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

1. When confronting MNEs, the extender strategy centers on what?

A) Cooperating through joint ventures (JVs) with MNEs and sell-offs to MNEs
B) Engaging in rapid learning and then expanding overseas
C) Leveraging local assets in areas in which MNEs are weak
D) Leveraging homegrown competencies abroad

2. What is an example of a transaction accounted for in the net exports component of GDP?

A) A person buys a car from a different country.
B) A couple buys a new house.
C) A member of Congress is paid a salary.
D) A person buys food.

3. What is true about forward transactions?

A) They are the classic single-shot exchange of one currency for another.
B) They convert one currency into another at one time with an agreement to revert it back at another time in the future.
C) They allow participants to buy and sell currencies now for future delivery.
D) They allow traders to sell currency holdings at an exchange rate in the past.

4. What are characteristics of monopolistic competition? (Choose THREE.)

A) Free entry and exit
B) Product differentiation
C) One seller
D) Many sellers
E) Homogeneous products

5. Which strategy for responding to multinational enterprises is appropriate in a situation in which there is low industry pressure to globalize and competitive assets are customized to home markets?

A) Contender strategy
B) Defender strategy
C) Responder strategy
D) Retainer strategy

Solutions: