WGU C211 PRE-ASSESSMENT: GLOBAL
ECONOMICS FOR MANAGERS (UZC2)/49
QUESTIONS AND ANSWERS/ GRADED A.
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
ECONOMICS FOR MANAGERS (UZC2)/49
QUESTIONS AND ANSWERS/ GRADED A.
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
