WGU C211 Global Economics for Managers
Question and Answer | A+ Verified | 2026
Updated Exam Review Pack
• 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_____. -✓✓provides the firm with
direct ownership to its foreign assets
, • Which of the following political perspectives maintains the view that FDI has
both pros and cons and can only be approved when its benefits outweigh costs? -
✓✓Pragmatic nationalism
• Which of the following is a benefit of FDI to home countries? -✓✓Learning from
operations
• Which of the following foreign exchange transactions provide protection to
traders and investors from being exposed to fluctuations of the spot rate? -
✓✓Forward transactions
• _____ 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. -✓✓Currency swap
• Foreign exchange rates are influenced by: -✓✓Interest rates and money supply.
Relative price differences and purchasing power parity.
Supply and demand of the currencies.
• A savvy global business manger must understand the following concepts to be
considered literate about foreign exchange: -✓✓Understand the factors that
influence exchange rates
Understand the ways to hedge currency risks
Understand the foreign exchange market
• Which of the following are the primary types of foreign exchange transactions
made by financial companies? -✓✓Swaps, spot transactions, forward transactions
• A home appliance manufacturer located in The Netherlands decides to open two
new manufacturing plants, one in Poland and the other in Thailand. Its purpose is
to offset currency losses through: -✓✓strategic hedging
• Why do managers, at some of the largest global corporations, fail to engage in
currency hedging? -✓✓They believe that the protection against fluctuations in
exchange rates is not worth the potentially high cost of currency hedging.
Question and Answer | A+ Verified | 2026
Updated Exam Review Pack
• 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_____. -✓✓provides the firm with
direct ownership to its foreign assets
, • Which of the following political perspectives maintains the view that FDI has
both pros and cons and can only be approved when its benefits outweigh costs? -
✓✓Pragmatic nationalism
• Which of the following is a benefit of FDI to home countries? -✓✓Learning from
operations
• Which of the following foreign exchange transactions provide protection to
traders and investors from being exposed to fluctuations of the spot rate? -
✓✓Forward transactions
• _____ 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. -✓✓Currency swap
• Foreign exchange rates are influenced by: -✓✓Interest rates and money supply.
Relative price differences and purchasing power parity.
Supply and demand of the currencies.
• A savvy global business manger must understand the following concepts to be
considered literate about foreign exchange: -✓✓Understand the factors that
influence exchange rates
Understand the ways to hedge currency risks
Understand the foreign exchange market
• Which of the following are the primary types of foreign exchange transactions
made by financial companies? -✓✓Swaps, spot transactions, forward transactions
• A home appliance manufacturer located in The Netherlands decides to open two
new manufacturing plants, one in Poland and the other in Thailand. Its purpose is
to offset currency losses through: -✓✓strategic hedging
• Why do managers, at some of the largest global corporations, fail to engage in
currency hedging? -✓✓They believe that the protection against fluctuations in
exchange rates is not worth the potentially high cost of currency hedging.
