WGU C211 OA Global Economics Exam Questions and Verified

Which political view of foreign direct investment (FDI) is most widely used by governments in the current international business environment? - Protectionism Which factors credit the degree of rivalry between a pair of competitors? 2 choices - Market Commonality Cost Structure Which factors credit how local firms in emerging economics will respond to multinational competitors? - Competitive assets and industry pressures to globalize During which stage of the product life cycle do sales and profits gradually increase before seeing more dramatic increases? - Growth Which factor determines the foreign exchange rate of any currency? - Supply and demand for the currency Which risk must corporation minimize if it is to effectively manage short-term currency fluctuations? - Transaction RiskWhich policy does a country use to determine the exchange rate of their currency in relationship to another country's currency if they do not rely on market forces? - Fixed Rate Policy Which term refers to trading currencies and currency derivatives in order to earn profits and help make prices efficient? - Brokering Which type of advantage is gained by a company based on where it operates? - Location-Specific Who gains from erecting significant entry barriers for other entrants? - First Movers Which strategy for entering into a foreign market has the lowest degree of risk? - Licensing What is a non-equity mode involving some type of contractual agreement? - Licensing After the Lehman Brothers collapse, the federal Reserve stood ready to lend financial institutions funds. When the Federal reserve did this, it was acting in its role as a lender of last resort. Which type of group has this role? - Non Governmental Organization