WGU C211 - Global Economics for
Managers Exam. 138 Q&A. With
Complete Verified Solution. 100%
Correct. 2024/2025.
Views on Globalization
New, Evolutionary, and Pendulum
"New" view on globalization
A force sweeping through the world in recent times.
"Evolutionary" view on globalization
A long-run historical evolution since the dawn of human history
"Pendulum" view on globalization
One that swings from one extreme to another from time to time
Foreign Direct Investment
Direct investment in, control, and management of value-added activities in other countries
Political views on FDI
Radical View, Free Market View, Pragmatic Nationalism
Benefits to a country receiving FDI
Capital Inflow, Technology Spillover, Advanced Management Know-How, Job creation
Costs to a country receiving FDI
Loss of Sovereignty, Adverse effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business?
Resource similarity and market commonality can yield a powerful framework for competitor analysis.
Resource similarity
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?
, 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
Mercantilism, Absolute advantage, and Comparative advantage
Modern theory view
Dynamic
Classical theory view
Static
Absolute advantage
The economic advantage one nation enjoys that is superior to other nations
Comparative advantage
The advantage one economic activity nation enjoys in comparison with other nations (relative, not
absolute)
Mercantilism
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?
New, Maturing, and Standardized
Strategic trade
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?
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?
Mercantilism (although both are of the idea that governments should actively protect domestic
industries from imports and vigorously promote exports)
If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the most
effective way to do this?
Forward transactions, an act know as currency hedging.
Transaction risk
Managers Exam. 138 Q&A. With
Complete Verified Solution. 100%
Correct. 2024/2025.
Views on Globalization
New, Evolutionary, and Pendulum
"New" view on globalization
A force sweeping through the world in recent times.
"Evolutionary" view on globalization
A long-run historical evolution since the dawn of human history
"Pendulum" view on globalization
One that swings from one extreme to another from time to time
Foreign Direct Investment
Direct investment in, control, and management of value-added activities in other countries
Political views on FDI
Radical View, Free Market View, Pragmatic Nationalism
Benefits to a country receiving FDI
Capital Inflow, Technology Spillover, Advanced Management Know-How, Job creation
Costs to a country receiving FDI
Loss of Sovereignty, Adverse effects on competition,
Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business?
Resource similarity and market commonality can yield a powerful framework for competitor analysis.
Resource similarity
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?
, 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
Mercantilism, Absolute advantage, and Comparative advantage
Modern theory view
Dynamic
Classical theory view
Static
Absolute advantage
The economic advantage one nation enjoys that is superior to other nations
Comparative advantage
The advantage one economic activity nation enjoys in comparison with other nations (relative, not
absolute)
Mercantilism
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?
New, Maturing, and Standardized
Strategic trade
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?
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?
Mercantilism (although both are of the idea that governments should actively protect domestic
industries from imports and vigorously promote exports)
If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the most
effective way to do this?
Forward transactions, an act know as currency hedging.
Transaction risk
