WGU C211 - Global Economics for
Managers (2025) Actual Exam Questions
and Answers A+ Graded
Views .on .Globalization .- .CORRECT .ANSWER .-New, .Evolutionary, .and
.Pendulum
"New" .view .on .globalization .- .CORRECT .ANSWER .-A .force .sweeping .through
.the .world .in .recent .times.
"Evolutionary" .view .on .globalization .- .CORRECT .ANSWER .-A .long-run
.historical .evolution .since .the .dawn .of .human .history
"Pendulum" .view .on .globalization .- .CORRECT .ANSWER .-One .that .swings .from
.one .extreme .to .another .from .time .to .time
Foreign .Direct .Investment .- .CORRECT .ANSWER .-Direct .investment .in, .control,
.and .management .of .value-added .activities .in .other .countries
Political .views .on .FDI .- .CORRECT .ANSWER .-Radical .View, .Free .Market .View,
.Pragmatic .Nationalism
Benefits .to .a .country .receiving .FDI .- .CORRECT .ANSWER .-Capital .Inflow,
.Technology .Spillover, .Advanced .Management .Know-How, .Job .creation
Costs .to .a .country .receiving .FDI .- .CORRECT .ANSWER .-Loss .of .Sovereignty,
.Adverse .effects .on .competition, .
Capital .outflow.
How .do .resources .and .capabilities .influence .the .competitive .dynamics .of .a
.business? .- .CORRECT .ANSWER .-Resource .similarity .and .market .commonality
.can .yield .a .powerful .framework .for .competitor .analysis.
Resource .similarity .- .CORRECT .ANSWER .-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
.ANSWER .-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 .ANSWER .-Mercantilism,
.Absolute .advantage, .and .Comparative .advantage
Modern .theory .view .- .CORRECT .ANSWER .-Dynamic
Classical .theory .view .- .CORRECT .ANSWER .-Static
Absolute .advantage .- .CORRECT .ANSWER .-The .economic .advantage .one .nation
.enjoys .that .is .superior .to .other .nations
Comparative .advantage .- .CORRECT .ANSWER .-The .advantage .one .economic
.activity .nation .enjoys .in .comparison .with .other .nations .(relative, .not .absolute)
Mercantilism .- .CORRECT .ANSWER .-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 .ANSWER .-New, .Maturing, .and
.Standardized
Strategic .trade .- .CORRECT .ANSWER .-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 .ANSWER .-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 .ANSWER .-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 .ANSWER .-
Forward .transactions, .an .act .know .as .currency .hedging.
Transaction .risk .- .CORRECT .ANSWER .-The .exchange .rate .risk .associated .with
.the .time .delay .between .entering .into .a .contract .and .settling .it.
Hedging .- .CORRECT .ANSWER .-A .transaction, .such .as .forward .transactions,
.that .protects .traders .and .investors .from .exposure .to .the .fluctuations .of .the
.spot .rate.
Currency .hedging .- .CORRECT .ANSWER .-A .way .to .protect .traders .and .investors
.from .being .exposed .to .the .fluctuations .of .the .spot .rate
Strategic .hedging .- .CORRECT .ANSWER .-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)
Managers (2025) Actual Exam Questions
and Answers A+ Graded
Views .on .Globalization .- .CORRECT .ANSWER .-New, .Evolutionary, .and
.Pendulum
"New" .view .on .globalization .- .CORRECT .ANSWER .-A .force .sweeping .through
.the .world .in .recent .times.
"Evolutionary" .view .on .globalization .- .CORRECT .ANSWER .-A .long-run
.historical .evolution .since .the .dawn .of .human .history
"Pendulum" .view .on .globalization .- .CORRECT .ANSWER .-One .that .swings .from
.one .extreme .to .another .from .time .to .time
Foreign .Direct .Investment .- .CORRECT .ANSWER .-Direct .investment .in, .control,
.and .management .of .value-added .activities .in .other .countries
Political .views .on .FDI .- .CORRECT .ANSWER .-Radical .View, .Free .Market .View,
.Pragmatic .Nationalism
Benefits .to .a .country .receiving .FDI .- .CORRECT .ANSWER .-Capital .Inflow,
.Technology .Spillover, .Advanced .Management .Know-How, .Job .creation
Costs .to .a .country .receiving .FDI .- .CORRECT .ANSWER .-Loss .of .Sovereignty,
.Adverse .effects .on .competition, .
Capital .outflow.
How .do .resources .and .capabilities .influence .the .competitive .dynamics .of .a
.business? .- .CORRECT .ANSWER .-Resource .similarity .and .market .commonality
.can .yield .a .powerful .framework .for .competitor .analysis.
Resource .similarity .- .CORRECT .ANSWER .-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
.ANSWER .-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 .ANSWER .-Mercantilism,
.Absolute .advantage, .and .Comparative .advantage
Modern .theory .view .- .CORRECT .ANSWER .-Dynamic
Classical .theory .view .- .CORRECT .ANSWER .-Static
Absolute .advantage .- .CORRECT .ANSWER .-The .economic .advantage .one .nation
.enjoys .that .is .superior .to .other .nations
Comparative .advantage .- .CORRECT .ANSWER .-The .advantage .one .economic
.activity .nation .enjoys .in .comparison .with .other .nations .(relative, .not .absolute)
Mercantilism .- .CORRECT .ANSWER .-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 .ANSWER .-New, .Maturing, .and
.Standardized
Strategic .trade .- .CORRECT .ANSWER .-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 .ANSWER .-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 .ANSWER .-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 .ANSWER .-
Forward .transactions, .an .act .know .as .currency .hedging.
Transaction .risk .- .CORRECT .ANSWER .-The .exchange .rate .risk .associated .with
.the .time .delay .between .entering .into .a .contract .and .settling .it.
Hedging .- .CORRECT .ANSWER .-A .transaction, .such .as .forward .transactions,
.that .protects .traders .and .investors .from .exposure .to .the .fluctuations .of .the
.spot .rate.
Currency .hedging .- .CORRECT .ANSWER .-A .way .to .protect .traders .and .investors
.from .being .exposed .to .the .fluctuations .of .the .spot .rate
Strategic .hedging .- .CORRECT .ANSWER .-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)
