WGU C211 - Global Economics for Managers Brain Dump Rated 100% Correct!!

What different political views exist on Foreign Direct Investment FDI? - ✔✔ Radical View, Free Market View, Pragmatic Nationalism **answer includes radicalism** What is resource similarity and how does this impact competitive dynamics? - ✔✔ Extent to which a given competitor possesses strategic endowmen t comparable, in terms of both type & amount to those of the focal firm. *Firms with a high degree are likely to have similar competitive actions. (Starbuck's instant coffee & McDonald's iced coffee) What are the critical features of the product life cyc le? - ✔✔ 1. New stage: prod. of a new product (ex. TV) that commands a price premium will concentrate in the USA, which exports to other developed nations. 2. Maturing stage: demand & ability to prod.; grow in other dev. nations (ex. Australia & Italy), it is now worthwhile to produce there. 3. Standardized stage: the prev. new prod. is standardized (or commoditized). Prod. will now move to low -cost dev. nations, which export to dev. nations. In other words, comparative advantage may change over time. How are supply and demand related to the exchange rate of a country? - ✔✔ The price of a commodity, a country's currency, is fundamentally determined by this. Strong demand leads to price hikes; oversupply results in price drops. What advantages exist with fi rst mover? - ✔✔ 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 Discuss and compare the three pillars (regulatory, normative, and cognitive) - ✔✔ **Answer contains: laws, regulations, rules** regulatory - The coercive power of governments normative - Values, beliefs, and actions of other relevant players (norms, cultures, ethics) cognitive - The internalized, taken -for-granted values & beliefs that guide behavior. (between right/wrong) How is global business affected by democracy? - ✔✔ An individual's right to freedom of expression & organization. Ex. starting up a firm is an act of economic expression How is global business affected by totalitarianism? - ✔✔ These countries often experience wars, riots, protests, chaos, & breakdowns, result ing in higher political risk. What are the differences between democracy and totalitarianism? - ✔✔ democracy - Citizens elect representatives to govern the country on their behalf. totalitarianism - One person or party exercises absolute political control over the population. What is a property right? In what way are property rights essential? - ✔✔ The legal rights to use an economic resource and to derive income and benefits from it. *Can be used as collateral for starting a firm; not as common in develo ping countries, therefore hindering economic growth. What is an intellectual property right? - ✔✔ Rights associated with the ownership. They primarily include rights associated with patents, copyrights, & trademarks.