wgu c211 global economics exam questions with 100% correct answers 2024

which view claims that the phenomenon of globalization was initially driven by the Western economies to exploit their Powers through Multinational Enterprises - ANSWERS "New" force view economic gaines from international trade because one countries exported Goods, services or other items are unique, valuable and difficult to duplicate to the important countries. which view does this statement portray? - ANSWERS resource-based View what is the aggregation of importing and exporting that leads to the country level Trade Surplus or deficit - ANSWERS balance of trade what is a cost of foreign direct investment - ANSWERS developing countries may be exploited by Multinational Enterprises what may precious rare and hard to duplicate resources and capabilities lead to for a firm - ANSWERS sustained comparative advantage which theory states that patterns of international trade change across a new maturing and standardized stages - ANSWERS product life cycle Theory what is the financial environment in which exchange rates in payments for goods and services are conducted - ANSWERS 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 - ANSWERS exchange rates depreciate interest rates increase what is the easiest method non-financial companies used to handle currency fluctuations - ANSWERS currency diversification which strategy minimizes the risk of unanticipated changes in future exchange rates - ANSWERS currency swap which country is looking for a location with an abundance of groundbreaking individuals firms and universities which type of strategic goal is the company demonstrating - ANSWERS Innovation seeking which advantage comes from not sharing benefits with late entrants - ANSWERS firstmover advantage which entry mode is a non-equity arrangement for company contemplating entry into a foreign market - ANSWERS licensing what size commitment is required for a non Equity mode of entry into a foreign market - ANSWERS small commitment what are two supported pillars for an informal Institution - ANSWERS cognitive and normative what is the key role of an institution according to the institution based View - ANSWERS to reduce uncertainty what are the rules enforcement mechanisms and organizations that support Market transactions - ANSWERS institutions what is the core proposition under pining at institution-based view of global business - ANSWERS bounded rationality in which type of political system do citizens elect representatives to govern the country on their behalf - ANSWERS democracy which legal system uses comprehensive list of rules and written codes - ANSWERS civil law what are the legal privileges associated with the use of economic property to obtain income and other benefits from its use - ANSWERS property rights what is the purpose of having property rights and intellectual property rights - ANSWERS to legally protect the use of tangible and intangible property and allow its lawful owner to derive income and other benefits from it what are the two polar types of economies - ANSWERS Central planned economies and market economies in addition to encouraging efficiency why might a government intervene in a market - ANSWERS to promote equality what is the relationship between total and marginal cost - ANSWERS marginal cost is the change in total cost divided by the change in quantity a farmer sells wheat in a perfectly competitive market which action should the farmer take to maximize profits - ANSWERS produce the quantity Where the price equals to Farmers marginal cost what is the economic profit of a competitive firm - ANSWERS the difference between total revenue and total cost which condition applies when a competitive firm decides to temporarily shut down - ANSWERS average variable cost above the price what is the producers demand curve is the producer sells a differentiated product - ANSWERS downward sloping which statement describes a competitive firm's demand curve - ANSWERS it is more elastic than a monopoly's demand curve what is the point at which Monopoly maximizes profit - ANSWERS where marginal cost equals marginal revenue what is a characteristic of monopolistic competition - ANSWERS many firms and differentiated products what is a likely outcome of the standard prisoner's dilemma game - ANSWERS both prisoners confess how does the prisoner's dilemma help and understanding company behavior in a oligopoly - ANSWERS company strategies must consider action by rival firms what do Economist use to represent a consumer's preference - ANSWERS indifference curves what can we assume that the consumer will buy if it is observed that the consumer's budget constraint has shifted inward - ANSWERS fewer normal goods and more inferior Goods what will happen to the market price and quantity in the short run if there is an increase in market demand in a perfectly competitive market - ANSWERS the equilibrium price will increase and the equilibrium quantity will increase what will happen to the equilibrium quantity and price if both demand and Supply decrease - ANSWERS quantity will decrease but price can either increase or decrease what happens to demand quantity for normal Goods as percentage change in income increases - ANSWERS demand increases what do the positive or negative numbers of cross price elasticity of demand represent - ANSWERS substitutes or complements what is one way the Federal Reserve influences the reserve ratio - ANSWERS by altering reserve requirements