WGU C211 COMPREHENSIVE QUESTIONS AND
VERIFIED ANSWERS GRADE A+ 2024 UPDATE
What is the aggregation of importing and exporting that leads to the country-level
trade surplus or deficit?
Balance of Trade
What is a cost of foreign direct investment?
Developing countries may be exploited by multinational enterprises (MNE)
Which type of managerial capability is both challenging and difficult to imitate?
Intangible capability
What may precious, rare and hard to duplicate resources and capabilities lead to
for a firm?
Sustained comparative advantage
Which theory of international trade states that poor countries often experience
faster rates of economic growth compared to wealthy countries?
The catch-up effect
Which view claims that the phenomenon of globalization was initially driven by
the desire of Western economies to exploit their power through multinational
enterprises?
The new force view
Economic gains come from international trade because one country's exported
goods, services or other items are unique, valuable, and difficult to duplicate to
importing country
Resource-based view
What is the financial environment in which exchange rates and payments for
goods and services are conducted?
Commodity Exchange
What happens to a country's real exchange rates and nominal interest rate as the
price level increases, assuming all other factors are unchanged?
Exchange rates depreciate, interest rates increase
What is the easiest method non-financial companies use to handle currency
fluctuations?
Commodity Trading
Which strategy minimizes the risk for unanticipated changes in future exchange
rates?
Currency Swap
A company is looking for a location with an abundance of ground breaking
individuals, firms and universities. Which type of strategic goal is this company
demonstrating?
Innovation-seeking
What advantage comes with not sharing benefits with late entrants?
First-mover advantage
, Which entry mode is a non-equity arrangement for a company contemplating
entry into a foreign market?
Licensing
What size commitment is required for a non-equity mode of entry into a foreign
market?
Small commitment
What are two supportive pillars for an informal institution?
Normative and Cognitive
What is the key role of an institution, according to the institution-based view?
To reduce uncertainty
What are the rules, enforcement mechanisms, and organizations that support
market transactions?
Institutions
What is a core proposition underpinning an institutional based view of global
business?
Bounded Rationality
In which type of political system do citizens elect representatives to govern the
country on their behalf?
Democracy
Which legal system uses comprehensive lists of rules and written codes?
Civil Law
What are the legal privileges associated with the use of economic property to
obtain income and other benefits from its use?
Property Rights
What is the purpose of having property rights and intellectual property rights?
To legally protect the use of tangible and intangible property and allow its lawful owner
to derive income and other benefits from it
What are two popular types of economies?
Mixed and Market
In addition to encouraging efficiency, why might a government intervene in a
market?
To increase profits
What is the relationship between total and marginal cost?
Marginal cost is the change in the total cost divided by the change in quantity
A farmer sells wheat in a perfectly competitive market. Which action should the
farmer take to maximize profits?
Produce the quantity where the price equals the farmer's marginal cost
What is the economic profit of an competitive firm?
The difference between total revenue and total cost
Which condition applies when a competitive firm decides to temporarily shut
down?
Fixed costs are above variable costs
What is the producer's demand curve if the producer sells a differentiated
product?
Downward Sloping
Which statement describes a competitive firm's demand curve?
VERIFIED ANSWERS GRADE A+ 2024 UPDATE
What is the aggregation of importing and exporting that leads to the country-level
trade surplus or deficit?
Balance of Trade
What is a cost of foreign direct investment?
Developing countries may be exploited by multinational enterprises (MNE)
Which type of managerial capability is both challenging and difficult to imitate?
Intangible capability
What may precious, rare and hard to duplicate resources and capabilities lead to
for a firm?
Sustained comparative advantage
Which theory of international trade states that poor countries often experience
faster rates of economic growth compared to wealthy countries?
The catch-up effect
Which view claims that the phenomenon of globalization was initially driven by
the desire of Western economies to exploit their power through multinational
enterprises?
The new force view
Economic gains come from international trade because one country's exported
goods, services or other items are unique, valuable, and difficult to duplicate to
importing country
Resource-based view
What is the financial environment in which exchange rates and payments for
goods and services are conducted?
Commodity Exchange
What happens to a country's real exchange rates and nominal interest rate as the
price level increases, assuming all other factors are unchanged?
Exchange rates depreciate, interest rates increase
What is the easiest method non-financial companies use to handle currency
fluctuations?
Commodity Trading
Which strategy minimizes the risk for unanticipated changes in future exchange
rates?
Currency Swap
A company is looking for a location with an abundance of ground breaking
individuals, firms and universities. Which type of strategic goal is this company
demonstrating?
Innovation-seeking
What advantage comes with not sharing benefits with late entrants?
First-mover advantage
, Which entry mode is a non-equity arrangement for a company contemplating
entry into a foreign market?
Licensing
What size commitment is required for a non-equity mode of entry into a foreign
market?
Small commitment
What are two supportive pillars for an informal institution?
Normative and Cognitive
What is the key role of an institution, according to the institution-based view?
To reduce uncertainty
What are the rules, enforcement mechanisms, and organizations that support
market transactions?
Institutions
What is a core proposition underpinning an institutional based view of global
business?
Bounded Rationality
In which type of political system do citizens elect representatives to govern the
country on their behalf?
Democracy
Which legal system uses comprehensive lists of rules and written codes?
Civil Law
What are the legal privileges associated with the use of economic property to
obtain income and other benefits from its use?
Property Rights
What is the purpose of having property rights and intellectual property rights?
To legally protect the use of tangible and intangible property and allow its lawful owner
to derive income and other benefits from it
What are two popular types of economies?
Mixed and Market
In addition to encouraging efficiency, why might a government intervene in a
market?
To increase profits
What is the relationship between total and marginal cost?
Marginal cost is the change in the total cost divided by the change in quantity
A farmer sells wheat in a perfectly competitive market. Which action should the
farmer take to maximize profits?
Produce the quantity where the price equals the farmer's marginal cost
What is the economic profit of an competitive firm?
The difference between total revenue and total cost
Which condition applies when a competitive firm decides to temporarily shut
down?
Fixed costs are above variable costs
What is the producer's demand curve if the producer sells a differentiated
product?
Downward Sloping
Which statement describes a competitive firm's demand curve?
