WGU C211 OA GLOBAL ECONOMICS FOR
MANAGERS MASTER REVIEW SET 2026
◉ view that claims globalization is a long-run historical evolution
since the dawn of humanity. Says it is nothing new and that it will
always exist. Answer: evolutionary
◉ view that claims globalization is swinging from one extreme to
another from time to time. Answer: pendulum
◉ investment in, controlling, and managing value-added activities in
other countries. Answer: foreign direct investment
◉ political view hostile to FDI. believes it is an instrument of
imperialism and vehicle for exploitation of domestic resources by
foreign capitalists and firms. Answer: radical
◉ suggests that FDI, unrestricted by government intervention, will
enable countries to tap into their absolute or comparative
advantages by specializing in the production of certain goods and
services. Answer: free market
◉ views FDI as having pros and cons and only approving FDI when
its benefits outweigh costs. Answer: pragmatic nationalis
,◉ what benefits exist to a country receiving FDI?. Answer: capital
inflow, technology spillovers, advanced management know-how,
creates jobs
◉ what costs exist to a country receiving FDI?. Answer: loss of
sovereignty, adverse effects on competition, net outflow in the
capital account
◉ The aggregation of importing and exporting that leads to the
country-level trade surplus or deficit.. Answer: balance of trade
◉ firms with a _____ degree of resource similarity are likely to have
similar competitive actions. Answer: high
◉ a high degree of resource similarity but low market commonality
= _______ intensity of rivalry. Answer: highest
◉ little resource similarity but high market commonality = _____
intensity of rivalry. Answer: lowest
◉ mercantilism, absolute advantage and comparative advantage
belong to what theory of international trade. Answer: classical
, ◉ theory of international trade that relies on more realistic product
life cycles and first mover advantages. Answer: modern
◉ under free trade, a nation gains by specializing in economic
activities in which it has _____advantage. Answer: absolute
◉ focuses on the idea that if a country does not have absolute
advantage, they can still choose to specialize in the production of
one good where it has ______ advantage. Answer: comparative
◉ comparative advantage and absolute advantage stem from.
Answer: factor endowments
◉ theory that the wealth of the world is fixed and that a nation that
imports more and exports less will be richer. Answer: mercantilism
◉ stage of the product life cycle where production of a new product
that commands a price premium will concentrate in the US. Answer:
new
◉ stage of the product life cycle where demand and ability to
produce grow in other developed nations. Answer: maturing
MANAGERS MASTER REVIEW SET 2026
◉ view that claims globalization is a long-run historical evolution
since the dawn of humanity. Says it is nothing new and that it will
always exist. Answer: evolutionary
◉ view that claims globalization is swinging from one extreme to
another from time to time. Answer: pendulum
◉ investment in, controlling, and managing value-added activities in
other countries. Answer: foreign direct investment
◉ political view hostile to FDI. believes it is an instrument of
imperialism and vehicle for exploitation of domestic resources by
foreign capitalists and firms. Answer: radical
◉ suggests that FDI, unrestricted by government intervention, will
enable countries to tap into their absolute or comparative
advantages by specializing in the production of certain goods and
services. Answer: free market
◉ views FDI as having pros and cons and only approving FDI when
its benefits outweigh costs. Answer: pragmatic nationalis
,◉ what benefits exist to a country receiving FDI?. Answer: capital
inflow, technology spillovers, advanced management know-how,
creates jobs
◉ what costs exist to a country receiving FDI?. Answer: loss of
sovereignty, adverse effects on competition, net outflow in the
capital account
◉ The aggregation of importing and exporting that leads to the
country-level trade surplus or deficit.. Answer: balance of trade
◉ firms with a _____ degree of resource similarity are likely to have
similar competitive actions. Answer: high
◉ a high degree of resource similarity but low market commonality
= _______ intensity of rivalry. Answer: highest
◉ little resource similarity but high market commonality = _____
intensity of rivalry. Answer: lowest
◉ mercantilism, absolute advantage and comparative advantage
belong to what theory of international trade. Answer: classical
, ◉ theory of international trade that relies on more realistic product
life cycles and first mover advantages. Answer: modern
◉ under free trade, a nation gains by specializing in economic
activities in which it has _____advantage. Answer: absolute
◉ focuses on the idea that if a country does not have absolute
advantage, they can still choose to specialize in the production of
one good where it has ______ advantage. Answer: comparative
◉ comparative advantage and absolute advantage stem from.
Answer: factor endowments
◉ theory that the wealth of the world is fixed and that a nation that
imports more and exports less will be richer. Answer: mercantilism
◉ stage of the product life cycle where production of a new product
that commands a price premium will concentrate in the US. Answer:
new
◉ stage of the product life cycle where demand and ability to
produce grow in other developed nations. Answer: maturing
