WGU C211 - Global Economics for Managers - PA Review What is one of the elements of the Porter Diamond in the theory of national competitive advantage of industries? - ANSWER Domestic Demand Conditions What is the bandwagon effect? - ANSWER The movement of investors in the same direction at the same time A country has seen a decrease in inflation. What is the effect on the country's currency exchange rate? - ANSWER It increases.What is one of the three primary types of foreign exchange transactions?
- ANSWER Spot transactions
Who are the primary and largest participants in the foreign exchange market? - ANSWER Large international banks 1 / 2
Which company has a natural resource-seeking strategic goal? - ANSWER A company searching for a location where there is an abundance of oil Which entrant is able to erect significant barriers for other entrants? - ANSWER First mover Direct exports have which advantage? - ANSWER Capitalization of economies of scale in production in the home country Which mode of entry is a non-equity mode? - ANSWER R&D contracts One view of globalization claims that human civilization has always had some type of globalization. Which view is it? - ANSWER The long-run historical view The benefit attributed to firms that enter a market before other firms in the same market segment is best described by which term? - ANSWER First-mover advantage
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