GLOBAL ECONOMICS FOR MANAGERS WGU C211
EXAM QUESTIONS WITH CORRECT ANSWERS
LATEST UPDATE
Benefits to a country receiving FDI -ANS--Capital Inflow,
Technology Spillover, Advanced Management Know-How, Job
creation
Costs to a country receiving FDI -ANS--Loss of Sovereignty,
Adverse effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive
dynamics of a business? -ANS--Resource similarity and market
commonality can yield a powerful framework for competitor analysis.
Resource similarity -ANS--The extent to which a given competitor
possesses strategic endowment comparable, in terms of both type and
amount, to those of the focal firm.
Page | 1
,How does resource similarity impact competitive dynamics? -ANS--
Firms with a high degree are likely to have similar competitive
actions. (Starbuck's instant coffee & McDonald's iced coffee)
Classical theories of international trade -ANS--Mercantilism,
Absolute advantage, and Comparative advantage
Modern theory view -ANS--Dynamic
Classical theory view -ANS--Static
Absolute advantage -ANS--The economic advantage one nation
enjoys that is superior to other nations
Comparative advantage -ANS--The advantage one economic activity
nation enjoys in comparison with other nations (relative, not absolute)
Mercantilism -ANS--A theory that suggests that the wealth of the
world is fixed and that a nation that exports more and imports less
will be richer.
Page | 2
, Views on Globalization -ANS--New, Evolutionary, and Pendulum
"New" view on globalization -ANS--A force sweeping through the
world in recent times.
"Evolutionary" view on globalization -ANS--A long-run historical
evolution since the dawn of human history
"Pendulum" view on globalization -ANS--One that swings from one
extreme to another from time to time
Foreign Direct Investment -ANS--Direct investment in, control, and
management of value-added activities in other countries
Political views on FDI -ANS--Radical View, Free Market View,
Pragmatic Nationalism
Features of the product life cycle? -ANS--New, Maturing, and
Standardized
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EXAM QUESTIONS WITH CORRECT ANSWERS
LATEST UPDATE
Benefits to a country receiving FDI -ANS--Capital Inflow,
Technology Spillover, Advanced Management Know-How, Job
creation
Costs to a country receiving FDI -ANS--Loss of Sovereignty,
Adverse effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive
dynamics of a business? -ANS--Resource similarity and market
commonality can yield a powerful framework for competitor analysis.
Resource similarity -ANS--The extent to which a given competitor
possesses strategic endowment comparable, in terms of both type and
amount, to those of the focal firm.
Page | 1
,How does resource similarity impact competitive dynamics? -ANS--
Firms with a high degree are likely to have similar competitive
actions. (Starbuck's instant coffee & McDonald's iced coffee)
Classical theories of international trade -ANS--Mercantilism,
Absolute advantage, and Comparative advantage
Modern theory view -ANS--Dynamic
Classical theory view -ANS--Static
Absolute advantage -ANS--The economic advantage one nation
enjoys that is superior to other nations
Comparative advantage -ANS--The advantage one economic activity
nation enjoys in comparison with other nations (relative, not absolute)
Mercantilism -ANS--A theory that suggests that the wealth of the
world is fixed and that a nation that exports more and imports less
will be richer.
Page | 2
, Views on Globalization -ANS--New, Evolutionary, and Pendulum
"New" view on globalization -ANS--A force sweeping through the
world in recent times.
"Evolutionary" view on globalization -ANS--A long-run historical
evolution since the dawn of human history
"Pendulum" view on globalization -ANS--One that swings from one
extreme to another from time to time
Foreign Direct Investment -ANS--Direct investment in, control, and
management of value-added activities in other countries
Political views on FDI -ANS--Radical View, Free Market View,
Pragmatic Nationalism
Features of the product life cycle? -ANS--New, Maturing, and
Standardized
Page | 3
