WITH AN( A+)SCORE

WGU C211 OA GLOBAL ECONOMICS FINAL EXAM (2022/2023) QUESTIONS $ANSWERS QUALIFIED PASS WITH AN( A+)SCORE Competency 1 1. Explain the New, Evolutionary, and Pendulum views of Globalization. How do these differ? - New: globalization is a new phenomenon beginning in the late 20th century, driven by recent technological innovations and a Western ideology based on exploiting and dominating the world. - Evolutionary: globalization is a part of human history. Traces of multi-national corporations have been discovered in many ancient cultures, which means globalization is nothing new and will always exist. - Pendulum: Globalization is neither recent, nor one directions, the process is similar to the swing of a pendulum and has ups and downs based on what’s happening in the world at any given time. 2. What is Foreign Direct Investment? Investing in, controlling, and managing value-added activities in other countries. 3. What different political views exist on FDI? Institutional-based view: this view suggests that success and failure of firms are enabled and constrained by institutions. If companies aren’t following the rules of the game, they’re not going to emerge as winners. Institutions are: FORMAL (laws, regulations, rules) and INFORMAL (cultures, ethics, norms) Resource-based view: this view says that some firms have internal resources and capabilities that will allow them to succeed DESPITE institutional differences. They have firm-specific resources and capabilities that aren’t shared with local competitors in the same environments that push them ahead. 4. What benefits exist to a country receiving FDI? Elaborate. They have more capital inflow, technology, management job creation. Learning from the investor country. 5. What costs exist to a country receiving FDI? Elaborate. Loss of sovereignty, competition, capital outflow. 6. How do resources and capabilities influence the competitive dynamics of a business? A firm’s resources and capabilities form its distinct competencies. These competencies enable innovation, efficiency, quality, and consumer responsiveness, all of which can be leveraged to create a cost advantage or a differentiation advantage.