WGU C211 Global Economics for Managers Exam Questions and Answers

Views on Globalization - ANSWER New, Evolutionary, and Pendulum "New" view on globalization - ANSWER A force sweeping through the world in recent times. "Evolutionary" view on globalization - ANSWER A long-run historical evolution since the dawn of human history "Pendulum" view on globalization - ANSWER One that swings from one extreme to another from time to time Foreign Direct Investment - ANSWER Direct investment in, control, and management of value-added activities in other countries Political views on FDI - ANSWER Radical View, Free Market View, Pragmatic Nationalism Benefits to a country receiving FDI - ANSWER Capital Inflow, Technology Spillover, Advanced Management Know-How, Job creation Costs to a country receiving FDI - ANSWER Loss of Sovereignty, Adverse effects on competition, Capital outflow. How do resources and capabilities influence the competitive dynamics of a business? - ANSWER Resource similarity and market commonality can yield a powerful framework for competitor analysis. Resource similarity - ANSWER The extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm. How does resource similarity impact competitive dynamics? - ANSWER Firms with a high degree are likely to have similar competitive actions. (Starbuck's instant coffee & McDonald's iced coffee) Classical theories of international trade - ANSWER Mercantilism, Absolute advantage, and Comparative advantage Modern theory view - ANSWER Dynamic Classical theory view - ANSWER Static Absolute advantage - ANSWER The economic advantage one nation enjoys that is superior to other nations Comparative advantage - ANSWER The advantage one economic acti