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WGU C211 - Global Economics for Managers Exam
1. Views on Globalization: New, Evolutionary, and Pendulum
2. "New" view on globalization: A force sweeping through the world in
recent times.
- "Evolutionary" view on globalization: A long-run historical evolution
since the dawn of human history
4. "Pendulum" view on globalization: One that swings from one
extreme to another from time to time
5. Foreign Direct Investment: Direct investment in, control, and
management of value-added activities in other countries
6. Political views on FDI: Radical View, Free Market View, Pragmatic
Nationalism
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7. Benefits to a country receiving FDI: Capital Inflow, Technology
Spillover, Advanced Management Know-How, Job creation
8. Costs to a country receiving FDI: Loss of Sovereignty, Adverse
effects on competition, Capital outflow.
- How do resources and capabilities influence the competitive dynamics
of a business?: Resource similarity and market commonality can yield
a powerful framework for competitor analysis. 2 / 4
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10. Resource similarity: The extent to which a given competitor
possesses strate- gic endowment comparable, in terms of both type and amount, to those of the focal firm.
11. How does resource similarity impact competitive dynamics?: Firms
with a high degree are likely to have similar competitive actions.(Starbuck's instant coffee & McDonald's iced coffee)
12. Classical theories of international trade: Mercantilism, Absolute
advantage, and Comparative advantage
13. Modern theory view: Dynamic
14.Classical theory view: Static
15. Absolute advantage: The economic advantage one nation enjoys
that is superior to other nations
16. Comparative advantage: The advantage one economic activity
nation enjoys in comparison with other nations (relative, not absolute)
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17. Mercantilism: 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.
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