WGU C211 QUESTIONS WITH COMPLETE SOLUTIONS

WGU C211 QUESTIONS WITH COMPLETE SOLUTIONS Which view claims that the phenomenon of globalization was initially driven by the desire of Western economies to exploit their power through multinational enterprises? - 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 importing country - ANSWER-Resource-based view What is the aggregation of importing and exporting that leads to the country-level trade surplus or deficit? - ANSWER-Balance of Trade What is a cost of foreign direct investment? - ANSWER-Developing countries may be exploited by multinational enterprises (MNE) Which type of managerial capability is both challenging and difficult to imitate? - ANSWER-Intangible capability What may precious, rare and hard to duplicate resources and capabilities lead to for a firm? - ANSWER-Sustained comparative advantage Which theory of international trade states that poor countries often experience faster rates of economic growth compared to wealthy countries? - ANSWER-The catch-up effect What is the financial environment in which exchange rates and payments for goods and services are conducted? - ANSWER-Commodity Exchange What happens to a country's real exchange rates and nominal interest rate as the price level increases, assuming all other factors are unchanged? - ANSWER-Exchange rates depreciate, interest rates increase What is the easiest method non-financial companies use to handle currency fluctuations? - ANSWER-Commodity Trading Which strategy minimizes the risk for unanticipated changes in future exchange rates? - 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? - ANSWER-Innovation-seeking What advantage comes with not sharing benefits with late entrants? - ANSWER-First-mover advantage Which entry mode is a non-equity arrangement for a company contemplating entry into a foreign market? - ANSWER-Licensing What size commitment is required for a non-equity mode of entry into a foreign market? - ANSWER-Small commitment What are two supportive pillars for an informal institution? - ANSWER-Normative and Cognitive What is the key role of an institution, according to the institution-based view? - ANSWER-To reduce uncertainty What are the rules, enforcement mechanisms, and organizations that support market transactions? - ANSWER-Institutions