STUDY BUNDLE FOR WGU C211 GLOBAL ECONOMICS FOR MANAGERS
FINAL EXAM & STUDY GUIDE 2024/2025
1. Views of globalization (Chp 1.4): 1. It's a new phenomenom, starting in the late 20th
century.
2. It's a long term part of human history.
3. Neither recent nor one directional, it's a pendulum that swings back and forth.
2. Strategic goal = Natural resource—seeking: Location specific advantage =
Possession of natural resources and related transport and communication infrastructure
3. Strategic goal = Market-seeking: Location specific advantage = Abundance of
strong market demand and customers willing to pay
4. Strategic goal = Efficiency-seeking: Location specific advantage = Economies of
scale and abundance of low-cost factors
5. Strategic goal = Innovation-seeking: Location specific advantage = Abundance
of innovative individuals, firms, and universities
6. Name first mover advantages: (Chp 10.3): 1. Proprietary, technological
leadership
2. Pre-emption of scarce resources
3. Establishment of entry barriers for late entrants
4. Avoidance of clash with dominant firms at home
5. Relationships with key stakeholders such as governments
7. Name late mover advantages: (Chp 10.3): 1. Opportunity to free ride on first-mover
investments
2. Resolution of technological and market uncertainty
3. First mover's difficulty to adapt to market changes
8. Name strategic goals supported by location specific advantages (Chp 10.2): 1.
Natural resources
2. Market
3. Efficiency
4. Innovation
9. Proposition (1) underpinning an institution based view of global business.:
Managers and firms rationally pursue their interests and make choices within the formal
and informal constraints in a given institutional framework
10. Proposition (2) underpinning an institution based view of global business.:
While formal and informal institutions combine to govern firm behavior, in situations
1/6
, .
where formal constraints are unclear or fail, informal constraints will play a larger role in
reducing uncertainty and providing constancy to managers and firms
11. Market economy: An economy that is characterized by the "invisible hand" of
market forces.
12. Command economy: An economy that is characterized by government ownership
and control of factors of production.
13 Mixed economy: An economy that has elements of both a market economy and a
command economy.
14. Property rights: The legal rights to use an economic property (resource) and to
derive income and benefits from it.
15. Purpose of property rights: The formal protection of property rights helps to
facilitate economic growth.
16. Civil Law: A legal tradition that uses comprehensive statutes and codes as a primary
means to form legal judgments.
17. Common Law: A legal tradition that is shaped by precedents and traditions from
previous judicial decisions.
18. Theocratic Law: A legal system based on religious teachings.
19. Democracy: Right to freedom of expression and organization.
20. Totalitarianism: One person or party exercises absolute control.
21. How do institutions reduce uncertainty? (Chp 2-2): By signaling which conduct
is legitimate and which is not they constrain the range of acceptable actions.
22. Comprehensive model of foreign market entries: 1. How to enter depends on the
scale of entry: large-scale versus small-scale entries.
2. First focuses on the equity (ownership) issue.
3. Second step focuses on making the actual selection, such as exports, contractual
agreements, joint ventures and wholly owned subsidiaries.
23. Political realities governing international trade.: The net impact of various tariffs
and nontariff barriers is that the whole nation is worse off while certain special
interest groups (such as certain industries, firms, and regions) benefit.
24. Economic arguments against free trade:: 1. protectionism
2. infant industries
25. Political arguments against free trade:: 1. national security
2. consumer protection
3. foreign policy
4. environmental and social responsibility
2/6
FINAL EXAM & STUDY GUIDE 2024/2025
1. Views of globalization (Chp 1.4): 1. It's a new phenomenom, starting in the late 20th
century.
2. It's a long term part of human history.
3. Neither recent nor one directional, it's a pendulum that swings back and forth.
2. Strategic goal = Natural resource—seeking: Location specific advantage =
Possession of natural resources and related transport and communication infrastructure
3. Strategic goal = Market-seeking: Location specific advantage = Abundance of
strong market demand and customers willing to pay
4. Strategic goal = Efficiency-seeking: Location specific advantage = Economies of
scale and abundance of low-cost factors
5. Strategic goal = Innovation-seeking: Location specific advantage = Abundance
of innovative individuals, firms, and universities
6. Name first mover advantages: (Chp 10.3): 1. Proprietary, technological
leadership
2. Pre-emption of scarce resources
3. Establishment of entry barriers for late entrants
4. Avoidance of clash with dominant firms at home
5. Relationships with key stakeholders such as governments
7. Name late mover advantages: (Chp 10.3): 1. Opportunity to free ride on first-mover
investments
2. Resolution of technological and market uncertainty
3. First mover's difficulty to adapt to market changes
8. Name strategic goals supported by location specific advantages (Chp 10.2): 1.
Natural resources
2. Market
3. Efficiency
4. Innovation
9. Proposition (1) underpinning an institution based view of global business.:
Managers and firms rationally pursue their interests and make choices within the formal
and informal constraints in a given institutional framework
10. Proposition (2) underpinning an institution based view of global business.:
While formal and informal institutions combine to govern firm behavior, in situations
1/6
, .
where formal constraints are unclear or fail, informal constraints will play a larger role in
reducing uncertainty and providing constancy to managers and firms
11. Market economy: An economy that is characterized by the "invisible hand" of
market forces.
12. Command economy: An economy that is characterized by government ownership
and control of factors of production.
13 Mixed economy: An economy that has elements of both a market economy and a
command economy.
14. Property rights: The legal rights to use an economic property (resource) and to
derive income and benefits from it.
15. Purpose of property rights: The formal protection of property rights helps to
facilitate economic growth.
16. Civil Law: A legal tradition that uses comprehensive statutes and codes as a primary
means to form legal judgments.
17. Common Law: A legal tradition that is shaped by precedents and traditions from
previous judicial decisions.
18. Theocratic Law: A legal system based on religious teachings.
19. Democracy: Right to freedom of expression and organization.
20. Totalitarianism: One person or party exercises absolute control.
21. How do institutions reduce uncertainty? (Chp 2-2): By signaling which conduct
is legitimate and which is not they constrain the range of acceptable actions.
22. Comprehensive model of foreign market entries: 1. How to enter depends on the
scale of entry: large-scale versus small-scale entries.
2. First focuses on the equity (ownership) issue.
3. Second step focuses on making the actual selection, such as exports, contractual
agreements, joint ventures and wholly owned subsidiaries.
23. Political realities governing international trade.: The net impact of various tariffs
and nontariff barriers is that the whole nation is worse off while certain special
interest groups (such as certain industries, firms, and regions) benefit.
24. Economic arguments against free trade:: 1. protectionism
2. infant industries
25. Political arguments against free trade:: 1. national security
2. consumer protection
3. foreign policy
4. environmental and social responsibility
2/6
