WGU C211 OA Global Economics Exam ()
Questions and Verified Answers, 100% Guarantee Pass
Which political view of foreign direct investment (FDI) is most widely
used by governments in the current international business environment?
Protectionism
Which factors predict the degree of rivalry between a pair of
competitors? 2 choices
Market Commonality
Cost structure
Which factors predicts how local firms in emerging economics will
respond to multinational competitors? Competitive assets and industry
pressures to globalize
Market dominance and market fragmentation
During which stage of the product life cycle do sales and profits
gradually increase before seeing more dramatic increases?
Growth
Which factor determines the foreign exchange rate any currency?
Supply and demand for the currency
Which risk must a corporation minimize if it is to effectively manage
short-term currency fluctuations?
Hedging
,Which policy does a country use to determine the exchange rate of their
currency in relationship to another country's currency if they do not rely
on market forces?
Fixed rate policy
Which term refers to trading currencies and currency derivatives in
order to earn profits and help make prices efficient?
Speculation
Which type of advantage is gained by a company based on where it
operates?
Location-specific
Who gains from erecting significant entry barriers for other entrants?
First movers
Which strategy for entering into a foreign market has the lowest degree
of risk?
Wholly-owned subsidiary
What is a non-equity mode involving some type of contractual
agreement?
Direct exporting
After the Lehman Brothers collapse, the federal Reserve stood ready to
lend financial institutions funds. When the Federal reserve did this, it was
acting in its role as a lender of last resort. Which type of group has this
role?
Nongovernmental organization
,What is the comprehensive free-trade settlement among Canada, US, and
Mexico, that addresses issues of protecting workers rights, the
environment and reducing tariffs and non-tariff trade barriers?
NAFTA
What is one of the core propositions underpinning an institution-based
view of global business?
If formal constraints are not in place, the informal constraints will guide
decision making
What is one of the core propositions underpinning an institution-based
view of global business?
Managers and corporations make rational decisions within their formal and
informal framework
Which type of system allows businesses to be privately owned with a
strong individualistic profit orientation?
Market economy
Which legal system is based on a religious document and religious
teachings?
Theocratic law
Which type of good has well-established property rights?
Private goods
Which activity disregards basic property rights?
Students play loud music in the open area between dorms
What is one type of economy that uses the market system?
Mixed economy
, Which kind of outcome was Adam Smith referring to when describing the
invisible hand?
Market outcomes
What does the value of the marginal product of labor for a perfectly
competitive, profit-maximizing firm equal?
Rate
What is the change in total cost equal to?
Marginal cost multiplied by change in quantity
Which condition must be satisfied for a competitive firm to shut down in a
short run
Total variable costs are greater than total revenue
What will a competitive firm do in the short run if its average variable
cost exceeds price?
It will produce to make economic profit
What is a characteristic of a monopoly's demand curve?
It is the same as the market demand curve
Which statement describes a monopoly demand curve?
It is perfectly inelastic
What is the profit maximization condition for a monopoly?
Where marginal revenue equals marginal cost
What is a characteristic of monopolistic competition?
Many firms sell differentiated products
Questions and Verified Answers, 100% Guarantee Pass
Which political view of foreign direct investment (FDI) is most widely
used by governments in the current international business environment?
Protectionism
Which factors predict the degree of rivalry between a pair of
competitors? 2 choices
Market Commonality
Cost structure
Which factors predicts how local firms in emerging economics will
respond to multinational competitors? Competitive assets and industry
pressures to globalize
Market dominance and market fragmentation
During which stage of the product life cycle do sales and profits
gradually increase before seeing more dramatic increases?
Growth
Which factor determines the foreign exchange rate any currency?
Supply and demand for the currency
Which risk must a corporation minimize if it is to effectively manage
short-term currency fluctuations?
Hedging
,Which policy does a country use to determine the exchange rate of their
currency in relationship to another country's currency if they do not rely
on market forces?
Fixed rate policy
Which term refers to trading currencies and currency derivatives in
order to earn profits and help make prices efficient?
Speculation
Which type of advantage is gained by a company based on where it
operates?
Location-specific
Who gains from erecting significant entry barriers for other entrants?
First movers
Which strategy for entering into a foreign market has the lowest degree
of risk?
Wholly-owned subsidiary
What is a non-equity mode involving some type of contractual
agreement?
Direct exporting
After the Lehman Brothers collapse, the federal Reserve stood ready to
lend financial institutions funds. When the Federal reserve did this, it was
acting in its role as a lender of last resort. Which type of group has this
role?
Nongovernmental organization
,What is the comprehensive free-trade settlement among Canada, US, and
Mexico, that addresses issues of protecting workers rights, the
environment and reducing tariffs and non-tariff trade barriers?
NAFTA
What is one of the core propositions underpinning an institution-based
view of global business?
If formal constraints are not in place, the informal constraints will guide
decision making
What is one of the core propositions underpinning an institution-based
view of global business?
Managers and corporations make rational decisions within their formal and
informal framework
Which type of system allows businesses to be privately owned with a
strong individualistic profit orientation?
Market economy
Which legal system is based on a religious document and religious
teachings?
Theocratic law
Which type of good has well-established property rights?
Private goods
Which activity disregards basic property rights?
Students play loud music in the open area between dorms
What is one type of economy that uses the market system?
Mixed economy
, Which kind of outcome was Adam Smith referring to when describing the
invisible hand?
Market outcomes
What does the value of the marginal product of labor for a perfectly
competitive, profit-maximizing firm equal?
Rate
What is the change in total cost equal to?
Marginal cost multiplied by change in quantity
Which condition must be satisfied for a competitive firm to shut down in a
short run
Total variable costs are greater than total revenue
What will a competitive firm do in the short run if its average variable
cost exceeds price?
It will produce to make economic profit
What is a characteristic of a monopoly's demand curve?
It is the same as the market demand curve
Which statement describes a monopoly demand curve?
It is perfectly inelastic
What is the profit maximization condition for a monopoly?
Where marginal revenue equals marginal cost
What is a characteristic of monopolistic competition?
Many firms sell differentiated products
