C211 WGU 2025 GLOBAL ECONOMICS FOR MANAGERS EXAM MOST TESTED 450
QUESTIONS WITH VERIFIED ANSWERS ALREADY GRADED A+ | ASSURED
SUCCESS
Base of the pyramid (BOP) - correct answer Economies where people make less than $2,000 per
capita per year.
BRICA - correct answer Brazil, Russia, India, and China.
Emerging economies - correct answer term that has gradually replaced the term "developing
countries" since the 1990s.
Emerging markets - correct answer A term that is often used interchangeably with "emerging
economies."
Expatriate manager - correct answer A manager who works abroad, or "expat" for short.
Foreign direct investment (FDI) - correct answer Investment in, controlling, and managing
value-added activities in other countries.
Global Business - correct answer Business around the globe.
Globalization - correct answer The close integration of countries and peoples of the world.
Gross domestic product (GDP) - correct answer The sum of value added by resident firms,
households, and governments operating in an economy.
Gross national income (GNI) - correct answer GDP plus income from non-resident sources
abroad. The term used by the World Bank and other international organizations to supersede
the term GNP.
Gross national product (GNP) - correct answer GDP plus income from non-resident sources
abroad
Group of 20 (G-20) - correct answer The group of 19 major countries plus the European Union
(EU) whose leaders meet on a biannual basis to solve global economic problems.
International business (IB) - correct answer (1) A business (or firm) that engages in international
(cross-border) economic activities and/or (2) the action of doing business abroad.
International premium - correct answer A significant pay raise when working overseas.
Liability of foreignness - correct answer The inherent disadvantage that foreign firms
experience in host countries because of their non-native status.
Multinational enterprise (MNE) - correct answer A firm that engages in foreign direct
investment (FDI).
,Nongovernmental organization (NGO) - correct answer An organization that is not affiliated
with governments.
Purchasing power parity (PPP) - correct answer A conversion that determines the equivalent
amount of goods and services that different currencies can purchase.
Reverse innovation - correct answer An innovation that is adopted first in emerging economies
and is then diffused around the world.
Risk management - correct answer The identification and assessment of risks and the
preparation to minimize the impact of high-risk, unfortunate events.
Scenario planning - correct answer A technique to prepare and plan for multiple scenarios
(either high or low risk).
Semiglobalization - correct answer A perspective that suggests that barriers to market
integration at borders are high, but not high enough to insulate countries from each other
completely.
Triad - correct answer North America, Western Europe, and Japan.
Purchasing power parity (PPP) - correct answer adjustment made to the GDP to reflect
differences in the cost of living
The bottom billion - correct answer Concentrated in Africa and Central Asia - 58 small
countries, stuck at the bottom in terms of growth, incomes and human development
Enhance employability & advance career, better preparation to be expat, competence in
interacting with foreign suppliers/partners/competitors/employees - correct answer Why study
global business?
Institution-based view - correct answer A core perspective. Success and failure of firms are
constrained by institutions
Formal rules - correct answer requirements that treat domestic and foreign firms as equals
enhance the potential odds
for foreign firms' success or those that discriminate against foreign firms, would undermine the
chances for foreign entrants
Informal rules - correct answer cultures, ethics, and norms play an important part in shaping
the success and failure of firms around the globe
Resource-based view - correct answer A core perspective. Success and failure of firms is
determined by their environment
New force in recent times, a long-running historical evolution, a pendulum swinging between
extremes - correct answer What are the three views of globalization?
, "Four Tigers" - correct answer Hong Kong, Singapore, South Korea and Taiwan
Absolute advantage - correct answer The economic advantage one nation enjoys that is
absolutely superior to other nations.
Administrative policy - correct answer Bureaucratic rules that make it harder to import foreign
goods.
antidumping duty - correct answer Tariffs levied on imports that have been "dumped" (selling
below costs to "unfairly" drive domestic firms out of business).
Balance of Trade - correct answer The aggregation of importing and exporting that leads to the
country-level trade surplus or deficit.
Classical trade theories - correct answer The major theories of international trade that were
advanced before the 20th century, which consist of (1) mercantilism, (2) absolute advantage,
and (3) comparative advantage.
Comparative advantage - correct answer Relative (not absolute) advantage in one economic
activity that one nation enjoys in comparison with other nations.
Deadweight cost - correct answer Net losses that occur in an economy as a result of tariffs.
Export - correct answer Selling abroad.
Factor endowment - correct answer The extent to which different countries possess various
factors of production such as labor, land, and technology.
Factor endowment theory - correct answer A theory that suggests that nations will develop
comparative advantages based on their locally abundant factors.
Heckscher-Ohlin theory - correct answer Another name for factor endowment theory
First-mover advantage - correct answer Advantage that first movers enjoy and do not share
with late entrants.
Free trade - correct answer The idea that free market forces should determine how much to
trade with little or no government intervention.
Import - correct answer Buying from abroad.
Import quota - correct answer Restriction on the quantity of imports.
Import tariff - correct answer A tax imposed on imports.
Infant industry argument - correct answer The argument that if domestic firms are as young as
"infants," in the absence of government intervention, they stand no chances of surviving and
will be crushed by mature foreign rivals.
QUESTIONS WITH VERIFIED ANSWERS ALREADY GRADED A+ | ASSURED
SUCCESS
Base of the pyramid (BOP) - correct answer Economies where people make less than $2,000 per
capita per year.
BRICA - correct answer Brazil, Russia, India, and China.
Emerging economies - correct answer term that has gradually replaced the term "developing
countries" since the 1990s.
Emerging markets - correct answer A term that is often used interchangeably with "emerging
economies."
Expatriate manager - correct answer A manager who works abroad, or "expat" for short.
Foreign direct investment (FDI) - correct answer Investment in, controlling, and managing
value-added activities in other countries.
Global Business - correct answer Business around the globe.
Globalization - correct answer The close integration of countries and peoples of the world.
Gross domestic product (GDP) - correct answer The sum of value added by resident firms,
households, and governments operating in an economy.
Gross national income (GNI) - correct answer GDP plus income from non-resident sources
abroad. The term used by the World Bank and other international organizations to supersede
the term GNP.
Gross national product (GNP) - correct answer GDP plus income from non-resident sources
abroad
Group of 20 (G-20) - correct answer The group of 19 major countries plus the European Union
(EU) whose leaders meet on a biannual basis to solve global economic problems.
International business (IB) - correct answer (1) A business (or firm) that engages in international
(cross-border) economic activities and/or (2) the action of doing business abroad.
International premium - correct answer A significant pay raise when working overseas.
Liability of foreignness - correct answer The inherent disadvantage that foreign firms
experience in host countries because of their non-native status.
Multinational enterprise (MNE) - correct answer A firm that engages in foreign direct
investment (FDI).
,Nongovernmental organization (NGO) - correct answer An organization that is not affiliated
with governments.
Purchasing power parity (PPP) - correct answer A conversion that determines the equivalent
amount of goods and services that different currencies can purchase.
Reverse innovation - correct answer An innovation that is adopted first in emerging economies
and is then diffused around the world.
Risk management - correct answer The identification and assessment of risks and the
preparation to minimize the impact of high-risk, unfortunate events.
Scenario planning - correct answer A technique to prepare and plan for multiple scenarios
(either high or low risk).
Semiglobalization - correct answer A perspective that suggests that barriers to market
integration at borders are high, but not high enough to insulate countries from each other
completely.
Triad - correct answer North America, Western Europe, and Japan.
Purchasing power parity (PPP) - correct answer adjustment made to the GDP to reflect
differences in the cost of living
The bottom billion - correct answer Concentrated in Africa and Central Asia - 58 small
countries, stuck at the bottom in terms of growth, incomes and human development
Enhance employability & advance career, better preparation to be expat, competence in
interacting with foreign suppliers/partners/competitors/employees - correct answer Why study
global business?
Institution-based view - correct answer A core perspective. Success and failure of firms are
constrained by institutions
Formal rules - correct answer requirements that treat domestic and foreign firms as equals
enhance the potential odds
for foreign firms' success or those that discriminate against foreign firms, would undermine the
chances for foreign entrants
Informal rules - correct answer cultures, ethics, and norms play an important part in shaping
the success and failure of firms around the globe
Resource-based view - correct answer A core perspective. Success and failure of firms is
determined by their environment
New force in recent times, a long-running historical evolution, a pendulum swinging between
extremes - correct answer What are the three views of globalization?
, "Four Tigers" - correct answer Hong Kong, Singapore, South Korea and Taiwan
Absolute advantage - correct answer The economic advantage one nation enjoys that is
absolutely superior to other nations.
Administrative policy - correct answer Bureaucratic rules that make it harder to import foreign
goods.
antidumping duty - correct answer Tariffs levied on imports that have been "dumped" (selling
below costs to "unfairly" drive domestic firms out of business).
Balance of Trade - correct answer The aggregation of importing and exporting that leads to the
country-level trade surplus or deficit.
Classical trade theories - correct answer The major theories of international trade that were
advanced before the 20th century, which consist of (1) mercantilism, (2) absolute advantage,
and (3) comparative advantage.
Comparative advantage - correct answer Relative (not absolute) advantage in one economic
activity that one nation enjoys in comparison with other nations.
Deadweight cost - correct answer Net losses that occur in an economy as a result of tariffs.
Export - correct answer Selling abroad.
Factor endowment - correct answer The extent to which different countries possess various
factors of production such as labor, land, and technology.
Factor endowment theory - correct answer A theory that suggests that nations will develop
comparative advantages based on their locally abundant factors.
Heckscher-Ohlin theory - correct answer Another name for factor endowment theory
First-mover advantage - correct answer Advantage that first movers enjoy and do not share
with late entrants.
Free trade - correct answer The idea that free market forces should determine how much to
trade with little or no government intervention.
Import - correct answer Buying from abroad.
Import quota - correct answer Restriction on the quantity of imports.
Import tariff - correct answer A tax imposed on imports.
Infant industry argument - correct answer The argument that if domestic firms are as young as
"infants," in the absence of government intervention, they stand no chances of surviving and
will be crushed by mature foreign rivals.
