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

SectionWeightObjectives
Macroeconomics for Managers10%- Economic Indicators and Policies
  • 1. Fiscal and monetary policy impacts
  • 2. GDP, inflation, unemployment, business cycles
International Trade Theory and Policy25%- Classical and Modern Trade Theories
  • 1. Heckscher-Ohlin, Product life-cycle, Strategic trade theory
  • 2. Absolute advantage, Comparative advantage
- Trade Policies and Barriers
  • 1. Tariffs, quotas, subsidies, embargoes
  • 2. Economic integration: EU, USMCA, ASEAN
Foreign Direct Investment and Global Strategy20%- 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
Foundations of Global Economics20%- Economic Systems and Institutions
  • 1. Political, legal, and cultural frameworks
  • 2. Market, command, and mixed economies
- Views on Globalization
  • 1. Drivers and consequences of globalization
  • 2. New view, Evolutionary view, Pendulum view
Global Finance and Monetary Systems25%- Foreign Exchange Markets
  • 1. Exchange rate determination, currency regimes
  • 2. Hedging and risk management
- Balance of Payments and International Monetary System
  • 1. Fixed vs floating exchange rates, IMF, World Bank
  • 2. Current account, capital account, official reserves

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q97-Q102):

NEW QUESTION # 97
Which entrant is able to erect significant barriers for other entrants?

Answer: A

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 # 98
What are examples of equity modes of entry? (Choose THREE.)

Answer: B,C,E

Explanation:
InGlobal Economics for Managers,equity modes of entryinvolve ownership stakes in foreign operations.
Strategic alliances,greenfield investments, andacquisitionsall require equity participation, making options A, B, and C correct.
Strategic alliances often involve shared ownership and joint decision-making. Greenfield investments require firms to build new facilities from scratch, while acquisitions involve purchasing existing foreign firms.
Licensing and franchising are non-equity contractual modes.
Therefore, options A, B, and C correctly identify equity modes of entry.


NEW QUESTION # 99
Direct exports have which advantage?

Answer: C

Explanation:
InGlobal Economics for Managers,direct exportingallows firms tocapitalize on economies of scale in production in the home country, making option B correct.
By concentrating production domestically, firms can achieve lower average costs, maintain quality control, and leverage existing facilities and expertise. Direct exporting avoids the fixed costs of establishing foreign production facilities.
Options A, C, and D are incorrect because exporting typically involves transportation costs, limited distribution control, and exposure to exchange rate risk.
Thus, option B correctly identifies a key advantage of direct exporting.


NEW QUESTION # 100
A country has seen an increase in inflation. What is the effect on the country's currency exchange rate?

Answer: D

Explanation:
An increase in inflation generally reduces the value of a country's currency relative to other currencies.
Higher inflation lowers purchasing power because domestic goods and services become more expensive compared with foreign alternatives. As the country's exports become less competitive and imports become relatively more attractive, demand for the domestic currency tends to fall. Under purchasing power parity logic, currencies of countries with higher inflation tend to depreciate over time. Option D is therefore correct.
Option B is incorrect because currency appreciation is more commonly associated with lower inflation, higher productivity, or higher real interest rates. Option A is too rigid because inflation is one of the major determinants of exchange-rate movement. Option C is weaker than D because the expected direction is depreciation.


NEW QUESTION # 101
What is true about tariffs?

Answer: A

Explanation:
InGlobal Economics for Managers, tariffs are recognized as a policy tool thatallows governments to raise revenue, making option C correct.
Tariffs generate revenue by taxing imported goods. While domestic producers may benefit and governments gain revenue, consumers lose due to higher prices and reduced choices. Tariffs also create deadweight loss, reducing overall economic efficiency.
Options A, B, and D contradict standard trade theory.
Therefore, option C is correct.


NEW QUESTION # 102
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