WGU - MBA - C211 - Global Economics
for Managers Questions and Answers
Rated A
Base of the pyramid (BOP) ✔✔Economies where people make less than $2,000 per capita per
year.
BRICA ✔✔Brazil, Russia, India, and China.
Emerging economies ✔✔term that has gradually replaced the term "developing countries" since
the 1990s.
Emerging markets ✔✔A term that is often used interchangeably with "emerging economies."
Expatriate manager ✔✔A manager who works abroad, or "expat" for short.
Foreign direct investment (FDI) ✔✔Investment in, controlling, and managing value-added
activities in other countries.
Global Business ✔✔Business around the globe.
Globalization ✔✔The close integration of countries and peoples of the world.
Gross domestic product (GDP) ✔✔The sum of value added by resident firms, households, and
governments operating in an economy.
Gross national income (GNI) ✔✔GDP plus income from non-resident sources abroad. The term
used by the World Bank and other international organizations to supersede the term GNP.
,Gross national product (GNP) ✔✔GDP plus income from non-resident sources abroad
Group of 20 (G-20) ✔✔The group of 19 major countries plus the European Union (EU) whose
leaders meet on a biannual basis to solve global economic problems.
International business (IB) ✔✔(1) A business (or firm) that engages in international (cross-border)
economic activities and/or (2) the action of doing business abroad.
International premium ✔✔A significant pay raise when working overseas.
Liability of foreignness ✔✔The inherent disadvantage that foreign firms experience in host
countries because of their non-native status.
Multinational enterprise (MNE) ✔✔A firm that engages in foreign direct investment (FDI).
Nongovernmental organization (NGO) ✔✔An organization that is not affiliated with governments.
Purchasing power parity (PPP) ✔✔A conversion that determines the equivalent amount of goods
and services that different currencies can purchase.
Reverse innovation ✔✔An innovation that is adopted first in emerging economies and is then
diffused around the world.
Risk management ✔✔The identification and assessment of risks and the preparation to minimize
the impact of high-risk, unfortunate events.
Scenario planning ✔✔A technique to prepare and plan for multiple scenarios (either high or low
risk).
,Semiglobalization ✔✔A perspective that suggests that barriers to market integration at borders are
high, but not high enough to insulate countries from each other completely.
Triad ✔✔North America, Western Europe, and Japan.
Purchasing power parity (PPP) ✔✔adjustment made to the GDP to reflect differences in the cost
of living
The bottom billion ✔✔Concentrated in Africa and Central Asia - 58 small countries, stuck at the
bottom in terms of growth, incomes and human development
Enhance employability & advance career, better preparation to be expat, competence in interacting
with foreign suppliers/partners/competitors/employees ✔✔Why study global business?
Institution-based view ✔✔A core perspective. Success and failure of firms are constrained by
institutions
Formal rules ✔✔requirements that treat domestic and foreign firms as equals enhance the potential
odds
for foreign firms' success or those that discriminate against foreign firms, would undermine the
chances for foreign entrants
Informal rules ✔✔cultures, ethics, and norms play an important part in shaping the success and
failure of firms around the globe
Resource-based view ✔✔A core perspective. Success and failure of firms is determined by their
environment
, New force in recent times, a long-running historical evolution, a pendulum swinging between
extremes ✔✔What are the three views of globalization?
"Four Tigers" ✔✔Hong Kong, Singapore, South Korea and Taiwan
Absolute advantage ✔✔The economic advantage one nation enjoys that is absolutely superior to
other nations.
Administrative policy ✔✔Bureaucratic rules that make it harder to import foreign goods.
antidumping duty ✔✔Tariffs levied on imports that have been "dumped" (selling below costs to
"unfairly" drive domestic firms out of business).
Balance of Trade ✔✔The aggregation of importing and exporting that leads to the country-level
trade surplus or deficit.
Classical trade theories ✔✔The major theories of international trade that were advanced before
the 20th century, which consist of (1) mercantilism, (2) absolute advantage, and (3) comparative
advantage.
Comparative advantage ✔✔Relative (not absolute) advantage in one economic activity that one
nation enjoys in comparison with other nations.
Deadweight cost ✔✔Net losses that occur in an economy as a result of tariffs.
Export ✔✔Selling abroad.
Factor endowment ✔✔The extent to which different countries possess various factors of
production such as labor, land, and technology.
for Managers Questions and Answers
Rated A
Base of the pyramid (BOP) ✔✔Economies where people make less than $2,000 per capita per
year.
BRICA ✔✔Brazil, Russia, India, and China.
Emerging economies ✔✔term that has gradually replaced the term "developing countries" since
the 1990s.
Emerging markets ✔✔A term that is often used interchangeably with "emerging economies."
Expatriate manager ✔✔A manager who works abroad, or "expat" for short.
Foreign direct investment (FDI) ✔✔Investment in, controlling, and managing value-added
activities in other countries.
Global Business ✔✔Business around the globe.
Globalization ✔✔The close integration of countries and peoples of the world.
Gross domestic product (GDP) ✔✔The sum of value added by resident firms, households, and
governments operating in an economy.
Gross national income (GNI) ✔✔GDP plus income from non-resident sources abroad. The term
used by the World Bank and other international organizations to supersede the term GNP.
,Gross national product (GNP) ✔✔GDP plus income from non-resident sources abroad
Group of 20 (G-20) ✔✔The group of 19 major countries plus the European Union (EU) whose
leaders meet on a biannual basis to solve global economic problems.
International business (IB) ✔✔(1) A business (or firm) that engages in international (cross-border)
economic activities and/or (2) the action of doing business abroad.
International premium ✔✔A significant pay raise when working overseas.
Liability of foreignness ✔✔The inherent disadvantage that foreign firms experience in host
countries because of their non-native status.
Multinational enterprise (MNE) ✔✔A firm that engages in foreign direct investment (FDI).
Nongovernmental organization (NGO) ✔✔An organization that is not affiliated with governments.
Purchasing power parity (PPP) ✔✔A conversion that determines the equivalent amount of goods
and services that different currencies can purchase.
Reverse innovation ✔✔An innovation that is adopted first in emerging economies and is then
diffused around the world.
Risk management ✔✔The identification and assessment of risks and the preparation to minimize
the impact of high-risk, unfortunate events.
Scenario planning ✔✔A technique to prepare and plan for multiple scenarios (either high or low
risk).
,Semiglobalization ✔✔A perspective that suggests that barriers to market integration at borders are
high, but not high enough to insulate countries from each other completely.
Triad ✔✔North America, Western Europe, and Japan.
Purchasing power parity (PPP) ✔✔adjustment made to the GDP to reflect differences in the cost
of living
The bottom billion ✔✔Concentrated in Africa and Central Asia - 58 small countries, stuck at the
bottom in terms of growth, incomes and human development
Enhance employability & advance career, better preparation to be expat, competence in interacting
with foreign suppliers/partners/competitors/employees ✔✔Why study global business?
Institution-based view ✔✔A core perspective. Success and failure of firms are constrained by
institutions
Formal rules ✔✔requirements that treat domestic and foreign firms as equals enhance the potential
odds
for foreign firms' success or those that discriminate against foreign firms, would undermine the
chances for foreign entrants
Informal rules ✔✔cultures, ethics, and norms play an important part in shaping the success and
failure of firms around the globe
Resource-based view ✔✔A core perspective. Success and failure of firms is determined by their
environment
, New force in recent times, a long-running historical evolution, a pendulum swinging between
extremes ✔✔What are the three views of globalization?
"Four Tigers" ✔✔Hong Kong, Singapore, South Korea and Taiwan
Absolute advantage ✔✔The economic advantage one nation enjoys that is absolutely superior to
other nations.
Administrative policy ✔✔Bureaucratic rules that make it harder to import foreign goods.
antidumping duty ✔✔Tariffs levied on imports that have been "dumped" (selling below costs to
"unfairly" drive domestic firms out of business).
Balance of Trade ✔✔The aggregation of importing and exporting that leads to the country-level
trade surplus or deficit.
Classical trade theories ✔✔The major theories of international trade that were advanced before
the 20th century, which consist of (1) mercantilism, (2) absolute advantage, and (3) comparative
advantage.
Comparative advantage ✔✔Relative (not absolute) advantage in one economic activity that one
nation enjoys in comparison with other nations.
Deadweight cost ✔✔Net losses that occur in an economy as a result of tariffs.
Export ✔✔Selling abroad.
Factor endowment ✔✔The extent to which different countries possess various factors of
production such as labor, land, and technology.
