WGU C211 Global Economics for Managers Exam 5 Latest 2023 - 2024

WGU C211 GLOBAL ECONOMICS FOR

MANAGERS EXAM 5 LATEST

QUESTIONS AND ANSWERS

• Which two phrases represent the views of globalization? (Choose two answers)
• A pendulum that swings from one extreme to another.
• A strict adherence to domestic manufacturing.
• A competition among key financial centers and markets.
• A decline in international communication.

Correct Answer: A and C

• What are two trade barriers?
• Free trade agreements and open markets
• Floating exchange rates and pegged rates
• Nontariffs and tariffs
• Imports and exports

Correct Answer: C

• What is the effect of a tariff on a particular product for the country imposing the tariff?
• Increases domestic production of the product.
• Decreases domestic production of the product.
• Increases the consumer surplus in the market.
• Decreases the price of the product for domestic buyers.

Correct Answer: A

• Which benefits come to the host country as a result of foreign direct investment? (Choose

two answers)

• Creation of domestic jobs
• Domestic resource allocation
• Loss of national sovereignty
• Capital outflow

Correct Answer: A and B

• Which characteristic of firm resources affects competitive dynamics?
• Flexibility
• Imitability
• Transparency
• Homogeneity

Correct Answer: B

• Which characteristic of firm resources affects competitive dynamics, according to the

VRIO framework?

• Reliability
• Rarity
• Interoperability
• Outsourcing

Correct Answer: B

• Which theory is the forerunner to modern-day protectionism?
• Comparative Advantage
• Absolute Advantage
• Mercantilism
• Strategic Trade Theory

Correct Answer: C

• Which aspect creates the daily changes in a country's exchange rate?

• Fixed government policies
• Currency supply and demand
• Domestic employment rates
• Annual GDP calculations

Correct Answer: B

• Which risk must a corporation minimize to effectively manage short-term currency

fluctuations?

• Translation Risk
• Economic Risk
• Transaction Risk
• Geopolitical Risk

Correct Answer: C

• 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?

• Hedging
• Speculating
• Floating
• Pegging

Correct Answer: A

• What is the most effective method to limit foreign exchange rate exposure for future trade

payments?

• Increasing domestic prices
• Entering into a forward contract
• Relying entirely on spot transactions
• Increasing dividend payouts

Correct Answer: B

• On a graph, consumer surplus is represented by the area
• below the price and above the supply curve.
• below the demand curve and above price.
• between the demand and supply curves.
• below the demand curve and to the right of equilibrium price.

Correct Answer: B

• A drought in California destroys many red grapes causing the prices of both red grapes

and red wine to rise. As a result, the consumer surplus in the market for red grapes

• decreases, and the consumer surplus in the market for red wine decreases.
• decreases, and the consumer surplus in the market for red wine increases.
• increases, and the consumer surplus in the market for red wine increases.
• increases, and the consumer surplus in the market for red wine decreases.

Correct Answer: A

• Bob purchases a book for $6, and his consumer surplus is $2. How much is Bob willing

to pay for the book?

• $8
• $6
• $4
• $2

Correct Answer: A

• If a consumer places a value of $15 on a particular good and if the price of the good is

$17, then the

• price of the good will fall due to market forces.
• market is not a competitive market.
• consumer has consumer surplus of $2 if he or she buys the good.
• consumer does not purchase the good.