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

1. 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) Internalization advantages
C) Competitive neutrality
D) Location advantages

2. Which mode of entry is an equity-based entry mode?

A) Indirect exports
B) Franchising
C) 50/50 joint ventures
D) Licensing

3. What is a tariff levied on imports that are selling below cost in order to unfairly drive domestic firms out of business?

A) Antidumping duty
B) Opportunity cost
C) Deadweight cost
D) Factor endowment

4. Which factors increase a country's currency exchange value? Choose two answers.

A) A rise in inflation
B) A rise in productivity
C) Political unrest
D) A fall in productivity
E) A rise in the interest rate
F) A fall in population

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

A) Loss of sovereignty
B) Reduced standard of living
C) Job loss
D) Cultural disintegration
E) Capital outflow
F) Loss of intellectual property

Solutions: