WGU C211 Economics Pre-Assessment 2024
Questions and Answers (Latest Update)
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What are the weaknesses of the theory of mercantilism? Choose two.
The theory leads to inefficient allocation of resources.
Application of the theory reduces the wealth of the nation in the long run.
What is the bandwagon effect?
The movement of investors in the same direction at the same time.
A country has seen a decrease in inflation. What is the effect on the country's currency exchange
rate?
It increases.
What is one of the three primary types of foreign exchange transactions?
Spot Transactions
Who are the primary and largest participants in the foreign exchange market?
Large international banks
Which company has a natural resource-seeking strategic goal?
A company searching for a location where there is an abundance or oil.
Which entrant is able to erect significant barriers for other entrants?
First mover
Direct exports have which advantage?
Capitalization of economies of scale in production in the home country.
What are examples of equity modes of entry? Choose three.
, Strategic Alliances
Greenfields
Acquisitions
One view of globalization claims that human civilization has always had some type of
globalization. Which view is it?
The long-run historical view
The benefit attributed to firms that enter a market before other firms in the same market segment
is best described by which term?
First-moved advantage
What is opportunity cost?
The lost potential from pursuing one activity at the expense of another activity, given the
alternatives.
What is one of the OLI advantages outlined by John Dunning for why firms become
multinational enterprises by engaging in foreign direct investment?
Internalization advantages
In which situation is the dodger strategy appropriate for responding to MNEs?
There is high industry pressure to globalize, and competitive assets are customized to home
markets.
What are three characteristics of industries primed for collusion? Choose three.
A small number of rivals.
A price leader.
Homogeneous products.
Which pillar of formal institutions represents the coercive power of governments?
Regulatory
What are represented by formal institutions?
Laws
What is the necessity of making sensible decisions in the absence of complete information?
Bounded rationality
Questions and Answers (Latest Update)
Download To Score An A
What are the weaknesses of the theory of mercantilism? Choose two.
The theory leads to inefficient allocation of resources.
Application of the theory reduces the wealth of the nation in the long run.
What is the bandwagon effect?
The movement of investors in the same direction at the same time.
A country has seen a decrease in inflation. What is the effect on the country's currency exchange
rate?
It increases.
What is one of the three primary types of foreign exchange transactions?
Spot Transactions
Who are the primary and largest participants in the foreign exchange market?
Large international banks
Which company has a natural resource-seeking strategic goal?
A company searching for a location where there is an abundance or oil.
Which entrant is able to erect significant barriers for other entrants?
First mover
Direct exports have which advantage?
Capitalization of economies of scale in production in the home country.
What are examples of equity modes of entry? Choose three.
, Strategic Alliances
Greenfields
Acquisitions
One view of globalization claims that human civilization has always had some type of
globalization. Which view is it?
The long-run historical view
The benefit attributed to firms that enter a market before other firms in the same market segment
is best described by which term?
First-moved advantage
What is opportunity cost?
The lost potential from pursuing one activity at the expense of another activity, given the
alternatives.
What is one of the OLI advantages outlined by John Dunning for why firms become
multinational enterprises by engaging in foreign direct investment?
Internalization advantages
In which situation is the dodger strategy appropriate for responding to MNEs?
There is high industry pressure to globalize, and competitive assets are customized to home
markets.
What are three characteristics of industries primed for collusion? Choose three.
A small number of rivals.
A price leader.
Homogeneous products.
Which pillar of formal institutions represents the coercive power of governments?
Regulatory
What are represented by formal institutions?
Laws
What is the necessity of making sensible decisions in the absence of complete information?
Bounded rationality
