WGU C211 Global Economics for Managers Final Exam | Questions and Verified Answers| 100% Correct (Latest 2023/ 2024) Grade A
WGU C211 Global Economics for Managers
Final Exam | Questions and Verified
Answers| 100% Correct (Latest 2023/ 2024)
Grade A
Q: What are the critical features of the product life cycle?
Answer:
An economic theory that accounts for changes in the patterns of trade over time
Q: How would you describe strategic trade?
Answer:
A theory that suggests that strategic intervention by governments in certain industries can
enhance their odds for international success
Q: How are supply and demand related to the exchange rate of a country?
Answer:
Exchange rates rise and fall based on the underlying economic conditions that prompt traders,
investors and others to want more of a particular currency.
Q: Which theory came first, mercantilism or modern-day protectionism?
Answer:
Mercantilism: As protectionism is the idea that governments should protect domestic industries
from imports & vigorously promote exports
Q: If a company seeks to limit foreign exchange rate exposure in the forward direction, what is
the most effective way to do this?
Answer:
This can be accomplished by hedging
Q: Explain the concept of “hedging” as it relates to reducing various types of risk.
Answer:
Strategies or Tools used =Hedging
Risk associated with =Transaction risks
They use hedging to minimize transaction risks
Q: What is transaction risk?
Answer:
The Risk that a company will incur losses due to an adverse change in the relevant foreign
exchange rate
Q: Strategic hedging
Answer:
spreading out actives in a number of different currency zones to offset any currency losses in one
region through gains in another region.
Q: currency hedging
Answer:
A transaction that protects traders and investors from exposure to the fluctuations of the spot
rate.
Q: What advantages exist with first mover?
Answer:
1-They gain advantage through proprietary technology
2-They make pre-emptive investments
3-They erect significant entry barriers for late entrants, such as high switching cost due to
locality
4- They may build relationships with key stake holders (customers & governments)
Q: What advantages exist with late mover?
Answer:
1-Late movers can free-ride on first movers pioneering investments
2-First movers face technological & market uncertainties
3-First movers may be locked into a given set of fixed assets
Q: Consider the model of foreign market entries. How is scale-of-entry related/relevant?
Answer:
- First mover advantages and large scale are linked
- Small scale entry means learning at low risk
- Entry in small or large potential market may require the same level of initial resources
Q: How do institutions reduce uncertainty?
Answer:
by constraining
the range of acceptable actions
Q: Regulatory pillar
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