WGU C211 GLOBAL ECONOMICS FOR MANAGERS OA
EXAM-with 100% verified solutions-2025-2026
Which risk must a corporation minimize to effectively manage short-term currency fluctuations?
Transaction Ris
(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 tha 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
What is the most effective method to limit foreign exchange rate exposure for future trade
payments?
Forward Transaction
(two people or other entities engage in a binding agreement to perform a trade in the future, rather
than at the present.)
What type of advantage do companies receive when operating in favorable areas within a given
country?
Location-Specific
Which entrant has the opportunity to free ride on first-mover investments? Later Mover
(Also called a late follower or a later market entrant, a late mover is a firm that enters a market
some time after both the market pioneer(s) and after early follower firms.)
Which strategy for entering a foreign market has the highest degree of risk?
Licensing
(A business arrangement in which one company gives another company permission to manufacture
its product for a specified payment.)
Which mode of entry provides advantages to a multinational firm that can be transferred within the
firm at very low cost?
, WGU C211 GLOBAL ECONOMICS FOR MANAGERS OA
EXAM-with 100% verified solutions-2025-2026
Licensing
Which pillar of uncertainty refers to te internalized behavior of an individual's belief and values?
Cognitive
What are three pillars that support format regulatory institutions? Choose 3 answers.
- Laws - Regulations - Rules
What are three aspects of a command economy? Choose 3 answers.
- Government-Owned Production - Planned system - Inefficient allocation of goods
What is one of the core propositions underpinning an institutions-based view of global business?
A political system should establish controls of the financial sector.
Which type of system allows businesses to be privately owned with a strong individualistic profit
orientation?
Market Economy
(an economic system in which economic decisions and the pricing of goods and services are guided
by the interactions of a country's individual citizens and businesses.)
What countries based their legal traditions on either common law or civic law?
- Russia - Egypt
What type of good has well-established property rights?
Private Goods
Which body gudes economic activity in a command economy?
The Government
EXAM-with 100% verified solutions-2025-2026
Which risk must a corporation minimize to effectively manage short-term currency fluctuations?
Transaction Ris
(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 tha 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
What is the most effective method to limit foreign exchange rate exposure for future trade
payments?
Forward Transaction
(two people or other entities engage in a binding agreement to perform a trade in the future, rather
than at the present.)
What type of advantage do companies receive when operating in favorable areas within a given
country?
Location-Specific
Which entrant has the opportunity to free ride on first-mover investments? Later Mover
(Also called a late follower or a later market entrant, a late mover is a firm that enters a market
some time after both the market pioneer(s) and after early follower firms.)
Which strategy for entering a foreign market has the highest degree of risk?
Licensing
(A business arrangement in which one company gives another company permission to manufacture
its product for a specified payment.)
Which mode of entry provides advantages to a multinational firm that can be transferred within the
firm at very low cost?
, WGU C211 GLOBAL ECONOMICS FOR MANAGERS OA
EXAM-with 100% verified solutions-2025-2026
Licensing
Which pillar of uncertainty refers to te internalized behavior of an individual's belief and values?
Cognitive
What are three pillars that support format regulatory institutions? Choose 3 answers.
- Laws - Regulations - Rules
What are three aspects of a command economy? Choose 3 answers.
- Government-Owned Production - Planned system - Inefficient allocation of goods
What is one of the core propositions underpinning an institutions-based view of global business?
A political system should establish controls of the financial sector.
Which type of system allows businesses to be privately owned with a strong individualistic profit
orientation?
Market Economy
(an economic system in which economic decisions and the pricing of goods and services are guided
by the interactions of a country's individual citizens and businesses.)
What countries based their legal traditions on either common law or civic law?
- Russia - Egypt
What type of good has well-established property rights?
Private Goods
Which body gudes economic activity in a command economy?
The Government
