WGU C211 PRE-ASSESSMENT: GLOBAL ECONOMICS FOR MANAGERS (UZC2).. Correct Answers Only.

WGU C211 PRE-ASSESSMENT: GLOBAL ECONOMICS FOR MANAGERS (UZC2).. Correct Answers Only. Which view claims that the phenomenon of globalization was initially driven by the desire of Western economies to exploit their power through multinational enterprises? The new-force view Economic gains come from international trade because one country's exported goods, services, or other items are unique, valuable, and difficult to duplicate to the importing countries Resource-based view What is the aggregation of importing and exporting that leads to the country-level trade surplus or deficit? Balance of trade What is a cost of foreign direct investment? Developing countries may be exploited by multinational enterprises (MNE). What may precious, rare, and hard-to-duplicate resources and capabilities lead to for a firm? Sustained comparative advantage Which theory states that patterns of international trade change across new, maturing, and standardized stages? Product life cycle theory What is the financial environment in which exchange rates and payments for goods and services are conducted? International monetary system What happens to a country's real exchange rate and nominal interest rate as the price level increases, assuming all other factors are unchanged? Exchange rates fall and interest rates rise. What is the easiest method nonfinancial companies use to handle currency fluctuations? Currency diversification Which strategy minimizes the risk of unanticipated changes in future exchange rates? Currency swap A company is looking for a location with an abundance of ground-breaking individuals, firms, and universities. Which type of strategic goal is this company demonstrating? Innovation-seeking What advantage comes with not sharing benefits with late entrants? First-mover advantage Which entry mode is a non-equity arrangement for a company contemplating entry into a foreign market? Licensing What size commitment is required for a non-equity mode of entry into a foreign market? Small commitment What are two supportive pillars for an informal institution? Choose 2 answers Cognitive. Normative. What is the key role of an institution, according to the institution-based view? To reduce uncertainty What are the rules, enforcement mechanisms, and organizations that support market transactions? Institutions What is a core proposition underpinning an institutional-based view of global business? Bounded rationality In which type of political system do citizens elect representatives to govern the country on their behalf? Democracy Which legal system uses comprehensive lists of rules and written codes? Civil law What are the legal privileges associated with the use of economic property to obtain income and other benefits from its use? Property rights What is the purpose of having property rights and intellectual property rights? To legally protect the use of tangible and intangible property and allow its lawful owner to derive income and other benefits from it What are the two polar types of economies? Choose 2 answers Centrally planned economies. Market economies. In addition to encouraging efficiency, why might a government intervene in a market? To promote equality What is the relationship between total and marginal cost? Marginal cost is the change in total cost divided by the change in quantity. A farmer sells wheat in a perfectly competitive market. Which action should the farmer take to maximize profits? Produce the quantity where the price equals the farmer's marginal cost What is the economic profit of a competitive firm? The difference between total revenue and total cost Which condition applies when a competitive firm decides to temporarily shut down? Average variable costs are above the price. What is the producer's demand curve if the producer sells a differentiated product? Downward sloping Which statement describes a competitive firm's demand curve?