WGU C211 - Global Economics for Managers Exam Questions with
Verified Answers (Correct Update)
Question 1: Views on Globalization
Answer: New, Evolutionary, and Pendulum
Question 2: "New" view on globalization
Answer: A force sweeping through the world in recent times.
Question 3: "Evolutionary" view on globalization
Answer: A long-run historical evolution since the dawn of human history
Question 4: "Pendulum" view on globalization
Answer: One that swings from one extreme to another from time to time
Question 5: Foreign Direct Investment
Answer: Direct investment in, control, and management of value-added activities in other
countries
Question 6: Political views on FDI
Answer: Radical View, Free Market View, Pragmatic Nationalism
Question 7: Benefits to a country receiving FDI
Answer: Capital Inflow, Technology Spillover, Advanced Management Know-How, Job creation
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,Question 8: Costs to a country receiving FDI
Answer: Loss of Sovereignty, Adverse effects on competition, Capital outflow.
Question 9: How do resources and capabilities influence the competitive dynamics of a
business?
Answer: Resource similarity and market commonality can yield a powerful framework for
competitor analysis.
Question 10: Resource similarity
Answer: The extent to which a given competitor possesses strategic endowment comparable, in
terms of both type and amount, to those of the focal firm.
Question 11: How does resource similarity impact competitive dynamics?
Answer: Firms with a high degree are likely to have similar competitive actions. (Starbuck's
instant coffee & McDonald's iced coffee)
Question 12: Classical theories of international trade
Answer: Mercantilism, Absolute advantage, and Comparative advantage
Question 13: Modern theory view
Answer: Dynamic
Question 14: Classical theory view
Answer: Static
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, Question 15: Absolute advantage
Answer: The economic advantage one nation enjoys that is superior to other nations
Question 16: Comparative advantage
Answer: The advantage one economic activity nation enjoys in comparison with other nations
(relative, not absolute)
Question 17: Mercantilism
Answer: A theory that suggests that the wealth of the world is fixed and that a nation that exports
more and imports less will be richer.
Question 18: Features of the product life cycle?
Answer: New, Maturing, and Standardized
Question 19: Strategic trade
Answer: Intervention by governments in certain industries can enhance their odds for international
success.
Question 20: How are supply and demand related to the exchange rate of a country?
Answer: The price of a commodity, a country's currency, is fundamentally determined by this.
Strong demand leads to price hikes; oversupply results in price drops.
Question 21: Which theory came first?
Answer: Mercantilism (although both are of the idea that governments should actively protect
domestic industries from imports and vigorously promote exports)
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Verified Answers (Correct Update)
Question 1: Views on Globalization
Answer: New, Evolutionary, and Pendulum
Question 2: "New" view on globalization
Answer: A force sweeping through the world in recent times.
Question 3: "Evolutionary" view on globalization
Answer: A long-run historical evolution since the dawn of human history
Question 4: "Pendulum" view on globalization
Answer: One that swings from one extreme to another from time to time
Question 5: Foreign Direct Investment
Answer: Direct investment in, control, and management of value-added activities in other
countries
Question 6: Political views on FDI
Answer: Radical View, Free Market View, Pragmatic Nationalism
Question 7: Benefits to a country receiving FDI
Answer: Capital Inflow, Technology Spillover, Advanced Management Know-How, Job creation
Page 1
,Question 8: Costs to a country receiving FDI
Answer: Loss of Sovereignty, Adverse effects on competition, Capital outflow.
Question 9: How do resources and capabilities influence the competitive dynamics of a
business?
Answer: Resource similarity and market commonality can yield a powerful framework for
competitor analysis.
Question 10: Resource similarity
Answer: The extent to which a given competitor possesses strategic endowment comparable, in
terms of both type and amount, to those of the focal firm.
Question 11: How does resource similarity impact competitive dynamics?
Answer: Firms with a high degree are likely to have similar competitive actions. (Starbuck's
instant coffee & McDonald's iced coffee)
Question 12: Classical theories of international trade
Answer: Mercantilism, Absolute advantage, and Comparative advantage
Question 13: Modern theory view
Answer: Dynamic
Question 14: Classical theory view
Answer: Static
Page 2
, Question 15: Absolute advantage
Answer: The economic advantage one nation enjoys that is superior to other nations
Question 16: Comparative advantage
Answer: The advantage one economic activity nation enjoys in comparison with other nations
(relative, not absolute)
Question 17: Mercantilism
Answer: A theory that suggests that the wealth of the world is fixed and that a nation that exports
more and imports less will be richer.
Question 18: Features of the product life cycle?
Answer: New, Maturing, and Standardized
Question 19: Strategic trade
Answer: Intervention by governments in certain industries can enhance their odds for international
success.
Question 20: How are supply and demand related to the exchange rate of a country?
Answer: The price of a commodity, a country's currency, is fundamentally determined by this.
Strong demand leads to price hikes; oversupply results in price drops.
Question 21: Which theory came first?
Answer: Mercantilism (although both are of the idea that governments should actively protect
domestic industries from imports and vigorously promote exports)
Page 3
