C211 GLOBAL ECONOMICS FOR
MANAGERS EXAM Questions and
Answers Latest Updates 2025 GRADED
A+
Dirty (managed) float - ANSUsing selective government intervention to determine exchange
rates.
Fixed exchange rate policy - ANSA government policy to set the exchange rate of a currency
relative to other currencies
Floating (flexible) exchange rate policy - ANSA government policy to let supply-and-demand
conditions determine exchange rates.
Foreign exchange market - ANSThe market where individuals, firms, governments, and
banks buy and sell foreign currencies.
Foreign exchange rate - ANSThe price of one currency in terms of another.
Forward discount - ANSA condition under which the forward rate of one currency relative to
another currency is higher than the spot rate.
Forward premium - ANSA condition under which the forward rate of one currency relative to
another currency is lower than the spot rate.
Forward transaction - ANSA foreign exchange transaction in which participants buy and sell
currencies now for future delivery.
Gold standard - ANSA system in which the value of most major currencies was maintained
by fixing their prices in terms of gold.
International Monetary Fund (IMF) - ANSAn international organization that was established
to promote international monetary cooperation, exchange stability, and orderly exchange
arrangements.
Offer rate - ANSThe price to sell a currency.
Peg - ANSA stabilizing policy of linking a developing country's currency to a key currency.
,Post-Bretton Woods system - ANSA system of flexible exchange rate regimes with no official
common denominator.
Quota - ANSThe weight a member country carries within the IMF, which determines the
amount of its financial contribution (technically known as its "subscription"), its capacity to
borrow from the IMF, and its voting power.
Spot transaction - ANSThe classic single-shot exchange of one currency for another.
Spread - ANSThe difference between the offer price and the bid price.
Strategic hedging - ANSSpreading out activities in a number of countries in different
currency zones to offset any currency losses in one region through gains in other regions.
Target exchange rate (crawling band) - ANSSpecified upper or lower bounds within which an
exchange rate is allowed to fluctuate.
Build-operate-transfer (BOT) agreement - ANSA non-equity mode of entry used to build a
longer-term presence by building and then operating a facility for a period of time before
transferring operations to a domestic agency or firm.
Co-marketing - ANSEfforts among a number of firms to jointly market their products and
services.
Country-of-origin effect - ANSThe positive or negative perception of firms and products from
a certain country.
Cultural distance - ANSThe difference between two cultures along identifiable dimensions
such as individualism.
Equity mode - ANSA mode of entry (JV and WOS) that indicates relatively larger,
harder-to-reverse commitments to overseas markets.
First-mover advantages - ANSBenefits that accrue to firms that enter the market first and
that late entrants do not enjoy.
Greenfield operations - ANSBuilding factories and offices from scratch (on a proverbial piece
of "green field" formerly used for agricultural purposes).
Institutional distance - ANSThe extent of similarity or dissimilarity between the regulatory,
normative, and cognitive institutions of two countries.
Joint venture (JV) - ANSA new corporate entity created and jointly owned by two or more
parent companies.
Late-mover advantages - ANSBenefits that accrue to firms that enter the market later and
that early entrants do not enjoy.
, LLL advantages - ANSA firm's quest for linkage (L) advantages, leverage (L) advantages,
and learning (L) advantages. These advantages are typically associated with multinationals
from emerging economies.
Location-specific advantages - ANSThe benefits a firm reaps from the features specific to a
place.
Mode of entry - ANSMethod used to enter a foreign market.
Non-equity mode - ANSA mode of entry (exports and contractual agreements) that tends to
reflect relatively smaller commitments to overseas markets.
R&D contract - ANSOutsourcing agreement in R&D between firms
Scale of entry - ANSThe amount of resources committed to entering a foreign market.
Turnkey project - ANSA project in which clients pay contractors to design and construct new
facilities and train personnel.
Wholly owned subsidiary (WOS) - ANSA subsidiary located in a foreign country that is
entirely owned by the parent multinational.
Beijing Consensus - ANSA view that questions Washington Consensus' belief in the
superiority of private ownership over state ownership in economic policy making, which is
often associated with the position held by the Chinese government.
Bounded rationality - ANSThe necessity of making rational decisions in the absence of
complete information.
Civil Law - ANSA legal tradition that uses comprehensive statutes and codes as a primary
means to form legal judgments.
Cognitive pillar - ANSThe internalized (or taken-for-granted) values and beliefs that guide
individual and firm behavior.
Command economy - ANSAn economy that is characterized by government ownership and
control of factors of production.
Common law - ANSA legal tradition that is shaped by precedents and traditions from
previous judicial decisions
Copyright - ANSExclusive legal right of authors and publishers to publish and disseminate
their work.
Democracy - ANSA political system in which citizens elect representatives to govern the
country on their behalf.
Economic system - ANSRules of the game on how a country is governed economically
MANAGERS EXAM Questions and
Answers Latest Updates 2025 GRADED
A+
Dirty (managed) float - ANSUsing selective government intervention to determine exchange
rates.
Fixed exchange rate policy - ANSA government policy to set the exchange rate of a currency
relative to other currencies
Floating (flexible) exchange rate policy - ANSA government policy to let supply-and-demand
conditions determine exchange rates.
Foreign exchange market - ANSThe market where individuals, firms, governments, and
banks buy and sell foreign currencies.
Foreign exchange rate - ANSThe price of one currency in terms of another.
Forward discount - ANSA condition under which the forward rate of one currency relative to
another currency is higher than the spot rate.
Forward premium - ANSA condition under which the forward rate of one currency relative to
another currency is lower than the spot rate.
Forward transaction - ANSA foreign exchange transaction in which participants buy and sell
currencies now for future delivery.
Gold standard - ANSA system in which the value of most major currencies was maintained
by fixing their prices in terms of gold.
International Monetary Fund (IMF) - ANSAn international organization that was established
to promote international monetary cooperation, exchange stability, and orderly exchange
arrangements.
Offer rate - ANSThe price to sell a currency.
Peg - ANSA stabilizing policy of linking a developing country's currency to a key currency.
,Post-Bretton Woods system - ANSA system of flexible exchange rate regimes with no official
common denominator.
Quota - ANSThe weight a member country carries within the IMF, which determines the
amount of its financial contribution (technically known as its "subscription"), its capacity to
borrow from the IMF, and its voting power.
Spot transaction - ANSThe classic single-shot exchange of one currency for another.
Spread - ANSThe difference between the offer price and the bid price.
Strategic hedging - ANSSpreading out activities in a number of countries in different
currency zones to offset any currency losses in one region through gains in other regions.
Target exchange rate (crawling band) - ANSSpecified upper or lower bounds within which an
exchange rate is allowed to fluctuate.
Build-operate-transfer (BOT) agreement - ANSA non-equity mode of entry used to build a
longer-term presence by building and then operating a facility for a period of time before
transferring operations to a domestic agency or firm.
Co-marketing - ANSEfforts among a number of firms to jointly market their products and
services.
Country-of-origin effect - ANSThe positive or negative perception of firms and products from
a certain country.
Cultural distance - ANSThe difference between two cultures along identifiable dimensions
such as individualism.
Equity mode - ANSA mode of entry (JV and WOS) that indicates relatively larger,
harder-to-reverse commitments to overseas markets.
First-mover advantages - ANSBenefits that accrue to firms that enter the market first and
that late entrants do not enjoy.
Greenfield operations - ANSBuilding factories and offices from scratch (on a proverbial piece
of "green field" formerly used for agricultural purposes).
Institutional distance - ANSThe extent of similarity or dissimilarity between the regulatory,
normative, and cognitive institutions of two countries.
Joint venture (JV) - ANSA new corporate entity created and jointly owned by two or more
parent companies.
Late-mover advantages - ANSBenefits that accrue to firms that enter the market later and
that early entrants do not enjoy.
, LLL advantages - ANSA firm's quest for linkage (L) advantages, leverage (L) advantages,
and learning (L) advantages. These advantages are typically associated with multinationals
from emerging economies.
Location-specific advantages - ANSThe benefits a firm reaps from the features specific to a
place.
Mode of entry - ANSMethod used to enter a foreign market.
Non-equity mode - ANSA mode of entry (exports and contractual agreements) that tends to
reflect relatively smaller commitments to overseas markets.
R&D contract - ANSOutsourcing agreement in R&D between firms
Scale of entry - ANSThe amount of resources committed to entering a foreign market.
Turnkey project - ANSA project in which clients pay contractors to design and construct new
facilities and train personnel.
Wholly owned subsidiary (WOS) - ANSA subsidiary located in a foreign country that is
entirely owned by the parent multinational.
Beijing Consensus - ANSA view that questions Washington Consensus' belief in the
superiority of private ownership over state ownership in economic policy making, which is
often associated with the position held by the Chinese government.
Bounded rationality - ANSThe necessity of making rational decisions in the absence of
complete information.
Civil Law - ANSA legal tradition that uses comprehensive statutes and codes as a primary
means to form legal judgments.
Cognitive pillar - ANSThe internalized (or taken-for-granted) values and beliefs that guide
individual and firm behavior.
Command economy - ANSAn economy that is characterized by government ownership and
control of factors of production.
Common law - ANSA legal tradition that is shaped by precedents and traditions from
previous judicial decisions
Copyright - ANSExclusive legal right of authors and publishers to publish and disseminate
their work.
Democracy - ANSA political system in which citizens elect representatives to govern the
country on their behalf.
Economic system - ANSRules of the game on how a country is governed economically
