WESTERN GOVERNOR UNIVERSITY (WGU) COLLEGE OF
BUSINESS
GLOBAL ECONOMICS EXAMINATION -2026
FINAL SPRING SUPPLEMENTARY EXAM| HIGHER TIER
Course Title: Global Economics
Course Code: _______________________
Assessment Type: Objective Assessment
Time Allowed: ______________________
Which view claims that the phenomenon of globalization was initially driven by the desire of
Western economies to exploit their power through multinational enterprises?
The new-force view
Economic gains come from international trade because one country's exported goods, services,
or other items are unique, valuable, and difficult to duplicate to the importing countries
Resource-based view
What is the aggregation of importing and exporting that leads to the country-level trade surplus
or deficit?
Balance of trade
, What is a cost of foreign direct investment?
Developing countries may be exploited by multinational enterprises (MNE).
What may precious, rare, and hard-to-duplicate resources and capabilities lead to for a firm?
Sustained comparative advantage
Which theory states that patterns of international trade change across new, maturing, and
standardized stages?
Product life cycle theory
What is the financial environment in which exchange rates and payments for goods and services
are conducted?
International monetary system
What happens to a country's real exchange rate and nominal interest rate as the price level
increases, assuming all other factors are unchanged?
Exchange rates fall and interest rates rise.
What is the easiest method nonfinancial companies use to handle currency fluctuations?
Currency diversification
BUSINESS
GLOBAL ECONOMICS EXAMINATION -2026
FINAL SPRING SUPPLEMENTARY EXAM| HIGHER TIER
Course Title: Global Economics
Course Code: _______________________
Assessment Type: Objective Assessment
Time Allowed: ______________________
Which view claims that the phenomenon of globalization was initially driven by the desire of
Western economies to exploit their power through multinational enterprises?
The new-force view
Economic gains come from international trade because one country's exported goods, services,
or other items are unique, valuable, and difficult to duplicate to the importing countries
Resource-based view
What is the aggregation of importing and exporting that leads to the country-level trade surplus
or deficit?
Balance of trade
, What is a cost of foreign direct investment?
Developing countries may be exploited by multinational enterprises (MNE).
What may precious, rare, and hard-to-duplicate resources and capabilities lead to for a firm?
Sustained comparative advantage
Which theory states that patterns of international trade change across new, maturing, and
standardized stages?
Product life cycle theory
What is the financial environment in which exchange rates and payments for goods and services
are conducted?
International monetary system
What happens to a country's real exchange rate and nominal interest rate as the price level
increases, assuming all other factors are unchanged?
Exchange rates fall and interest rates rise.
What is the easiest method nonfinancial companies use to handle currency fluctuations?
Currency diversification
