WGU C211 OA GLOBAL ECONOMICS EXAM
2026-2027 QUESTIONS AND ANSWERS
GRADED A+
The resource-based view of global business differs from the institution-based view
of global business in that the resource-based view _____.
focuses on the internal strengths on the firm
Which of the following is true of globalization according to the "pendulum view"
perspective?
Globalization is a not a one-directional phenomenon.
The _____ of globalization suggests that globalization is neither recent nor one-
directional.
pendulum view
Which of the following is true of semiglobalization?
It is a type of globalization that lies between total isolation and total globalization.
Globalization can be viewed as:
A new force sweeping through the world in recent times.
,A long-run historical evolution since the dawn of human history.
A pendulum that swings from one extreme to another from time to time.
Name the three views of globalization.
A recent force, a long-running evolution, and a pendulum
The _____ theory viewed international trade as a zero-sum game.
mercantilism
The _____ principle advocated that governments should actively protect domestic
industries from imports and vigorously promote exports.
protectionism
Which of the following is a modern trade theory?
National competitive advantage
The _____ theory is based on the assumption that the wealth of the world is fixed.
mercantilism
Import quotas are a type of _____.
,tariff barrier
According to the theory of absolute advantage, under free trade,
Each nation gains by specializing in economic activities in which a nation has
absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)?
Cultural distance
Chile requires 50 units of resource to produce one ton of wine and 20 units of
resource to produce one ton of blueberries. France requires 30 units of resource to
produce one ton of wine and 40 units of resource to produce one ton of blueberries.
Which of the following is true?
France has a comparative advantage in wine.
Which of the following theories does NOT lead to the conclusion that unrestricted
free trade is in the best interests of all countries?
Strategic trade theory
Free trade is defined as:
The idea that market forces should determine how much to trade with little or no
government intervention.
, According to the theory of absolute advantage, under free trade,
each nation gains by specializing in economic activities in which a nation has
absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)?
Cultural distance
Protectionism is similar to mercantilism as they both advocated _____.
government involvement in international trade
OLI advantages refer to a firm's quest for _____via FDI.
ownership advantages, location advantages, and internalization advantages
MNEs' possession and leveraging of certain valuable, rare, hard-to-imitate, and
organizationally embedded (VRIO) assets overseas in the context of FDI refer to
_____.
ownership
Firms prefer FDI to licensing because FDI_____.
2026-2027 QUESTIONS AND ANSWERS
GRADED A+
The resource-based view of global business differs from the institution-based view
of global business in that the resource-based view _____.
focuses on the internal strengths on the firm
Which of the following is true of globalization according to the "pendulum view"
perspective?
Globalization is a not a one-directional phenomenon.
The _____ of globalization suggests that globalization is neither recent nor one-
directional.
pendulum view
Which of the following is true of semiglobalization?
It is a type of globalization that lies between total isolation and total globalization.
Globalization can be viewed as:
A new force sweeping through the world in recent times.
,A long-run historical evolution since the dawn of human history.
A pendulum that swings from one extreme to another from time to time.
Name the three views of globalization.
A recent force, a long-running evolution, and a pendulum
The _____ theory viewed international trade as a zero-sum game.
mercantilism
The _____ principle advocated that governments should actively protect domestic
industries from imports and vigorously promote exports.
protectionism
Which of the following is a modern trade theory?
National competitive advantage
The _____ theory is based on the assumption that the wealth of the world is fixed.
mercantilism
Import quotas are a type of _____.
,tariff barrier
According to the theory of absolute advantage, under free trade,
Each nation gains by specializing in economic activities in which a nation has
absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)?
Cultural distance
Chile requires 50 units of resource to produce one ton of wine and 20 units of
resource to produce one ton of blueberries. France requires 30 units of resource to
produce one ton of wine and 40 units of resource to produce one ton of blueberries.
Which of the following is true?
France has a comparative advantage in wine.
Which of the following theories does NOT lead to the conclusion that unrestricted
free trade is in the best interests of all countries?
Strategic trade theory
Free trade is defined as:
The idea that market forces should determine how much to trade with little or no
government intervention.
, According to the theory of absolute advantage, under free trade,
each nation gains by specializing in economic activities in which a nation has
absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)?
Cultural distance
Protectionism is similar to mercantilism as they both advocated _____.
government involvement in international trade
OLI advantages refer to a firm's quest for _____via FDI.
ownership advantages, location advantages, and internalization advantages
MNEs' possession and leveraging of certain valuable, rare, hard-to-imitate, and
organizationally embedded (VRIO) assets overseas in the context of FDI refer to
_____.
ownership
Firms prefer FDI to licensing because FDI_____.
