WGU C211 GLOBAL ECONOMICS FOR MANAGERS QUESTIONS AND ANSWERS 2023/2024 (VERIFIED)

WGU C211 GLOBAL ECONOMICS FOR MANAGERS QUESTIONS AND ANSWERS 2023/2024 (VERIFIED) Which two phrases represent the views of globalization? Choose two answers. - CORRECT ANSWER-- A pendulum that swings from one extreme to another. - A competition among key financial centers and markets. What are two trade barriers? - CORRECT ANSWER-- Nontariffs - Tarriffs What is the effect of tariff on a particular product for the country imposing the tariff? - CORRECT ANSWER-Increases domestic production of the product. Which benefits come to the host country as a result of foreign direct investment? - CORRECT ANSWER-- Creation of domestic jobs - Domestic resource allocation Which characteristics of firm resources affects competitive dynamics? - CORRECT ANSWER-Imitability (capable or worthy of being imitated or copied) Which characteristic of firm resources affects competitive dynamics, according to the VRIO framework? - CORRECT ANSWER-Rarity Which theory is the forerunner to modern-day protectionism? - CORRECT ANSWERMercantilism (favorable balance of trade, the development of agriculture and manufactures, and the establishment of foreign trading monopolies) Which aspect creates the daily changes in a country's exchange rate? - CORRECT ANSWER-Currency supply and demand Which risk must a corporation minimize to effectively manage short-term currency fluctuations? - CORRECT ANSWER-Transaction Risk (the adverse effect that foreign exchange rate fluctuations can have on a completed transaction prior to settlement. It is the exchange rate, or currency risk associated specifically with the time delay between entering into a trade or contract and then settling it.) Which term describes using currency derivatives to reduce potential transaction, translation, and economic risks of currency movements tha could lead to losses for a firm or investor? - CORRECT ANSWER-Hedging (a means of protection or defense (as against financial loss) realization that common stocks are the best hedge against inflation What is the most effective method to limit foreign exchange rate exposure for future trade payments? - CORRECT ANSWER-Forward Transaction (two people or other entities engage in a binding agreement to perform a trade in the future, rather than at the present.) What type of advantage do companies receive when operating in favorable areas within a given country? - CORRECT ANSWER-Location-Specific Which entrant has the opportunity to free ride on first-mover investments? - CORRECT ANSWER-Later Mover (Also called a late follower or a later market entrant, a late mover is a firm that enters a market some time after both the market pioneer(s) and after early follower firms.) Which strategy for entering a foreign market has the highest degree of risk? - CORRECT ANSWER-Licensing (A business arrangement in which one company gives another company permission to manufacture its product for a specified payment.)