WGU C211 Global Economics for Managers Final Exam | Questions and Verified Answers| 100% Correct (Latest 2024) Grade A 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 importing country - 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) 1 / 3
Which type of managerial capability is both challenging and difficult to imitate? - ANSWER Intangible capability What may precious, rare and hard to duplicate resources and capabilities lead to for a firm? - ANSWER Sustained comparative advantage Which theory of international trade states that poor countries often experience faster rates of economic growth compared to wealthy countries? - ANSWER The catch-up effect What is the financial environment in which exchange rates and payments for goods and services are conducted? - ANSWER Commodity Exchange What happens to a country's real exchange rates and nominal interest rate as the price level increases, assuming all other factors are unchanged? - ANSWER Exchange rates depreciate, interest rates increase 2 / 3
What is the easiest method non-financial companies use to handle currency fluctuations? - ANSWER Commodity Trading Which strategy minimizes the risk for 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
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