WGU C211 Global Economics for Managers Exam Questions and Correct Answers
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4. Which political view of foreign direct investment (FDI) is most widely used by governments in the current international business environment?
Radicalism Protectionism Communism nationalism
5. Which factors predict the degree of rivalry between a pair of competitors? 2 choices Market commonality Cost structure Resource similarity Organizational structure
6. Which factors predicts how local firms in emerging economics will respond to multinational competitors? Competitive assets and industry pressures to globalize
Formal and informal institutions Market dominance and market fragmentation Cooperation and signaling
7. During which stage of the product life cycle do sales and profits gradually increase before seeing more dramatic increases?
Introduction Maturity Growth Decline
8. Which factor determines the foreign exchange rate any currency? Universal trade of the currency Supply and demand for the currency The age of the currency
Business economics of the currency
9. Which risk must a corporation minimize if it is to effectively manage short-term currency fluctuations? Beta risk Hedging
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