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

Section	Weight	Objectives
Topic 1: Foundations of Global Economics	20%	- Economic Systems and Institutions 1. Political, legal, and cultural frameworks 2. Market, command, and mixed economies - Views on Globalization 1. Drivers and consequences of globalization 2. New view, Evolutionary view, Pendulum view
Topic 2: Global Finance and Monetary Systems	25%	- Foreign Exchange Markets 1. Hedging and risk management 2. Exchange rate determination, currency regimes - Balance of Payments and International Monetary System 1. Current account, capital account, official reserves 2. Fixed vs floating exchange rates, IMF, World Bank
Topic 3: 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
Topic 4: Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. GDP, inflation, unemployment, business cycles 2. Fiscal and monetary policy impacts
Topic 5: 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

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q56-Q61):

NEW QUESTION # 56
What are features shared by monopolies and perfect competition? (Choose TWO.)

A. Firms earn economic profits in the short run.
B. The structure does not produce the welfare-maximizing level of output.
C. Price is greater than marginal cost.
D. In the long run, it is nearly impossible for new firms to enter.
E. In the long run, new firms can easily enter the market.
F. Maximum profit occurs when marginal revenue equals marginal cost.

Answer: A,F

Explanation:
InGlobal Economics for Managers, monopolies and perfectly competitive firms share two important features:
profit maximization at MR = MCand the ability toearn economic profits in the short run, making options E and F correct.
Option E applies universally: all firms maximize profit wheremarginal revenue equals marginal cost, regardless of market structure. This decision rule guides output choices in both monopoly and perfect competition.
Option F is also correct because firms in both structurescan earn economic profits in the short run. In perfect competition, short-run profits attract new entrants, while monopolies may sustain profits longer due to entry barriers.
Options A and B distinguish the two structures. Option C applies only to monopoly. Option D applies only to monopoly, not perfect competition.
Thus, options E and F correctly identify shared features.

NEW QUESTION # 57
What is the bandwagon effect?

A. The movement of investors in the same direction at the same time
B. Investors moving independently based on private information
C. Government intervention to stabilize markets
D. The tendency of prices to return to equilibrium

Answer: A

Explanation:
In Global Economics for Managers, the bandwagon effect refers to the movement of investors in the same direction at the same time, making option B correct. This phenomenon occurs when individuals follow the actions of others rather than relying solely on their own information or analysis.
The bandwagon effect is common in financial markets, particularly during asset bubbles or currency crises.
As more investors buy or sell an asset, others follow, reinforcing the trend regardless of underlying fundamentals. This herd behavior can amplify volatility and lead to mispricing.
Options A, C, and D do not describe collective investor behavior.
Thus, option B correctly defines the bandwagon effect.

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

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

Answer: D

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 true about forward transactions?

A. They convert one currency into another at one time with an agreement to revert it back at another time in the future.
B. They allow traders to sell currency holdings at an exchange rate in the past.
C. They allow participants to buy and sell currencies now for future delivery.
D. They are the classic single-shot exchange of one currency for another.

Answer: C

Explanation:
Forward transactions are foreign exchange contracts in which two parties agree today to exchange currencies at a specified rate on a future date. Option A is correct because the transaction terms are set now, but delivery occurs later. Managers use forward transactions to reduce exchange-rate uncertainty when they expect to receive or pay foreign currency in the future. Option B describes a spot transaction, where currencies are exchanged immediately or within a very short settlement period. Option C describes a swap transaction, which combines an exchange now with a reverse exchange later. Option D is incorrect because forward transactions do not allow trading at a past exchange rate. They lock in a future exchange rate based on current agreement.

NEW QUESTION # 60
In which situation is the dodger strategy appropriate for responding to multinational enterprises (MNEs)?

A. There is low industry pressure to globalize, and competitive assets are transferable abroad.
B. There is low industry pressure to globalize, and competitive assets are customized to home markets.
C. There is high industry pressure to globalize, and competitive assets are customized to home markets.
D. There is high industry pressure to globalize, and competitive assets are transferable abroad.

Answer: B

Explanation:
InGlobal Economics for Managers, thedodger strategyis appropriate whenindustry pressure to globalize is low and a firm's competitive assets are customized to its home market, making option D correct.
Under this strategy, firms avoid direct confrontation with multinational enterprises by focusing on niche markets, specialized products, or protected domestic segments. Since globalization pressure is weak, firms are not forced to expand internationally, and their localized assets give them an advantage at home.
Dodgers may also cooperate selectively with MNEs or operate in areas where global competition is limited.
This strategy minimizes risk and preserves firm-specific advantages without costly global expansion.
Options A and B align with extender strategies. Option C aligns with contender strategies.
Thus, option D correctly identifies when the dodger strategy is appropriate.

NEW QUESTION # 61
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