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| Section | Objectives |
|---|---|
| Topic 1: Managerial Economic Decision-Making | - Risk and uncertainty in global markets - Cost-benefit analysis in business contexts |
| Topic 2: Microeconomics for Managers | - Market structures and competition - Supply and demand analysis - Elasticity and pricing decisions |
| Topic 3: Foundations of Economics | - Scarcity, opportunity cost, and economic reasoning - Market systems and economic models |
| Topic 4: Global Economics | - Global economic institutions and trade policy - International trade and comparative advantage - Exchange rates and currency systems |
| Topic 5: Macroeconomic Environment | - Fiscal and monetary policy - GDP, inflation, and unemployment |
>> Global-Economics-for-Managers Exam Topic <<
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NEW QUESTION # 66
What are examples of equity modes of entry? (Choose THREE.)
Answer: A,D,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 # 67
Which statement best summarizes the overall economic effect of tariffs?
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 # 68
Which company has a natural resource-seeking strategic goal?
Answer: A
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 # 69
Which statement describes turnkey projects?
Answer: C
Explanation:
A turnkey project is an entry mode in which a contractor designs, constructs, and prepares a facility for operation, then hands it over to the client when it is ready to run. Option B is correct because it includes both construction and personnel training, which are typical elements of turnkey arrangements. These projects are common in complex industries such as energy, infrastructure, manufacturing, and industrial facilities where specialized technical knowledge is required. Option A describes a joint venture, not a turnkey project. Option C describes a referral or co-marketing arrangement. Option D describes greenfield investment, where a company builds its own new facilities from scratch. Turnkey projects allow firms to profit from expertise while limiting long-term ownership exposure.
NEW QUESTION # 70
Costs that do not vary with output quantity divided by the quantity of output is best described by which term?
Answer: C
Explanation:
Average fixed cost is calculated by dividing fixed costs by the quantity of output. Fixed costs are costs that do not change with production volume in the short run, such as rent, certain license fees, salaried administrative expenses, or fixed internet service costs. Option D is correct because the question specifically says "costs that do not vary with output quantity," which identifies fixed costs, and then says those costs are divided by quantity. Total cost equals fixed cost plus variable cost. Marginal cost is the additional cost of producing one more unit. Average variable cost divides variable costs by output. Average fixed cost usually declines as output increases because the same fixed cost is spread across more units. This is why higher production can reduce per-unit fixed cost.
NEW QUESTION # 71
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