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WGU C211 OBJECTIVE ASSESSMENT FINAL EXAM NEWEST
2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
Which of the following foreign exchange transactions provide
protection to traders and investors from being exposed to
fluctuations of the spot rate? - ANSWER-Forward transactions
_____ is defined as the conversion of one currency into another
at Time 1, with an agreement to revert it back to the original
currency at a specific Time 2 in the future. - ANSWER-Currency
swap
Foreign exchange rates are influenced by: - ANSWER-Interest
rates and money supply.
Relative price differences and purchasing power parity.
Supply and demand of the currencies.
A savvy global business manger must understand the following
concepts to be considered literate about foreign exchange: -
ANSWER-Understand the factors that influence exchange rates
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Understand the ways to hedge currency risks
Understand the foreign exchange market
Which of the following are the primary types of foreign exchange
transactions made by financial companies? - ANSWER-Swaps,
spot transactions, forward transactions
A home appliance manufacturer located in The Netherlands
decides to open two new manufacturing plants, one in Poland and
the other in Thailand. Its purpose is to offset currency losses
through: - ANSWER-strategic hedging
Why do managers, at some of the largest global corporations, fail
to engage in currency hedging? - ANSWER-They believe that the
protection against fluctuations in exchange rates is not worth the
potentially high cost of currency hedging.
Risk analysis of any country must include an analysis of the
country's: - ANSWER-currency risks
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With regard to foreign market entry, the resource-based view
argues that foreign firms need to - ANSWER-deploy
overwhelming resources and capabilities to offset their liability of
foreignness.
Which of the following is a first-mover advantage? - ANSWER-
Avoidance of clash with a dominant firm at home
Which of the following is an equity mode of entry? - ANSWER-
Wholly owned subsidiaries
Which of the following entry modes is a type of strategic alliance?
- ANSWER-Licensing
Which of the following is a disadvantage of licensing and
franchising? - ANSWER-Little control over marketing
Miami is an ideal city for both North American firms looking to
expand their business to Central and South America and for Latin
American companies to expand their business to North America.
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This is an example of a(n): - ANSWER-location-specific
advantage.
The following are examples of location-specific advantages: -
ANSWER-Industry demand that creates a skilled labor force.
Industry demand that facilitates a pool of specialized suppliers
and buyers.
Knowledge spillovers among closely located firms.
Which of the following is a first-mover advantage? - ANSWER-
Avoid clashing with dominant firms in their home market.
Which of type of entry mode is a wholly owned subsidiary? -
ANSWER-Equity mode
What are the possible benefits of being a late mover? - ANSWER-
Opportunity to free ride on first-mover investments
First mover's difficulty to adapt to market changes
Resolution of technological and market uncertainty
WGU C211 OBJECTIVE ASSESSMENT FINAL EXAM NEWEST
2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
Which of the following foreign exchange transactions provide
protection to traders and investors from being exposed to
fluctuations of the spot rate? - ANSWER-Forward transactions
_____ is defined as the conversion of one currency into another
at Time 1, with an agreement to revert it back to the original
currency at a specific Time 2 in the future. - ANSWER-Currency
swap
Foreign exchange rates are influenced by: - ANSWER-Interest
rates and money supply.
Relative price differences and purchasing power parity.
Supply and demand of the currencies.
A savvy global business manger must understand the following
concepts to be considered literate about foreign exchange: -
ANSWER-Understand the factors that influence exchange rates
,2|Page
Understand the ways to hedge currency risks
Understand the foreign exchange market
Which of the following are the primary types of foreign exchange
transactions made by financial companies? - ANSWER-Swaps,
spot transactions, forward transactions
A home appliance manufacturer located in The Netherlands
decides to open two new manufacturing plants, one in Poland and
the other in Thailand. Its purpose is to offset currency losses
through: - ANSWER-strategic hedging
Why do managers, at some of the largest global corporations, fail
to engage in currency hedging? - ANSWER-They believe that the
protection against fluctuations in exchange rates is not worth the
potentially high cost of currency hedging.
Risk analysis of any country must include an analysis of the
country's: - ANSWER-currency risks
,3|Page
With regard to foreign market entry, the resource-based view
argues that foreign firms need to - ANSWER-deploy
overwhelming resources and capabilities to offset their liability of
foreignness.
Which of the following is a first-mover advantage? - ANSWER-
Avoidance of clash with a dominant firm at home
Which of the following is an equity mode of entry? - ANSWER-
Wholly owned subsidiaries
Which of the following entry modes is a type of strategic alliance?
- ANSWER-Licensing
Which of the following is a disadvantage of licensing and
franchising? - ANSWER-Little control over marketing
Miami is an ideal city for both North American firms looking to
expand their business to Central and South America and for Latin
American companies to expand their business to North America.
, 4|Page
This is an example of a(n): - ANSWER-location-specific
advantage.
The following are examples of location-specific advantages: -
ANSWER-Industry demand that creates a skilled labor force.
Industry demand that facilitates a pool of specialized suppliers
and buyers.
Knowledge spillovers among closely located firms.
Which of the following is a first-mover advantage? - ANSWER-
Avoid clashing with dominant firms in their home market.
Which of type of entry mode is a wholly owned subsidiary? -
ANSWER-Equity mode
What are the possible benefits of being a late mover? - ANSWER-
Opportunity to free ride on first-mover investments
First mover's difficulty to adapt to market changes
Resolution of technological and market uncertainty
