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C211 WGU OA
- Which political view of foreign direct investment (FDI) is most widely used by governments in the current international business environment?: Protectionism
- Which factors credit the degree of rivalry between a pair of competitors? 2 choices: Market Commonality Cost Structure
- Which factors credit how local firms in emerging economics will respond to multinational competitors?: Competitive assets and industry pressures to globalize
- During which stage of the product life cycle do sales and profits gradually increase before seeing more dramatic increases?: Growth
- Which factor determines the foreign exchange rate of any currency?: Supply and demand for the currency
- Which risk must corporation minimize if it is to effectively manage short-term currency fluctuations?: Transaction Risk
- Which policy does a country use to determine the exchange rate of their currency in relationship to another country's currency if they do not rely on market forces?: Fixed Rate Policy
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- Which term refers to trading currencies and currency derivatives in order to earn
profits and help make prices efficient?: Brokering
- Which type of advantage is gained by a company based on where it operates?-
: Location-Specific
- Who gains from erecting significant entry barriers for other entrants?: First
Movers
- Which strategy for entering into a foreign market has the lowest degree of
risk?: Licensing
- What is a non-equity mode involving some type of contractual agreement?-
: Licensing
- After the Lehman Brothers collapse, the federal Reserve stood ready to lend
financial institutions funds. When the Federal reserve did this, it was acting in its role as a lender of last resort. Which type of group has this role?: Non Governmental Organization
- What is the comprehensive free-trade settlement among Canada, US, and
Mexico, that address issues of protecting workers rights, the environment and reducing tariffs and non-tariff trade barriers?: NAFTA
- What is one of the core propositions underpinning an institution-based view of
global business?: Managers and corporations make rational decisions within their formal and informal framework
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- Which statement describes a monopoly's demand curve?: It is less elastic than a
perfectly competitive firms demand curve
- What is the profit maximization condition for a monopoly?: Where marginal
revenue equals marginal cost
- What is a characteristic of monopolistic competition?: Many firms sell differentiated products
- How does self-interest influence each prisoner's decision in the prisoner's
dilemma?: Neither prisoner will confess
- Why is studying the prisoners dilemma applicable to business?: It demonstrates the
value of mapping out potential strategy given actions of rivals
- What does an indifference curve illustrate?: The preferences of a consumer
- What happens to an individual's budget constraint if the budget decreases and
prices remain the same?: The budget constraints line shifts parallel inward
- What happens to the nominal interest rate and the quantity of money if the
Federal Reserve increase the reserve requirement? Chose 2 answers: The interest rate increases The quantity of money decreases
- What will happen to the equilibrium in the market for a good if demand and
5 / supply increase simultaneously?: Equilibrium quantity will always increase
- What concept measures how much the quantity supplied responds to change in price?: Price elasticity of supply
- Which elasticity of demand measures how the quantity demanded of one good responds to a change in price of another good?: Cross-price elasticity of demand
- What is the interest rate on a loan borrowed by banks from the federal reserves?: Discount Rate
- Which target rate would the federal reserve lower in order to stimulate the economy and avoid a recession?: The federal funds rate
- Which action would the federal reserve rate take to expand the money supply and lower the equilibrium interest rate?: Purchase government bonds on the open market
- What happens when the price of a good increases holding everything else constant?: Consumer surplus decreases
- Which activity will result in an increase in gross domestic product (GDP) other things being equal?: A law passes making the sale of recreational marijuana legal
- Which two types of investment are included in gross domestic product (GDP): Spending on new residential construction Spending to build new factories
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- A US Citizen has been living and working in Canada for the last 10 years. Where is the values of the individuals production counted?: US GNP and Canada GDP
- Which strategy for entering a foreign market has the highest degree of risk?: Wholly Owned Industry
- Which code of entry provides advantages to a multinational firm that can be transferred within the firm at a very low cost?: Licensing
- Which term describes currency derivatives to reduce potential transaction, translation and economic risks of currency movement that could lead to loses for a firm or investment?: Hedging
- What advantages do corporations receive when operating in a favorable area within a given country?: Location Specific
- Which body guides economic activity in a command economy?: The government
- Which price will a monopoly set?: Above marginal cost
- Which condition determines the profit maximizing output for a monopolist?- : Marginal revenue equals marginal cost
- How does oligopoly represent a prisoner's dilemma?: It depends the difficulty in maintaining cooperation's agreement
- What is used to measure the opportunity cost on one good when it is being
8 / compared to another good?: The scope of the budget constraint
- What will an increase in income cause to a consumer's budget constraints?: A shift outward, parallel to it's finial position
- What happens to market equilibrium quantity and price if supply increases and demand remains the same?: Quantity increases Price decreases
