WGU C211 OA GLOBAL ECONOMICS EXAM
2026 MASTER QUESTION AND ANSWER BANK
◉ BRIC. Answer: Brazil, Russia, India, and China.
◉ Emerging Economies. Answer: A term that has gradually replaced
the term 'developing countries' since the 1990s.
◉ Emerging Markets. Answer: A term that is often used
interchangeably with 'emerging economies.'
◉ Expatriate manager (expat). Answer: A manager who works
abroad, or 'expat' for short.
◉ Foreign Direct Investment (FDI). Answer: Investment in,
controlling, and managing value-added activities in other countries.
◉ Global Business. Answer: Business around the globe.
◉ Globalization. Answer: The close integration of countries and
peoples of the world.
,◉ Gross Domestic Product (GDP). Answer: The sum of value added
by resident firms, households, and governments operating in an
economy.
◉ Gross National Income. Answer: GDP plus income from non-
resident sources abroad. GNI is the term used by the World Bank
and other international organizations to supersede the term GNP.
◉ Gross National Product (GNP). Answer: GDP plus income from
non-resident sources abroad.
◉ Group of 20 ('The G-20'). Answer: The group of 19 major
countries plus the European Union (EU) whose leaders meet on a
biannual basis to solve global economic problems.
◉ International Business. Answer: (1) A business (or firm) that
engages in international (crossborder) economic activities and/or
(2) the action of doing business abroad.
◉ International Premium. Answer: A significant pay raise when
working overseas.
◉ Liability of Foreignness. Answer: The inherent disadvantage that
foreign firms experience in host countries because of their non-
native status.
,◉ Multinational Enterprise (MNE or MNC). Answer: A firm that
engages in foreign direct investment (FDI).
◉ Nongovernmental Organization (NGO). Answer: An organization
that is not affiliated with governments.
◉ Purchasing Power Parity (PPP). Answer: A conversion that
determines the equivalent amount of goods and services that
different currencies can purchase.
◉ Reverse Innovation. Answer: An innovation that is adopted first in
emerging economies and is then diffused around the world.
◉ Risk Management. Answer: The identification and assessment of
risks and the preparation to minimize the impact of high-risk,
unfortunate events.
◉ Scenario Planning. Answer: A technique to prepare and plan for
multiple scenarios (either high or low risk).
◉ Semi-globalization. Answer: A perspective that suggests that
barriers to market integration at borders are high, but not high
enough to insulate countries from each other completely.
, ◉ Triad. Answer: North America, Western Europe, and Japan.
◉ Absolute Advantage. Answer: The economic advantage one nation
enjoys that is absolutely superior to other nations.
◉ Administrative Policy. Answer: Bureaucratic rules that make it
harder to import foreign goods.
◉ Antidumping Duty. Answer: Tariffs levied on imports that have
been 'dumped' (selling below costs to 'unfairly' drive domestic firms
out of business).
◉ Balance of Trade. Answer: The aggregation of importing and
exporting that leads to the country-level trade surplus or deficit.
◉ Classical Trade Theories. Answer: The major theories of
international trade that were advanced before the 20th century,
which consist of (1) mercantilism, (2) absolute advantage, and (3)
comparative advantage.
◉ Comparative Advantage. Answer: Relative (not absolute)
advantage in one economic activity that one nation enjoys in
comparison with other nations.
2026 MASTER QUESTION AND ANSWER BANK
◉ BRIC. Answer: Brazil, Russia, India, and China.
◉ Emerging Economies. Answer: A term that has gradually replaced
the term 'developing countries' since the 1990s.
◉ Emerging Markets. Answer: A term that is often used
interchangeably with 'emerging economies.'
◉ Expatriate manager (expat). Answer: A manager who works
abroad, or 'expat' for short.
◉ Foreign Direct Investment (FDI). Answer: Investment in,
controlling, and managing value-added activities in other countries.
◉ Global Business. Answer: Business around the globe.
◉ Globalization. Answer: The close integration of countries and
peoples of the world.
,◉ Gross Domestic Product (GDP). Answer: The sum of value added
by resident firms, households, and governments operating in an
economy.
◉ Gross National Income. Answer: GDP plus income from non-
resident sources abroad. GNI is the term used by the World Bank
and other international organizations to supersede the term GNP.
◉ Gross National Product (GNP). Answer: GDP plus income from
non-resident sources abroad.
◉ Group of 20 ('The G-20'). Answer: The group of 19 major
countries plus the European Union (EU) whose leaders meet on a
biannual basis to solve global economic problems.
◉ International Business. Answer: (1) A business (or firm) that
engages in international (crossborder) economic activities and/or
(2) the action of doing business abroad.
◉ International Premium. Answer: A significant pay raise when
working overseas.
◉ Liability of Foreignness. Answer: The inherent disadvantage that
foreign firms experience in host countries because of their non-
native status.
,◉ Multinational Enterprise (MNE or MNC). Answer: A firm that
engages in foreign direct investment (FDI).
◉ Nongovernmental Organization (NGO). Answer: An organization
that is not affiliated with governments.
◉ Purchasing Power Parity (PPP). Answer: A conversion that
determines the equivalent amount of goods and services that
different currencies can purchase.
◉ Reverse Innovation. Answer: An innovation that is adopted first in
emerging economies and is then diffused around the world.
◉ Risk Management. Answer: The identification and assessment of
risks and the preparation to minimize the impact of high-risk,
unfortunate events.
◉ Scenario Planning. Answer: A technique to prepare and plan for
multiple scenarios (either high or low risk).
◉ Semi-globalization. Answer: A perspective that suggests that
barriers to market integration at borders are high, but not high
enough to insulate countries from each other completely.
, ◉ Triad. Answer: North America, Western Europe, and Japan.
◉ Absolute Advantage. Answer: The economic advantage one nation
enjoys that is absolutely superior to other nations.
◉ Administrative Policy. Answer: Bureaucratic rules that make it
harder to import foreign goods.
◉ Antidumping Duty. Answer: Tariffs levied on imports that have
been 'dumped' (selling below costs to 'unfairly' drive domestic firms
out of business).
◉ Balance of Trade. Answer: The aggregation of importing and
exporting that leads to the country-level trade surplus or deficit.
◉ Classical Trade Theories. Answer: The major theories of
international trade that were advanced before the 20th century,
which consist of (1) mercantilism, (2) absolute advantage, and (3)
comparative advantage.
◉ Comparative Advantage. Answer: Relative (not absolute)
advantage in one economic activity that one nation enjoys in
comparison with other nations.
