WGU C211 Objective Assessment Global Economics for Managers Exam Prep| Questions and Verified Answers| 100% Correct (Latest 2023/ 2024)
Q: theory that suggests that intervention by governments in certain industries can enhance their odds for international success
Answer:
strategic trade
Q: if a company seeks to limit foreign exchange rate exposure in the forward direction, what is the most effective way to do this?
Answer:
currency hedging
Q: exchange rate risk associating with the time delay between entering a contract and settling it
Answer:
transaction risk
Q: forward transaction that protects traders and investors from exposure to fluctuations of the spot rate
Answer:
hedging
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Q: a means of spreading out activities in different currency zones in order to offset the currency losses in certain regions through gains in other regions
Answer:
strategic heding
Q: amount of resources committed to entering a foreign market
Answer:
scale of entry
Q: how do institutions reduce uncertainty?
Answer:
by signaling which conduct is legit and which is not
Q: pillar of formal institution, coercive power of government
Answer:
regulatory
Q: pillar of informal institution, the mechanism through which norms influence individual and firm behavior
Answer:
normative
Q: pillar of informal institution, taken for granted values and beliefs that guide behavior
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Answer:
cognitive
Q: institutions represented by laws, regulations and rules
Answer:
formal
Q: institutions represented by norms, culture and ethics
Answer:
informal
Q: the necessity of making rational decisions in the absence of complete information
Answer:
bounded rationality
Q: bounded rationality is a position in which view of global business
Answer:
institution
Q: political system that affects global business with an individuals right to freedom of expression and organization
Answer:
democracy
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Q: political system that affects global business with hostility towards business, higher political risk such as nationalism
Answer:
totalitarianism
Q: political system where citizens elect representatives to govern the country on their behalf
Answer:
democracy
Q: political system where one person or party exercises absolute political control over the population
Answer:
totalitarianism
Q: law that uses comprehensive statutes and codes as a primary means to form legal judgements
Answer:
civil
Q: law that is shaped by precedents and traditions from previous judicial decisions
Answer:
common
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