2026 WGU C211 OA Global Economics Exam| Questions
and Correct Verified Answers /C 211 Global Economics
for Managers |Latest Version!!! Already Graded A+
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)?
pg. 1
,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
pg. 2
,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
pg. 3
, _____ 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
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.
pg. 4
and Correct Verified Answers /C 211 Global Economics
for Managers |Latest Version!!! Already Graded A+
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)?
pg. 1
,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
pg. 2
,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
pg. 3
, _____ 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
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.
pg. 4
