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

Section	Weight	Objectives
Topic 1: Global Finance and Monetary Systems	25%	- Foreign Exchange Markets 1. Hedging and risk management 2. Exchange rate determination, currency regimes - Balance of Payments and International Monetary System 1. Current account, capital account, official reserves 2. Fixed vs floating exchange rates, IMF, World Bank
Topic 2: 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. Absolute advantage, Comparative advantage 2. Heckscher-Ohlin, Product life-cycle, Strategic trade theory
Topic 3: Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. Fiscal and monetary policy impacts 2. GDP, inflation, unemployment, business cycles
Topic 4: 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. Theories of FDI, costs and benefits 2. Location advantages and entry modes
Topic 5: 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. Market, command, and mixed economies 2. Political, legal, and cultural frameworks

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q67-Q72):

NEW QUESTION # 67
Which company has a natural resource-seeking strategic goal?

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

Answer: B

Explanation:
In Global Economics for Managers , a natural resource-seeking strategy refers to firms that engage in foreign direct investment to access specific natural resources that 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 # 68
What is true about gross domestic product (GDP)?

A. It places heavier weight on intangible services than tangible goods.
B. It is thought to be the single best measure of a society's economic well-being.
C. Its year-to-year percentage change represents the inflation rate.
D. It includes the income of citizens working abroad.

Answer: B

Explanation:
InGlobal Economics for Managers,gross domestic product (GDP)is widely regarded asthe single best available measure of a society's economic well-being, making option A correct. GDP measures the total market value of all final goods and services produced within a country's borders during a given period.
Although GDP has limitations-it does not account for income distribution, environmental degradation, or non-market activities-it remains the most comprehensive and consistent indicator of economic performance across countries and over time.
Option B is incorrect because inflation is measured by price indices such as the GDP deflator or the consumer price index (CPI), not by GDP growth. Option C is incorrect because GDP values goods and services at market prices without weighting one more heavily than the other. Option D is incorrect because GDP excludes income earned by citizens working abroad; that income is included in gross national income (GNI), not GDP.
Global Economics for Managersemphasizes that GDP is particularly useful for comparing economic output and living standards internationally, especially when adjusted for purchasing power parity.
Thus, option A correctly describes GDP.

NEW QUESTION # 69
What is the most basic way for nonfinancial companies to adjust to fluctuations of the foreign exchange market?

A. Rate locks
B. Forward transactions
C. Currency hedging
D. Invoicing customers in the company's currency

Answer: D

Explanation:
The most basic way for a nonfinancial company to reduce exposure to foreign exchange fluctuations is to invoice customers in the company's own currency. Option A is correct because this shifts exchange-rate risk away from the seller and onto the buyer. If the firm receives payment in its home currency, its revenues are more predictable and are not directly reduced by unfavorable currency movements. Currency hedging, rate locks, and forward transactions are more formal financial or contractual tools for managing exchange risk, but they require additional planning, market access, and sometimes financial expertise. Invoicing in the home currency is operationally simpler. However, managers must remember that this approach may make the firm less attractive to foreign buyers who prefer pricing in their local currency.

NEW QUESTION # 70
What happens when the Federal Reserve increases the money supply?

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

Answer: C

Explanation:
InGlobal Economics for Managers, an increase in the money supply leads to arightward shift of the aggregate demand (AD) curve, making option B correct.
An expanded money supply lowers interest rates, encouraging borrowing and spending by households and firms. Consumption and investment rise, increasing total demand for goods and services at every price level.
Options C and D involve supply-side changes, not monetary policy effects.
Thus, option B correctly describes the macroeconomic impact of an increased money supply.

NEW QUESTION # 71
Which company has a natural resource-seeking strategic goal?

A. A company searching for a location with advanced technology clusters
B. A company searching for a location where there is an abundance of oil
C. A company searching for a location with a large consumer market
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 # 72
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