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WGU C211 Global Economics for Managers (OA) Exam Questions And Answers
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WGU C211 Global Economics for Managers (OA) Exam Questions And Answers
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WGU C211 Global Economics for Managers(OA) Exam Questions And Answers 2022
1) Which two phrases represent the views of globalization? Choose two answers.
a. A pendulum that swings from one extreme to another
b. A competition among key financial centers and markets
c. A continuing force sweeping through the world
d. An unplanned result of corporate responses to a variety of
opportunities
e. A trading of goods and services between the most and least regulated
countries
2) What are two trade barriers? Choose two answers.
a. Nontariffs
b. Foreign languages
c. The ocean
d. Tariffs
e. Shipping
3) What is the effect of tariff on a particular product for the country imposing the tariff?
a. Increases domestic production of the product
b. Decreases the deadweight cost of the country
c. Increases domestic consumption of the product
d. Decreases government trade revenues
4) Which benefits come to the host country as a result of foreign direct investment?
Choose two answers.
a. Sovereign stability
b. Capital outflow
c. Domestic resource allocation
d. Creation of domestic jobs
5) Which characteristic of firm resources affects competitive dynamics?
a. Tractability
b. Divisibility
c. Imitability
d. Intensity
6) Which characteristic of firm resources affects competitive dynamics, according to the
VRIO framework?
a. Variability
b. Optimization
c. Interpretability
d. Rarity
7) Which theory is the forerunner to modern-day protectionism?
a. Free trade
b. Mercantilism
c. Absolute advantage
d. Comparative advantage
8) Which aspect creates the daily changes in a country’s exchange rate?
a. Currency supply and demand
, b. Level of domestic output
c. Balance of payments
d. Domestic employment level
9) Which risk must a corporation minimize to effectively manage short-term currency
fluctuations?
a. Alpha risk
b. Transaction risk
c. Beta risk
d. Asymmetric risk
10) Which term describes using currency derivatives to reduce potential transaction,
translation, and economic risks of currency movements that could lead to losses for a
firm or investor?
a. An exchange position
b. A short position
c. Speculating
d. Hedging
11) What is the most effective method to limit foreign exchange rate exposure for future
trade payments?
a. Floating transaction
b. Forward transaction
c. Short transaction
d. Cross-currency transaction
12) What type of advantage do companies receive when operating in favorable areas within
a given country?
a. Labor-specific
b. Capital-specific
c. Location-specific
d. Mineral-specific
13) Which entrant has the opportunity to free ride on first-mover investments?
a. Simultaneous mover
b. Later mover
c. Early mover
d. Laggard
14) Which strategy for entering a foreign market has the highest degree of risk?
a. Licensing
b. Wholly-owned subsidiary
c. Joint-venture
d. Foreign acquisition
15) Which mode of entry provides advantages to a multinational firm that can be
transferred within the firm at very low cost?
a. Indirect exports
b. Externalization
c. Licensing
d. Ownership
16) Which pillar of uncertainty refers to the internalized behavior of an individual’s belief
and values?
a. Regulatory
b. Environmental
c. Formal
d. Cognitive
17) What are three pillars that support format regulatory institutions? Choose 3 answers.
a. Norms
b. Attitudes
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