WGU C211 - Global Economics for Managers Exam 2022/2023 solved 100% correct

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Views on Globalization - ANSWER New, Evolutionary, and Pendulum "New" view on globalization - ANSWER A force sweeping through the world in recent times. "Evolutionary" view on globalization - AN... SWER A long-run historical evolution since the dawn of human history "Pendulum" view on globalization - ANSWER One that swings from one extreme to another from time to time Foreign Direct Investment - ANSWER Direct investment in, control, and management of value-added activities in other countries Political views on FDI - ANSWER Radical View, Free Market View, Pragmatic Nationalism Benefits to a country receiving FDI - ANSWER Capital Inflow, Technology Spillover, Advanced Management Know-How, Job creation Costs to a country receiving FDI - ANSWER Loss of Sovereignty, Adverse effects on competition, Capital outflow. How do resources and capabilities influence the competitive dynamics of a business? - ANSWER Resource similarity and market commonality can yield a powerful framework for competitor analysis. Resource similarity - ANSWER The extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm. How does resource similarity impact competitive dynamics? - ANSWER Firms with a high degree are likely to have similar competitive actions. (Starbuck's instant coffee & McDonald's iced coffee) Classical theories of international trade - ANSWER Mercantilism, Absolute advantage, and Comparative advantage Modern theory view - ANSWER Dynamic Classical theory view - ANSWER Static WGU C211 - Global Economics for Managers Exam 2022/2023 solved 100% correct Absolute advantage - ANSWER The economic advantage one nation enjoys that is superior to other nations Comparative advantage - ANSWER The advantage one economic activity nation enjoys in comparison with other nations (relative, not absolute) Mercantilism - ANSWER 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. Features of the product life cycle? - ANSWER New, Maturing, and Standardized Strategic trade - ANSWER Intervention by governments in certain industries can enhance their odds for international success. How are supply and demand related to the exchange rate of a country? - ANSWER 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. Which theory came first? - ANSWER Mercantilism (although both are of the idea that governments should actively protect domestic industries from imports and vigorously promote exports) If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the most effective way to do this? - ANSWER Forward transactions, an act knows as currency hedging. Transaction risk - ANSWER The exchange rate risk associated with the time delay between entering into a contract and settling it. Hedging - ANSWER A transaction, such as forward transactions, that protects traders and investors from exposure to the fluctuations of the spot rate. Currency hedging - ANSWER A way to protect traders and investors from being exposed to the fluctuations of the spot rate Strategic hedging - ANSWER A means of spreading out activities in different currency zones in order to offset the currency losses in certain regions through gains in other regions (currency diversification) First mover advantages - ANSWER Proprietary, technological leadership, pre-emption of scarce resources, establishment of entry barriers to late entrants, avoidance of clash with dominant firms at home, relationships with key stakeholders, (such as governments.) Late mover advantages - ANSWER Opportunity to free ride on first-mover investments, Resolution of technological and market uncertainty, First mover's difficulty to adapt to market changes.) Foreign market entries types - ANSWER Non-equity and equity Non-equity - ANSWER Reflects relatively smaller commitments to overseas markets. Determines firms MNE status. Equity - ANSWER indicative of relatively larger, harder-to-reverse commitments. Determines firms MNE status. [Show More]

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