WGU C211 Global Economics for Managers Exam 1 (Latest 2023 - 2024) New Full Exam Questions and Answers ( Included ) 100% Correct

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1. Explain the New, Evolutionary, and Pendulum views of Globalization. Howdo these differ from one another? Answer: New globalization is a new force sweeping through the world in recent times. Pe... ndulum globalization is a pendulum that swings from one extreme to the the other from time to time. Evolutionary globalization is a long historical evolution since the dawn of human history. 2. What is Foreign Direct Investment? Answer: Investment in controlling and managingvalue-added activities in other countries. 3. What different political views exist on FDI? Answer: Radical - hostile to FDI, rootsto Marxism, treates FDI as an instrument of imperialism and as a vehicle for exploitation of domestic resources by foreign capitalists and firms. Free Market - suggests that FDI unrestricted by government intervention will enable countries to tap into their absolute comparative advantages by specializingin the production of certain goods and services.. win-win logic FDI friendly policesBrazil, China, Hungary, India, Ireland, Russia. Pragmatic Nationalism - Practiced by most countries.Viewing FDI as having both pros and cons and only aprroving FDI when its benefits outweigh costs. 4. What benefits exist to a country receiving FDI? Answer: Capital inflow - can helpimprove a host country's balance of payments Technology - can create technology spillovers that benefit domestic firms and industries Advanced managment - know-how may be highly valued. FDI creates jobs both directly and indirectly. Direct benefits arise when MNEs em- ploy individuals locally. Indirect benefits include jobs created when local suppliers increase hiring and when MNE employees spend money locally resulting in more jobs. Repatriated earnings from profits from FDI. Increased exports of components and services to host countries. Learning via FDI from operations abroad. [Show More]

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