WGU C211 GLOBAL ECONOMICS FOR
MANAGERS EXAM QUESTIONS AND
ANSWERS. VERIFIED 2025/2026.
Globalization - ANS The process by which businesses or other organizations develop
international influence or start operating on an international scale
Import quota - ANS A limit on the number of products in certain categories that a nation can
import
Emerging economy - ANS Nations with social or business activity in the process of rapid
growth and industrialization
Global economic pyramid - ANS Pyramid that consists of all of the world's economies,
comprised of three parts
New view of Globalization - ANS New force of globalization that started in the 20th Century,
viewing Western expansion of MNE's as vital to growth
Reverse innovation - ANS Innovations created for or by emerging-economy markets and then
imported to developed-economy markets
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Evolutionary view of globalization - ANS Long-run view of globalization that states it has been
with mankind since the beginning
Pendulum view of globalization - ANS View of globalization which states it is neither recent or
one-directional and is constantly changing
Trade deficit - ANS A situation in which a country imports more than it exports
Export restraints - ANS Limitations on the quantity of exports—usually imposed by the
exporting country at the importing country's request
Antidumping Policies - ANS Designed to punish foreign firms that engage in dumping and
thus protect domestic producers from unfair foreign competition
Trade embargo - ANS A government order that forbids trade with a specified nation
Bargaining power - ANS The power of labor and management to achieve their goals through
economic, social, or political influence
Horizontal FDI - ANS A type of FDI in which a firm duplicates its home country-based activities
at the same value chain stage in a host country
Agglomeration - ANS Grouping together of many firms from the same industry in a single
area for collective or cooperative use of infrastructure and sharing of labor resources
Collusion - ANS Secret agreement or cooperation used to restrict competition
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Vertical FDI - ANS A type of FDI in which a firm moves upstream or downstream at different
value chain stages in a host country
Trade surplus - ANS A situation in which a country exports more than it imports
Foreign Direct Investment (FDI) - ANS Investment made by a firm or individual in one country
into business interest located in another country; MNE's use this
Multinational Enterprise (MNE) - ANS A firm that engages in foreign direct investment (FDI)
when doing business abroad
Benefits received when receiving Foreign Direct Investment (FDI) - ANS 1. Capital inflow
improve the host country balance of payment.
2. Technology, especially more advanced technology from abroad, can create technology
spillovers that benefits domestic firms and industries. (Contagion effect)
3. Advanced management know how may be highly valued.
4. FDI creates jobs, both directly and indirectly.
Costs incurred when receiving Foreign Direct Investment (FDI) - ANS 1. Loss of sovereignty
2. Adverse effects on competition
3. Capital outflow
Competitive dynamics - ANS Actions and responses undertaken by competing firms
Resource similarity - ANS Extent to which the firm's intangible resources are comparable to a
competitor's in terms of both type and amount
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
MANAGERS EXAM QUESTIONS AND
ANSWERS. VERIFIED 2025/2026.
Globalization - ANS The process by which businesses or other organizations develop
international influence or start operating on an international scale
Import quota - ANS A limit on the number of products in certain categories that a nation can
import
Emerging economy - ANS Nations with social or business activity in the process of rapid
growth and industrialization
Global economic pyramid - ANS Pyramid that consists of all of the world's economies,
comprised of three parts
New view of Globalization - ANS New force of globalization that started in the 20th Century,
viewing Western expansion of MNE's as vital to growth
Reverse innovation - ANS Innovations created for or by emerging-economy markets and then
imported to developed-economy markets
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Evolutionary view of globalization - ANS Long-run view of globalization that states it has been
with mankind since the beginning
Pendulum view of globalization - ANS View of globalization which states it is neither recent or
one-directional and is constantly changing
Trade deficit - ANS A situation in which a country imports more than it exports
Export restraints - ANS Limitations on the quantity of exports—usually imposed by the
exporting country at the importing country's request
Antidumping Policies - ANS Designed to punish foreign firms that engage in dumping and
thus protect domestic producers from unfair foreign competition
Trade embargo - ANS A government order that forbids trade with a specified nation
Bargaining power - ANS The power of labor and management to achieve their goals through
economic, social, or political influence
Horizontal FDI - ANS A type of FDI in which a firm duplicates its home country-based activities
at the same value chain stage in a host country
Agglomeration - ANS Grouping together of many firms from the same industry in a single
area for collective or cooperative use of infrastructure and sharing of labor resources
Collusion - ANS Secret agreement or cooperation used to restrict competition
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Vertical FDI - ANS A type of FDI in which a firm moves upstream or downstream at different
value chain stages in a host country
Trade surplus - ANS A situation in which a country exports more than it imports
Foreign Direct Investment (FDI) - ANS Investment made by a firm or individual in one country
into business interest located in another country; MNE's use this
Multinational Enterprise (MNE) - ANS A firm that engages in foreign direct investment (FDI)
when doing business abroad
Benefits received when receiving Foreign Direct Investment (FDI) - ANS 1. Capital inflow
improve the host country balance of payment.
2. Technology, especially more advanced technology from abroad, can create technology
spillovers that benefits domestic firms and industries. (Contagion effect)
3. Advanced management know how may be highly valued.
4. FDI creates jobs, both directly and indirectly.
Costs incurred when receiving Foreign Direct Investment (FDI) - ANS 1. Loss of sovereignty
2. Adverse effects on competition
3. Capital outflow
Competitive dynamics - ANS Actions and responses undertaken by competing firms
Resource similarity - ANS Extent to which the firm's intangible resources are comparable to a
competitor's in terms of both type and amount
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
