WGU C211 OA Global Economics Actual
Exam 2024 with Verified Solutions
Which political view of foreign direct investment (FDI) is most widely used by governments in the current
international business environment? - Answer -Protectionism
Which factors credit the degree of rivalry between a pair of competitors? 2 choices - Answer -Market
Commonality
Cost Structure
Which factors credit how local firms in emerging economics will respond to multinational competitors? -
Answer -Competitive assets and industry pressures to globalize
During which stage of the product life cycle do sales and profits gradually increase before seeing more
dramatic increases? - Answer -Growth
Which factor determines the foreign exchange rate of any currency? - Answer -Supply and demand for
the currency
Which risk must corporation minimize if it is to effectively manage short-term currency fluctuations? -
Answer -Transaction Risk
Which policy does a country use to determine the exchange rate of their currency in relationship to
another country's currency if they do not rely on market forces? - Answer -Fixed Rate Policy
Which term refers to trading currencies and currency derivatives in order to earn profits and help make
prices efficient? - Answer -Brokering
Which type of advantage is gained by a company based on where it operates? - Answer -Location-
Specific
Who gains from erecting significant entry barriers for other entrants? - Answer -First Movers
Which strategy for entering into a foreign market has the lowest degree of risk? - Answer -Licensing
What is a non-equity mode involving some type of contractual agreement? - Answer -Licensing
After the Lehman Brothers collapse, the federal Reserve stood ready to lend financial institutions funds.
When the Federal reserve did this, it was acting in its role as a lender of last resort. Which type of group
has this role? - Answer -Non Governmental Organization
, What is the comprehensive free-trade settlement among Canada, US, and Mexico, that address issues of
protecting workers rights, the environment and reducing tariffs and non-tariff trade barriers? - Answer -
NAFTA
What is one of the core propositions underpinning an institution-based view of global business? -
Answer -Managers and corporations make rational decisions within their formal and informal framework
Which type of system allows businesses to be privately owned with a strong individualistic profit
orientation? - Answer -Market economy
Which legal system is based on a religious document and religious teachings? - Answer -Theocratic Law
Which type of good has well-established property rights? - Answer -Private Goods
Which activity disregards basic property rights? - Answer -Students play loud music in the open area
between dorms
What is one type of economy that uses the market system? - Answer -Mixed Economy
Which kind of outcome was Adam Smith referring to when describing the invisible hand? - Answer -
Market Outcomes
What does the value of the marginal product of labor for a perfectly competitive, profit maximizing firm
equal? - Answer -Wage
What is the change in total cost equal to? - Answer -Marginal Cost multiplied by change in quantity
Which condition must be satisfied for a competitive firm to shut down in a short run? - Answer -Total
variable costs are greater than total revenue
What will a competitive firm do in the short run if its average variable cost exceeds price? - Answer -It
will shut down
What is a characteristic of a monopoly demand curve? - Answer -It is the same as the market demand
curve
Which statement describes a monopoly's demand curve? - Answer -It is less elastic than a perfectly
competitive firms demand curve
What is the profit maximization condition for a monopoly? - Answer -Where marginal revenue equals
marginal cost
What is a characteristic of monopolistic competition? - Answer -Many firms sell differentiated products
How does self-interest influence each prisoner's decision in the prisoner's dilemma? - Answer -Neither
prisoner will confess
Exam 2024 with Verified Solutions
Which political view of foreign direct investment (FDI) is most widely used by governments in the current
international business environment? - Answer -Protectionism
Which factors credit the degree of rivalry between a pair of competitors? 2 choices - Answer -Market
Commonality
Cost Structure
Which factors credit how local firms in emerging economics will respond to multinational competitors? -
Answer -Competitive assets and industry pressures to globalize
During which stage of the product life cycle do sales and profits gradually increase before seeing more
dramatic increases? - Answer -Growth
Which factor determines the foreign exchange rate of any currency? - Answer -Supply and demand for
the currency
Which risk must corporation minimize if it is to effectively manage short-term currency fluctuations? -
Answer -Transaction Risk
Which policy does a country use to determine the exchange rate of their currency in relationship to
another country's currency if they do not rely on market forces? - Answer -Fixed Rate Policy
Which term refers to trading currencies and currency derivatives in order to earn profits and help make
prices efficient? - Answer -Brokering
Which type of advantage is gained by a company based on where it operates? - Answer -Location-
Specific
Who gains from erecting significant entry barriers for other entrants? - Answer -First Movers
Which strategy for entering into a foreign market has the lowest degree of risk? - Answer -Licensing
What is a non-equity mode involving some type of contractual agreement? - Answer -Licensing
After the Lehman Brothers collapse, the federal Reserve stood ready to lend financial institutions funds.
When the Federal reserve did this, it was acting in its role as a lender of last resort. Which type of group
has this role? - Answer -Non Governmental Organization
, What is the comprehensive free-trade settlement among Canada, US, and Mexico, that address issues of
protecting workers rights, the environment and reducing tariffs and non-tariff trade barriers? - Answer -
NAFTA
What is one of the core propositions underpinning an institution-based view of global business? -
Answer -Managers and corporations make rational decisions within their formal and informal framework
Which type of system allows businesses to be privately owned with a strong individualistic profit
orientation? - Answer -Market economy
Which legal system is based on a religious document and religious teachings? - Answer -Theocratic Law
Which type of good has well-established property rights? - Answer -Private Goods
Which activity disregards basic property rights? - Answer -Students play loud music in the open area
between dorms
What is one type of economy that uses the market system? - Answer -Mixed Economy
Which kind of outcome was Adam Smith referring to when describing the invisible hand? - Answer -
Market Outcomes
What does the value of the marginal product of labor for a perfectly competitive, profit maximizing firm
equal? - Answer -Wage
What is the change in total cost equal to? - Answer -Marginal Cost multiplied by change in quantity
Which condition must be satisfied for a competitive firm to shut down in a short run? - Answer -Total
variable costs are greater than total revenue
What will a competitive firm do in the short run if its average variable cost exceeds price? - Answer -It
will shut down
What is a characteristic of a monopoly demand curve? - Answer -It is the same as the market demand
curve
Which statement describes a monopoly's demand curve? - Answer -It is less elastic than a perfectly
competitive firms demand curve
What is the profit maximization condition for a monopoly? - Answer -Where marginal revenue equals
marginal cost
What is a characteristic of monopolistic competition? - Answer -Many firms sell differentiated products
How does self-interest influence each prisoner's decision in the prisoner's dilemma? - Answer -Neither
prisoner will confess
