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

Section	Weight	Objectives
Topic 1: 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. Current account, capital account, official reserves 2. Fixed vs floating exchange rates, IMF, World Bank
Topic 2: Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. GDP, inflation, unemployment, business cycles 2. Fiscal and monetary policy impacts
Topic 3: International Trade Theory and Policy	25%	- Trade Policies and Barriers 1. Economic integration: EU, USMCA, ASEAN 2. Tariffs, quotas, subsidies, embargoes - Classical and Modern Trade Theories 1. Heckscher-Ohlin, Product life-cycle, Strategic trade theory 2. Absolute advantage, Comparative advantage
Topic 4: Foundations of Global Economics	20%	- Economic Systems and Institutions 1. Market, command, and mixed economies 2. Political, legal, and cultural frameworks - Views on Globalization 1. Drivers and consequences of globalization 2. New view, Evolutionary view, Pendulum view
Topic 5: 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 (Q83-Q88):

NEW QUESTION # 83
Which factors increase a country's currency exchange value? Choose two answers.

A. A fall in productivity
B. A fall in population
C. Political unrest
D. A rise in productivity
E. A rise in inflation
F. A rise in the interest rate

Answer: D,F

Explanation:
A country's currency exchange value tends to rise when economic conditions increase demand for that currency. Option A is correct because higher productivity improves competitiveness, lowers relative production costs, and can increase foreign demand for the country's goods and currency. Option B is also correct because higher interest rates can attract foreign capital seeking better returns, increasing demand for the domestic currency. A fall in productivity weakens competitiveness and can reduce currency value. A rise in inflation usually depreciates a currency because purchasing power falls. Political unrest also weakens investor confidence and can trigger capital flight. A fall in population does not automatically increase exchange value and may weaken long-term growth expectations. Therefore, productivity gains and higher interest rates are the best answers.

NEW QUESTION # 84
Which scenario most likely describes a late mover?

A. A company faces fewer market uncertainties.
B. A company gains advantage through proprietary technology.
C. A company makes preemptive investments.
D. A company is able to erect significant barriers for other entrants.

Answer: A

Explanation:
InGlobal Economics for Managers, alate moveris a firm that enters a market after early entrants and first movers, often benefiting from reduced uncertainty, making option D the correct answer. Late movers observe the successes and failures of pioneers and can adapt their strategies accordingly.
Option D correctly reflects this advantage: late moversface fewer market uncertaintiesbecause demand patterns, customer preferences, regulatory environments, and competitive dynamics are more clearly established. This allows them to avoid costly mistakes made by early entrants and adopt proven technologies or business models.
Option A, erecting significant barriers to entry, is typically associated withfirst moverswho gain early control over key resources or distribution channels. Option B, gaining advantage through proprietary technology, also aligns more closely with early or first movers. Option C, making preemptive investments, is a classic first- mover strategy aimed at discouraging later entrants.
Global Economics for Managersemphasizes that while late movers may lack early brand recognition, they can still succeed by entering with superior products, lower costs, or more efficient processes. For managers, understanding late-mover advantages helps in timing market entry decisions and assessing competitive risks.
Therefore, option D most accurately describes a late-mover scenario.

NEW QUESTION # 85
What is true about tariffs?

A. They lower the price of affected imported goods below the world price.
B. They increase the quantity of imports.
C. They encourage consumers to reduce their consumption.
D. They increase the domestic quantity demanded.

Answer: C

Explanation:
InGlobal Economics for Managers, atariffis defined as a tax imposed on imported goods, and one of its most direct and predictable effects is that itraises the domestic priceof the affected product. As a result, tariffs encourage consumers to reduce their consumption, making option C the correct answer.
When a tariff is applied, imported goods become more expensive relative to domestically produced alternatives. This price increase shifts consumer behavior: buyers either purchase fewer units overall or substitute toward domestic products or other alternatives. Because demand curves slope downward, higher prices lead to lower quantities demanded, which explains why consumer consumption falls after a tariff is imposed.
Option A is incorrect because tariffsreduce, not increase, the quantity of imports. Higher import prices discourage foreign suppliers and domestic buyers from trading. Option B is incorrect because domestic quantity demanded falls due to the higher price, even though domesticquantity suppliedmay rise. Option D is incorrect because tariffs raise the domestic priceabove, not below, the world price.
Global Economics for Managersemphasizes that tariffs redistribute economic surplus. Consumers lose surplus due to higher prices and reduced consumption. Domestic producers gain surplus because they face less foreign competition and can sell more at higher prices. Governments gain tariff revenue. However, these gains do not fully offset consumer losses, resulting indeadweight lossand reduced overall economic efficiency.
For managers, understanding the consumption-reducing effect of tariffs is essential when evaluating pricing strategies, demand forecasts, and market entry decisions in protected markets. Tariffs distort market signals and often provoke retaliation, further affecting global trade flows.
Therefore, option C accurately describes a true and fundamental effect of tariffs in international trade economics.

NEW QUESTION # 86
In order to increase the money supply, what does the Federal Reserve do?

A. Sells government bonds to the public
B. Raises the federal funds rate
C. Buys government bonds from the public
D. Increases reserve requirements

Answer: C

Explanation:
InGlobal Economics for Managers, the Federal Reserve increases the money supply primarily throughopen market operations, specifically bybuying government bonds from the public, making option C correct.
When the Fed purchases government securities, it pays banks and other sellers by crediting their reserves.
This action increases the amount of reserves in the banking system, enabling banks to extend more loans. As lending expands, the money supply grows through the money multiplier process.
Option A would decrease the money supply. Option B tightens monetary conditions. Option D reduces banks' ability to lend.
Managers should understand this mechanism because changes in the money supply affect interest rates, investment, exchange rates, and aggregate demand. Therefore, option C accurately describes how the Fed increases the money supply.

NEW QUESTION # 87
What are examples of fixed costs? (Choose TWO.)

A. A $1,000 state license fee to operate a shop
B. Cost of flour in bread production
C. Monthly internet cost in a women's apparel business
D. Cost of parts in computer manufacturing
E. Sales commissions

Answer: A,C

Explanation:
InGlobal Economics for Managers,fixed costsare costs that do not vary with the level of output in the short run, making optionsC and Dcorrect.
Option C, astate license fee, is fixed because it must be paid regardless of how much output is produced.
Option D,monthly internet service, is also fixed since the cost remains constant even if production rises or falls.
Options A, B, and E arevariable costsbecause they increase as output increases. Sales commissions depend on sales volume, flour usage depends on bread production, and parts costs rise with the number of devices produced.
Understanding fixed costs is essential for break-even analysis and short-run production decisions. Thus, C and D are correct.

NEW QUESTION # 88
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