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

Section	Weight	Objectives
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
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. Market, command, and mixed economies 2. Political, legal, and cultural frameworks - Views on Globalization 1. Drivers and consequences of globalization 2. New view, Evolutionary view, Pendulum view
Foreign Direct Investment and Global Strategy	20%	- Global Business Strategy 1. Porter's Diamond model 2. Strategic positions: Defender, Extender, Contender, Dodger - Foreign Direct Investment (FDI) 1. Location advantages and entry modes 2. Theories of FDI, costs and benefits
Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. Fiscal and monetary policy impacts 2. GDP, inflation, unemployment, business cycles

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q87-Q92):

NEW QUESTION # 87
What is a key feature of an oligopoly?

A. Firms in an oligopoly are independent of one another, much like competitive firms.
B. There is tension between cooperation and self-interest.
C. There is little, if any, motivation for cooperation between firms.
D. The actions of any one seller in the market have little to no impact on the profits of all the other sellers.

Answer: B

Explanation:
A key feature of oligopoly is the tension between cooperation and self-interest. Option A is correct because oligopolistic markets contain only a few major sellers, so each firm's pricing, output, and advertising decisions affect rivals. Firms may benefit collectively from cooperation, such as keeping prices high, but each firm also has an incentive to undercut rivals and gain market share. This creates strategic interdependence.
Option B is wrong because oligopoly firms are not independent like perfectly competitive firms; they must anticipate competitor reactions. Option C is also wrong because one seller's actions can significantly affect other sellers' profits. Option D is incorrect because oligopoly firms often have strong motivation to cooperate, whether formally or tacitly, though explicit collusion may be illegal.

NEW QUESTION # 88
What are key features of an oligopoly? (Choose THREE.)

A. There are a few sellers.
B. There is little motivation for cooperation between firms.
C. The actions of any one seller can have a large impact on the profits of other sellers.
D. The actions of any one seller have little impact on others' profits.
E. Firms in an oligopoly are interdependent in ways competitive firms are not.
F. Firms are independent of one another, like competitive firms.

Answer: A,C,E

Explanation:
In Global Economics for Managers , oligopolies are defined by a small number of sellers , interdependence
, and strategic interaction , making options A, B, and C correct.
Option C is foundational: oligopolies consist of only a few dominant firms , unlike perfect or monopolistic competition. Because of this concentration, firms cannot ignore competitors' actions.
Option B highlights interdependence , a defining feature of oligopolies. Firms must consider how rivals will respond to pricing, output, or strategic changes. This leads to behavior such as price leadership, tacit collusion, or strategic rivalry.
Option A follows directly from interdependence. When one firm changes price or output, it can significantly affect market conditions and the profits of competing firms.
Options D and E incorrectly describe competitive markets, where firms are price takers. Option F is incorrect because oligopolies often have strong incentives to cooperate, either explicitly or tacitly, to maintain profitability.
Thus, A, B, and C accurately capture the essential characteristics of an oligopoly.

NEW QUESTION # 89
Which company has a natural resource-seeking strategic goal?

A. A company searching for a location with a large consumer market
B. A company searching for a location where there is an abundance of oil
C. A company searching for a location with advanced technology clusters
D. A company searching for a location where labor costs are low

Answer: B

Explanation:
InGlobal Economics for Managers, anatural resource-seeking strategyrefers to firms that engage in foreign direct investment toaccess specific natural resourcesthat are unavailable or costly in their home country.
Option C correctly reflects this motive.
Companies in industries such as oil, gas, mining, agriculture, and timber often locate operations where resources are naturally abundant. The primary objective is to secure reliable and cost-effective access to essential inputs for production.
Option A describes a cost-seeking strategy, option B a market-seeking strategy, and option D a strategic asset- seeking strategy.
Thus, option C correctly identifies a natural resource-seeking strategic goal.

NEW QUESTION # 90
Which statement describes one of the three views of globalization?

A. Globalization is an invested agreement to prevent international wars.
B. Globalization is a long-awaited solution to worldwide problems.
C. Globalization is a new force sweeping through the world in recent times.
D. Globalization is a threat to product quality and technological innovation.

Answer: C

Explanation:
Globalization can be viewed from different perspectives. One view treats globalization as a relatively new force that has intensified in recent decades due to major advances in technology, transportation, communication, global finance, and international trade liberalization. This view emphasizes that modern globalization is different from earlier cross-border exchange because firms, consumers, capital markets, and supply chains are now connected at much greater speed and scale. Option B is correct because it captures the
"recent force" view of globalization. Option A is too idealistic because globalization creates both benefits and costs. Option C is incorrect because globalization is not primarily an agreement to prevent wars. Option D is also incorrect because globalization often increases innovation through competition and knowledge transfer.

NEW QUESTION # 91
What is one of the three primary types of foreign exchange transactions?

A. Forward transactions
B. Hedging transactions
C. Arbitrage transactions
D. Spot transactions

Answer: D

Explanation:
In Global Economics for Managers, spot transactions are one of the three primary types of foreign exchange transactions, making option B correct. Spot transactions involve the immediate exchange of currencies, typically settled within two business days.
The three main foreign exchange transactions are:
Spot transactions
Forward transactions
Swap transactions
Spot transactions form the foundation of currency trading and are widely used for international trade payments and short-term currency needs.
Options C and D describe strategies rather than transaction types.
Thus, option B is correct.

NEW QUESTION # 92
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