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

Section	Weight	Objectives
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. Political, legal, and cultural frameworks 2. Market, command, and mixed economies
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. Exchange rate determination, currency regimes 2. Hedging and risk management
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%	- 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
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. Economic integration: EU, USMCA, ASEAN 2. Tariffs, quotas, subsidies, embargoes

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q117-Q122):

NEW QUESTION # 117
What happens when the Federal Reserve increases the money supply?

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

Answer: A

NEW QUESTION # 118
In an oligopoly with an initial agreement to maximize total profit, which statements might a firm motivated by self-interest likely make? (Choose THREE.)

A. "If my fellow firms live up to the agreement, I am better off raising production."
B. "I am better off reducing output below the agreed level."
C. "If my fellow firms fail to live up to the agreement and raise production, I am better off raising production myself."
D. "Regardless of what my fellow firms do, I am better off raising production beyond the agreed-to level."
E. "I should always cooperate, regardless of outcomes."

Answer: A,C,D

Explanation:
InGlobal Economics for Managers, oligopolies often face aprisoner's dilemma, making deviation from collusive agreements individually rational. Options A, B, and C correctly reflect this logic.
If others cooperate, cheating by increasing output raises individual profit. If others cheat, matching their behavior minimizes losses. Therefore, regardless of others' actions, raising output appears optimal.
Options D and E contradict self-interested incentives.
Thus, A, B, and C correctly capture oligopolistic behavior.

NEW QUESTION # 119
When confronting MNEs, the extender strategy centers on what?

A. Leveraging homegrown competencies abroad
B. Engaging in rapid learning and then expanding overseas
C. Cooperating through joint ventures (JVs) with MNEs and sell-offs to MNEs
D. Leveraging local assets in areas in which MNEs are weak

Answer: A

Explanation:
InGlobal Economics for Managers, theextender strategycenters onleveraging homegrown competencies abroad, making option A the correct answer. This strategy is typically adopted by firms whose competitive assets are strong and transferable across borders and that operate in industries with significant pressure to globalize.
Homegrown competencies may include proprietary technology, strong brands, efficient production processes, or superior managerial know-how developed in the domestic market. Under an extender strategy, firms take these existing strengths and apply them to foreign markets, often through exporting, licensing, franchising, or foreign direct investment. The goal is to extend the firm's competitive advantage beyond national borders without fundamentally altering its core business model.
Option B describes adodger or collaborator strategy, which emphasizes cooperation rather than independent expansion. Option C aligns more closely with adefender strategy, where firms rely on local advantages to resist foreign competition. Option D reflects elements of acontender strategy, where firms prioritize learning before expanding internationally.
The extender strategy is particularly effective when firms face global competitors but already possess assets that can be scaled internationally at relatively low cost. For managers, understanding this strategy is critical for deciding when and how to internationalize operations in response to MNE competition.
Thus, option A accurately reflects the central focus of the extender strategy as defined inGlobal Economics for Managers.

NEW QUESTION # 120
Which statement best summarizes the overall economic effect of tariffs?

A. They benefit consumers more than producers
B. They transfer surplus from consumers to producers and the government
C. They eliminate inefficiencies in global trade
D. They increase total economic surplus

Answer: B

Explanation:
InGlobal Economics for Managers, tariffs are shown toredistribute economic surplus, making option C correct. When a tariff is imposed, consumers lose surplus due to higher prices, while domestic producers gain surplus and the government collects tariff revenue.
However, the gains to producers and government do not fully offset consumer losses, resulting in deadweight loss. Thus, tariffs reduce total economic welfare even though certain groups benefit.
Options A, B, and D are incorrect.
Therefore, option C accurately summarizes the overall economic effect of tariffs.

NEW QUESTION # 121
The marginal revenue from producing a smartphone is $200, and the marginal cost is $150. What is the best action for the firm?

A. Pause production
B. Exit the market altogether
C. Increase production
D. Decrease production

Answer: C

Explanation:
InGlobal Economics for Managers, profit-maximizing firms shouldincrease production when marginal revenue (MR) exceeds marginal cost (MC), making option A correct.
Here, MR = $200 and MC = $150. Since the additional revenue from producing one more unit exceeds the additional cost, producing that unit increases profit. Firms should continue increasing output until MR equals MC.
Options B, C, and D contradict the marginal decision rule. Reducing or stopping production would forgo profitable opportunities.
Thus, option A is correct.

NEW QUESTION # 122
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