WGU C211 OA Comprehensive Resource To Help You Ace
2026-2027 Includes Frequently Tested Questions With
ELABORATED 100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!!
Current Update!!
1. FPI refers to the _____. - Correct Answer: investment in a portfolio of
foreign securities that do not entail the active management of foreign
assets
2. A vertical FDI refers to a type of FDI in which _____. - Correct Answer: a
firm moves upstream or downstream at different value chain stages in a
host country
3. _____ refers to the total accumulation of inbound FDI in a country or
outbound FDI from a country. - Correct Answer: FDI stock
4. OLI advantages refer to a firm's quest for _____via FDI. - Correct
Answer: ownership advantages, location advantages, and internalization
advantages
5. ____ refers to the replacement of cross-border markets with one firm
locating in two or more countries. - Correct Answer: Internalization
,6. Firms prefer FDI to licensing because FDI_____. - Correct Answer:
provides the firm with direct ownership to its foreign assets
7. _____ refers to the clustering of economic activities in certain locations. -
Correct Answer: Agglomeration
8. The television industry in the United States is controlled by seven giant
corporations: The Walt Disney Company, CBS Corporation, Viacom,
Comcast, Hearst Corporation, Time Warner, and News Corporation. Thus,
the television industry in the U.S. is a typical _____ industry. - Correct
Answer: Oligopolistic
9. Which of the following economic perspectives on FDI has its principles
rooted in Marxism? - Correct Answer: The radical view
10.Which of the following is a benefit of FDI to home countries? - Correct
Answer: Learning from operations
11._____ refers to the deal struck by MNEs and host governments, which
change their requirements after the initial FDI entry. - Correct Answer:
Obsolescing bargain
12.Costs that a firm has to endure even when its investment turns out to be
unsatisfactory are referred to as _____. - Correct Answer: sunk costs
,13.A _____ is the price of one currency, such as the dollar, in terms of another,
such as the euro. - Correct Answer: foreign exchange rate
14.Which of the following conditions will attract foreign funds into a country? -
Correct Answer: If the country's interest rate is relatively high compared
to other countries
15._____ is a country's international transaction statement, which includes
merchandise trade, service trade, and capital movement. - Correct
Answer: Balance of payments
16.Which of the following types of exchange rate policies is apt for a pure free
market economy? - Correct Answer: Clean float
17.The fixing of East and West Germany's currencies at a 1:1 ratio to each
other during the German unification in 1990 is an example of a _____. -
Correct Answer: fixed exchange rate policy
18.In foreign exchange, a(n) _____ is said to have occurred when investors
move in the same direction at the same time, like a herd. - Correct
Answer: bandwagon effect
19.Between 1870 and 1914, the value of most major currencies was
maintained by fixing their prices in terms of _____. - Correct Answer:
Gold
, 20.Which of the following was true of the Bretton Woods system? - Correct
Answer: All currencies were pegged at a fixed rate to the dollar.
21.The weight a member country carries within the IMF, which determines the
amount of its financial contribution, its capacity to borrow from the IMF,
and its voting power is referred to as a(n) _____. - Correct Answer:
Quota
22._____ allow participants to buy and sell currencies now for future delivery. -
Correct Answer: Forward transactions
23._____ is defined as the conversion of one currency into another at Time 1,
with an agreement to revert it back to the original currency at a specific
Time 2 in the future. - Correct Answer: Currency swap
24.___ refers to non-financial companies spreading out its activities in different
currency zones in order to offset the currency losses in certain regions
through gains in other regions. - Correct Answer: Strategic hedging
25.A currency board is a monetary authority that issues notes and coins
convertible into a key foreign currency at a _____ exchange rate. -
Correct Answer: Fixed
26.A manager arguing against currency hedging would most likely argue that
_____. - Correct Answer: currency hedging eats into company profits
2026-2027 Includes Frequently Tested Questions With
ELABORATED 100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!!
Current Update!!
1. FPI refers to the _____. - Correct Answer: investment in a portfolio of
foreign securities that do not entail the active management of foreign
assets
2. A vertical FDI refers to a type of FDI in which _____. - Correct Answer: a
firm moves upstream or downstream at different value chain stages in a
host country
3. _____ refers to the total accumulation of inbound FDI in a country or
outbound FDI from a country. - Correct Answer: FDI stock
4. OLI advantages refer to a firm's quest for _____via FDI. - Correct
Answer: ownership advantages, location advantages, and internalization
advantages
5. ____ refers to the replacement of cross-border markets with one firm
locating in two or more countries. - Correct Answer: Internalization
,6. Firms prefer FDI to licensing because FDI_____. - Correct Answer:
provides the firm with direct ownership to its foreign assets
7. _____ refers to the clustering of economic activities in certain locations. -
Correct Answer: Agglomeration
8. The television industry in the United States is controlled by seven giant
corporations: The Walt Disney Company, CBS Corporation, Viacom,
Comcast, Hearst Corporation, Time Warner, and News Corporation. Thus,
the television industry in the U.S. is a typical _____ industry. - Correct
Answer: Oligopolistic
9. Which of the following economic perspectives on FDI has its principles
rooted in Marxism? - Correct Answer: The radical view
10.Which of the following is a benefit of FDI to home countries? - Correct
Answer: Learning from operations
11._____ refers to the deal struck by MNEs and host governments, which
change their requirements after the initial FDI entry. - Correct Answer:
Obsolescing bargain
12.Costs that a firm has to endure even when its investment turns out to be
unsatisfactory are referred to as _____. - Correct Answer: sunk costs
,13.A _____ is the price of one currency, such as the dollar, in terms of another,
such as the euro. - Correct Answer: foreign exchange rate
14.Which of the following conditions will attract foreign funds into a country? -
Correct Answer: If the country's interest rate is relatively high compared
to other countries
15._____ is a country's international transaction statement, which includes
merchandise trade, service trade, and capital movement. - Correct
Answer: Balance of payments
16.Which of the following types of exchange rate policies is apt for a pure free
market economy? - Correct Answer: Clean float
17.The fixing of East and West Germany's currencies at a 1:1 ratio to each
other during the German unification in 1990 is an example of a _____. -
Correct Answer: fixed exchange rate policy
18.In foreign exchange, a(n) _____ is said to have occurred when investors
move in the same direction at the same time, like a herd. - Correct
Answer: bandwagon effect
19.Between 1870 and 1914, the value of most major currencies was
maintained by fixing their prices in terms of _____. - Correct Answer:
Gold
, 20.Which of the following was true of the Bretton Woods system? - Correct
Answer: All currencies were pegged at a fixed rate to the dollar.
21.The weight a member country carries within the IMF, which determines the
amount of its financial contribution, its capacity to borrow from the IMF,
and its voting power is referred to as a(n) _____. - Correct Answer:
Quota
22._____ allow participants to buy and sell currencies now for future delivery. -
Correct Answer: Forward transactions
23._____ is defined as the conversion of one currency into another at Time 1,
with an agreement to revert it back to the original currency at a specific
Time 2 in the future. - Correct Answer: Currency swap
24.___ refers to non-financial companies spreading out its activities in different
currency zones in order to offset the currency losses in certain regions
through gains in other regions. - Correct Answer: Strategic hedging
25.A currency board is a monetary authority that issues notes and coins
convertible into a key foreign currency at a _____ exchange rate. -
Correct Answer: Fixed
26.A manager arguing against currency hedging would most likely argue that
_____. - Correct Answer: currency hedging eats into company profits
