WGU C211 - GLOBAL ECONOMICS FOR MANAGERS
LATEST EDITION VERIFIED QUESTIONS AND ANSWERS
2025-2026
Views on Globalization - ANS-New, Evolutionary, and Pendulum
"New" view on globalization - ANS-A force sweeping through the world in recent times.
"Evolutionary" view on globalization - ANS-A long-run historical evolution since the dawn of human
history
"Pendulum" view on globalization - ANS-One that swings from one extreme to another from time to
time
Foreign Direct Investment - ANS-Direct investment in, control, and management of value-added
activities in other countries
Political views on FDI - ANS-Radical View, Free Market View, Pragmatic Nationalism
Benefits to a country receiving FDI - ANS-Capital Inflow, Technology Spillover, Advanced Management
Know-How, Job creation
Costs to a country receiving FDI - ANS-Loss of Sovereignty, Adverse effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business? - ANS-Resource
similarity and market commonality can yield a powerful framework for competitor analysis.
, Resource similarity - ANS-The extent to which a given competitor possesses strategic endowment
comparable, in terms of both type and amount, to those of the focal firm.
How does resource similarity impact competitive dynamics? - ANS-Firms with a high degree are likely to
have similar competitive actions. (Starbuck's instant coffee & McDonald's iced coffee)
Classical theories of international trade - ANS-Mercantilism, Absolute advantage, and Comparative
advantage
Modern theory view - ANS-Dynamic
Classical theory view - ANS-Static
Absolute advantage - ANS-The economic advantage one nation enjoys that is superior to other nations
Comparative advantage - ANS-The advantage one economic activity nation enjoys in comparison with
other nations (relative, not absolute)
Mercantilism - ANS-A theory that suggests that the wealth of the world is fixed and that a nation that
exports more and imports less will be richer.
Features of the product life cycle? - ANS-New, Maturing, and Standardized
Strategic trade - ANS-Intervention by governments in certain industries can enhance their odds for
international success.
How are supply and demand related to the exchange rate of a country? - ANS-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.
Which theory came first? - ANS-Mercantilism (although both are of the idea that governments should
actively protect domestic industries from imports and vigorously promote exports)
LATEST EDITION VERIFIED QUESTIONS AND ANSWERS
2025-2026
Views on Globalization - ANS-New, Evolutionary, and Pendulum
"New" view on globalization - ANS-A force sweeping through the world in recent times.
"Evolutionary" view on globalization - ANS-A long-run historical evolution since the dawn of human
history
"Pendulum" view on globalization - ANS-One that swings from one extreme to another from time to
time
Foreign Direct Investment - ANS-Direct investment in, control, and management of value-added
activities in other countries
Political views on FDI - ANS-Radical View, Free Market View, Pragmatic Nationalism
Benefits to a country receiving FDI - ANS-Capital Inflow, Technology Spillover, Advanced Management
Know-How, Job creation
Costs to a country receiving FDI - ANS-Loss of Sovereignty, Adverse effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business? - ANS-Resource
similarity and market commonality can yield a powerful framework for competitor analysis.
, Resource similarity - ANS-The extent to which a given competitor possesses strategic endowment
comparable, in terms of both type and amount, to those of the focal firm.
How does resource similarity impact competitive dynamics? - ANS-Firms with a high degree are likely to
have similar competitive actions. (Starbuck's instant coffee & McDonald's iced coffee)
Classical theories of international trade - ANS-Mercantilism, Absolute advantage, and Comparative
advantage
Modern theory view - ANS-Dynamic
Classical theory view - ANS-Static
Absolute advantage - ANS-The economic advantage one nation enjoys that is superior to other nations
Comparative advantage - ANS-The advantage one economic activity nation enjoys in comparison with
other nations (relative, not absolute)
Mercantilism - ANS-A theory that suggests that the wealth of the world is fixed and that a nation that
exports more and imports less will be richer.
Features of the product life cycle? - ANS-New, Maturing, and Standardized
Strategic trade - ANS-Intervention by governments in certain industries can enhance their odds for
international success.
How are supply and demand related to the exchange rate of a country? - ANS-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.
Which theory came first? - ANS-Mercantilism (although both are of the idea that governments should
actively protect domestic industries from imports and vigorously promote exports)
