PRE-ASSESSMENT: GLOBAL ECONOMICS FOR MANAGERS (UZC2). WGU
C211. QUESTIONS AND Correct Answers 2022
1. Which view claims that the phenomenon of global- The new-force
ization was initially driven by the desire of Western view
economies to exploit their power through multination- al
enterprises?
The long-run historical view
The new-force view
The pendulum view
The balanced surplus-deficit view
2. Economic gains come from international trade be- cause Resource-based
one country's exported goods, services, or oth- er items view
are unique, valuable, and difficult to duplicate to the
importing countries.
Which view does this statement portray?
City-based view
Country-based view
Resource-based view
Institution-based view
3. What is the aggregation of importing and exporting that Balance of trade
leads to the country-level trade surplus or deficit?
Loss Profit
Revenue
Balance of trade
4. What is a cost of foreign direct investment?
Developing coun-
Developing countries may be exploited by multina- tional tries may be ex-
enterprises (MNE). ploited by multina-
tional enterprises
(MNE).
Human rights firms may help the labor force in host
countries with multinational enterprise (MNE) influ-
ence.
, PRE-ASSESSMENT: GLOBAL ECONOMICS FOR MANAGERS (UZC2). WGU
C211. QUESTIONS AND Correct Answers 2022
Host countries welcome political interference by
multinational enterprises (MNE) when things are not in
favor of the foreign company.
Local governments in host countries may promote
corporate social responsibilities on behalf of multina-
tional enterprises (MNEs).
5. What may precious, rare, and hard-to-duplicate re- Sustained com-
sources and capabilities lead to for a firm? parative advan-
tage
Sustained leverage Sustained
influence
Sustained competitive disadvantage
Sustained comparative advantage
6. Which theory states that patterns of international trade Product life cycle
change across new, maturing, and standardized stages? theory
Product life cycle theory
Strategic trade theory Factor
endowment theory
Sustainability theory
7. What happens to a country's real exchange rate and
nominal interest rate as the price level increases, as- Exchange rates
suming all other factors are unchanged? depreciate; inter-
est rates increase.
Exchange rates depreciate; interest rates decrease.
Exchange rates appreciate; interest rates increase.
Exchange rates appreciate; interest rates decrease.
Exchange rates depreciate; interest rates increase.
8. What is the easiest method nonfinancial companies use
to handle currency fluctuations? Currency diversifi-
cation
C211. QUESTIONS AND Correct Answers 2022
1. Which view claims that the phenomenon of global- The new-force
ization was initially driven by the desire of Western view
economies to exploit their power through multination- al
enterprises?
The long-run historical view
The new-force view
The pendulum view
The balanced surplus-deficit view
2. Economic gains come from international trade be- cause Resource-based
one country's exported goods, services, or oth- er items view
are unique, valuable, and difficult to duplicate to the
importing countries.
Which view does this statement portray?
City-based view
Country-based view
Resource-based view
Institution-based view
3. What is the aggregation of importing and exporting that Balance of trade
leads to the country-level trade surplus or deficit?
Loss Profit
Revenue
Balance of trade
4. What is a cost of foreign direct investment?
Developing coun-
Developing countries may be exploited by multina- tional tries may be ex-
enterprises (MNE). ploited by multina-
tional enterprises
(MNE).
Human rights firms may help the labor force in host
countries with multinational enterprise (MNE) influ-
ence.
, PRE-ASSESSMENT: GLOBAL ECONOMICS FOR MANAGERS (UZC2). WGU
C211. QUESTIONS AND Correct Answers 2022
Host countries welcome political interference by
multinational enterprises (MNE) when things are not in
favor of the foreign company.
Local governments in host countries may promote
corporate social responsibilities on behalf of multina-
tional enterprises (MNEs).
5. What may precious, rare, and hard-to-duplicate re- Sustained com-
sources and capabilities lead to for a firm? parative advan-
tage
Sustained leverage Sustained
influence
Sustained competitive disadvantage
Sustained comparative advantage
6. Which theory states that patterns of international trade Product life cycle
change across new, maturing, and standardized stages? theory
Product life cycle theory
Strategic trade theory Factor
endowment theory
Sustainability theory
7. What happens to a country's real exchange rate and
nominal interest rate as the price level increases, as- Exchange rates
suming all other factors are unchanged? depreciate; inter-
est rates increase.
Exchange rates depreciate; interest rates decrease.
Exchange rates appreciate; interest rates increase.
Exchange rates appreciate; interest rates decrease.
Exchange rates depreciate; interest rates increase.
8. What is the easiest method nonfinancial companies use
to handle currency fluctuations? Currency diversifi-
cation
