STUDY SET FOR PRE-ASSESSMENT GLOBAL ECONOMICS FOR MANAGERS (UZC2) WGU C211 2023/2024

STUDY SET FOR PRE-ASSESSMENT GLOBAL ECONOMICS FOR MANAGERS (UZC2) WGU C211 2023/2024 Which view claims that the phenomenon of globalization was initially driven by the desire of Western economies to exploit their power through multinational enterprises? - CORRECT ANSWER-The new-force view Economic gains come from international trade because one country's exported goods, services, or other items are unique, valuable, and difficult to duplicate to the importing countries -CORRECT ANSWER-Resource-based view What is the aggregation of importing and exporting that leads to the country-level trade surplus or deficit? -CORRECT ANSWER-Balance of trade What is a cost of foreign direct investment? -CORRECT ANSWER-Developing countries may be exploited by multinational enterprises (MNE). What may precious, rare, and hard-to-duplicate resources and capabilities lead to for a firm? -CORRECT ANSWER-Sustained comparative advantage Which theory states that patterns of international trade change across new, maturing, and standardized stages? -CORRECT ANSWER-Product life cycle theory What is the financial environment in which exchange rates and payments for goods and services are conducted? -CORRECT ANSWER-International monetary system What happens to a country's real exchange rate and nominal interest rate as the price level increases, assuming all other factors are unchanged? -CORRECT ANSWERExchange rates fall and interest rates rise. What is the easiest method nonfinancial companies use to handle currency fluctuations? -CORRECT ANSWER-Currency diversification Which strategy minimizes the risk of unanticipated changes in future exchange rates? - CORRECT ANSWER-Currency swap A company is looking for a location with an abundance of ground-breaking individuals, firms, and universities. Which type of strategic goal is this company demonstrating? -CORRECT ANSWERInnovation-seeking What advantage comes with not sharing benefits with late entrants? -CORRECT ANSWER-First-mover advantage Which entry mode is a non-equity arrangement for a company contemplating entry into a foreign market? -CORRECT ANSWER-Licensing What size commitment is required for a non-equity mode of entry into a foreign market? -CORRECT ANSWER-Small commitment What are two supportive pillars for an informal institution?