WGU C211 Global Economics Exam Questions
and Verified Answers () 100%
Guarantee Pas
1. economic gaines from international trade because one countries exported
Goods, services or other items are unique, valuable and difficult to duplicate to
the important countries. which view does this statement portray?: resource-
based View
2. what is the aggregation of importing and exporting that leads to the country
level Trade Surplus or deficit: balance of trade
3. what is a cost of foreign direct investment: developing countries may be exploited
by Multinational Enterprises
4. what may precious rare and hard to duplicate resources and capabilities lead to
for a firm: sustained comparative advantage
5. which theory states that patterns of international trade change across a new
maturing and standardized stages: product life cycle Theory
6. what is the financial environment in which exchange rates in payments for
goods and services are conducted: international monetary system
7. what happens to a country's real exchange rate and nominal interest rate as the
price level increases assuming all other factors are unchanged: exchange rates
depreciate interest rates increase
8. what is the easiest method non-financial companies used to handle currency
fluctuations: currency diversification
9. which strategy minimizes the risk of unanticipated changes in future exchange
rates: currency swap
10. which country is looking for a location with an abundance of groundbreaking
individuals firms and universities which type of strategic goal is the company
demonstrating: Innovation seeking
11. which advantage comes from not sharing benefits with late entrants: first-mover
advantage
12. which entry mode is a non-equity arrangement for company contemplating
entry into a foreign market: licensing
13. what size commitment is required for a non Equity mode of entry into a foreign
market: small commitment
14. what are two supported pillars for an informal Institution: cognitive and
normative
15. what is the key role of an institution according to the institution based
, .
View: to reduce uncertainty
16. what are the rules enforcement mechanisms and organizations that support
Market transactions: institutions
18 what is the core proposition under pining at institution-based view of global
business: bounded rationality
19. in which type of political system do citizens elect representatives to govern the
country on their behalf: democracy
20. which legal system uses comprehensive list of rules and written codes: civil law
21. what are the legal privileges associated with the use of economic property to
obtain income and other benefits from its use: property rights
22. what is the purpose of having property rights and intellectual property rights:
to legally protect the use of tangible and intangible property and allow its lawful owner to
derive income and other benefits from it
23. what are the two polar types of economies: Central planned economies and
market economies
24. in addition to encouraging efficiency why might a government intervene in a
market: to promote equality
25. what is the relationship between total and marginal cost: marginal cost is the
change in total cost divided by the change in quantity
26. a farmer sells wheat in a perfectly competitive market which action should the
farmer take to maximize profits: produce the quantity Where the price equals to
Farmers marginal cost
27. what is the economic profit of a competitive firm: the difference between total
revenue and total cost
28. which condition applies when a competitive firm decides to temporarily shut
down: average variable cost above the price
29. what is the producers demand curve is the producer sells a differentiated
product: downward sloping
30. which statement describes a competitive firm's demand curve: it is more elastic
than a monopoly's demand curve
31. what is the point at which Monopoly maximizes profit: where marginal cost
equals marginal revenue
32. what is a characteristic of monopolistic competition: many firms and
differentiated products
33. what is a likely outcome of the standard prisoner's dilemma game: both
prisoners confess
34. how does the prisoner's dilemma help and understanding company behavior
in a oligopoly: company strategies must consider action by rival firms
and Verified Answers () 100%
Guarantee Pas
1. economic gaines from international trade because one countries exported
Goods, services or other items are unique, valuable and difficult to duplicate to
the important countries. which view does this statement portray?: resource-
based View
2. what is the aggregation of importing and exporting that leads to the country
level Trade Surplus or deficit: balance of trade
3. what is a cost of foreign direct investment: developing countries may be exploited
by Multinational Enterprises
4. what may precious rare and hard to duplicate resources and capabilities lead to
for a firm: sustained comparative advantage
5. which theory states that patterns of international trade change across a new
maturing and standardized stages: product life cycle Theory
6. what is the financial environment in which exchange rates in payments for
goods and services are conducted: international monetary system
7. what happens to a country's real exchange rate and nominal interest rate as the
price level increases assuming all other factors are unchanged: exchange rates
depreciate interest rates increase
8. what is the easiest method non-financial companies used to handle currency
fluctuations: currency diversification
9. which strategy minimizes the risk of unanticipated changes in future exchange
rates: currency swap
10. which country is looking for a location with an abundance of groundbreaking
individuals firms and universities which type of strategic goal is the company
demonstrating: Innovation seeking
11. which advantage comes from not sharing benefits with late entrants: first-mover
advantage
12. which entry mode is a non-equity arrangement for company contemplating
entry into a foreign market: licensing
13. what size commitment is required for a non Equity mode of entry into a foreign
market: small commitment
14. what are two supported pillars for an informal Institution: cognitive and
normative
15. what is the key role of an institution according to the institution based
, .
View: to reduce uncertainty
16. what are the rules enforcement mechanisms and organizations that support
Market transactions: institutions
18 what is the core proposition under pining at institution-based view of global
business: bounded rationality
19. in which type of political system do citizens elect representatives to govern the
country on their behalf: democracy
20. which legal system uses comprehensive list of rules and written codes: civil law
21. what are the legal privileges associated with the use of economic property to
obtain income and other benefits from its use: property rights
22. what is the purpose of having property rights and intellectual property rights:
to legally protect the use of tangible and intangible property and allow its lawful owner to
derive income and other benefits from it
23. what are the two polar types of economies: Central planned economies and
market economies
24. in addition to encouraging efficiency why might a government intervene in a
market: to promote equality
25. what is the relationship between total and marginal cost: marginal cost is the
change in total cost divided by the change in quantity
26. a farmer sells wheat in a perfectly competitive market which action should the
farmer take to maximize profits: produce the quantity Where the price equals to
Farmers marginal cost
27. what is the economic profit of a competitive firm: the difference between total
revenue and total cost
28. which condition applies when a competitive firm decides to temporarily shut
down: average variable cost above the price
29. what is the producers demand curve is the producer sells a differentiated
product: downward sloping
30. which statement describes a competitive firm's demand curve: it is more elastic
than a monopoly's demand curve
31. what is the point at which Monopoly maximizes profit: where marginal cost
equals marginal revenue
32. what is a characteristic of monopolistic competition: many firms and
differentiated products
33. what is a likely outcome of the standard prisoner's dilemma game: both
prisoners confess
34. how does the prisoner's dilemma help and understanding company behavior
in a oligopoly: company strategies must consider action by rival firms
