WGU C211- GLOBAL ECONOMICS FOR MANAGERS EXAM QUESTIONS WITH CORRECT VERIFIED ANSWERS A+ GRADED

Views on Globalization - ANS New, Evolutionary, and Pendulum "New" view on globalization - ANS A force sweeping through the world in recent times. "Evolutionary" view on globalization - ANS A long-run historical evolution since the dawn of human history "Pendulum" view on globalization - ANS One that swings from one extreme to another from time to time Foreign Direct Investment - ANS Direct investment in, control, and management of value-added activities in other countries Political views on FDI - ANS Radical View, Free Market View, Pragmatic Nationalism Benefits to a country receiving FDI - ANS Capital Inflow, Technology Spillover, Advanced Management Know-How, Job creation Costs to a country receiving FDI - ANS Loss of Sovereignty, Adverse effects on competition, Capital outflow. How do resources and capabilities influence the competitive dynamics of a business? - ANS Resource similarity and market commonality can yield a powerful framework for competitor analysis. Resource similarity - 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? - 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 - ANS Mercantilism, Absolute advantage, and Comparative advantage Modern theory view - ANS Dynamic Classical theory view - ANS Static Absolute advantage - ANS The economic advantage one nation enjoys that is superior to other nations Comparative advantage - ANS The advantage one economic activity nation enjoys in comparison with other nations (relative, not absolute) Mercantilism - 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? - ANS New, Maturing, and Standardized Strategic trade - 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? - 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.