WGU C211 OA GLOBAL ECONOMICS FOR
MANAGERS DETAILED PREPARATION PACK
2026
◉ Foreign market entries types. Answer: Non-equity and equity
◉ Non-equity. Answer: Reflects relatively smaller commitments to
overseas markets. Determines firms MNE status.
◉ Equity. Answer: indicative of relatively larger, harder-to-reverse
commitments. Determines firms MNE status.
◉ How do institutions reduce uncertainty?. Answer: Establish "rules
of the game" that economic players play by. A standard to follow in
order to survive and prosper. By signaling which conduct is
legitimate and which is not, institutions constrain the range of
acceptable actions.
◉ Regulatory pillar. Answer: The coercive power of governments
(laws, regs, rules)
◉ Normative pillar. Answer: Values, beliefs, and actions of other
relevant players (norms, cultures, ethics)
,◉ Cognitive pillar. Answer: The internalized, taken-for-granted
values and beliefs that guide behavior. (beliefs between
right/wrong)
◉ Formal institution. Answer: One that include laws, regulations and
rules
◉ Informal institution. Answer: One that includes norms, cultures
and ethics
◉ What core propositions lie at the root of the institution based
view on global business?. Answer: (1) managers and firms rationally
pursue their interests and make choices within institutional
constraints (bounded rationality)
(2) in situations where formal constraints are unclear or fail,
informal constraints play a larger role in reducing uncertainty and
providing constancy to managers and firms (personal relationships
and connections)
◉ The institution based view global business is grounded upon.
Answer: The dynamic interaction between institutions and firms,
and considers firm behaviors as the outcome of such an interaction.
, ◉ How is global business affected by democracy?. Answer: An
individual's right to freedom of expression and organization. For
example, starting up a firm is an act of economic expression
◉ How is global business affected by totalitarianism?. Answer:
These countries often experience wars, riots, protests, chaos, and
breakdowns, which result in higher political risk.
◉ Democracy. Answer: Citizens elect representatives to govern the
country on their behalf.
◉ Totalitarianism. Answer: One person or party exercises absolute
political control over the population.
◉ Civil law. Answer: Law that uses comprehensive statutes and
codes as a primary means to form legal judgments.
◉ Common law. Answer: Law shaped by precedents and traditions
from previous judicial decisions.
◉ Theocratic law. Answer: A legal system based on religious
teachings.
MANAGERS DETAILED PREPARATION PACK
2026
◉ Foreign market entries types. Answer: Non-equity and equity
◉ Non-equity. Answer: Reflects relatively smaller commitments to
overseas markets. Determines firms MNE status.
◉ Equity. Answer: indicative of relatively larger, harder-to-reverse
commitments. Determines firms MNE status.
◉ How do institutions reduce uncertainty?. Answer: Establish "rules
of the game" that economic players play by. A standard to follow in
order to survive and prosper. By signaling which conduct is
legitimate and which is not, institutions constrain the range of
acceptable actions.
◉ Regulatory pillar. Answer: The coercive power of governments
(laws, regs, rules)
◉ Normative pillar. Answer: Values, beliefs, and actions of other
relevant players (norms, cultures, ethics)
,◉ Cognitive pillar. Answer: The internalized, taken-for-granted
values and beliefs that guide behavior. (beliefs between
right/wrong)
◉ Formal institution. Answer: One that include laws, regulations and
rules
◉ Informal institution. Answer: One that includes norms, cultures
and ethics
◉ What core propositions lie at the root of the institution based
view on global business?. Answer: (1) managers and firms rationally
pursue their interests and make choices within institutional
constraints (bounded rationality)
(2) in situations where formal constraints are unclear or fail,
informal constraints play a larger role in reducing uncertainty and
providing constancy to managers and firms (personal relationships
and connections)
◉ The institution based view global business is grounded upon.
Answer: The dynamic interaction between institutions and firms,
and considers firm behaviors as the outcome of such an interaction.
, ◉ How is global business affected by democracy?. Answer: An
individual's right to freedom of expression and organization. For
example, starting up a firm is an act of economic expression
◉ How is global business affected by totalitarianism?. Answer:
These countries often experience wars, riots, protests, chaos, and
breakdowns, which result in higher political risk.
◉ Democracy. Answer: Citizens elect representatives to govern the
country on their behalf.
◉ Totalitarianism. Answer: One person or party exercises absolute
political control over the population.
◉ Civil law. Answer: Law that uses comprehensive statutes and
codes as a primary means to form legal judgments.
◉ Common law. Answer: Law shaped by precedents and traditions
from previous judicial decisions.
◉ Theocratic law. Answer: A legal system based on religious
teachings.
