WGU C211 – Global Economics for Managers Exam Questions and Answers Rated A+ Latest 2023/2024
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WGU C211 – Global Economics for Managers
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WGU C211 – Global Economics For Managers
WGU C211 – Global Economics for Managers Exam Questions and Answers Rated A+ Latest 2023/2024
**What Political views exist on Foreign Direct Investment (FDI)**
**answer includes radicalism**
Radical View - Hostile to foreign direct investment (FD)
Free Market View - Suggests foreign direct ...
WGU C211 – Global Economics for Managers
Exam Questions and Answers Rated A+
Latest 2023/2024
**What Political views exist on Foreign Direct Investment (FDI)**
**answer includes radicalism**
Radical View - Hostile to foreign direct investment (FD)
Free Market View - Suggests foreign direct investment (FDI) unrestricted by government intervention
is the best.
Pragmatic Nationalism - Only approves foreign direct investment (FDI) when its benefits outweigh its
costs.
**What is Resource similarity**
The extent to which a given competitor possesses strategic endowment comparable, in terms of both
type & amount, to those of the focal firm.
**How are supply and demand related to the exchange rate of a country?**
The price of a commodity, a country's currency, is fundamentally determined by this. Strong demand
leads to price hikes; oversupply results in price drops.
**What advantages exist with First-mover?**
1. Proprietary, technological leadership
2. Pre-emption of scarce resources
3. Establishment of entry barriers for late entrants
4. Avoidance of clash with dominant firms at home
5. Relationships with key stakeholders such as governments
**How is global business affected by democracy?**
An individual's right to freedom of expression and organization. For example, starting up a firm is an
act of economic expression
**How is global business affected by totalitarianism?**
These countries often experience wars, riots, protests, chaos, & breakdowns, which result in higher
political risk.
**Democracy**
Citizens elect representatives to govern the country on their behalf.
Right to freedom of expression and organization.
**Totalitarianism**
One person or party exercises absolute political control over the population.
**What is Property right?**
The legal rights to use an economic resource & to derive income & benefits from it.
, **Intellectual property is a right of?**
right of ownership/right to derive income from it
**Market economy**
Characterized by the "invisible hand" of market forces-all factors of production should be privately
owned.
**Command economy**
Defined by a government taking all factors of production to be government-owned or state-owned, &
all supply, demand, & pricing are planned by the government.
**Mixed economy**
An economy that has elements of both a market economy & a command economy.
It boils down to the relative distribution of market forces versus command forces.
**What is an Indifference curve used for**
A curve that shows consumption bundles that give the consumer the same level of satisfaction
(i.e. combinations of pizza & Pepsi with which the consumer is equally satisfied.)
***Describe the basic distinctions between the market models with respect to:
1. number of market participants
2. type of product being marketed
*ease of entry/exit into the market
the prevalence of advertising/marketing**
1. Monopoly (1 firm - cable tv)
Oligopoly (few firms - cigarettes)
*entry is difficult & advertising is a natural feature.
2. Monopolistic competition many firms, diff products (movies)
Perfect competition many firms, identical products (milk)
*entry is easy & spend very little on advertising.
**What Fundamental truth realized when studying the behavior of an oligopolistic firm within the
context/model called "prisoner's dilemma"**
**look for cooperative in the answer**
self-interest makes it difficult for the oligopolists to maintain cooperative outcome. Relentless logic of
self-interest drives participants toward the non-cooperative outcome, which is worse for both parties.
Each oligopolist has an incentive to cheat. Just as self-interest drives the prisoners in the prisoners'
dilemma to confess, self-interest makes it difficult for the oligopolists to maintain the cooperative
outcome with low production, high prices, & monopoly profits.
***How might an oligopolistic firm behave like a monopoly?
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