WGU C211 - Global Economics for Managers with complete solution 2022/2023 UPDATE

WGU C211 - Global Economics for Managers with complete solution 2022/2023 UPDATE Views on Globalization - answer New, Evolutionary, and Pendulum "New" view on globalization - answer A force sweeping through the world in recent times. "Evolutionary" view on globalization - answer A long-run historical evolution since the dawn of human history "Pendulum" view on globalization - answer One that swings from one extreme to another from time to time Foreign Direct Investment - answer Direct investment in, control, and management of value-added activities in other countries Political views on FDI - answer Radical View, Free Market View, Pragmatic Nationalism Benefits to a country receiving FDI - answer Capital Inflow, Technology Spillover, Advanced Management Know-How, Job creation Costs to a country receiving FDI - answer Loss of Sovereignty, Adverse effects on competition, Capital outflow. How do resources and capabilities influence the competitive dynamics of a business? - answer Resource similarity and market commonality can yield a powerful framework for competitor analysis. Resource similarity - answer The extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm. How does resource similarity impact competitive dynamics? - answer Firms with a high degree are likely to have similar competitive actions. (Starbuck's instant coffee & McDonald's iced coffee) Classical theories of international trade - answer Mercantilism, Absolute advantage, and Comparative advantage Modern theory view - answer Dynamic Classical theory view - answer Static Absolute advantage - answer The economic advantage one nation enjoys that is superior to other nations Comparative advantage - answer The advantage one economic activity nation enjoys in comparison with other nations (relative, not absolute) Mercantilism - answer A theory that suggests that the wealth of the world is fixed and that a nation that exports more and imports less will be richer. Features of the product life cycle? - answer New, Maturing, and Standardized Strategic trade - answer Intervention by governments in certain industries can enhance their odds for international success. How are supply and demand related to the exchange rate of a country? - answer 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. Which theory came first? - answer Mercantilism (although both are of the idea that governments should actively protect domestic industries from imports and vigorously promote exports) If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the most effective way to do this? - answer Forward transactions, an act know as currency hedging. Transaction risk - answer The exchange rate risk associated with the time delay between entering into a contract and settling it. Hedging - answer A transaction, such as forward transactions, that protects traders and investors from exposure to the fluctuations of the spot rate. Currency hedging - answer A way to protect traders and investors from being exposed to the fluctuations of the spot rate Strategic hedging - answer A means of spreading out activities in different currency zones in order to offset the currency losses in certain regions through gains in other regions (currency diversification) First mover advantages - answer Proprietary, technological leadership, pre-emption of scarce resources, establishment of entry barriers to late entrants, avoidance of clash with dominant firms at home, relationships with key stakeholders, (such as governments.) Late mover advantages - answer Opportunity to free ride on first-mover investments, Resolution of technological and market uncertainty, First mover's difficulty to adapt to market changes.) Foreign market entries types - answer Non-equity and equity Non-equity - answer Reflects relatively smaller commitments to overseas markets. Determines firms MNE status. Equity - answer indicative of relatively larger, harder-to-reverse commitments. Determines firms MNE status. How do institutions reduce uncertainty? - answer Establish "rules of the game" that economic players play by. A standard to follow in order to survive and prosper. By signaling which conduct is legitimate and which is not, institutions constrain the range of acceptable actions.