GLOBAL ECONOMICS FOR MANAGERS
(UZC2). WGU C211. Exam 2025 Questions
and 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? - ANS 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 the importing countries -
ANS Resource-based view
What is the aggregation of importing and exporting that leads to the country-level trade surplus
or deficit? - ANS Balance of trade
What is a cost of foreign direct investment? - ANS Developing countries may be exploited by
multinational enterprises (MNE).
What may precious, rare, and hard-to-duplicate resources and capabilities lead to for a firm? -
ANS Sustained comparative advantage
Which theory states that patterns of international trade change across new, maturing, and
standardized stages? - ANS Product life cycle theory
Pg. 1 Copyright © 2025 Jasonmcconell. ALL RIGHTS RESERVED.
, What is the financial environment in which exchange rates and payments for goods and
services are conducted? - ANS International monetary system
What happens to a country's real exchange rate and nominal interest rate as the price level
increases, assuming all other factors are unchanged? - ANS Exchange rates fall and interest
rates rise.
What is the easiest method nonfinancial companies use to handle currency fluctuations? -
ANS Currency diversification
Which strategy minimizes the risk of unanticipated changes in future exchange rates? -
ANS 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? - ANS Innovation-seeking
What advantage comes with not sharing benefits with late entrants? - ANS First-mover
advantage
Which entry mode is a non-equity arrangement for a company contemplating entry into a
foreign market? - ANS Licensing
What size commitment is required for a non-equity mode of entry into a foreign market? -
ANS Small commitment
What are two supportive pillars for an informal institution?
Choose 2 answers - ANS Cognitive. Normative.
Pg. 2 Copyright © 2025 Jasonmcconell. ALL RIGHTS RESERVED.
(UZC2). WGU C211. Exam 2025 Questions
and 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? - ANS 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 the importing countries -
ANS Resource-based view
What is the aggregation of importing and exporting that leads to the country-level trade surplus
or deficit? - ANS Balance of trade
What is a cost of foreign direct investment? - ANS Developing countries may be exploited by
multinational enterprises (MNE).
What may precious, rare, and hard-to-duplicate resources and capabilities lead to for a firm? -
ANS Sustained comparative advantage
Which theory states that patterns of international trade change across new, maturing, and
standardized stages? - ANS Product life cycle theory
Pg. 1 Copyright © 2025 Jasonmcconell. ALL RIGHTS RESERVED.
, What is the financial environment in which exchange rates and payments for goods and
services are conducted? - ANS International monetary system
What happens to a country's real exchange rate and nominal interest rate as the price level
increases, assuming all other factors are unchanged? - ANS Exchange rates fall and interest
rates rise.
What is the easiest method nonfinancial companies use to handle currency fluctuations? -
ANS Currency diversification
Which strategy minimizes the risk of unanticipated changes in future exchange rates? -
ANS 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? - ANS Innovation-seeking
What advantage comes with not sharing benefits with late entrants? - ANS First-mover
advantage
Which entry mode is a non-equity arrangement for a company contemplating entry into a
foreign market? - ANS Licensing
What size commitment is required for a non-equity mode of entry into a foreign market? -
ANS Small commitment
What are two supportive pillars for an informal institution?
Choose 2 answers - ANS Cognitive. Normative.
Pg. 2 Copyright © 2025 Jasonmcconell. ALL RIGHTS RESERVED.
