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

Section	Weight	Objectives
International Trade Theory and Policy	25%	- Classical and Modern Trade Theories 1. Heckscher-Ohlin, Product life-cycle, Strategic trade theory 2. Absolute advantage, Comparative advantage - Trade Policies and Barriers 1. Economic integration: EU, USMCA, ASEAN 2. Tariffs, quotas, subsidies, embargoes
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. New view, Evolutionary view, Pendulum view 2. Drivers and consequences of globalization
Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. GDP, inflation, unemployment, business cycles 2. Fiscal and monetary policy impacts
Foreign Direct Investment and Global Strategy	20%	- Global Business Strategy 1. Strategic positions: Defender, Extender, Contender, Dodger 2. Porter's Diamond model - Foreign Direct Investment (FDI) 1. Location advantages and entry modes 2. Theories of FDI, costs and benefits
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

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q59-Q64):

NEW QUESTION # 59
A country has experienced a decrease in inflation. What is the effect on the country's currency exchange rate?

A. It increases
B. It depreciates
C. It becomes unstable
D. It has no effect

Answer: A

NEW QUESTION # 60
In which situation is the contender 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 high 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 low industry pressure to globalize, and competitive assets are customized to home markets.

Answer: C

Explanation:
InGlobal Economics for Managers, thecontender strategyis appropriate whenindustry pressure to globalize is high, but competitive assets are customized to home markets, making option B correct. This strategy is typically adopted by domestic firms facing strong competition from multinational enterprises (MNEs) in industries that are becoming increasingly global.
High pressure to globalize means that firms must compete on an international scale, often due to global customers, standardized products, or strong foreign competitors. However, when a firm's competitive assets- such as brand reputation, customer relationships, distribution networks, or regulatory knowledge-are deeply rooted in the home market, they are not easily transferable abroad. In this situation, the firm cannot immediately expand internationally without losing its competitive advantage.
Under a contender strategy, firms focus ondefending and strengthening their domestic positionwhile gradually upgrading capabilities to prepare for future global competition. This may involve improving efficiency, investing in technology, forming selective alliances, or learning from foreign competitors operating in the home market.
Option A describes conditions suitable for anextender strategy, where firms can leverage transferable assets internationally. Options C and D reflect low pressure to globalize and are more consistent with defender or dodger strategies rather than contender behavior.
Therefore, option B best captures the conditions under which the contender strategy is applied in response to MNE competition.

NEW QUESTION # 61
What is true about gross domestic product (GDP)?

A. Its year-to-year percentage change represents the inflation rate.
B. It places heavier weight on intangible services than tangible goods.
C. It includes the income of citizens working abroad.
D. It is thought to be the single best measure of a society's economic well-being.

Answer: D

Explanation:
InGlobal Economics for Managers,gross domestic product (GDP)is widely regarded asthe single best available measure of a society's economic well-being, making option A correct. GDP measures the total market value of all final goods and services produced within a country's borders during a given period.
Although GDP has limitations-it does not account for income distribution, environmental degradation, or non-market activities-it remains the most comprehensive and consistent indicator of economic performance across countries and over time.
Option B is incorrect because inflation is measured by price indices such as the GDP deflator or the consumer price index (CPI), not by GDP growth. Option C is incorrect because GDP values goods and services at market prices without weighting one more heavily than the other. Option D is incorrect because GDP excludes income earned by citizens working abroad; that income is included in gross national income (GNI), not GDP.
Global Economics for Managersemphasizes that GDP is particularly useful for comparing economic output and living standards internationally, especially when adjusted for purchasing power parity.
Thus, option A correctly describes GDP.

NEW QUESTION # 62
Which strategy for responding to multinational enterprises is appropriate in a situation in which there is low industry pressure to globalize and competitive assets are customized to home markets?

A. Responder strategy
B. Retainer strategy
C. Contender strategy
D. Defender strategy

Answer: D

Explanation:
The defender strategy is appropriate when industry pressure to globalize is low and the firm's competitive assets are customized to the home market. In this situation, the firm does not face strong pressure to expand globally, and its strengths are mainly local, such as domestic customer relationships, local distribution knowledge, local brand reputation, or familiarity with national regulations. Option C is correct because a defender focuses on protecting its home-market position by exploiting local advantages that multinational enterprises may find difficult to copy. A contender strategy fits high globalization pressure with home-market- customized assets. An extender strategy would involve using transferable capabilities abroad, and a dodger strategy usually involves cooperating with or selling to multinational firms when pressure is high and assets are weak. Therefore, defender is the correct response.

NEW QUESTION # 63
Which term best describes an economic condition in which a nation exports more than it imports?

A. Trade deficit
B. Trade surplus
C. Resource mobility
D. Mercantilism

Answer: B

Explanation:
A trade surplus occurs when a country exports more goods and services than it imports during a given period.
This means foreign buyers purchase more from the country than the country purchases from abroad. Option A is correct because it accurately describes a positive balance of trade. A trade deficit is the opposite condition, where imports exceed exports. Mercantilism is an older trade theory that emphasized accumulating wealth through exports and limiting imports, but it is not the term for the actual trade-balance condition. Resource mobility refers to the ability of labor, capital, or other resources to move from one use or industry to another.
For managers, trade surpluses can affect currency strength, export opportunities, and international competitiveness.

NEW QUESTION # 64
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