WGU C211 - GLOBAL ECONOMICS
FOR MANAGERS EXAM 2025 WITH
100% ACCURATE ANSWERS
Views on Globalization - correct answers ✔✔New, Evolutionary, and Pendulum
"New" view on globalization - correct answers ✔✔A force sweeping through the world in recent
times.
"Evolutionary" view on globalization - correct answers ✔✔A long-run historical evolution since
the dawn of human history
"Pendulum" view on globalization - correct answers ✔✔One that swings from one extreme to
another from time to time
Foreign Direct Investment - correct answers ✔✔Direct investment in, control, and management
of value-added activities in other countries
Political views on FDI - correct answers ✔✔Radical View, Free Market View, Pragmatic
Nationalism
Benefits to a country receiving FDI - correct answers ✔✔Capital Inflow, Technology Spillover,
Advanced Management Know-How, Job creation
Costs to a country receiving FDI - correct answers ✔✔Loss of Sovereignty, Adverse effects on
competition,
,Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business? - correct
answers ✔✔Resource similarity and market commonality can yield a powerful framework for
competitor analysis.
Resource similarity - correct answers ✔✔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? - correct answers ✔✔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 - correct answers ✔✔Mercantilism, Absolute advantage,
and Comparative advantage
Modern theory view - correct answers ✔✔Dynamic
Classical theory view - correct answers ✔✔Static
Absolute advantage - correct answers ✔✔The economic advantage one nation enjoys that is
superior to other nations
Comparative advantage - correct answers ✔✔The advantage one economic activity nation
enjoys in comparison with other nations (relative, not absolute)
Mercantilism - correct answers ✔✔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? - correct answers ✔✔New, Maturing, and Standardized
Strategic trade - correct answers ✔✔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? - correct answers
✔✔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.
Which theory came first? - correct answers ✔✔Mercantilism (although both are of the idea that
governments should actively protect domestic industries from imports and vigorously promote
exports)
If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the
most effective way to do this? - correct answers ✔✔Forward transactions, an act know as
currency hedging.
Transaction risk - correct answers ✔✔The exchange rate risk associated with the time delay
between entering into a contract and settling it.
Hedging - correct answers ✔✔A transaction, such as forward transactions, that protects traders
and investors from exposure to the fluctuations of the spot rate.
Currency hedging - correct answers ✔✔A way to protect traders and investors from being
exposed to the fluctuations of the spot rate
Strategic hedging - correct answers ✔✔A means of spreading out activities in different currency
zones in order to offset the currency losses in certain regions through gains in other regions
(currency diversification)
FOR MANAGERS EXAM 2025 WITH
100% ACCURATE ANSWERS
Views on Globalization - correct answers ✔✔New, Evolutionary, and Pendulum
"New" view on globalization - correct answers ✔✔A force sweeping through the world in recent
times.
"Evolutionary" view on globalization - correct answers ✔✔A long-run historical evolution since
the dawn of human history
"Pendulum" view on globalization - correct answers ✔✔One that swings from one extreme to
another from time to time
Foreign Direct Investment - correct answers ✔✔Direct investment in, control, and management
of value-added activities in other countries
Political views on FDI - correct answers ✔✔Radical View, Free Market View, Pragmatic
Nationalism
Benefits to a country receiving FDI - correct answers ✔✔Capital Inflow, Technology Spillover,
Advanced Management Know-How, Job creation
Costs to a country receiving FDI - correct answers ✔✔Loss of Sovereignty, Adverse effects on
competition,
,Capital outflow.
How do resources and capabilities influence the competitive dynamics of a business? - correct
answers ✔✔Resource similarity and market commonality can yield a powerful framework for
competitor analysis.
Resource similarity - correct answers ✔✔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? - correct answers ✔✔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 - correct answers ✔✔Mercantilism, Absolute advantage,
and Comparative advantage
Modern theory view - correct answers ✔✔Dynamic
Classical theory view - correct answers ✔✔Static
Absolute advantage - correct answers ✔✔The economic advantage one nation enjoys that is
superior to other nations
Comparative advantage - correct answers ✔✔The advantage one economic activity nation
enjoys in comparison with other nations (relative, not absolute)
Mercantilism - correct answers ✔✔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? - correct answers ✔✔New, Maturing, and Standardized
Strategic trade - correct answers ✔✔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? - correct answers
✔✔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.
Which theory came first? - correct answers ✔✔Mercantilism (although both are of the idea that
governments should actively protect domestic industries from imports and vigorously promote
exports)
If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the
most effective way to do this? - correct answers ✔✔Forward transactions, an act know as
currency hedging.
Transaction risk - correct answers ✔✔The exchange rate risk associated with the time delay
between entering into a contract and settling it.
Hedging - correct answers ✔✔A transaction, such as forward transactions, that protects traders
and investors from exposure to the fluctuations of the spot rate.
Currency hedging - correct answers ✔✔A way to protect traders and investors from being
exposed to the fluctuations of the spot rate
Strategic hedging - correct answers ✔✔A means of spreading out activities in different currency
zones in order to offset the currency losses in certain regions through gains in other regions
(currency diversification)
