PRE-ASSESSMENT: GLOBAL ECONOMICS FOR MANAGERS (UZC2). WGU C211. Correct Answers Only.

PRE-ASSESSMENT: GLOBAL ECONOMICS FOR MANAGERS (UZC2). 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? - 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 - 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). What may precious, rare, and hard-to-duplicate resources and capabilities lead to for a firm? - ANSWER Sustained comparative advantage Which theory states that patterns of international trade change across new, maturing, and standardized stages? - ANSWER Product life cycle theory What is the financial environment in which exchange rates and payments for goods and services are conducted? - 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? - ANSWER Exchange rates fall and interest rates rise. What is the easiest method nonfinancial companies use to handle currency fluctuations? - ANSWER Currency diversification