WGU C211 Pre-Assessment Global Economics for Managers Questions with Correct
Verified Answers/ C211 Pre-Assessment Review
Which view claims that the phenomenon of globalization was initially driven by the desire of Western
economies to exploit their power through multinational enterprises? - (answer)The new force view
Economic gains come from international trade because one country's exported goods, services or other
items are unique, valuable, and difficult to duplicate to importing country - (answer)Resource-based
view
What is the aggregation of importing and exporting that leads to the country-level trade surplus or
deficit? - (answer)Balance of Trade
What is a cost of foreign direct investment? - (answer)Developing countries may be exploited by
multinational enterprises (MNE)
Which type of managerial capability is both challenging and difficult to imitate? - (answer)Intangible
capability
What may precious, rare and hard to duplicate resources and capabilities lead to for a firm? -
(answer)Sustained comparative advantage
Which theory of international trade states that poor countries often experience faster rates of economic
growth compared to wealthy countries? - (answer)The catch-up effect
What is the financial environment in which exchange rates and payments for goods and services are
conducted? - (answer)Commodity Exchange
What happens to a country's real exchange rates and nominal interest rate as the price level increases,
assuming all other factors are unchanged? - (answer)Exchange rates depreciate, interest rates increase
What is the easiest method non-financial companies use to handle currency fluctuations? -
(answer)Commodity Trading
, WGU C211 Pre-Assessment Global Economics for Managers Questions with Correct
Verified Answers/ C211 Pre-Assessment Review
Which strategy minimizes the risk for unanticipated changes in future exchange rates? -
(answer)Currency Swap
A company is looking for a location with an abundance of ground breaking individuals, firms and
universities. Which type of strategic goal is this company demonstrating? - (answer)Innovation-seeking
What advantage comes with not sharing benefits with late entrants? - (answer)First-mover advantage
Which entry mode is a non-equity arrangement for a company contemplating entry into a foreign
market? - (answer)Licensing
What size commitment is required for a non-equity mode of entry into a foreign market? -
(answer)Small commitment
What are two supportive pillars for an informal institution? - (answer)Normative and Cognitive
What is the key role of an institution, according to the institution-based view? - (answer)To reduce
uncertainty
What are the rules, enforcement mechanisms, and organizations that support market transactions? -
(answer)Institutions
What is a core proposition underpinning an institutional based view of global business? -
(answer)Bounded Rationality
In which type of political system do citizens elect representatives to govern the country on their behalf?
- (answer)Democracy
Verified Answers/ C211 Pre-Assessment Review
Which view claims that the phenomenon of globalization was initially driven by the desire of Western
economies to exploit their power through multinational enterprises? - (answer)The new force view
Economic gains come from international trade because one country's exported goods, services or other
items are unique, valuable, and difficult to duplicate to importing country - (answer)Resource-based
view
What is the aggregation of importing and exporting that leads to the country-level trade surplus or
deficit? - (answer)Balance of Trade
What is a cost of foreign direct investment? - (answer)Developing countries may be exploited by
multinational enterprises (MNE)
Which type of managerial capability is both challenging and difficult to imitate? - (answer)Intangible
capability
What may precious, rare and hard to duplicate resources and capabilities lead to for a firm? -
(answer)Sustained comparative advantage
Which theory of international trade states that poor countries often experience faster rates of economic
growth compared to wealthy countries? - (answer)The catch-up effect
What is the financial environment in which exchange rates and payments for goods and services are
conducted? - (answer)Commodity Exchange
What happens to a country's real exchange rates and nominal interest rate as the price level increases,
assuming all other factors are unchanged? - (answer)Exchange rates depreciate, interest rates increase
What is the easiest method non-financial companies use to handle currency fluctuations? -
(answer)Commodity Trading
, WGU C211 Pre-Assessment Global Economics for Managers Questions with Correct
Verified Answers/ C211 Pre-Assessment Review
Which strategy minimizes the risk for unanticipated changes in future exchange rates? -
(answer)Currency Swap
A company is looking for a location with an abundance of ground breaking individuals, firms and
universities. Which type of strategic goal is this company demonstrating? - (answer)Innovation-seeking
What advantage comes with not sharing benefits with late entrants? - (answer)First-mover advantage
Which entry mode is a non-equity arrangement for a company contemplating entry into a foreign
market? - (answer)Licensing
What size commitment is required for a non-equity mode of entry into a foreign market? -
(answer)Small commitment
What are two supportive pillars for an informal institution? - (answer)Normative and Cognitive
What is the key role of an institution, according to the institution-based view? - (answer)To reduce
uncertainty
What are the rules, enforcement mechanisms, and organizations that support market transactions? -
(answer)Institutions
What is a core proposition underpinning an institutional based view of global business? -
(answer)Bounded Rationality
In which type of political system do citizens elect representatives to govern the country on their behalf?
- (answer)Democracy
