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

Section	Weight	Objectives
Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. Fiscal and monetary policy impacts 2. GDP, inflation, unemployment, business cycles
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. Fixed vs floating exchange rates, IMF, World Bank 2. Current account, capital account, official reserves - Foreign Exchange Markets 1. Hedging and risk management 2. Exchange rate determination, currency regimes
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
Foundations of Global Economics	20%	- Views on Globalization 1. Drivers and consequences of globalization 2. New view, Evolutionary view, Pendulum view - Economic Systems and Institutions 1. Political, legal, and cultural frameworks 2. Market, command, and mixed economies

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q17-Q22):

NEW QUESTION # 17
What is an example of a transaction accounted for in the net exports component of GDP?

A. A couple buys a new house.
B. A member of Congress is paid a salary.
C. A person buys food.
D. A person buys a car from a different country.

Answer: D

Explanation:
Net exports equal exports minus imports. Option C is correct because buying a car from a different country is an import transaction, and imports are included in the net exports calculation as a subtraction. This transaction affects GDP because spending on foreign-produced goods must be removed from domestic production measures. Option A is generally consumption if the food is domestically purchased. Option B is government spending because a member of Congress is paid by the government. Option D is investment because new residential construction is counted as investment in GDP accounting. Net exports help managers understand the role of international trade in national output, currency demand, and market exposure. A country importing more than it exports has negative net exports.

NEW QUESTION # 18
The marginal revenue from producing a smartphone is $200, and the marginal cost is $150. What is the best action for the firm?

A. Exit the market altogether
B. Decrease production
C. Increase production
D. Pause 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 # 19
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 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 transferable abroad.
D. There is high industry pressure to globalize, and competitive assets are customized to home markets.

Answer: D

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 # 20
When is it best for a firm to increase production?

A. When marginal revenue is greater than marginal cost
B. When marginal cost exceeds marginal revenue
C. When total revenue is maximized
D. When average cost is minimized

Answer: A

Explanation:
InGlobal Economics for Managers, the fundamental profit-maximization rule states that firms shouldincrease production when marginal revenue exceeds marginal cost, making option C correct.
Marginal revenue represents the additional revenue from selling one more unit, while marginal cost represents the additional cost of producing it. As long as MR > MC, producing additional units increases profit. Firms should stop expanding output when MR = MC.
Option A implies losses on additional units. Option B relates to cost efficiency, not profit maximization.
Option D ignores costs and therefore does not maximize profit.
Therefore, option C correctly identifies the condition under which firms should increase production.

NEW QUESTION # 21
What is a characteristic of a market economy?

A. It emphasizes private ownership of all factors of production.
B. It gives the government the primary authoritative role in the economy.
C. It is in place in most of the world's countries.
D. It leaves the planning of supply, demand, and pricing to the government.

Answer: A

Explanation:
A market economy emphasizes private ownership of the factors of production and relies on decentralized decision making by consumers and firms. Option D is correct because private ownership is one of the defining features of market-based systems. In a market economy, prices are primarily determined by supply and demand rather than direct government planning. Firms decide what to produce based on profitability, and consumers decide what to buy based on preferences and income. Option B describes a command economy, where government has the primary authoritative role. Option C is also command-economy logic because supply, demand, and pricing are centrally planned. Option A is too broad and inaccurate because most real- world economies are mixed economies, not pure market economies.

NEW QUESTION # 22
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