WGU C211 GLOBAL ECONOMICS EXAM
ACTUAL TEST PAPER 2026 COMPLETE
QUESTIONS AND SOLUTIONS GRADED A+
◉ "New" view on globalization. Answer: A force sweeping through
the world in recent times.
◉ "Evolutionary" view on globalization. Answer: A long-run
historical evolution since the dawn of human history
◉ "Pendulum" view on globalization. Answer: One that swings from
one extreme to another from time to time
◉ Foreign Direct Investment. Answer: Direct investment in, control,
and management of value-added activities in other countries
◉ Political views on FDI. Answer: Radical View, Free Market View,
Pragmatic Nationalism
◉ Benefits to a country receiving FDI. Answer: Capital Inflow,
Technology Spillover, Advanced Management Know-How, Job
creation
,◉ Costs to a country receiving FDI. Answer: Loss of Sovereignty,
Adverse effects on competition,
Capital outflow.
◉ How do resources and capabilities influence the competitive
dynamics of a business?. Answer: Resource similarity and market
commonality can yield a powerful framework for competitor
analysis.
◉ Resource similarity. Answer: The extent to which a given
competitor possesses strategic endowment comparable, in terms of
both type and amount, to those of the focal firm.
◉ How does resource similarity impact competitive dynamics?.
Answer: Firms with a high degree are likely to have similar
competitive actions. (Starbuck's instant coffee & McDonald's iced
coffee)
◉ Classical theories of international trade. Answer: Mercantilism,
Absolute advantage, and Comparative advantage
◉ Modern theory view. Answer: Dynamic
◉ Classical theory view. Answer: Static
, ◉ Absolute advantage. Answer: The economic advantage one nation
enjoys that is superior to other nations
◉ Comparative advantage. Answer: The advantage one economic
activity nation enjoys in comparison with other nations (relative, not
absolute)
◉ Mercantilism. Answer: A theory that suggests that the wealth of
the world is fixed and that a nation that exports more and imports
less will be richer.
◉ Features of the product life cycle?. Answer: New, Maturing, and
Standardized
◉ Strategic trade. Answer: Intervention by governments in certain
industries can enhance their odds for international success.
◉ How are supply and demand related to the exchange rate of a
country?. Answer: The price of a commodity, a country's currency, is
fundamentally determined by this. Strong demand leads to price
hikes; oversupply results in price drops.
ACTUAL TEST PAPER 2026 COMPLETE
QUESTIONS AND SOLUTIONS GRADED A+
◉ "New" view on globalization. Answer: A force sweeping through
the world in recent times.
◉ "Evolutionary" view on globalization. Answer: A long-run
historical evolution since the dawn of human history
◉ "Pendulum" view on globalization. Answer: One that swings from
one extreme to another from time to time
◉ Foreign Direct Investment. Answer: Direct investment in, control,
and management of value-added activities in other countries
◉ Political views on FDI. Answer: Radical View, Free Market View,
Pragmatic Nationalism
◉ Benefits to a country receiving FDI. Answer: Capital Inflow,
Technology Spillover, Advanced Management Know-How, Job
creation
,◉ Costs to a country receiving FDI. Answer: Loss of Sovereignty,
Adverse effects on competition,
Capital outflow.
◉ How do resources and capabilities influence the competitive
dynamics of a business?. Answer: Resource similarity and market
commonality can yield a powerful framework for competitor
analysis.
◉ Resource similarity. Answer: The extent to which a given
competitor possesses strategic endowment comparable, in terms of
both type and amount, to those of the focal firm.
◉ How does resource similarity impact competitive dynamics?.
Answer: Firms with a high degree are likely to have similar
competitive actions. (Starbuck's instant coffee & McDonald's iced
coffee)
◉ Classical theories of international trade. Answer: Mercantilism,
Absolute advantage, and Comparative advantage
◉ Modern theory view. Answer: Dynamic
◉ Classical theory view. Answer: Static
, ◉ Absolute advantage. Answer: The economic advantage one nation
enjoys that is superior to other nations
◉ Comparative advantage. Answer: The advantage one economic
activity nation enjoys in comparison with other nations (relative, not
absolute)
◉ Mercantilism. Answer: A theory that suggests that the wealth of
the world is fixed and that a nation that exports more and imports
less will be richer.
◉ Features of the product life cycle?. Answer: New, Maturing, and
Standardized
◉ Strategic trade. Answer: Intervention by governments in certain
industries can enhance their odds for international success.
◉ How are supply and demand related to the exchange rate of a
country?. Answer: The price of a commodity, a country's currency, is
fundamentally determined by this. Strong demand leads to price
hikes; oversupply results in price drops.
