WGU C211 OA Global Economics for Managers Exam Questions and Verified Answers 2024

Which two phrases represent the views of globalization? Choose two answers. - - A pendulum that swings from one extreme to another. - A competition among key financial centers and markets. What are two trade barriers? - - Nontariffs - Tarriffs What is the effect of tariff on a particular product for the country imposing the tariff? - Increases domestic production of the product. Which benefits come to the host country as a result of foreign direct investment? - - Creation of domestic jobs - Domestic resource allocation Which characteristics of firm resources affects competitive dynamics? - Imitability (capable or worthy of being imitated or copied)Which characteristic of firm resources affects competitive dynamics, according to the VRIO framework? - Rarity Which theory is the forerunner to modern-day protectionism? - Mercantilism (favorable balance of trade, the development of agriculture and manufactures, and the establishment of foreign trading monopolies) Which aspect creates the daily changes in a country's exchange rate? - Currency supply and demand Which risk must a corporation minimize to effectively manage shortterm currency fluctuations? - Transaction Risk (the adverse effect that foreign exchange rate fluctuations can have on a completed transaction prior to settlement. It is the exchange rate, or currency risk associated specifically with the time delay between entering into a trade or contract and then settling it.) Which term describes using currency derivatives to reduce potential transaction, translation, and economic risks of currency movements that could lead to losses for a firm or investor? - Hedging(a means of protection or defense (as against financial loss) realization that common stocks are the best hedge against inflation