WGU C211 - Global Economics for
Managers Exam with Questions and
Correct Answers Latest 2026-2027
Views on Globalization - CORRECT ANSWERS-New, Evolutionary, and Pendulum
"New" view on globalization - CORRECT ANSWERS-A force sweeping through the world
in recent times.
"Evolutionary" view on globalization - CORRECT ANSWERS-A long-run historical
evolution since the dawn of human history
"Pendulum" view on globalization - CORRECT ANSWERS-One that swings from one
extreme to another from time to time
Foreign Direct Investment - CORRECT ANSWERS-Direct investment in, control, and
management of value-added activities in other countries
Political views on FDI - CORRECT ANSWERS-Radical View, Free Market View,
Pragmatic Nationalism
Benefits to a country receiving FDI - CORRECT ANSWERS-Capital Inflow, Technology
Spillover, Advanced Management Know-How, Job creation
Costs to a country receiving FDI - CORRECT ANSWERS-Loss of Sovereignty, Adverse
effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business? -
CORRECT ANSWERS-Resource similarity and market commonality can yield a powerful
framework for competitor analysis.
Resource similarity - CORRECT ANSWERS-The extent to which a given competitor
possesses strategic endowment comparable, in terms of both type and amount, to those of
the focal firm.
How does resource similarity impact competitive dynamics? - CORRECT ANSWERS-
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 - CORRECT ANSWERS-Mercantilism, Absolute
advantage, and Comparative advantage
Modern theory view - CORRECT ANSWERS-Dynamic
Classical theory view - CORRECT ANSWERS-Static
Absolute advantage - CORRECT ANSWERS-The economic advantage one nation enjoys
that is superior to other nations
Comparative advantage - CORRECT ANSWERS-The advantage one economic activity
nation enjoys in comparison with other nations (relative, not absolute)
Mercantilism - CORRECT ANSWERS-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.
Features of the product life cycle? - CORRECT ANSWERS-New, Maturing, and
Standardized
Strategic trade - CORRECT ANSWERS-Intervention by governments in certain industries
can enhance their odds for international success.
How are supply and demand related to the exchange rate of a country? - CORRECT
ANSWERS-The price of a commodity, a country's currency, is fundamentally determined
by this. Strong demand leads to price hikes; oversupply results in price drops.
Which theory came first? - CORRECT ANSWERS-Mercantilism (although both are of the
idea that governments should actively protect domestic industries from imports and
vigorously promote exports)
If a company seeks to limit foreign exchange rate exposure in the forward direction, what is
the most effective way to do this? - CORRECT ANSWERS-Forward transactions, an act
know as currency hedging.
Transaction risk - CORRECT ANSWERS-The exchange rate risk associated with the time
delay between entering into a contract and settling it.
Hedging - CORRECT ANSWERS-A transaction, such as forward transactions, that
protects traders and investors from exposure to the fluctuations of the spot rate.
Currency hedging - CORRECT ANSWERS-A way to protect traders and investors from
being exposed to the fluctuations of the spot rate
Strategic hedging - CORRECT ANSWERS-A means of spreading out activities in different
currency zones in order to offset the currency losses in certain regions through gains in
other regions (currency diversification)
Managers Exam with Questions and
Correct Answers Latest 2026-2027
Views on Globalization - CORRECT ANSWERS-New, Evolutionary, and Pendulum
"New" view on globalization - CORRECT ANSWERS-A force sweeping through the world
in recent times.
"Evolutionary" view on globalization - CORRECT ANSWERS-A long-run historical
evolution since the dawn of human history
"Pendulum" view on globalization - CORRECT ANSWERS-One that swings from one
extreme to another from time to time
Foreign Direct Investment - CORRECT ANSWERS-Direct investment in, control, and
management of value-added activities in other countries
Political views on FDI - CORRECT ANSWERS-Radical View, Free Market View,
Pragmatic Nationalism
Benefits to a country receiving FDI - CORRECT ANSWERS-Capital Inflow, Technology
Spillover, Advanced Management Know-How, Job creation
Costs to a country receiving FDI - CORRECT ANSWERS-Loss of Sovereignty, Adverse
effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business? -
CORRECT ANSWERS-Resource similarity and market commonality can yield a powerful
framework for competitor analysis.
Resource similarity - CORRECT ANSWERS-The extent to which a given competitor
possesses strategic endowment comparable, in terms of both type and amount, to those of
the focal firm.
How does resource similarity impact competitive dynamics? - CORRECT ANSWERS-
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 - CORRECT ANSWERS-Mercantilism, Absolute
advantage, and Comparative advantage
Modern theory view - CORRECT ANSWERS-Dynamic
Classical theory view - CORRECT ANSWERS-Static
Absolute advantage - CORRECT ANSWERS-The economic advantage one nation enjoys
that is superior to other nations
Comparative advantage - CORRECT ANSWERS-The advantage one economic activity
nation enjoys in comparison with other nations (relative, not absolute)
Mercantilism - CORRECT ANSWERS-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.
Features of the product life cycle? - CORRECT ANSWERS-New, Maturing, and
Standardized
Strategic trade - CORRECT ANSWERS-Intervention by governments in certain industries
can enhance their odds for international success.
How are supply and demand related to the exchange rate of a country? - CORRECT
ANSWERS-The price of a commodity, a country's currency, is fundamentally determined
by this. Strong demand leads to price hikes; oversupply results in price drops.
Which theory came first? - CORRECT ANSWERS-Mercantilism (although both are of the
idea that governments should actively protect domestic industries from imports and
vigorously promote exports)
If a company seeks to limit foreign exchange rate exposure in the forward direction, what is
the most effective way to do this? - CORRECT ANSWERS-Forward transactions, an act
know as currency hedging.
Transaction risk - CORRECT ANSWERS-The exchange rate risk associated with the time
delay between entering into a contract and settling it.
Hedging - CORRECT ANSWERS-A transaction, such as forward transactions, that
protects traders and investors from exposure to the fluctuations of the spot rate.
Currency hedging - CORRECT ANSWERS-A way to protect traders and investors from
being exposed to the fluctuations of the spot rate
Strategic hedging - CORRECT ANSWERS-A means of spreading out activities in different
currency zones in order to offset the currency losses in certain regions through gains in
other regions (currency diversification)
