100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
WGU C211 - Global Economics for Managers Final Exam 291 Questions and Answers (100 out of 100) Already GRADED A $10.49
Add to cart
Quickly navigate to
Preview
  2.  
  3. Western Governers University
  4.  
  5. WGU C211

Exam (elaborations)

WGU C211 - Global Economics for Managers Final Exam 291 Questions and Answers (100 out of 100) Already GRADED A
 0 purchase

WGU C211 - Global Economics for Managers Final Exam 291 Questions and Answers (100 out of 100) Already GRADED A

Preview 4 out of 51  pages

Document information

  • February 25, 2024
  • 51
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • wgu c211 global economics for managers final exa

Written for

All documents for this subject (102)

Seller

avatar-seller
ProfGoodlucK

Reviews received

Content preview

WGU C211 - Global Economics for Managers Final
Exam 291 Questions and Answers (100 out of 100)
Already GRADED A


3 views on globalization

Globalization is when you do business internationally

New, Evolutionary, and Pendulum

"New" view on globalization

A force sweeping through the world in recent times.

Which view claims that the phenomenon of globalization was initially driven by the desire of
Western economies to exploit their power through multinational enterprises?

"Evolutionary" view on globalization

A long-run historical evolution since the dawn of human history

"Pendulum" view on globalization

One that swings from one extreme to another from time to time.

Most popular

Foreign Direct Investment (FDI)

Foreign direct investments (FDI) are investments made by one company into another company
that is located in another country.

3 Different political views on FDI

Radical - radical view is hostile to FDI

Free market - free market view calls for minimum or unrestricted government restriction in
FDI. Leads to a win-win situation for both home and host countries.

Pragmatic nationalism - most countries practice pragmatic nationalism, weighing the benefits
and costs of FDI and only using it when benefits outweigh the costs.

What are the benefits to a country receiving Foreign Direct Investment?

,Capital Inflow
Technology Spillover
Advanced Management Know-How
Job creation

What costs exist in a country when they receive Foreign Direct Investment?

1. Loss of Sovereignty (power),
2. Adverse effects on competition (drives domestic firms out of business)
3. Capital outflow

How do resources and capabilities influence the competitive dynamics of a business?

A firm's resources and capabilities must create value compared to its competition.

A firms resources need to bring:

Value, company resources must create value, patents are an example.

Rarity, the rarer, and more desired the more of an advantage it has.

Imitability, how easy is it to imitate your competition?

Organization, some companies are better at answering challenges from competitors.

Classical theories of international trade*

The major theories of international trade that were advanced before the 20th century, they consist
of:

1. Mercantilism,

2. Absolute advantage

3. Comparative advantage

Classic Theory says things don't change, they are static.

How does resource similarity impact competitive dynamics?

Firms with a high degree of similarity are likely to make similar competitive decisions.

(Starbuck's instant coffee & McDonald's iced coffee, if one increases the price because of a
coffee shortage the other will likely also)

What are modern trade theories of international trade?

,Modern theories account for changes in patterns over time whereas classical theories are static.

Modern theories include

(1) Product life cycles,

(2) Strategic trade

(3) National competitive advantage or "Diamond"

What is the classical theory view of international trade regarding change?

Static, not changing

What is absolute advantage?

The economic advantage one nation enjoys that is superior to other nations, which nation is best
at producing a particular good?

Trade can be a win/win

Absolute advantage is achieved when one producer is able to produce a competitive product
using fewer resources, or the same resources in less time.

For example, Smith argued that because of better soil, water, and weather, Portugal enjoyed an
absolute advantage over England in the production of grapes and wines. And England enjoyed an
absolute advantage over Portugal as England produced more wool. If they trade, they would both
benefit. international trade is not a zero-sum game as suggested by mercantilism. It is a win-win
game. there are net gains from trade based on absolute advantage.

Comparative advantage

The ability of an individual or group to carry out a particular economic activity (such as making
a specific product) more efficiently than another activity.

Comparative advantage is an economy's ability to produce a particular good or service at a lower
opportunity cost than its trading partners.

Hypothetically, say that Michael Jordan could paint his house in eight hours. In those same eight
hours, though, he could also take part in the filming of a television commercial which would earn
him $50,000. By contrast, Jordan's neighbor Joe could paint the house in 10 hours. In that same
period of time, he could work at a fast-food restaurant and earn $100.

In this example, Joe has a comparative advantage, even though Michael Jordan could paint the
house faster and better. The best trade would be for Michael Jordan to film a television
commercial and pay Joe to paint his house. So long as Michael Jordan makes the expected

, $50,000 and Joe earns more than $100, the trade is a winner. Owing to their diversity of skills,
Michael Jordan and Joe would likely find this to be the best arrangement for their mutual benefit.

What is mercantilism?

It is the first recorded theory.

A theory that suggests that the wealth of the world (gold/sliver) is fixed and that a nation that
exports more and imports less will be richer.

Mercantilism trade theory states that viewed international trade as a zero-sum game. A nation
becomes richer by exporting more than it imports.

Features of the product life cycle?

The first dynamic theory.

New: production of a new product (such as a TV) that commands a price premium will
concentrate in the United States, which exports to other developed nations.

Maturing Stage: demand and ability to produce growth in other developed nations (such as
Australia and Italy), so it is now worthwhile to produce there.

Standardized: (or commoditized). Thus, much production will now move to low-cost
developing nations, which export to developed nations. In other words, the comparative
advantage may change over time




What is strategic trade theory?

Strategic intervention by governments in certain industries can enhance their odds for
international success.

When a government helps an infant industry until it is large enough to compete on its own.

They do NOT believe that unrestricted free trade is in the best interest of all countries.

What are these industries? They tend to be highly capital-intensive, high entry-barrier industries
in which domestic firms may have little chance without government assistance.

How are supply and demand related to the exchange rate of a country?

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller ProfGoodlucK. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $10.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

63950 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Recently viewed by you

Exam (elaborations) ·

(0)

Test Bank for Essentials of KInesiology for the Physical Therapist assistant 3rd Edition by Mansfield

Exam (elaborations) ·

(0)

ATE 2639 Animal Lab Procedures Final Midterm Exam Latest Guide Questions and Answers with complete solution

Package deal ·

(0)

Medication Aide Bundle |All Exam Test Questions and Answers Compiled |Complete Solution Graded A 2023

Exam (elaborations) ·

(0)

2024 NUR 410 NURSING CONCEPTS FOR COMMUNITY AND PUBLIC HEALTH EXAM 1 QUESTIONS AND ANSWERS (VERIFIED ANSWERS)

Exam (elaborations) ·

(0)

NICET Level 2 ITM of Water Based Systems/ Exam Review Questions and answers, rated A+[LATEST EXAM UPDATES]

Exam (elaborations) ·

(0)

Test Bank for Finance Applications and Theory 6th Edition by Marcia Cornett, Troy Adair, John Nofsinger

Exam (elaborations) ·

(0)

TEST BANK for Global Business, 5th Edition by Peng Mike, Verified Chapters 1 - 17, Complete Newest Version

Exam (elaborations) ·

(1)

THEO 104 QUIZ 2 / THEO 104 WEEK 2 QUIZ: LIBERTY UNIVERSITY | ATEMPT SCORE: 50 OUT OF 50 | RATED 100% (LATEST 2020/2021)

Exam (elaborations) ·

(0)

ASCP BOC EXAM Study Guide from the mobile app | Questions and Correct Answers | Latest Update 2024/2025 | 100% PASS
$10.49
  • (0)
Add to cart
Added