WGU C211 OA GLOBAL ECONOMICS
EXAMS (2025/2026) QUESTIONS AND
VERIFIED ANSWERS, 95% GUARANTEE
PASS
view that claims phenomenon of globalization was initially driven by the
desire of Western economies to exploit their power through MNE's
- correct answer -new
view that claims globalization is a long-run historical evolution since the
dawn of humanity. Says it is nothing new and that it will always exist
- correct answer -evolutionary
view that claims globalization is swinging from one extreme to another
from time to time
- correct answer -pendulum
investment in, controlling, and managing value-added activities in other
countries
- correct answer -foreign direct investment
political view hostile to FDI. believes it is an instrument of imperialism and
vehicle for exploitation of domestic resources by foreign capitalists and
firms
- correct answer -radical
suggests that FDI, unrestricted by government intervention, will enable
countries to tap into their absolute or comparative advantages by
specializing in the production of certain goods and services
,- correct answer -free market
views FDI as having pros and cons and only approving FDI when its
benefits outweigh costs
- correct answer -pragmatic nationalis
what benefits exist to a country receiving FDI?
- correct answer -capital inflow, technology spillovers, advanced
management know-how, creates jobs
what costs exist to a country receiving FDI?
- correct answer -loss of sovereignty, adverse effects on competition, net
outflow in the capital account
The aggregation of importing and exporting that leads to the country-
level trade surplus or deficit.
- correct answer -balance of trade
firms with a _____ degree of resource similarity are likely to have similar
competitive actions
- correct answer -high
a high degree of resource similarity but low market commonality = _______
intensity of rivalry
- correct answer -highest
little resource similarity but high market commonality = _____ intensity of
rivalry
- correct answer -lowest
mercantilism, absolute advantage and comparative advantage belong to
, what theory of international trade
- correct answer -classical
theory of international trade that relies on more realistic product life
cycles
and first mover advantages
- correct answer -modern
under free trade, a nation gains by specializing in economic activities in
which it has _____advantage
- correct answer -absolute
focuses on the idea that if a country does not have absolute advantage,
they can still choose to specialize in the production of one good where it
has ______ advantage
- correct answer -comparative
comparative advantage and absolute advantage stem from
- correct answer -factor endowments
theory that the wealth of the world is fixed and that a nation that imports
more and exports less will be richer
- correct answer -mercantilism
stage of the product life cycle where production of a new product that
commands a price premium will concentrate in the US
- correct answer -new
stage of the product life cycle where demand and ability to produce grow
in other developed nations
EXAMS (2025/2026) QUESTIONS AND
VERIFIED ANSWERS, 95% GUARANTEE
PASS
view that claims phenomenon of globalization was initially driven by the
desire of Western economies to exploit their power through MNE's
- correct answer -new
view that claims globalization is a long-run historical evolution since the
dawn of humanity. Says it is nothing new and that it will always exist
- correct answer -evolutionary
view that claims globalization is swinging from one extreme to another
from time to time
- correct answer -pendulum
investment in, controlling, and managing value-added activities in other
countries
- correct answer -foreign direct investment
political view hostile to FDI. believes it is an instrument of imperialism and
vehicle for exploitation of domestic resources by foreign capitalists and
firms
- correct answer -radical
suggests that FDI, unrestricted by government intervention, will enable
countries to tap into their absolute or comparative advantages by
specializing in the production of certain goods and services
,- correct answer -free market
views FDI as having pros and cons and only approving FDI when its
benefits outweigh costs
- correct answer -pragmatic nationalis
what benefits exist to a country receiving FDI?
- correct answer -capital inflow, technology spillovers, advanced
management know-how, creates jobs
what costs exist to a country receiving FDI?
- correct answer -loss of sovereignty, adverse effects on competition, net
outflow in the capital account
The aggregation of importing and exporting that leads to the country-
level trade surplus or deficit.
- correct answer -balance of trade
firms with a _____ degree of resource similarity are likely to have similar
competitive actions
- correct answer -high
a high degree of resource similarity but low market commonality = _______
intensity of rivalry
- correct answer -highest
little resource similarity but high market commonality = _____ intensity of
rivalry
- correct answer -lowest
mercantilism, absolute advantage and comparative advantage belong to
, what theory of international trade
- correct answer -classical
theory of international trade that relies on more realistic product life
cycles
and first mover advantages
- correct answer -modern
under free trade, a nation gains by specializing in economic activities in
which it has _____advantage
- correct answer -absolute
focuses on the idea that if a country does not have absolute advantage,
they can still choose to specialize in the production of one good where it
has ______ advantage
- correct answer -comparative
comparative advantage and absolute advantage stem from
- correct answer -factor endowments
theory that the wealth of the world is fixed and that a nation that imports
more and exports less will be richer
- correct answer -mercantilism
stage of the product life cycle where production of a new product that
commands a price premium will concentrate in the US
- correct answer -new
stage of the product life cycle where demand and ability to produce grow
in other developed nations
