WGU C211 Exam Study Guide – Questions & Answers (100% Correct)

WGU C211 Exam Study Guide – Questions & Answers (100% Correct) WGU C211 Exam Study Guide – Questions & Answers (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 enterprise? - 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. Which view does this statement portray? - 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 states? - 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 depreciate; interest rates increase 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 entry into a foreign market? - ANSWER - Licensing