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WGU Global-Economics-for-Managers Exam Syllabus Topics:

Section	Weight	Objectives
Foundations of Global Economics	20%	- Views on Globalization 1. New view, Evolutionary view, Pendulum view 2. Drivers and consequences of globalization - Economic Systems and Institutions 1. Political, legal, and cultural frameworks 2. Market, command, and mixed economies
Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. Fiscal and monetary policy impacts 2. GDP, inflation, unemployment, business cycles
Global Finance and Monetary Systems	25%	- Foreign Exchange Markets 1. Exchange rate determination, currency regimes 2. Hedging and risk management - Balance of Payments and International Monetary System 1. Fixed vs floating exchange rates, IMF, World Bank 2. Current account, capital account, official reserves
International Trade Theory and Policy	25%	- Classical and Modern Trade Theories 1. Absolute advantage, Comparative advantage 2. Heckscher-Ohlin, Product life-cycle, Strategic trade theory - Trade Policies and Barriers 1. Tariffs, quotas, subsidies, embargoes 2. Economic integration: EU, USMCA, ASEAN
Foreign Direct Investment and Global Strategy	20%	- Foreign Direct Investment (FDI) 1. Location advantages and entry modes 2. Theories of FDI, costs and benefits - Global Business Strategy 1. Porter's Diamond model 2. Strategic positions: Defender, Extender, Contender, Dodger

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q55-Q60):

NEW QUESTION # 55
Which effect does increased government spending have on aggregate demand if the multiplier effect is greater than the crowding-out effect?

A. Aggregate demand increases by more than the increase in government spending.
B. Aggregate demand decreases by less than the increase in government spending.
C. Aggregate demand decreases by more than the increase in government spending.
D. Aggregate demand increases by less than the increase in government spending.

Answer: A

Explanation:
In Global Economics for Managers , when the multiplier effect exceeds the crowding-out effect , increased government spending causes aggregate demand (AD) to rise by more than the initial increase in spending
, making option A correct.
The multiplier effect occurs because government spending generates income, which leads to further consumption. Crowding out occurs when government borrowing raises interest rates and reduces private investment. If the multiplier is stronger, the net effect is an amplified increase in AD.
Thus, option A is correct.

NEW QUESTION # 56
Which company has a natural resource-seeking strategic goal?

A. A company searching for a location with advanced technology clusters
B. A company searching for a location where there is an abundance of oil
C. A company searching for a location where labor costs are low
D. A company searching for a location with a large consumer market

Answer: B

Explanation:
In Global Economics for Managers , a natural resource-seeking strategy refers to firms that engage in foreign direct investment to access specific natural resources that are unavailable or costly in their home country. Option C correctly reflects this motive.
Companies in industries such as oil, gas, mining, agriculture, and timber often locate operations where resources are naturally abundant. The primary objective is to secure reliable and cost-effective access to essential inputs for production.
Option A describes a cost-seeking strategy, option B a market-seeking strategy, and option D a strategic asset- seeking strategy.
Thus, option C correctly identifies a natural resource-seeking strategic goal.

NEW QUESTION # 57
What are characteristics of a market economy? (Choose TWO.)

A. It found a near ideal in China and the former Soviet Union during communism.
B. It is characterized by the "invisible hand" of market forces.
C. Factors of production are government-owned or state-owned.
D. It is defined by a government taking the authoritative role in the economy.
E. Supply, demand, and pricing are planned by the government.
F. It was first noted by Adam Smith inThe Wealth of Nationsin 1776.

Answer: B,F

Explanation:
InGlobal Economics for Managers, amarket economyis characterized by decentralized decision making and reliance on market forces, making optionsB and Ecorrect.
Option B is correct becauseAdam Smith, inThe Wealth of Nations(1776), laid the intellectual foundation for market economies. He argued that individuals pursuing their own self-interest unintentionally promote the overall welfare of society.
Option E correctly identifies the"invisible hand", a central concept in market economies. Prices, supply, and demand coordinate economic activity without centralized planning. Firms decide what to produce based on profitability, and consumers decide what to buy based on preferences and prices.
Options A, C, D, and F describecommand economies, where governments control production, pricing, and resource ownership-characteristics inconsistent with market economies.
Thus, B and E accurately describe defining features of a market economy.

NEW QUESTION # 58
Which statement is a description of theocratic law?

A. It is a legal system based on religious teachings and dogma.
B. It is a legal system that is the oldest, most influential, and most widely distributed in the world.
C. It is a legal system that is shaped by precedents and traditions from previous judicial decisions.
D. It is a legal system that uses comprehensive statutes and codes as a primary means to form legal judgments.

Answer: A

Explanation:
InGlobal Economics for Managers,theocratic lawis defined as a legal systembased on religious teachings and dogma, making option A the correct answer. In this system, religious authorities interpret and enforce laws derived from sacred texts, and there is little separation between religion and the state.
Theocratic legal systems are typically found in countries where religion plays a central role in governance.
Laws governing personal behavior, business practices, family matters, and social conduct are often derived directly from religious doctrine. For managers, this means that compliance requires not only legal understanding but also sensitivity to religious norms and values.
Option B describescivil law, which is widely used around the world. Option C also refers to civil law, emphasizing codified statutes. Option D describescommon law, which relies on judicial precedents and case law.
Global Economics for Managershighlights that theocratic law can create unique challenges for multinational firms, particularly when religious principles conflict with international business norms or corporate policies.
Understanding the nature of the legal system is therefore essential for risk assessment and strategic planning.
Thus, option A accurately describes theocratic law.

NEW QUESTION # 59
What is an example of a company that is market-seeking?

A. A company searching for a location where a specific type of plastic is low-cost and readily available
B. A company searching for a location where there is a high interest in camping supplies
C. A company searching for a location where the cost of unskilled labor is low
D. A company searching for a location where rocks and minerals can be mined

Answer: B

Explanation:
In Global Economics for Managers , a market-seeking company is one that invests in or enters a foreign location primarily to serve local or regional customers , making option C the correct answer. Market- seeking behavior is driven by demand-side considerations rather than cost or resource availability.
Option C describes a firm searching for a location where there is high consumer interest in camping supplies , which directly reflects a desire to access and serve a specific market. Such firms are motivated by factors like market size, growth potential, consumer preferences, and proximity to customers. Market-seeking firms often establish foreign subsidiaries, sales offices, or production facilities to adapt products to local tastes and respond quickly to demand.
Option A describes a resource-seeking firm, focused on obtaining low-cost or specialized inputs. Option B also reflects resource-seeking behavior, specifically in extractive industries. Option D describes a cost- seeking (efficiency-seeking) firm that locates production in regions with low labor costs.
Global Economics for Managers classifies foreign direct investment motives into market-seeking, resource- seeking, efficiency-seeking, and strategic asset-seeking. Market-seeking investment is particularly common in consumer goods and service industries, where understanding local preferences is critical for success.
For managers, recognizing market-seeking motives helps guide decisions about location, marketing strategy, and product adaptation. Thus, option C accurately illustrates a market-seeking company.

NEW QUESTION # 60
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