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WGU C211 focus questions from Global Economics for Managers Test Bank
2022/2023
1.Globalization can be viewed as:: 1. a new force sweeping through the world in recent times.
2.a long-run historical evolution since the dawn of human history.
3.a pendulum that swings from one extreme to another from time to time.
2.Which are the three views of globalization?: A recent force, a long-
running evolution, and a pendulum 3.An import quota is:: restriction on the quantity of imports that can be brought into a country.
4.Examples of nontariff trade barrier (NTB): Import
quotas Local content requirements Subsidies 5.Free trade is defined as:: The idea that market forces should determine how much to trade with little or no government intervention.
6.political argument against free trade: Consumer
protection National security Environmental and social responsibility 7.To express its opposition to the political regime in Myanmar, the United States has banned the importation of jade and other gemstones from that country. This is an example of a: trade embargo 1 / 4
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8.The primary political views on FDI are:: Free market and pragmatic national- ism
9.Firms can increase their chances of success with FDI by: 1.
assessing whether FDI is justified, in light of other options.
2.understanding that political realities either facilitate or constrain FDI.
3.leveraging OLI advantages in a way that is valuable, unique, and hard to imitate by rival firms.
10. How do firms create value when engaging rivals: 1. Secure patents on
key products.
2.All of these 3.Launch products in multiple markets.
4.Hold a dominant position in key markets.
11.The theory of comparative advantage was advocated by: David Ricardo
12.The modern trade theories include the following: 1. Theory of product
life cycle 2 / 4
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2.Theory of national competitive advantage of industries 3.Theory of strategic trade
13.The theory of mercantilism: views international trade as a zero-sum
game.
14.According to the theory of absolute advantage, under free trade: each
nation gains by specializing in economic activities in which a nation has absolute advantage
15.comparative advantage: the ability to produce a good at a lower
opportunity cost than another producer
16.Absolute Advantage: The economic advantage one nation enjoys
that is absolutely superior to other nations.
17.Strategic trade theory: A theory that suggests that strategic
intervention by governments in certain industries can enhance their odds for international success.
18.Product life cycle theory: A theory that accounts for changes in the
patterns of trade over time by focusing on product life cycles.
19.The three modern theories of international trade: 1. product life cycle
2.strategic trade 3.national competitive advantage of industries.
20.Base of the pyramid (BOP): Economies where people make less than
$2,000 per capita per year. 3 / 4
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21.BRICA: Brazil, Russia, India, and China.
22.Emerging economies: term that has gradually replaced the term
"developing countries" since the 1990s.
23.Emerging markets: A term that is often used interchangeably with
"emerging economies."
24.Expatriate manager: A manager who works abroad, or "expat" for
short.
25.Foreign direct investment (FDI): Investment in, controlling, and
managing value-added activities in other countries.
26.Global Business: Business around the globe.
27.Globalization: The close integration of countries and peoples of the
world.
28.Gross domestic product (GDP): The sum of value added by resident
firms, households, and governments operating in an economy.
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