WGU C211 OA Global Economics Exam (2025
/ 2026) Questions and Verified Answers, 100%
Guarantee Pass
view that claims phenomenon of globalization was initially driven by
the desire of Western economies to exploit their power through MNE's
- correct answer -new
view that claims globalization is a long-run historical evolution since
the
dawn of humanity. Says it is nothing new and that it will always exist
- correct answer -evolutionary
view that claims globalization is swinging from one extreme to
another
from time to time
- correct answer -pendulum
investment in, controlling, and managing value-added activities in
other
countries
- correct answer -foreign direct investment
political view hostile to FDI. believes it is an instrument of imperialism
and vehicle for exploitation of domestic resources by foreign capitalists
and firms
- correct answer -radical
suggests that FDI, unrestricted by government intervention, will
enable
countries to tap into their absolute or comparative advantages by
specializing in the production of certain goods and services
- correct answer -free market
views FDI as having pros and cons and only approving FDI when its
benefits outweigh costs
- correct answer -pragmatic nationalis
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, what benefits exist to a country receiving FDI?
- correct answer -capital inflow, technology spillovers, advanced
management know-how, creates jobs
what costs exist to a country receiving FDI?
- correct answer -loss of sovereignty, adverse effects on competition,
net outflow in the capital account
The aggregation of importing and exporting that leads to the country-
level trade surplus or deficit.
- correct answer -balance of trade
firms with a _____ degree of resource similarity are likely to have
similar
competitive actions
- correct answer -high
a high degree of resource similarity but low market commonality =
_______
intensity of rivalry
- correct answer -highest
little resource similarity but high market commonality = _____
intensity of rivalry
- correct answer -lowest
mercantilism, absolute advantage and comparative advantage belong
to
what theory of international trade
- correct answer -classical
theory of international trade that relies on more realistic product life
cycles
and first mover advantages
- correct answer -modern
under free trade, a nation gains by specializing in economic activities
in
which it has _____advantage
- correct answer -absolute
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, focuses on the idea that if a country does not have absolute
advantage,
they can still choose to specialize in the production of one good where
it has ______ advantage
- correct answer -comparative
comparative advantage and absolute advantage stem from
- correct answer -factor endowments
theory that the wealth of the world is fixed and that a nation that
imports
more and exports less will be richer
- correct answer -mercantilism
stage of the product life cycle where production of a new product that
commands a price premium will concentrate in the US
- correct answer -new
stage of the product life cycle where demand and ability to produce
grow
in other developed nations
- correct answer -maturing
stage of the product life cycle where the previously new product is
commoditized and production will now move to low-cost developing
nations
- correct answer -standardized
comparative advantage may change over time because patterns of
______
change over time
- correct answer -trade
theory that suggests that intervention by governments in certain
industries can enhance their odds for international success
- correct answer -strategic trade
if a company seeks to limit foreign exchange rate exposure in the
forward
direction, what is the most effective way to do this?
WGU
/ 2026) Questions and Verified Answers, 100%
Guarantee Pass
view that claims phenomenon of globalization was initially driven by
the desire of Western economies to exploit their power through MNE's
- correct answer -new
view that claims globalization is a long-run historical evolution since
the
dawn of humanity. Says it is nothing new and that it will always exist
- correct answer -evolutionary
view that claims globalization is swinging from one extreme to
another
from time to time
- correct answer -pendulum
investment in, controlling, and managing value-added activities in
other
countries
- correct answer -foreign direct investment
political view hostile to FDI. believes it is an instrument of imperialism
and vehicle for exploitation of domestic resources by foreign capitalists
and firms
- correct answer -radical
suggests that FDI, unrestricted by government intervention, will
enable
countries to tap into their absolute or comparative advantages by
specializing in the production of certain goods and services
- correct answer -free market
views FDI as having pros and cons and only approving FDI when its
benefits outweigh costs
- correct answer -pragmatic nationalis
WGU
, what benefits exist to a country receiving FDI?
- correct answer -capital inflow, technology spillovers, advanced
management know-how, creates jobs
what costs exist to a country receiving FDI?
- correct answer -loss of sovereignty, adverse effects on competition,
net outflow in the capital account
The aggregation of importing and exporting that leads to the country-
level trade surplus or deficit.
- correct answer -balance of trade
firms with a _____ degree of resource similarity are likely to have
similar
competitive actions
- correct answer -high
a high degree of resource similarity but low market commonality =
_______
intensity of rivalry
- correct answer -highest
little resource similarity but high market commonality = _____
intensity of rivalry
- correct answer -lowest
mercantilism, absolute advantage and comparative advantage belong
to
what theory of international trade
- correct answer -classical
theory of international trade that relies on more realistic product life
cycles
and first mover advantages
- correct answer -modern
under free trade, a nation gains by specializing in economic activities
in
which it has _____advantage
- correct answer -absolute
WGU
, focuses on the idea that if a country does not have absolute
advantage,
they can still choose to specialize in the production of one good where
it has ______ advantage
- correct answer -comparative
comparative advantage and absolute advantage stem from
- correct answer -factor endowments
theory that the wealth of the world is fixed and that a nation that
imports
more and exports less will be richer
- correct answer -mercantilism
stage of the product life cycle where production of a new product that
commands a price premium will concentrate in the US
- correct answer -new
stage of the product life cycle where demand and ability to produce
grow
in other developed nations
- correct answer -maturing
stage of the product life cycle where the previously new product is
commoditized and production will now move to low-cost developing
nations
- correct answer -standardized
comparative advantage may change over time because patterns of
______
change over time
- correct answer -trade
theory that suggests that intervention by governments in certain
industries can enhance their odds for international success
- correct answer -strategic trade
if a company seeks to limit foreign exchange rate exposure in the
forward
direction, what is the most effective way to do this?
WGU
