STUDENTS SUCCESS
Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
WGU - C211 GLOBAL ECONOMICS FOR MANAGERS 2024-2025 ACTUAL EXAM
COMPLETE -
QUESTIONS AND CORRECT DETAILED ANSWERS
Quiz Explain the New, Evolutionary, and Pendulum views of Globalization. How do
these differ from one another?
Ans: New globalization is a new force sweeping through the world in recent times.
Pendulum globalization is a pendulum that swings from one extreme to the the other
from time to time. Evolutionary globalization is a long historical evolution since the
dawn of human history.
Quiz What is Foreign Direct Investment?
Ans: Investment in controlling and managing value-added activities in other
countries.
Quiz What different political views exist on FDI?
Ans: Radical - hostile to FDI, roots to Marxism, treates FDI as an instrument of
imperialism and as a vehicle for exploitation of domestic resources by foreign
capitalists and firms.
Free Market - suggests that FDI unrestricted by government intervention will enable
countries to tap into their absolute comparative advantages by specializing in the
production of certain goods and services.. win-win logic FDI friendly polices Brazil,
China, Hungary, India, Ireland, Russia.
Pragmatic Nationalism - Practiced by most countries. Viewing FDI as having both
pros and cons and only approving FDI when its benefits outweigh costs.
Quiz What benefits exist to a country receiving FDI?
, Ans: Capital inflow - can help improve a host country's balance of payments
Technology - can create technology spill overs that benefit domestic firms and
industries
Advanced management - know-how may be highly valued.
FDI creates jobs both directly and indirectly. Direct benefits arise when MNEs
employ individuals locally. Indirect benefits include jobs created when local suppliers
increase hiring and when MNE employees spend money locally resulting in more
jobs. Repatriated earnings from profits from FDI. Increased exports of components
and services to host countries. Learning via FDI from operations abroad.
Quiz What costs exist to a country receiving FDI?
Ans: -Loss of sovereignty because of decisions to invest, produce and market
products and/or to close plants and lay off workers in a host country are being made
by foreigners.
-Adverse effects on competiton. May drive some domestic firms out of business.
Having driven domestic firms out of business MNE's in theory may be able to
monopolize local markets.
-Capital outflow when MNE's make profits in host countries and repatriate (send
back) such earnings to headquarters in home countries, host countries experience a
net outflow in the capital account in their balance of payments.
Quiz How do resources and capabilities influence the competitive dynamics of a
business?
Ans: Strong resources and capabilities help to compete and/or cooperate more
effectively.
Quiz What is resource similarity and how does this impact competitive dynamics?
Ans: Extent to which a given competitor possesses strategic endownment
comparable, in terms of both type and amount, to those of the focal firm.
Quiz Give a description of the classical theory of international trade.
Ans: Mercantilism, absolute advantage, comparative advantage
Quiz How would the modern theory compare to the classical theory?
Ans: Modern Trade Theories are the major theories of international trade that were
advanced in the 20th century, which consist of (1) product life cycle, (2) strategic
trade, and (3) national competitive advantage of industries instead of relying on
simple factor analysis, modern theories rely on more realistic product life cycles, first-
mover advantages, and the "diamond" to explain and predict patterns of trade.
Quiz Compare absolute advantage to comparative advantage. What differences
exist?
Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
WGU - C211 GLOBAL ECONOMICS FOR MANAGERS 2024-2025 ACTUAL EXAM
COMPLETE -
QUESTIONS AND CORRECT DETAILED ANSWERS
Quiz Explain the New, Evolutionary, and Pendulum views of Globalization. How do
these differ from one another?
Ans: New globalization is a new force sweeping through the world in recent times.
Pendulum globalization is a pendulum that swings from one extreme to the the other
from time to time. Evolutionary globalization is a long historical evolution since the
dawn of human history.
Quiz What is Foreign Direct Investment?
Ans: Investment in controlling and managing value-added activities in other
countries.
Quiz What different political views exist on FDI?
Ans: Radical - hostile to FDI, roots to Marxism, treates FDI as an instrument of
imperialism and as a vehicle for exploitation of domestic resources by foreign
capitalists and firms.
Free Market - suggests that FDI unrestricted by government intervention will enable
countries to tap into their absolute comparative advantages by specializing in the
production of certain goods and services.. win-win logic FDI friendly polices Brazil,
China, Hungary, India, Ireland, Russia.
Pragmatic Nationalism - Practiced by most countries. Viewing FDI as having both
pros and cons and only approving FDI when its benefits outweigh costs.
Quiz What benefits exist to a country receiving FDI?
, Ans: Capital inflow - can help improve a host country's balance of payments
Technology - can create technology spill overs that benefit domestic firms and
industries
Advanced management - know-how may be highly valued.
FDI creates jobs both directly and indirectly. Direct benefits arise when MNEs
employ individuals locally. Indirect benefits include jobs created when local suppliers
increase hiring and when MNE employees spend money locally resulting in more
jobs. Repatriated earnings from profits from FDI. Increased exports of components
and services to host countries. Learning via FDI from operations abroad.
Quiz What costs exist to a country receiving FDI?
Ans: -Loss of sovereignty because of decisions to invest, produce and market
products and/or to close plants and lay off workers in a host country are being made
by foreigners.
-Adverse effects on competiton. May drive some domestic firms out of business.
Having driven domestic firms out of business MNE's in theory may be able to
monopolize local markets.
-Capital outflow when MNE's make profits in host countries and repatriate (send
back) such earnings to headquarters in home countries, host countries experience a
net outflow in the capital account in their balance of payments.
Quiz How do resources and capabilities influence the competitive dynamics of a
business?
Ans: Strong resources and capabilities help to compete and/or cooperate more
effectively.
Quiz What is resource similarity and how does this impact competitive dynamics?
Ans: Extent to which a given competitor possesses strategic endownment
comparable, in terms of both type and amount, to those of the focal firm.
Quiz Give a description of the classical theory of international trade.
Ans: Mercantilism, absolute advantage, comparative advantage
Quiz How would the modern theory compare to the classical theory?
Ans: Modern Trade Theories are the major theories of international trade that were
advanced in the 20th century, which consist of (1) product life cycle, (2) strategic
trade, and (3) national competitive advantage of industries instead of relying on
simple factor analysis, modern theories rely on more realistic product life cycles, first-
mover advantages, and the "diamond" to explain and predict patterns of trade.
Quiz Compare absolute advantage to comparative advantage. What differences
exist?
