Global-Economics-for-Managers Valid Test Forum, Global-Economics-for-Managers Certification Exam Dumps

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

Section	Weight	Objectives
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. New view, Evolutionary view, Pendulum view 2. Drivers and consequences of globalization
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
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. Tariffs, quotas, subsidies, embargoes 2. Economic integration: EU, USMCA, ASEAN
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. Hedging and risk management 2. Exchange rate determination, currency regimes
Macroeconomics for Managers	10%	- Economic Indicators and Policies 1. GDP, inflation, unemployment, business cycles 2. Fiscal and monetary policy impacts

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Global-Economics-for-Managers Certification Exam Dumps & Global-Economics-for-Managers Actual Exams

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WGU Global Economics for Managers (C211, UZC2) Sample Questions (Q49-Q54):

NEW QUESTION # 49
In which situation is the dodger strategy appropriate for responding to multinational enterprises (MNEs)?

A. There is low industry pressure to globalize, and competitive assets are transferable abroad.
B. There is high industry pressure to globalize, and competitive assets are transferable abroad.
C. There is low industry pressure to globalize, and competitive assets are customized to home markets.
D. There is high industry pressure to globalize, and competitive assets are customized to home markets.

Answer: C

Explanation:
InGlobal Economics for Managers, thedodger strategyis appropriate whenindustry pressure to globalize is low and a firm's competitive assets are customized to its home market, making option D correct.
Under this strategy, firms avoid direct confrontation with multinational enterprises by focusing on niche markets, specialized products, or protected domestic segments. Since globalization pressure is weak, firms are not forced to expand internationally, and their localized assets give them an advantage at home.
Dodgers may also cooperate selectively with MNEs or operate in areas where global competition is limited.
This strategy minimizes risk and preserves firm-specific advantages without costly global expansion.
Options A and B align with extender strategies. Option C aligns with contender strategies.
Thus, option D correctly identifies when the dodger strategy is appropriate.

NEW QUESTION # 50
What is the Nash equilibrium?

A. An agreement among firms in a market over production and price
B. A situation in which economic actors interacting with one another each choose their best strategy from among all available strategies currently being used by said actors
C. A group of firms illegally acting in unison to improve profits or dominate a market
D. A particular situation between two entities that illustrates why cooperation is difficult to maintain even when it is mutually beneficial

Answer: B

Explanation:
A Nash equilibrium occurs when each participant in a strategic interaction chooses the best available strategy given the strategies chosen by others. Option C is correct because no actor has an incentive to change its strategy unilaterally once the equilibrium is reached. This concept is central to game theory and is especially useful in oligopoly analysis, where firms must consider how rivals will respond to pricing, output, advertising, or product decisions. Option A describes the prisoner's dilemma more specifically, which can produce a Nash equilibrium but is not the definition itself. Option B describes collusion or cartel behavior. Option D describes illegal coordinated action by firms. Managers use Nash equilibrium logic to anticipate competitor behavior and understand why mutually beneficial cooperation can be unstable.

NEW QUESTION # 51
What is one of the OLI advantages outlined by John Dunning for why firms become multinational enterprises by engaging in foreign direct investment?

A. Ownership advantages
B. Location advantages
C. Internalization advantages
D. Competitive neutrality

Answer: C

Explanation:
InGlobal Economics for Managers, John Dunning'sOLI frameworkexplains why firms engage in foreign direct investment (FDI). One of its three components isinternalization advantages, making option C correct.
Internalization advantages arise when a firm finds it more efficient toconduct business activities internally rather than through market transactions such as licensing or outsourcing. By internalizing operations, firms can reduce transaction costs, protect proprietary knowledge, maintain quality control, and avoid contractual disputes.
The OLI framework consists of:
* Ownership advantages: firm-specific assets such as technology or brand reputation
* Location advantages: benefits of operating in a particular country
* Internalization advantages: gains from keeping activities within the firm When all three advantages are present, firms are more likely to pursue FDI rather than exporting or licensing.
Option D is not part of the OLI framework. Thus, option C is correct.

NEW QUESTION # 52
What happens when the Federal Reserve increases the money supply?

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

Answer: A

NEW QUESTION # 53
A shopper purchases a shirt for $17 but was willing to pay $25. What does this indicate?

A. The producer surplus is $17.
B. The producer surplus is $25.
C. The consumer surplus is $25.
D. The consumer surplus is $8.

Answer: D

Explanation:
InGlobal Economics for Managers,consumer surplusis defined as the difference betweenwhat a consumer is willing to payfor a good andwhat the consumer actually pays, making option A correct.
In this example, the shopper was willing to pay $25 but paid only $17. The consumer surplus is therefore:
Consumer Surplus = Willingness to Pay # Price Paid
Consumer Surplus = $25 # $17 = $8
This $8 represents the net benefit the consumer gains from the transaction. Consumer surplus captures the idea that consumers often value goods more than the market price, and the difference contributes to their economic welfare.
Options B and C incorrectly refer to producer surplus, which depends on production costs rather than consumer willingness to pay. Option D incorrectly states that consumer surplus equals $25, which is the maximum willingness to pay, not the surplus.
Global Economics for Managersuses consumer surplus extensively to evaluate the effects of price changes, taxes, and trade policies on consumer welfare. Thus, option A is correct.

NEW QUESTION # 54
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