GLOBAL ECONOMICS FOR MANAGERS (UZC2). WGU C211-PRE ASSESSMENT
MOST RECENT COMPREHENSIVE QUESTIONS AND ANSWERS |COMPLETE
SOLUTIONS |A+ GRADED |100% CORRECT!!
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
Which strategy minimizes the risk of 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?
Choose 2 answers - ANSWER: Cognitive. Normative.
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
What is a core proposition underpinning an institutional-based view of global business? - ANSWER: Bounded
rationality
In which type of political system do citizens elect representatives to govern the country on their behalf? -
ANSWER: Democracy
Which legal system uses comprehensive lists of rules and written codes? - ANSWER: Civil law
What are the legal privileges associated with the use of economic property to obtain income and other
benefits from its use? - ANSWER: Property rights
MOST RECENT COMPREHENSIVE QUESTIONS AND ANSWERS |COMPLETE
SOLUTIONS |A+ GRADED |100% CORRECT!!
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
Which strategy minimizes the risk of 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?
Choose 2 answers - ANSWER: Cognitive. Normative.
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
What is a core proposition underpinning an institutional-based view of global business? - ANSWER: Bounded
rationality
In which type of political system do citizens elect representatives to govern the country on their behalf? -
ANSWER: Democracy
Which legal system uses comprehensive lists of rules and written codes? - ANSWER: Civil law
What are the legal privileges associated with the use of economic property to obtain income and other
benefits from its use? - ANSWER: Property rights
