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

Section	Weight	Objectives
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. Porter's Diamond model 2. Strategic positions: Defender, Extender, Contender, Dodger
Global Finance and Monetary Systems	25%	- Balance of Payments and International Monetary System 1. Current account, capital account, official reserves 2. Fixed vs floating exchange rates, IMF, World Bank - Foreign Exchange Markets 1. Hedging and risk management 2. Exchange rate determination, currency regimes
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. New view, Evolutionary view, Pendulum view 2. Drivers and consequences of globalization
International Trade Theory and Policy	25%	- Trade Policies and Barriers 1. Tariffs, quotas, subsidies, embargoes 2. Economic integration: EU, USMCA, ASEAN - Classical and Modern Trade Theories 1. Heckscher-Ohlin, Product life-cycle, Strategic trade theory 2. Absolute advantage, Comparative advantage
Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. Fiscal and monetary policy impacts 2. GDP, inflation, unemployment, business cycles

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2026 WGU Global-Economics-for-Managers: Latest WGU Global Economics for Managers (C211, UZC2) Exam Reference

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q96-Q101):

NEW QUESTION # 96
Which statements concerning property rights are true? (Choose TWO.)

A. Property rights are the legal rights regarding the use of an economic resource and for deriving income and benefits from it.
B. The primary purpose of establishing property rights is to provide economic benefit to society as a whole.
C. Developing countries can achieve economic growth even without securing property rights.
D. Securing property rights results in industries that employ little fixed capital and avoid long-term investment.
E. Protection of property rights is commonly recognized as a major factor in allowing developing countries to make gains toward economic progress.
F. Insecure property rights bode well in global competition where firms benefit from economies of scale and sustained R&D.

Answer: A,E

Explanation:
InGlobal Economics for Managers, property rights are fundamental to economic development and global competitiveness, making optionsC and Fthe correct answers.
Option F correctly definesproperty rightsas the legal rights governing the use of an economic resource and the ability to derive income and benefits from it. These rights specify ownership, control, transferability, and enforcement, providing clarity and predictability for economic actors.
Option C is also correct becauseprotection of property rights is widely recognized as a key driver of economic progress, especially in developing countries. Secure property rights encourage investment, innovation, and long-term planning by reducing the risk of expropriation or misuse. Firms are more willing to invest in capital-intensive production and research and development when their assets and returns are legally protected.
Option A is incorrect because secure property rights encourage-not discourage-long-term investment and capital-intensive industries. Option B is incorrect because insecure property rights undermine economies of scale and R&D by increasing uncertainty. Option D contradicts extensive evidence showing that weak property rights constrain sustainable growth. Option E is partially normative but not emphasized as a core analytical statement in managerial economics texts.
Thus, options C and F accurately reflect the role and definition of property rights in global economics.

NEW QUESTION # 97
What is one of the four strategic goals of firms looking for potential locations?

A. Profit-seeking
B. Competition-seeking
C. Market-seeking
D. Scale-seeking

Answer: C

Explanation:
Market-seeking is one of the major strategic goals firms pursue when choosing international locations. A market-seeking firm enters or invests in a foreign location to access customers, expand sales, serve local demand, or improve proximity to consumers. Option D is correct because it is a recognized foreign direct investment motive. Firms may also pursue resource-seeking, efficiency-seeking, or strategic asset-seeking goals. Scale-seeking, profit-seeking, and competition-seeking may sound plausible, but they are not the standard location motives used in this framework. Managers evaluate market-seeking opportunities by examining market size, income levels, consumer preferences, growth potential, distribution infrastructure, and competitive intensity. This matters because the reason for entering a location affects entry mode, pricing, staffing, and long-term investment decisions.

NEW QUESTION # 98
What is true about forward transactions?

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

Answer: B

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 # 99
Which entrant is able to erect significant barriers for other entrants?

A. Dodger
B. First mover
C. Late mover
D. Contender

Answer: B

Explanation:
InGlobal Economics for Managers, afirst moveris a firm that enters a market early and is often able toerect significant barriers to entry, making option B correct.
First movers can secure scarce resources, establish strong brand recognition, achieve economies of scale, and set technological or industry standards. These advantages make it difficult for later entrants to compete effectively.
Late movers benefit from reduced uncertainty but rarely control key assets. Contenders and dodgers are strategic responses to multinational enterprises, not timing-based entry categories.
Therefore, option B correctly identifies the entrant most capable of erecting significant entry barriers.

NEW QUESTION # 100
What is one characteristic of a market surplus?

A. Quantity supplied exceeds quantity demanded
B. There is upward pressure on price
C. Quantity demanded exceeds quantity supplied
D. Price is below equilibrium

Answer: A

Explanation:
InGlobal Economics for Managers, amarket surplusoccurs whenquantity supplied exceeds quantity demanded, making option B correct.
Surpluses typically arise when prices are set above the equilibrium level. At higher prices, producers supply more while consumers demand less, creating excess supply. Market forces then place downward pressure on prices until equilibrium is restored.
Options A and C describe shortages. Option D may be true in some cases but is not the defining characteristic.
Thus, option B correctly defines a market surplus.

NEW QUESTION # 101
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