PRE-ASSESSMENT: GLOBAL ECONOMICS FOR MANAGERS. WGU C211. CORRECT ANSWERS ONLY

Which view claims that the phenomenon of globalization was initially driven by the desire of Western economies to exploit their power through multinational enterprises? Correct Answer 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 Correct Answer Resource-based view What is the aggregation of importing and exporting that leads to the country-level trade surplus or deficit? Correct Answer Balance of trade What is a cost of foreign direct investment? Correct Answer 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? Correct Answer Sustained comparative advantage Which theory states that patterns of international trade change across new, maturing, and standardized stages? Correct Answer Product life cycle theory What is the financial environment in which exchange rates and payments for goods and services are conducted? Correct Answer 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? Correct Answer Exchange rates fall and interest rates rise. What is the easiest method nonfinancial companies use to handle currency fluctuations? Correct Answer Currency diversification Which strategy minimizes the risk of unanticipated changes in future exchange rates? Correct Answer 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? Correct Answer Innovation-seeking What advantage comes with not sharing benefits with late entrants? Correct Answer First-mover advantage