(Top 2024/2025 EXAM REVIEW DOC ) WGU C211 - Global Economics for Managers, Brian Final Exam Questions and answers, rated A+

WGU C211 - Global Economics for Managers, Brian Final Exam Questions and answers, rated A+ 3 views on globalization Globalization is when you do business internationally New, Evolutionary, and Pendulum "New" view on globalization A force sweeping through the world in recent times. Which view claims that the phenomenon of globalization was initially driven by the desire of Western economies to exploit their power through multinational enterprises? "Evolutionary" view on globalization A long-run historical evolution since the dawn of human history "Pendulum" view on globalization One that swings from one extreme to another from time to time. Most popular Foreign Direct Investment (FDI) Foreign direct investments (FDI) are investments made by one company into another company that is located in another country. 3 Different political views on FDI Radical - radical view is hostile to FDI Free market - free market view calls for minimum or unrestricted government restriction in FDI. Leads to a win-win situation for both home and host countries. Pragmatic nationalism - most countries practice pragmatic nationalism, weighing the benefits and costs of FDI and only using it when benefits outweigh the costs. What are the benefits to a country receiving Foreign Direct Investment? Capital Inflow Technology Spillover Advanced Management Know-How Job creation What costs exist in a country when they receive Foreign Direct Investment? 1. Loss of Sovereignty (power), 2. Adverse effects on competition (drives domestic firms out of business) 3. Capital outflow How do resources and capabilities influence the competitive dynamics of a business? A firm's resources and capabilities must create value compared to its competition. A firms resources need to bring: Value, company resources must create value, patents are an example. Rarity, the rarer, and more desired the more of an advantage it has. Imitability, how easy is it to imitate your competition? Organization, some companies are better at answering challenges from competitors. Classical theories of international trade* The major theories of international trade that were advanced before the 20th century, they consist of: 1. Mercantilism, 2. Absolute advantage 3. Comparative advantage Classic Theory says things don't change, they are static. How does resource similarity impact competitive dynamics? Firms with a high degree of similarity are likely to make similar competitive decisions. (Starbuck's instant coffee & McDonald's iced coffee, if one increases the price because of a coffee shortage the other will likely also) What are modern trade theories of international trade? Modern theories account for changes in patterns over time whereas classical theories are static. Modern theories include (1) Product life cycles, (2) Strategic trade (3) National competitive advantage o