WGU C211 QUESTIONS/DEFINATIONS WITH ACCURATE
ANSWERS
Which view claims that the phenomenon of globalization was initially driven by the desire of Western
economies to exploit their power through multinational enterprises? - Accurate answers The new
force view
Economic gains come from international trade because one country's exported goods, services or other
items are unique, valuable, and difficult to duplicate to importing country - Accurate answers
Resource-based view
What is the aggregation of importing and exporting that leads to the country-level trade surplus or
deficit? - Accurate answers Balance of Trade
What is a cost of foreign direct investment? - Accurate answers Developing countries may be
exploited by multinational enterprises (MNE)
Which type of managerial capability is both challenging and difficult to imitate? - Accurate answers
Intangible capability
What may precious, rare and hard to duplicate resources and capabilities lead to for a firm? - Accurate
answers Sustained comparative advantage
Which theory of international trade states that poor countries often experience faster rates of economic
growth compared to wealthy countries? - Accurate answers The catch-up effect
What is the financial environment in which exchange rates and payments for goods and services are
conducted? - Accurate answers Commodity Exchange
What happens to a country's real exchange rates and nominal interest rate as the price level increases,
assuming all other factors are unchanged? - Accurate answers Exchange rates depreciate, interest
rates increase
What is the easiest method non-financial companies use to handle currency fluctuations? - Accurate
answers Commodity Trading
Which strategy minimizes the risk for unanticipated changes in future exchange rates? - Accurate
answers Currency Swap
A company is looking for a location with an abundance of ground breaking individuals, firms and
universities. Which type of strategic goal is this company demonstrating? - Accurate answers
Innovation-seeking
What advantage comes with not sharing benefits with late entrants? - Accurate answers First-
mover advantage
, Which entry mode is a non-equity arrangement for a company contemplating entry into a foreign
market? - Accurate answers Licensing
What size commitment is required for a non-equity mode of entry into a foreign market? - Accurate
answers Small commitment
What are two supportive pillars for an informal institution? - Accurate answers Normative and
Cognitive
What is the key role of an institution, according to the institution-based view? - Accurate answers
To reduce uncertainty
What are the rules, enforcement mechanisms, and organizations that support market transactions? -
Accurate answers Institutions
What is a core proposition underpinning an institutional based view of global business? - Accurate
answers Bounded Rationality
In which type of political system do citizens elect representatives to govern the country on their behalf?
- Accurate answers Democracy
Which legal system uses comprehensive lists of rules and written codes? - Accurate answers Civil
Law
What are the legal privileges associated with the use of economic property to obtain income and other
benefits from its use? - Accurate answers Property Rights
What is the purpose of having property rights and intellectual property rights? - Accurate 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 two popular types of economies? - Accurate answers Mixed and Market
In addition to encouraging efficiency, why might a government intervene in a market? - Accurate
answers To increase profits
What is the relationship between total and marginal cost? - Accurate answers Marginal cost is the
change in the 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? - Accurate answers Produce the quantity where the price equals the farmer's
marginal cost
What is the economic profit of an competitive firm? - Accurate answers The difference between
total revenue and total cost
Which condition applies when a competitive firm decides to temporarily shut down? - Accurate
answers Fixed costs are above variable costs
ANSWERS
Which view claims that the phenomenon of globalization was initially driven by the desire of Western
economies to exploit their power through multinational enterprises? - Accurate answers The new
force view
Economic gains come from international trade because one country's exported goods, services or other
items are unique, valuable, and difficult to duplicate to importing country - Accurate answers
Resource-based view
What is the aggregation of importing and exporting that leads to the country-level trade surplus or
deficit? - Accurate answers Balance of Trade
What is a cost of foreign direct investment? - Accurate answers Developing countries may be
exploited by multinational enterprises (MNE)
Which type of managerial capability is both challenging and difficult to imitate? - Accurate answers
Intangible capability
What may precious, rare and hard to duplicate resources and capabilities lead to for a firm? - Accurate
answers Sustained comparative advantage
Which theory of international trade states that poor countries often experience faster rates of economic
growth compared to wealthy countries? - Accurate answers The catch-up effect
What is the financial environment in which exchange rates and payments for goods and services are
conducted? - Accurate answers Commodity Exchange
What happens to a country's real exchange rates and nominal interest rate as the price level increases,
assuming all other factors are unchanged? - Accurate answers Exchange rates depreciate, interest
rates increase
What is the easiest method non-financial companies use to handle currency fluctuations? - Accurate
answers Commodity Trading
Which strategy minimizes the risk for unanticipated changes in future exchange rates? - Accurate
answers Currency Swap
A company is looking for a location with an abundance of ground breaking individuals, firms and
universities. Which type of strategic goal is this company demonstrating? - Accurate answers
Innovation-seeking
What advantage comes with not sharing benefits with late entrants? - Accurate answers First-
mover advantage
, Which entry mode is a non-equity arrangement for a company contemplating entry into a foreign
market? - Accurate answers Licensing
What size commitment is required for a non-equity mode of entry into a foreign market? - Accurate
answers Small commitment
What are two supportive pillars for an informal institution? - Accurate answers Normative and
Cognitive
What is the key role of an institution, according to the institution-based view? - Accurate answers
To reduce uncertainty
What are the rules, enforcement mechanisms, and organizations that support market transactions? -
Accurate answers Institutions
What is a core proposition underpinning an institutional based view of global business? - Accurate
answers Bounded Rationality
In which type of political system do citizens elect representatives to govern the country on their behalf?
- Accurate answers Democracy
Which legal system uses comprehensive lists of rules and written codes? - Accurate answers Civil
Law
What are the legal privileges associated with the use of economic property to obtain income and other
benefits from its use? - Accurate answers Property Rights
What is the purpose of having property rights and intellectual property rights? - Accurate 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 two popular types of economies? - Accurate answers Mixed and Market
In addition to encouraging efficiency, why might a government intervene in a market? - Accurate
answers To increase profits
What is the relationship between total and marginal cost? - Accurate answers Marginal cost is the
change in the 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? - Accurate answers Produce the quantity where the price equals the farmer's
marginal cost
What is the economic profit of an competitive firm? - Accurate answers The difference between
total revenue and total cost
Which condition applies when a competitive firm decides to temporarily shut down? - Accurate
answers Fixed costs are above variable costs
