WGU C211 Economics Pre-Assessment 2024

WGU C211 Economics Pre-Assessment 2024 What are the weaknesses of the theory of mercantilism? Choose two. - ANSWER The theory leads to inefficient allocation of resources. Application of the theory reduces the wealth of the nation in the long run. What is the bandwagon effect? - ANSWER The movement of investors in the same direction at the same time. A country has seen a decrease in inflation. What is the effect on the country's currency exchange rate? - ANSWER It increases. What is one of the three primary types of foreign exchange transactions? - ANSWER Spot Transactions Who are the primary and largest participants in the foreign exchange market? - ANSWER Large international banks Which company has a natural resource-seeking strategic goal? - ANSWER A company searching for a location where there is an abundance or oil. Which entrant is able to erect significant barriers for other entrants? - ANSWER First mover Direct exports have which advantage? - ANSWER Capitalization of economies of scale in production in the home country. What are examples of equity modes of entry? Choose three. - ANSWER Strategic Alliances Greenfields Acquisitions