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| Section | Weight | Objectives |
|---|
| 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
|
| Macroeconomics for Managers | 10% | - Economic Indicators and Policies
- 1. GDP, inflation, unemployment, business cycles
- 2. Fiscal and monetary policy impacts
|
| 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. Fixed vs floating exchange rates, IMF, World Bank
- 2. Current account, capital account, official reserves
|
| Foreign Direct Investment and Global Strategy | 20% | - Global Business Strategy
- 1. Porter's Diamond model
- 2. Strategic positions: Defender, Extender, Contender, Dodger
- Foreign Direct Investment (FDI)
- 1. Location advantages and entry modes
- 2. Theories of FDI, costs and benefits
|
| 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
|
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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q60-Q65):
NEW QUESTION # 60
What is a characteristic of common law as compared to civil law?
- A. Common law relies primarily on comprehensive statutes and codes.
- B. Common law is more reliant on precedents from previous judicial decisions.
- C. Common law minimizes the role of judges.
- D. Common law is based on religious teachings.
Answer: B
Explanation:
InGlobal Economics for Managers,common lawsystems are distinguished by their heavy reliance onjudicial precedents, making option B correct. Under common law, judges interpret and apply the law by referring to outcomes of prior court cases. These precedents guide future rulings and allow the legal system to evolve incrementally over time.
This contrasts withcivil lawsystems, which emphasize comprehensive legal codes and statutes enacted by legislatures. In civil law countries, judges apply written laws more strictly and have less discretion to create legal interpretations based on prior cases.
For managers, the distinction matters because common law systems often provide greater flexibility and adaptability but may also involve higher legal uncertainty and litigation costs. Civil law systems offer clearer rules but less flexibility.
Thus, option B correctly identifies a defining characteristic of common law.
NEW QUESTION # 61
Which statement about the GDP deflator is true?
- A. It follows a nearly strict decreasing pattern from a base year.
- B. It is a more reliable indicator of economic well-being than real GDP.
- C. Its percentage change from one year to the next is the inflation rate.
- D. It includes fewer core economic measurements than GDP.
Answer: C
NEW QUESTION # 62
What is a characteristic of a market economy?
- A. It gives the government the primary authoritative role in the economy.
- B. It leaves the planning of supply, demand, and pricing to the government.
- C. It is in place in most of the world's countries.
- D. It emphasizes private ownership of all factors of production.
Answer: D
Explanation:
A market economy emphasizes private ownership of the factors of production and relies on decentralized decision making by consumers and firms. Option D is correct because private ownership is one of the defining features of market-based systems. In a market economy, prices are primarily determined by supply and demand rather than direct government planning. Firms decide what to produce based on profitability, and consumers decide what to buy based on preferences and income. Option B describes a command economy, where government has the primary authoritative role. Option C is also command-economy logic because supply, demand, and pricing are centrally planned. Option A is too broad and inaccurate because most real- world economies are mixed economies, not pure market economies.
NEW QUESTION # 63
Barriers to entry help to create monopolies. What is a common type of barrier?
- A. Progressive tax structures
- B. Economies of scale in the production process
- C. Elastic demand curves
- D. A firm purchasing competitors
Answer: B
Explanation:
Economies of scale are a common barrier to entry that can help create monopoly power. Option D is correct because when average costs decline as output increases, a large established firm may produce at a lower per- unit cost than potential entrants. New firms entering at small scale may be unable to match the incumbent's cost advantage, making entry unattractive or impossible. This is especially important in industries with high fixed costs, such as utilities, railways, telecommunications infrastructure, and large-scale manufacturing.
Option A may reduce competition, but it is not the standard structural barrier described here. Elastic demand curves do not block entry. Progressive tax structures are tax systems, not typical monopoly barriers.
Economies of scale are one of the classic reasons monopolies can persist.
NEW QUESTION # 64
Which statement characterizes an institution-based view of global business?
- A. Institutions, not firms, are the sole factor in explaining individual behavior.
- B. Financial motivations are excluded from consideration in explaining the interactions between institutions and firms.
- C. Firm behaviors are the outcome of interactions between institutions and firms.
- D. Government regulations are the primary driver of institutional change.
Answer: C
Explanation:
The institution-based view of global business argues that firm behavior and strategy are shaped by the interaction between firms and institutions. Option A is correct because it captures the central proposition:
firms do not make decisions in isolation; they operate within formal and informal institutional constraints.
Formal institutions include laws, regulations, property rights, and political systems. Informal institutions include norms, ethics, customs, and cultural expectations. These institutions reduce uncertainty and influence what strategies are acceptable, legitimate, and profitable. Option B is too narrow because institutions include more than government regulation. Option C is incorrect because firms still make strategic choices. Option D is wrong because financial motivations remain important, but they operate within institutional limits.
NEW QUESTION # 65
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