WGU C211 Global Economics for Managers Exam 5 (Latest 2023 - 2024)
New Full Exam Questions and Answers ( Included ) 100% Correct
- Which two phrases represent the views of globalization? Choose two answers.
Answer:
- A pendulum that swings from one extreme to another.
- A competition among key financial centers and markets.
- What are two trade barriers?
Answer:
- Nontariffs
- Tarriffs
- What is the effect of tariff on a particular product for the country imposing the
tariff?
Answer: Increases domestic production of the product.
- Which benefits come to the host country as a result of foreign direct investment?
Answer:
- Creation of domestic jobs
- Domestic resource allocation
- Which characteristics of firm resources affects competitive dynamics?
Answer: -
Imitability
(capable or worthy of being imitated or copied)
- / 2
- Which characteristic of firm resources affects competitive dynamics, ac- cording
to the VRIO framework?
Answer: Rarity
- Which theory is the forerunner to modern-day protectionism?
Answer: Mercantilism
(favorable balance of trade, the development of agriculture and manufactures, and the establishment of foreign trading monopolies)
- Which aspect creates the daily changes in a country's exchange rate?
Answer: - Currency supply and demand
- Which risk must a corporation minimize to effectively manage short-term
currency fluctuations?
Answer: Transaction Risk
(the adverse effect that foreign exchange rate fluctuations can have on a completed transaction prior to settlement. It is the exchange rate, or currency risk associated specifically with the time delay between entering into a trade or contract and then settling it.)
- Which term describes using currency derivatives to reduce potential transaction,
translation, and economic risks of currency movements that could lead to losses for a firm or investor?
Answer: Hedging
(a means of protection or defense (as against financial loss) realization that common stocks are the best hedge against inflation
- What is the most effective method to limit foreign exchange rate exposure for
- / 2
future trade payments?