C211 - Global Economics for Managers Final Exam - All Reading for 2023/2024
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Course
WGU C211 – Global Economics for Managers
Institution
WGU C211 – Global Economics For Managers
C211 - Global Economics for Managers Final Exam - All Reading for 2023/2024
Base of the pyramid (BOP)
Economies where people make less than $2,000 per capita per year.
BRICA
Brazil, Russia, India, and China.
Emerging economies
term that has gradually replaced the term "developing coun...
C211 - Global Economics for Managers Final
Exam - All Reading for 2023/2024
Base of the pyramid (BOP)
Economies where people make less than $2,000 per capita per year.
BRICA
Brazil, Russia, India, and China.
Emerging economies
term that has gradually replaced the term "developing countries" since the 1990s.
Emerging markets
A term that is often used interchangeably with "emerging economies."
Expatriate manager
A manager who works abroad, or "expat" for short.
Foreign direct investment (FDI)
Investment in, controlling, and managing value-added activities in other countries.
Global Business
Business around the globe.
Gross national income (GNI)
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)
GDP plus income from non-resident sources abroad
International business (IB)
(1) A business (or firm) that engages in international (cross-border) economic activities and/or (2) the
action of doing business abroad.
International premium
A significant pay raise when working overseas.
Liability of foreignness
The inherent disadvantage that foreign firms experience in host countries because of their non-native
status.
Multinational enterprise (MNE)
A firm that engages in foreign direct investment (FDI).
,Reverse innovation
An innovation that is adopted first in emerging economies and is then diffused around the world.
Risk management
The identification and assessment of risks and the preparation to minimize the impact of high-risk,
unfortunate events.
Scenario planning
A technique to prepare and plan for multiple scenarios (either high or low risk).
Purchasing power parity (PPP)
adjustment made to the GDP to reflect differences in the cost of living
The bottom billion
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
Why study global business?
Formal rules
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
cultures, ethics, and norms play an important part in shaping the success and failure of firms around
the globe
Resource-based view
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
What are the three views of globalization?
"Four Tigers"
Hong Kong, Singapore, South Korea and Taiwan
Administrative policy
Bureaucratic rules that make it harder to import foreign goods.
antidumping duty
,Tariffs levied on imports that have been "dumped" (selling below costs to "unfairly" drive domestic
firms out of business).
Balance of Trade
The aggregation of importing and exporting that leads to the country-level trade surplus or deficit.
Classical trade theories
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.
Factor endowment theory
A theory that suggests that nations will develop comparative advantages based on their locally
abundant factors.
Heckscher-Ohlin theory
Another name for factor endowment theory
First-mover advantage
Advantage that first movers enjoy and do not share with late entrants.
Free trade
The idea that free market forces should determine how much to trade with little or no government
intervention.
Import
Buying from abroad.
Import tariff
A tax imposed on imports.
Infant industry argument
The argument that if domestic firms are as young as "infants," in the absence of government
intervention, they stand no chances of surviving and will be crushed by mature foreign rivals.
Modern trade theories
The major theories of international trade that were advanced in the 20th century, which consist of (1)
product life cycle, (2) strategic trade, and (3) national competitive advantage of industries.
Opportunity cost
Cost of pursuing one activity at the expense of another activity, given the alternatives (other
opportunities).
Product life cycle theory
A theory that accounts for changes in the patterns of trade over time by focusing on product life
cycles.
, Protectionism
The idea that governments should actively protect domestic industries from imports and vigorously
promote exports.
Resource mobility
Assumption that a resource used in producing a product for one industry can be shifted and put to
use in another industry.
Strategic trade policy
Government policy that provides companies a strategic advantage in international trade through
subsidies and other supports.
Strategic trade theory
A theory that suggests that strategic intervention by governments in certain industries can enhance
their odds for international success.
Subsidy
Government payment to domestic firms.
Tariff barrier
Trade barrier that relies on tariffs to discourage imports.
Theory of absolute advantage
A theory that suggests that under free trade, a nation gains by specializing in economic activities in
which it has an absolute advantage.
Theory of comparative advantage
A theory that focuses on the relative (not absolute) advantage in one economic activity that one
nation enjoys in comparison with other nations.
Theory of mercantilism
A theory that suggests that the wealth of the world is fixed and that a nation that exports more and
imports less will be richer.
Trade deficit
An economic condition in which a nation imports more than it exports.
Trade surplus
An economic condition in which a nation exports more than it imports.
Agglomeration
Clustering of economic activities in certain locations.
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