WGU C211 Global Econ Study Guide &
Cohort Questions with Complete
Solutions
Views of globalization (Chp 1.4) ✔✔1. It's a new phenomenom, starting in the late 20th century.
2. It's a long term part of human history.
3. Neither recent nor one directional, it's a pendulum that swings back and forth.
Location specific advantage of Natural resource—seeking ✔✔Strategic goal - Possession of
natural resources and related transport and communication infrastructure
Location specific advantage of Market-seeking ✔✔Strategic goal - Abundance of strong market
demand and customers willing to pay
Location specific advantage of Efficiency-seeking ✔✔Strategic goal - Economies of scale and
abundance of low-cost factors
Location specific advantage of Innovation-seeking ✔✔Strategic goal - Abundance of innovative
individuals, firms, and universities
Name first mover advantages: (Chp 10.3) ✔✔1. Proprietary, technological leadership
2. Pre-emption of scarce resources
3. Establishment of entry barriers for late entrants
4. Avoidance of clash with dominant firms at home
5. Relationships with key stakeholders such as governments
Name late mover advantages: (Chp 10.3) ✔✔1. Opportunity to free ride on first-mover
investments
2. Resolution of technological and market uncertainty
, 3. First mover's difficulty to adapt to market changes
Name strategic goals supported by location specific advantages (Chp 10.2) ✔✔1. Natural
resources
2. Market
3. Efficiency
4. Innovation
Proposition (1) underpinning an institution based view of global business. ✔✔Managers and firms
rationally pursue their interests and make choices within the formal and informal constraints in a
given institutional framework
Proposition (2) underpinning an institution based view of global business. ✔✔While formal and
informal institutions combine to govern firm behavior, in situations where formal constraints are
unclear or fail, informal constraints will play a larger role in reducing uncertainty and providing
constancy to managers and firms
Market economy ✔✔An economy that is characterized by the "invisible hand" of market forces.
No country has embraced Adam Smith's Laissez faire model
Command economy ✔✔Supply, Demand, and price are planned by the government.
An economy that is characterized by government ownership and control of factors of production.
Mixed economy ✔✔An economy that has elements of both a market economy and a command
economy.
Property rights ✔✔The legal rights to use an economic property (resource) and to derive income
and benefits from it.
Cohort Questions with Complete
Solutions
Views of globalization (Chp 1.4) ✔✔1. It's a new phenomenom, starting in the late 20th century.
2. It's a long term part of human history.
3. Neither recent nor one directional, it's a pendulum that swings back and forth.
Location specific advantage of Natural resource—seeking ✔✔Strategic goal - Possession of
natural resources and related transport and communication infrastructure
Location specific advantage of Market-seeking ✔✔Strategic goal - Abundance of strong market
demand and customers willing to pay
Location specific advantage of Efficiency-seeking ✔✔Strategic goal - Economies of scale and
abundance of low-cost factors
Location specific advantage of Innovation-seeking ✔✔Strategic goal - Abundance of innovative
individuals, firms, and universities
Name first mover advantages: (Chp 10.3) ✔✔1. Proprietary, technological leadership
2. Pre-emption of scarce resources
3. Establishment of entry barriers for late entrants
4. Avoidance of clash with dominant firms at home
5. Relationships with key stakeholders such as governments
Name late mover advantages: (Chp 10.3) ✔✔1. Opportunity to free ride on first-mover
investments
2. Resolution of technological and market uncertainty
, 3. First mover's difficulty to adapt to market changes
Name strategic goals supported by location specific advantages (Chp 10.2) ✔✔1. Natural
resources
2. Market
3. Efficiency
4. Innovation
Proposition (1) underpinning an institution based view of global business. ✔✔Managers and firms
rationally pursue their interests and make choices within the formal and informal constraints in a
given institutional framework
Proposition (2) underpinning an institution based view of global business. ✔✔While formal and
informal institutions combine to govern firm behavior, in situations where formal constraints are
unclear or fail, informal constraints will play a larger role in reducing uncertainty and providing
constancy to managers and firms
Market economy ✔✔An economy that is characterized by the "invisible hand" of market forces.
No country has embraced Adam Smith's Laissez faire model
Command economy ✔✔Supply, Demand, and price are planned by the government.
An economy that is characterized by government ownership and control of factors of production.
Mixed economy ✔✔An economy that has elements of both a market economy and a command
economy.
Property rights ✔✔The legal rights to use an economic property (resource) and to derive income
and benefits from it.
