WGU C211 OA Global Economics Exam (2022/2023) (Verified Answers)

C211

4. Which political view of foreign direct investment (FDI) is most widely used by governments in the current

international business environment?

Radicalism

Protectionism

Communism

nationalism

5. Which factors predict the degree of rivalry between a pair of competitors? 2 choices

Market commonality

Cost structure

Resource similarity

Organizational structure

6. Which factors predicts how local firms in emerging economics will respond to multinational competitors?

Competitive assets and industry pressures to globalize

Formal and informal institutions

Market dominance and market fragmentation

Cooperation and signaling

7. During which stage of the product life cycle do sales and profits gradually increase before seeing more

dramatic increases?

Introduction

Maturity

Growth

Decline

8. Which factor determines the foreign exchange rate any currency?

Universal trade of the currency

Supply and demand for the currency

The age of the currency

Business economics of the currency

9. Which risk must a corporation minimize if it is to effectively manage short-term currency fluctuations?

Beta risk

Hedging

Alpha risk

Transaction risk

10. Which policy does a country use to determine the exchange rate of their currency in relationship to

another country's currency if they do not rely on market forces?

Clean float rate policy

Fixed rate policy

Flexible rate policy

Floating rate policy

11. Which term refers to trading currencies and currency derivatives in order to earn profits and help make

prices efficient?

Investing

Brokering

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C211 OA Global Economics Exam 2022/2023

Day trading

Speculation

 12. Which type of advantage is gained by a company based on where it operates?

Lifecycle-specific

Innovation-specific

Institution-specific

Location-specific

13. Who gains from erecting significant entry barriers for other entrants?

Late mover

Early movers

Laggard

First movers

14. Which strategy for entering into a foreign market has the lowest degree of risk?

Wholly-owned subsidiary

Joint venture

Foreign acquisition

Licensing

15. What is a non-equity mode involving some type of contractual agreement?

Minority joint venturing

Direct exporting

Licensing

Acquisition

16. After the Lehman Brothers collapse, the federal Reserve stood ready to lend financial institutions

funds. When the Federal reserve did this, it was acting in its role as a lender of last resort. Which type of

group has this role?

Informal institution

Nongovernmental organization

Formal institution

Government agency

17. What is the comprehensive free-trade settlement among Canada, US, and Mexico, that addresses

issues of protecting workers rights, the environment and reducing tariffs and non-tariff trade barriers?

NAFTA

ASEAN

AMEA

Mercosur

18. What is one of the core propositions underpinning an institution-based view of global business?

A political system should establish controls of the financial sector

Countries should provide tariff protection

If formal constraints are not in place, the informal constraints will guide decision making

Investment in infrastructure provides a multiplier effect in a developing economy

19. What is one of the core propositions underpinning an institution-based view of global business?

Investment in infrastructure provides a multiplier effect in a developing economy

Government should provide tariff protection

Managers and corporations make rational decisions within their formal and informal framework

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