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Global-Economics-for-Managers WGU Global Economics for Managers (C211, UZC2)

  • WGU
  • 5 free sample questions

About this exam

Global-Economics-for-Managers is the WGU exam WGU Global Economics for Managers (C211, UZC2). Paid practice material for this exam is not available yet, but you can try its free sample questions.

Exam code
Global-Economics-for-Managers
Vendor
WGU
Practice questions
Not available yet
Free sample questions
5
Question bank last updated
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Try 2 sample questions

Taken from the free sample set for Global-Economics-for-Managers.

Question 1

In which situation is the contender strategy appropriate for responding to multinational enterprises (MNEs)?

  1. Option A:
    There is high industry pressure to globalize, and competitive assets are transferable abroad.
  2. Option B:
    There is high industry pressure to globalize, and competitive assets are customized to home markets.
  3. Option C:
    There is low industry pressure to globalize, and competitive assets are transferable abroad.
  4. Option D:
    There is low industry pressure to globalize, and competitive assets are customized to home markets. 
Show answer and explanation

Correct answer: B

In Global Economics for Managers, the contender strategy is appropriate when industry pressure to globalize is high, but competitive assets are customized to home markets, making option B correct. This strategy is typically adopted by domestic firms facing strong competition from multinational enterprises (MNEs) in industries that are becoming increasingly global. High pressure to globalize means that firms must compete on an international scale, often due to global customers, standardized products, or strong foreign competitors. However, when a firm’s competitive assets—such as brand reputation, customer relationships, distribution networks, or regulatory knowledge—are deeply rooted in the home market, they are not easily transferable abroad. In this situation, the firm cannot immediately expand internationally without losing its competitive advantage. Under a contender strategy, firms focus on defending and strengthening their domestic position while gradually upgrading capabilities to prepare for future global competition. This may involve improving efficiency, investing in technology, forming selective alliances, or learning from foreign competitors operating in the home market. Option A describes conditions suitable for an extender strategy, where firms can leverage transferable assets internationally. Options C and D reflect low pressure to globalize and are more consistent with defender or dodger strategies rather than contender behavior. Therefore, option B best captures the conditions under which the contender strategy is applied in response to MNE competition. 

Question 2 (choose 2)

What are costs to home countries of foreign direct investment (FDI)? (Choose TWO.)

  1. Option A:
    A. Job loss
  2. Option B:
    Reduced standard of living
  3. Option C:
    Cultural disintegration
  4. Option D:
    Capital outflow
  5. Option E:
    Loss of sovereignty
  6. Option F:
    Loss of intellectual property 
Show answer and explanation

Correct answer: A, D

According to Global Economics for Managers, foreign direct investment (FDI) can generate substantial benefits for both home and host countries, but it may also impose certain costs on the home country, particularly in the short to medium term. Two commonly identified costs are job loss and capital outflow, making options A and D correct. Job loss may occur when firms shift production facilities, service operations, or manufacturing plants from the home country to foreign locations. This relocation is often driven by lower labor costs, proximity to emerging markets, or favorable regulatory environments abroad. While such decisions  may increase firm profitability and global competitiveness, they can lead to unemployment or downward wage pressure in specific domestic industries. Global Economics for Managers emphasizes that these adjustment costs are often concentrated in particular regions or sectors, even if the national economy benefits in the long run. Capital outflow refers to the movement of financial resources from the home country to finance investment abroad. When domestic firms invest overseas, funds that could have been used for domestic investment are instead allocated to foreign operations. In the short run, this may reduce domestic capital formation and slow economic growth, particularly if domestic investment opportunities remain underfunded. The remaining options are less consistent with standard managerial economics analysis. Reduced standard of living is not a direct or inevitable consequence of FDI and often depends on broader macroeconomic conditions. Cultural disintegration is a sociological concern rather than an economic cost emphasized in managerial economics. Loss of sovereignty is typically associated with host countries rather than home countries. Loss of intellectual property may occur in certain cases but is not a primary or systematic cost identified for home countries in FDI theory. Thus, job loss and capital outflow best represent the principal costs to home countries highlighted in Global Economics for Managers. 
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