WGU C211 Global Economics for Managers: Complete Study Guide
(Latest 2026/2027 Update) | Q&A | Grade A | 100% Correct (Verified
Answers) – WGU
Subject: Global Economics for Managers – Globalization Theories, FDI, Market Entry,
Institutional Theory, Political & Legal Systems, Trade Policy, Market Structures, Monetary &
Fiscal Policy, GDP, Consumer/Producer Surplus
Source: WGU C211 Study Guide / Global Economics for Managers Blueprint
Format: Q&A Guide with Economic Rationale | 100% Verified
1: What are the three views of globalization regarding its timeline and directional nature?
Correct Answer: 1. It's a new phenomenon, starting in the late 20th century. 2. It's a long-term part
of human history. 3. Neither recent nor one-directional; it's a pendulum that swings back and forth.
1. New-force view: globalization driven by recent technological and economic changes.
2. Evolutionary view: globalization has deep historical roots.
3. Pendulum view: globalization ebbs and flows over time.
2: Strategic goal = Natural resource-seeking; what is the associated location-specific
advantage?
Correct Answer: Possession of natural resources and related transport and communication
infrastructure
1. Firms seek locations with abundant natural resources (oil, minerals, timber).
2. Infrastructure enables extraction and export.
3: Strategic goal = Market-seeking; what is the associated location-specific advantage?
Correct Answer: Abundance of strong market demand and customers willing to pay
1. Market-seeking FDI targets large, growing consumer markets.
2. Firms follow customers to avoid transport costs and trade barriers.
4: Strategic goal = Efficiency-seeking; what is the associated location-specific advantage?
Correct Answer: Economies of scale and abundance of low-cost factors
1. Efficiency-seeking FDI aims to lower production costs.
2. Exploits wage differentials, economies of scale, and favorable regulations.
5: Strategic goal = Innovation-seeking; what is the associated location-specific advantage?
Correct Answer: Abundance of innovative individuals, firms, and universities
1. Innovation-seeking (strategic asset-seeking) FDI targets knowledge clusters.
2. Examples: Silicon Valley, Cambridge, Bangalore.
, 6: Name five first-mover advantages.
Correct Answer: 1. Proprietary, technological leadership; 2. Pre-emption of scarce resources; 3.
Establishment of entry barriers for late entrants; 4. Avoidance of clash with dominant firms at home;
5. Relationships with key stakeholders such as governments
1. First-movers capture market share before competitors.
2. Build brand loyalty, experience curve advantages, and switching costs for customers.
7: Name three late-mover advantages.
Correct Answer: 1. Opportunity to free ride on first-mover investments; 2. Resolution of
technological and market uncertainty; 3. First mover's difficulty to adapt to market changes
1. Late movers learn from first-mover mistakes.
2. Avoid sunk costs; adapt to changing customer preferences more easily.
8: Name the four strategic goals supported by location-specific advantages.
Correct Answer: 1. Natural resources; 2. Market; 3. Efficiency; 4. Innovation
1. Dunning's eclectic (OLI) paradigm: Ownership, Location, Internalization advantages.
2. Location advantages drive FDI strategic goals.
9: What is proposition (1) underpinning an institution-based view of global business?
Correct Answer: Managers and firms rationally pursue their interests and make choices within the
formal and informal constraints in a given institutional framework.
1. Institutions are the "rules of the game" – formal laws and informal norms.
2. Rational actors optimize within institutional constraints.
10: What is proposition (2) underpinning an institution-based view of global business?
Correct Answer: While formal and informal institutions combine to govern firm behavior, in
situations where formal constraints are unclear or fail, informal constraints will play a larger role in
reducing uncertainty and providing constancy to managers and firms.
1. Informal institutions (culture, ethics, norms) fill gaps in formal systems.
2. Particularly important in emerging economies with weak legal frameworks.
11: What is a market economy?
Correct Answer: An economy that is characterized by the "invisible hand" of market forces.
1. Supply and demand determine prices and resource allocation.
2. Minimal government intervention; private ownership of production.
12: What is a command economy?
Correct Answer: An economy that is characterized by government ownership and control of factors
of production.
1. Central planning determines production, prices, and distribution.
2. Historically associated with communist/socialist systems.
(Latest 2026/2027 Update) | Q&A | Grade A | 100% Correct (Verified
Answers) – WGU
Subject: Global Economics for Managers – Globalization Theories, FDI, Market Entry,
Institutional Theory, Political & Legal Systems, Trade Policy, Market Structures, Monetary &
Fiscal Policy, GDP, Consumer/Producer Surplus
Source: WGU C211 Study Guide / Global Economics for Managers Blueprint
Format: Q&A Guide with Economic Rationale | 100% Verified
1: What are the three views of globalization regarding its timeline and directional nature?
Correct Answer: 1. It's a new phenomenon, starting in the late 20th century. 2. It's a long-term part
of human history. 3. Neither recent nor one-directional; it's a pendulum that swings back and forth.
1. New-force view: globalization driven by recent technological and economic changes.
2. Evolutionary view: globalization has deep historical roots.
3. Pendulum view: globalization ebbs and flows over time.
2: Strategic goal = Natural resource-seeking; what is the associated location-specific
advantage?
Correct Answer: Possession of natural resources and related transport and communication
infrastructure
1. Firms seek locations with abundant natural resources (oil, minerals, timber).
2. Infrastructure enables extraction and export.
3: Strategic goal = Market-seeking; what is the associated location-specific advantage?
Correct Answer: Abundance of strong market demand and customers willing to pay
1. Market-seeking FDI targets large, growing consumer markets.
2. Firms follow customers to avoid transport costs and trade barriers.
4: Strategic goal = Efficiency-seeking; what is the associated location-specific advantage?
Correct Answer: Economies of scale and abundance of low-cost factors
1. Efficiency-seeking FDI aims to lower production costs.
2. Exploits wage differentials, economies of scale, and favorable regulations.
5: Strategic goal = Innovation-seeking; what is the associated location-specific advantage?
Correct Answer: Abundance of innovative individuals, firms, and universities
1. Innovation-seeking (strategic asset-seeking) FDI targets knowledge clusters.
2. Examples: Silicon Valley, Cambridge, Bangalore.
, 6: Name five first-mover advantages.
Correct Answer: 1. Proprietary, technological leadership; 2. Pre-emption of scarce resources; 3.
Establishment of entry barriers for late entrants; 4. Avoidance of clash with dominant firms at home;
5. Relationships with key stakeholders such as governments
1. First-movers capture market share before competitors.
2. Build brand loyalty, experience curve advantages, and switching costs for customers.
7: Name three late-mover advantages.
Correct Answer: 1. Opportunity to free ride on first-mover investments; 2. Resolution of
technological and market uncertainty; 3. First mover's difficulty to adapt to market changes
1. Late movers learn from first-mover mistakes.
2. Avoid sunk costs; adapt to changing customer preferences more easily.
8: Name the four strategic goals supported by location-specific advantages.
Correct Answer: 1. Natural resources; 2. Market; 3. Efficiency; 4. Innovation
1. Dunning's eclectic (OLI) paradigm: Ownership, Location, Internalization advantages.
2. Location advantages drive FDI strategic goals.
9: What is proposition (1) underpinning an institution-based view of global business?
Correct Answer: Managers and firms rationally pursue their interests and make choices within the
formal and informal constraints in a given institutional framework.
1. Institutions are the "rules of the game" – formal laws and informal norms.
2. Rational actors optimize within institutional constraints.
10: What is proposition (2) underpinning an institution-based view of global business?
Correct Answer: While formal and informal institutions combine to govern firm behavior, in
situations where formal constraints are unclear or fail, informal constraints will play a larger role in
reducing uncertainty and providing constancy to managers and firms.
1. Informal institutions (culture, ethics, norms) fill gaps in formal systems.
2. Particularly important in emerging economies with weak legal frameworks.
11: What is a market economy?
Correct Answer: An economy that is characterized by the "invisible hand" of market forces.
1. Supply and demand determine prices and resource allocation.
2. Minimal government intervention; private ownership of production.
12: What is a command economy?
Correct Answer: An economy that is characterized by government ownership and control of factors
of production.
1. Central planning determines production, prices, and distribution.
2. Historically associated with communist/socialist systems.
