WGU C211 Global Economics for Managers (OA) Exam
Questions And Answers
***How are supply and demand related to the exchange rate of a country?*** -
The price of a commodity, a country's currency, is fundamentally determined by
this. Strong demand leads to price hikes; oversupply results in price drops.
***What advantages exist with First-mover?*** - 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
***How is global business affected by democracy?*** - An individual's right to
freedom of expression and organization. For example, starting up a firm is an act
of economic expression
***How is global business affected by totalitarianism?*** - These countries often
experience wars, riots, protests, chaos, & breakdowns, which result in higher
political risk.
***Democracy*** - Citizens elect representatives to govern the country on their
behalf.
Right to freedom of expression and organization.
***Totalitarianism*** - One person or party exercises absolute political control
over the population.
***What Political views exist on Foreign Direct Investment (FDI)*** - ***answer
includes radicalism***
Radical View - Hostile to foreign direct investment (FD)
, Free Market View - Suggests foreign direct investment (FDI) unrestricted by
government intervention is the best.
Pragmatic Nationalism - Only approves foreign direct investment (FDI) when its
benefits outweigh its costs.
***What is Resource similarity*** - The extent to which a given competitor
possesses strategic endowment comparable, in terms of both type & amount, to
those of the focal firm.
***What is Property right?*** - The legal rights to use an economic resource & to
derive income & benefits from it.
***Intellectual property is a right of?*** - right of ownership/right to derive
income from it
***Market economy*** - Characterized by the "invisible hand" of market forces-
all factors of production should be privately owned.
***Command economy*** - Defined by a government taking all factors of
production to be government-owned or state-owned, & all supply, demand, &
pricing are planned by the government.
***Mixed economy*** - An economy that has elements of both a market economy
& a command economy.
It boils down to the relative distribution of market forces versus command
forces.
***What is an Indifference curve used for*** - A curve that shows consumption
bundles that give the consumer the same level of satisfaction
(i.e. combinations of pizza & Pepsi with which the consumer is equally satisfied.)
Questions And Answers
***How are supply and demand related to the exchange rate of a country?*** -
The price of a commodity, a country's currency, is fundamentally determined by
this. Strong demand leads to price hikes; oversupply results in price drops.
***What advantages exist with First-mover?*** - 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
***How is global business affected by democracy?*** - An individual's right to
freedom of expression and organization. For example, starting up a firm is an act
of economic expression
***How is global business affected by totalitarianism?*** - These countries often
experience wars, riots, protests, chaos, & breakdowns, which result in higher
political risk.
***Democracy*** - Citizens elect representatives to govern the country on their
behalf.
Right to freedom of expression and organization.
***Totalitarianism*** - One person or party exercises absolute political control
over the population.
***What Political views exist on Foreign Direct Investment (FDI)*** - ***answer
includes radicalism***
Radical View - Hostile to foreign direct investment (FD)
, Free Market View - Suggests foreign direct investment (FDI) unrestricted by
government intervention is the best.
Pragmatic Nationalism - Only approves foreign direct investment (FDI) when its
benefits outweigh its costs.
***What is Resource similarity*** - The extent to which a given competitor
possesses strategic endowment comparable, in terms of both type & amount, to
those of the focal firm.
***What is Property right?*** - The legal rights to use an economic resource & to
derive income & benefits from it.
***Intellectual property is a right of?*** - right of ownership/right to derive
income from it
***Market economy*** - Characterized by the "invisible hand" of market forces-
all factors of production should be privately owned.
***Command economy*** - Defined by a government taking all factors of
production to be government-owned or state-owned, & all supply, demand, &
pricing are planned by the government.
***Mixed economy*** - An economy that has elements of both a market economy
& a command economy.
It boils down to the relative distribution of market forces versus command
forces.
***What is an Indifference curve used for*** - A curve that shows consumption
bundles that give the consumer the same level of satisfaction
(i.e. combinations of pizza & Pepsi with which the consumer is equally satisfied.)
