WGU C211 - Global Economics for Managers With Best
Qualifications
Views on Globalization -correct ans-New, Evolutionary, and Pendulum
"New" view on globalization -correct ans-A force sweeping through the world in recent times.
"Evolutionary" view on globalization -correct ans-A long-run historical evolution since the dawn of
human history
"Pendulum" view on globalization -correct ans-One that swings from one extreme to another from time
to time
Foreign Direct Investment -correct ans-Direct investment in, control, and management of value-added
activities in other countries
Political views on FDI -correct ans-Radical View, Free Market View, Pragmatic Nationalism
Benefits to a country receiving FDI -correct ans-Capital Inflow, Technology Spillover, Advanced
Management Know-How, Job creation
Costs to a country receiving FDI -correct ans-Loss of Sovereignty, Adverse effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business? -correct ans-
Resource similarity and market commonality can yield a powerful framework for competitor analysis.
Resource similarity -correct ans-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? -correct ans-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 -correct ans-Mercantilism, Absolute advantage, and
Comparative advantage
Modern theory view -correct ans-Dynamic
Classical theory view -correct ans-Static
Absolute advantage -correct ans-The economic advantage one nation enjoys that is superior to other
nations
Comparative advantage -correct ans-The advantage one economic activity nation enjoys in comparison
with other nations (relative, not absolute)
Mercantilism -correct ans-A theory that suggests that the wealth of the world is fixed and that a nation
that exports more and imports less will be richer.
Features of the product life cycle? -correct ans-New, Maturing, and Standardized
Strategic trade -correct ans-Intervention by governments in certain industries can enhance their odds
for international success.
How are supply and demand related to the exchange rate of a country? -correct ans-The price of a
commodity, a country's currency, is fundamentally determined by this. Strong demand leads to price
hikes; oversupply results in price drops.
Which theory came first? -correct ans-Mercantilism (although both are of the idea that governments
should actively protect domestic industries from imports and vigorously promote exports)
Qualifications
Views on Globalization -correct ans-New, Evolutionary, and Pendulum
"New" view on globalization -correct ans-A force sweeping through the world in recent times.
"Evolutionary" view on globalization -correct ans-A long-run historical evolution since the dawn of
human history
"Pendulum" view on globalization -correct ans-One that swings from one extreme to another from time
to time
Foreign Direct Investment -correct ans-Direct investment in, control, and management of value-added
activities in other countries
Political views on FDI -correct ans-Radical View, Free Market View, Pragmatic Nationalism
Benefits to a country receiving FDI -correct ans-Capital Inflow, Technology Spillover, Advanced
Management Know-How, Job creation
Costs to a country receiving FDI -correct ans-Loss of Sovereignty, Adverse effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business? -correct ans-
Resource similarity and market commonality can yield a powerful framework for competitor analysis.
Resource similarity -correct ans-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? -correct ans-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 -correct ans-Mercantilism, Absolute advantage, and
Comparative advantage
Modern theory view -correct ans-Dynamic
Classical theory view -correct ans-Static
Absolute advantage -correct ans-The economic advantage one nation enjoys that is superior to other
nations
Comparative advantage -correct ans-The advantage one economic activity nation enjoys in comparison
with other nations (relative, not absolute)
Mercantilism -correct ans-A theory that suggests that the wealth of the world is fixed and that a nation
that exports more and imports less will be richer.
Features of the product life cycle? -correct ans-New, Maturing, and Standardized
Strategic trade -correct ans-Intervention by governments in certain industries can enhance their odds
for international success.
How are supply and demand related to the exchange rate of a country? -correct ans-The price of a
commodity, a country's currency, is fundamentally determined by this. Strong demand leads to price
hikes; oversupply results in price drops.
Which theory came first? -correct ans-Mercantilism (although both are of the idea that governments
should actively protect domestic industries from imports and vigorously promote exports)
