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

Section	Weight	Objectives
Topic 1: 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
Topic 2: Global Finance and Monetary Systems	25%	- Balance of Payments and International Monetary System 1. Fixed vs floating exchange rates, IMF, World Bank 2. Current account, capital account, official reserves - Foreign Exchange Markets 1. Exchange rate determination, currency regimes 2. Hedging and risk management
Topic 3: Foreign Direct Investment and Global Strategy	20%	- Foreign Direct Investment (FDI) 1. Theories of FDI, costs and benefits 2. Location advantages and entry modes - Global Business Strategy 1. Strategic positions: Defender, Extender, Contender, Dodger 2. Porter's Diamond model
Topic 4: Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. Fiscal and monetary policy impacts 2. GDP, inflation, unemployment, business cycles
Topic 5: 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. Market, command, and mixed economies 2. Political, legal, and cultural frameworks

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q133-Q138):

NEW QUESTION # 133
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 customized to home markets.
B. There is low industry pressure to globalize, and competitive assets are transferable abroad.
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: A

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 # 134
Which GDP component is affected when a parent pays for a child's college education?

A. Net exports
B. Investment
C. Consumption
D. Government purchases

Answer: C

Explanation:
A parent paying for a child's college education is counted in the consumption component of GDP. Option C is correct because consumption includes household spending on goods and services, including education services purchased by individuals or families. GDP is commonly divided into consumption, investment, government purchases, and net exports. Investment refers to business capital spending, inventory changes, and residential construction, not ordinary household education payments. Government purchases would apply if the government directly purchased goods or services, not when a private parent pays tuition. Net exports involve exports minus imports and are unrelated to a domestic household education payment. For managers, understanding GDP components matters because consumption is usually the largest part of GDP and reflects household demand conditions.

NEW QUESTION # 135
What measures how the quantity demanded of one good responds to a change in the price of another good?

A. Cross-price elasticity of demand
B. Price elasticity of demand
C. Equilibrium elasticity of demand
D. Quantity elasticity of demand

Answer: A

Explanation:
Cross-price elasticity of demand measures how the quantity demanded of one good changes in response to a price change in another good. Option A is correct because this concept identifies whether goods are substitutes or complements. If cross-price elasticity is positive, the goods are substitutes; when the price of one rises, demand for the other increases. For example, if coffee becomes more expensive, demand for tea may rise. If cross-price elasticity is negative, the goods are complements; when the price of one rises, demand for the other falls. For example, if printers become more expensive, demand for printer cartridges may decline. Price elasticity of demand measures responsiveness to the good's own price, not another good's price.
The other options are not standard terms.

NEW QUESTION # 136
What happens when the Federal Reserve increases the money supply?

A. The aggregate demand curve shifts to the left
B. The aggregate supply curve shifts to the right
C. The aggregate demand curve shifts to the right
D. The aggregate supply curve shifts to the left

Answer: C

NEW QUESTION # 137
What are features shared by monopolies and perfect competition? (Choose TWO.)

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

Answer: A,F

Explanation:
In Global Economics for Managers , monopolies and perfectly competitive firms share two important features: profit maximization at MR = MC and the ability to earn economic profits in the short run , making options E and F correct.
Option E applies universally: all firms maximize profit where marginal 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 structures can 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 # 138
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