WGU Global Business & International Trade
Flashcards 2025/2026 | FDI, Strategic Hedging &
Competitive Dynamics | Globalization, Trade Theories
& Institutions | 300+ 100% Verified Q&A
Views on Globalization - New, Evolutionary, and Pendulum
"New" view on globalization - A force sweeping through the world in recent times.
"Evolutionary" view on globalization - A long-run historical evolution since the dawn of
human history
"Pendulum" view on globalization - One that swings from one extreme to another from time
to time
Foreign Direct Investment - Direct investment in, control, and management of value-added
activities in other countries
Political views on FDI - Radical View, Free Market View, Pragmatic Nationalism
Benefits to a country receiving FDI - Capital Inflow, Technology Spillover, Advanced
Management Know-How, Job creation
Costs to a country receiving FDI - Loss of Sovereignty, Adverse effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business? -
Resource similarity and market commonality can yield a powerful framework for competitor
analysis.
, Resource similarity - 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? - 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 - Mercantilism, Absolute advantage, and Comparative
advantage
Modern theory view - Dynamic
Classical theory view - Static
Absolute advantage - The economic advantage one nation enjoys that is superior to other
nations
Comparative advantage - The advantage one economic activity nation enjoys in comparison
with other nations (relative, not absolute)
Mercantilism - 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? - New, Maturing, and Standardized
Strategic trade - 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? - 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.
Flashcards 2025/2026 | FDI, Strategic Hedging &
Competitive Dynamics | Globalization, Trade Theories
& Institutions | 300+ 100% Verified Q&A
Views on Globalization - New, Evolutionary, and Pendulum
"New" view on globalization - A force sweeping through the world in recent times.
"Evolutionary" view on globalization - A long-run historical evolution since the dawn of
human history
"Pendulum" view on globalization - One that swings from one extreme to another from time
to time
Foreign Direct Investment - Direct investment in, control, and management of value-added
activities in other countries
Political views on FDI - Radical View, Free Market View, Pragmatic Nationalism
Benefits to a country receiving FDI - Capital Inflow, Technology Spillover, Advanced
Management Know-How, Job creation
Costs to a country receiving FDI - Loss of Sovereignty, Adverse effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business? -
Resource similarity and market commonality can yield a powerful framework for competitor
analysis.
, Resource similarity - 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? - 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 - Mercantilism, Absolute advantage, and Comparative
advantage
Modern theory view - Dynamic
Classical theory view - Static
Absolute advantage - The economic advantage one nation enjoys that is superior to other
nations
Comparative advantage - The advantage one economic activity nation enjoys in comparison
with other nations (relative, not absolute)
Mercantilism - 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? - New, Maturing, and Standardized
Strategic trade - 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? - 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.
