C211 GLOBAL ECONOMICS FOR MANAGERS (WGU ACTUAL EXAM) WITH VERIFIED SOLUTIONS 2023 -2024 Base of the pyramid (BOP) - CORRECT ANSWER -Economies where people make less than $2,000 per capita per year. BRICA - CORRECT ANSWER -Brazil, Russia, India, and China. Emerging economies - CORRECT ANSWER -term that has gradually replaced the term "developing countries" since the 1990s. Emerging markets - CORRECT ANSWER -A term that is often used interchangeably with "emerging economies." Expatriate manager - CORRECT ANSWER -A manager who works abroad, or "expat" for short. Foreign direct investment (FDI) - CORRECT ANSWER -Investment in, controlling, and managing value -added activities in other countries. Global Business - CORRECT ANSWER -Business around the globe. Globalization - CORRECT ANSWER -The close integration of countries and peoples of the world. Gross domestic product (GDP) - CORRECT ANSWER -The sum of value added by resident firms, households, and governments operating in an economy. Gross national income (GNI) - CORRECT ANSWER -GDP plus income from non -
resident sources abroad. The term used by the World Bank and other international organizations to supersede the term GNP. Gross national product (GNP) - CORRECT ANSWER -GDP plus income from non -
resident sources abroad Group of 20 (G -20) - CORRECT ANSWER -The group of 19 major countries plus the European Union (EU) whose leaders meet on a biannual basis to solve global economic problems. International business (IB) - CORRECT ANSWER -(1) A business (or firm) that engages in international (cross -border) economic activities and/or (2) the action of doing business abroad. International premium - CORRECT ANSWER -A significant pay raise when working overseas. Liability of foreignness - CORRECT ANSWER -The inherent disadvantage that foreign firms experience in host countries because of their non -native status. Multinational enterprise (MNE) - CORRECT ANSWER -A firm that engages in foreign direct investment (FDI). Nongovernmental organization (NGO) - CORRECT ANSWER -An organization that is not affiliated with governments. Purchasing power parity (PPP) - CORRECT ANSWER -A conversion that determines the equivalent amount of goods and services that different currencies can purchase. Reverse innovation - CORRECT ANSWER -An innovation that is adopted first in emerging economies and is then diffused around the world. Risk management - CORRECT ANSWER -The identification and assessment of risks and the preparation to minimize the impact of high -risk, unfortunate events. Scenario planning - CORRECT ANSWER -A technique to prepare and plan for multiple scenarios (either high or low risk). Semiglobalization - CORRECT ANSWER -A perspective that suggests that barriers to market integration at borders are high, but not high enough to insulate countries from each other completely. Triad - CORRECT ANSWER -North America, Western Europe, and Japan. Purchasing power parity (PPP) - CORRECT ANSWER -adjustment made to the GDP to reflect differences in the cost of living The bottom billion - CORRECT ANSWER -Concentrated in Africa and Central Asia - 58 small countries, stuck at the bottom in terms of growth, incomes and human development Enhance employability & advance career, better preparation to be expat, competence in interacting with foreign suppliers/partners/competitors/employees - CORRECT ANSWER -Why study global business? Institution -based view - CORRECT ANSWER -A core perspective. Success and failure of firms are constrained by institutions Formal rules - CORRECT ANSWER -requirements that treat domestic and foreign firms as equals enhance the potential odds for foreign firms' success or those that discriminate against foreign firms, would undermine the chances for foreign entrants Informal rules - CORRECT ANSWER -cultures, ethics, and norms play an important part in shaping the success and failure of firms around the globe Resource -based view - CORRECT ANSWER -A core perspective. Success and failure of firms is determined by their environment New force in recent times, a long -running historical evolution, a pendulum swinging between extremes - CORRECT ANSWER -What are the three views of globalization? "Four Tigers" - CORRECT ANSWER -Hong Kong, Singapore, South Korea and Taiwan Absolute advantage - CORRECT ANSWER -The economic advantage one nation enjoys that is absolutely superior to other nations. Administrative policy - CORRECT ANSWER -Bureaucratic rules that make it harder to import foreign goods. antidumping duty - CORRECT ANSWER -Tariffs levied on imports that have been "dumped" (selling below costs to "unfairly" drive domestic firms out of business). Balance of Trade - CORRECT ANSWER -The aggregation of importing and exporting that leads to the country -level trade surplus or deficit. Classical trade theories - CORRECT ANSWER -The major theories of international trade that were advanced before the 20th century, which consist of (1) mercantilism, (2) absolute advantage, and (3) comparative advantage. Comparative advantage - CORRECT ANSWER -Relative (not absolute) advantage in one economic activity that one nation enjoys in comparison with other nations. Deadweight cost - CORRECT ANSWER -Net losses that occur in an economy as a result of tariffs. Export - CORRECT ANSWER -Selling abroad. Factor endowment - CORRECT ANSWER -The extent to which different countries possess various factors of production such as labor, land, and technology.
resident sources abroad. The term used by the World Bank and other international organizations to supersede the term GNP. Gross national product (GNP) - CORRECT ANSWER -GDP plus income from non -
resident sources abroad Group of 20 (G -20) - CORRECT ANSWER -The group of 19 major countries plus the European Union (EU) whose leaders meet on a biannual basis to solve global economic problems. International business (IB) - CORRECT ANSWER -(1) A business (or firm) that engages in international (cross -border) economic activities and/or (2) the action of doing business abroad. International premium - CORRECT ANSWER -A significant pay raise when working overseas. Liability of foreignness - CORRECT ANSWER -The inherent disadvantage that foreign firms experience in host countries because of their non -native status. Multinational enterprise (MNE) - CORRECT ANSWER -A firm that engages in foreign direct investment (FDI). Nongovernmental organization (NGO) - CORRECT ANSWER -An organization that is not affiliated with governments. Purchasing power parity (PPP) - CORRECT ANSWER -A conversion that determines the equivalent amount of goods and services that different currencies can purchase. Reverse innovation - CORRECT ANSWER -An innovation that is adopted first in emerging economies and is then diffused around the world. Risk management - CORRECT ANSWER -The identification and assessment of risks and the preparation to minimize the impact of high -risk, unfortunate events. Scenario planning - CORRECT ANSWER -A technique to prepare and plan for multiple scenarios (either high or low risk). Semiglobalization - CORRECT ANSWER -A perspective that suggests that barriers to market integration at borders are high, but not high enough to insulate countries from each other completely. Triad - CORRECT ANSWER -North America, Western Europe, and Japan. Purchasing power parity (PPP) - CORRECT ANSWER -adjustment made to the GDP to reflect differences in the cost of living The bottom billion - CORRECT ANSWER -Concentrated in Africa and Central Asia - 58 small countries, stuck at the bottom in terms of growth, incomes and human development Enhance employability & advance career, better preparation to be expat, competence in interacting with foreign suppliers/partners/competitors/employees - CORRECT ANSWER -Why study global business? Institution -based view - CORRECT ANSWER -A core perspective. Success and failure of firms are constrained by institutions Formal rules - CORRECT ANSWER -requirements that treat domestic and foreign firms as equals enhance the potential odds for foreign firms' success or those that discriminate against foreign firms, would undermine the chances for foreign entrants Informal rules - CORRECT ANSWER -cultures, ethics, and norms play an important part in shaping the success and failure of firms around the globe Resource -based view - CORRECT ANSWER -A core perspective. Success and failure of firms is determined by their environment New force in recent times, a long -running historical evolution, a pendulum swinging between extremes - CORRECT ANSWER -What are the three views of globalization? "Four Tigers" - CORRECT ANSWER -Hong Kong, Singapore, South Korea and Taiwan Absolute advantage - CORRECT ANSWER -The economic advantage one nation enjoys that is absolutely superior to other nations. Administrative policy - CORRECT ANSWER -Bureaucratic rules that make it harder to import foreign goods. antidumping duty - CORRECT ANSWER -Tariffs levied on imports that have been "dumped" (selling below costs to "unfairly" drive domestic firms out of business). Balance of Trade - CORRECT ANSWER -The aggregation of importing and exporting that leads to the country -level trade surplus or deficit. Classical trade theories - CORRECT ANSWER -The major theories of international trade that were advanced before the 20th century, which consist of (1) mercantilism, (2) absolute advantage, and (3) comparative advantage. Comparative advantage - CORRECT ANSWER -Relative (not absolute) advantage in one economic activity that one nation enjoys in comparison with other nations. Deadweight cost - CORRECT ANSWER -Net losses that occur in an economy as a result of tariffs. Export - CORRECT ANSWER -Selling abroad. Factor endowment - CORRECT ANSWER -The extent to which different countries possess various factors of production such as labor, land, and technology.
