C 211 GLOBAL ECONOMICS FOR MANAGERS WGU PRE ASSESSMENT AND RETAKE EXAM WITH ALL

C 211 GLOBAL ECONOMICS FOR
MANAGERS WGU PRE ASSESSMENT
AND RETAKE EXAM WITH ALL
ANSWERS




Thevresource-basedvviewvofvglobalvbusinessvdiffersvfromvthevinstitution-
basedvviewvofvglobalvbusinessvinvthatvthevresource-basedvviewv_____.v-
vcorrectvanswer-focusesvonvthevinternalvstrengthsvonvthevfirm


Whichvofvthevfollowingvisvtruevofvglobalizationvaccordingvtovthev"pendulumvview"vper
spective?v-vcorrectvanswer-Globalizationvisvavnotvavone-directionalvphenomenon.

Thev_____vofvglobalizationvsuggestsvthatvglobalizationvisvneithervrecentvnorvone-
directional.v-vcorrectvanswer-pendulumvview

Whichvofvthevfollowingvisvtruevofvsemiglobalization?v-vcorrectvanswer-
Itvisvavtypevofvglobalizationvthatvliesvbetweenvtotalvisolationvandvtotalvglobalization.

Globalizationvcanvbevviewedvas:v-vcorrectvanswer-
Avnewvforcevsweepingvthroughvthevworldvinvrecentvtimes.
Avlong-runvhistoricalvevolutionvsincevthevdawnvofvhumanvhistory.
Avpendulumvthatvswingsvfromvonevextremevtovanothervfromvtimevtovtime.

Namevthevthreevviewsvofvglobalization.v-vcorrectvanswer-Avrecentvforce,vavlong-
runningvevolution,vandvavpendulum

Thev_____vtheoryvviewedvinternationalvtradevasvavzero-sumvgame.v-
vcorrectvanswer-mercantilism

,Thev_____vprinciplevadvocatedvthatvgovernmentsvshouldvactivelyvprotectvdomesticvi
ndustriesvfromvimportsvandvvigorouslyvpromotevexports.v-vcorrectvanswer-
protectionism

Whichvofvthevfollowingvisvavmodernvtradevtheory?v-vcorrectvanswer-
Nationalvcompetitivevadvantage

Thev_____vtheoryvisvbasedvonvthevassumptionvthatvthevwealthvofvthevworldvisvfixed.v
-vcorrectvanswer-mercantilism

Importvquotasvarevavtypevofv_____.v-vcorrectvanswer-tariffvbarrier

Accordingvtovthevtheoryvofvabsolutevadvantage,vundervfreevtrade,v-vcorrectvanswer-
Eachvnationvgainsvbyvspecializingvinveconomicvactivitiesvinvwhichvavnationvhasvabsol
utevadvantage.

WhichvofvthevfollowingvisvNOTvavnontariffvtradevbarrierv(NTB)?v-vcorrectvanswer-
Culturalvdistance

Chilevrequiresv50vunitsvofvresourcevtovproducevonevtonvofvwinevandv20vunitsvofvreso
urcevtovproducevonevtonvofvblueberries.vFrancevrequiresv30vunitsvofvresourcevtovpro
ducevonevtonvofvwinevandv40vunitsvofvresourcevtovproducevonevtonvofvblueberries.vW
hichvofvthevfollowingvisvtrue?v-vcorrectvanswer-
Francevhasvavcomparativevadvantagevinvwine.

WhichvofvthevfollowingvtheoriesvdoesvNOTvleadvtovthevconclusionvthatvunrestrictedvfr
eevtradevisvinvthevbestvinterestsvofvallvcountries?v-vcorrectvanswer-
Strategicvtradevtheory

Freevtradevisvdefinedvas:v-vcorrectvanswer-
Thevideavthatvmarketvforcesvshouldvdeterminevhowvmuchvtovtradevwithvlittlevorvnovgo
vernmentvintervention.

Accordingvtovthevtheoryvofvabsolutevadvantage,vundervfreevtrade,v-vcorrectvanswer-
eachvnationvgainsvbyvspecializingvinveconomicvactivitiesvinvwhichvavnationvhasvabsol
utevadvantage.

WhichvofvthevfollowingvisvNOTvavnontariffvtradevbarrierv(NTB)?v-vcorrectvanswer-
Culturalvdistance

Protectionismvisvsimilarvtovmercantilismvasvtheyvbothvadvocatedv_____.v-
vcorrectvanswer-governmentvinvolvementvinvinternationalvtrade


OLIvadvantagesvrefervtovavfirm'svquestvforv_____viavFDI.v-vcorrectvanswer-
ownershipvadvantages,vlocationvadvantages,vandvinternalizationvadvantages

MNEs'vpossessionvandvleveragingvofvcertainvvaluable,vrare,vhard-to-
imitate,vandvorganizationallyvembeddedv(VRIO)vassetsvoverseasvinvthevcontextvofvF
DIvrefervtov_____.v-vcorrectvanswer-ownership

, FirmsvprefervFDIvtovlicensingvbecausevFDI_____.v-vcorrectvanswer-
providesvthevfirmvwithvdirectvownershipvtovitsvforeignvassets

WhichvofvthevfollowingvpoliticalvperspectivesvmaintainsvthevviewvthatvFDIvhasvbothvpr
osvandvconsvandvcanvonlyvbevapprovedvwhenvitsvbenefitsvoutweighvcosts?v-
vcorrectvanswer-Pragmaticvnationalism


WhichvofvthevfollowingvisvavbenefitvofvFDIvtovhomevcountries?v-vcorrectvanswer-
Learningvfromvoperations

Whichvofvthevfollowingvforeignvexchangevtransactionsvprovidevprotectionvtovtradersva
ndvinvestorsvfromvbeingvexposedvtovfluctuationsvofvthevspotvrate?v-vcorrectvanswer-
Forwardvtransactions

_____visvdefinedvasvthevconversionvofvonevcurrencyvintovanothervatvTimev1,vwithvanv
agreementvtovrevertvitvbackvtovthevoriginalvcurrencyvatvavspecificvTimev2vinvthevfutur
e.v-vcorrectvanswer-Currencyvswap

Foreignvexchangevratesvarevinfluencedvby:v-vcorrectvanswer-
Interestvratesvandvmoneyvsupply.
Relativevpricevdifferencesvandvpurchasingvpowervparity.
Supplyvandvdemandvofvthevcurrencies.

Avsavvyvglobalvbusinessvmangervmustvunderstandvthevfollowingvconceptsvtovbevcon
sideredvliteratevaboutvforeignvexchange:v-vcorrectvanswer-
Understandvthevfactorsvthatvinfluencevexchangevrates
Understandvthevwaysvtovhedgevcurrencyvrisks
Understandvthevforeignvexchangevmarket

Whichvofvthevfollowingvarevthevprimaryvtypesvofvforeignvexchangevtransactionsvmade
vbyvfinancialvcompanies?v-vcorrectvanswer-
Swaps,vspotvtransactions,vforwardvtransactions

AvhomevappliancevmanufacturervlocatedvinvThevNetherlandsvdecidesvtovopenvtwovn
ewvmanufacturingvplants,vonevinvPolandvandvthevothervinvThailand.vItsvpurposevisvtov
offsetvcurrencyvlossesvthrough:v-vcorrectvanswer-strategicvhedging

Whyvdovmanagers,vatvsomevofvthevlargestvglobalvcorporations,vfailvtovengagevinvcurr
encyvhedging?v-vcorrectvanswer-
Theyvbelievevthatvthevprotectionvagainstvfluctuationsvinvexchangevratesvisvnotvworthv
thevpotentiallyvhighvcostvofvcurrencyvhedging.

Riskvanalysisvofvanyvcountryvmustvincludevanvanalysisvofvthevcountry's:v-
vcorrectvanswer-currencyvrisks


Withvregardvtovforeignvmarketventry,vthevresource-
basedvviewvarguesvthatvforeignvfirmsvneedvtov-vcorrectvanswer-
deployvoverwhelmingvresourcesvandvcapabilitiesvtovoffsetvtheirvliabilityvofvforeignnes
s.