WGU C211 Global Economics Study Guide: (Latest 2026/2027 Update)
Globalization, Trade, FDI & Economic Principles | Q&A | Grade A | 100%
Correct (Verified Answers) – WGU Program
Subject: WGU C211 – Global Economics: Globalization, FDI, Trade Theories, Exchange Rates, Market
Structures, Monetary/Fiscal Policy, Trade Barriers
Source: Classical & Modern Trade Theories, Federal Reserve, Micro/Macroeconomic Principles, OLI
Framework
Format: Q&A Guide with Economic Rationale | 100% Verified for MBA & Global Management Exam
Globalization
Correct Answer: Recent phenomenon sweeping the world.
1. The "new" view sees globalization as a recent force driven by technology and trade
liberalization since 1980s.
2. Characterized by increased cross-border flows of goods, capital, information, and people.
3. Critics note that earlier eras also had significant global integration.
Evolutionary Globalization
Correct Answer: Ongoing historical process.
1. Argues globalization began centuries ago with ancient trade routes (Silk Road).
2. Recognizes multiple waves including colonial-era and post-WWII integration.
3. Emphasizes continuity rather than recent discontinuity.
Pendulum Globalization
Correct Answer: Swings between extremes of globalization and isolation.
1. Recognizes cyclical pattern: 1870-1914 (globalization), 1914-1945 (retreat), 1945-2008
(advance).
2. Current period may represent another swing due to protectionist sentiment.
3. Policy choices and major shocks influence direction.
, Foreign Direct Investment (FDI)
Correct Answer: Investment made by a company or individual in one country in business interests in
another country.
1. FDI involves controlling ownership in a foreign business enterprise.
2. Unlike portfolio investment, FDI implies management control and long-term commitment.
3. Typically exceeds 10% ownership threshold in a foreign firm.
Radical View of FDI
Correct Answer: Hostile to FDI.
1. Radical view sees FDI as exploitation of host countries by multinational corporations.
2. Historically associated with Marxist perspective.
3. Argues FDI extracts wealth from developing countries and perpetuates dependency.
Free Market View of FDI
Correct Answer: Minimal restrictions, win-win.
1. Free market view argues FDI benefits both home and host countries through efficiency gains.
2. Capital and technology flow to where they earn highest returns.
3. Supports minimal government intervention in cross-border investment.
Pragmatic Nationalism
Correct Answer: Weigh costs vs. benefits of FDI.
1. Pragmatic nationalism balances potential gains from FDI against possible losses.
2. Host countries selectively allow FDI that brings technology and jobs.
3. May impose performance requirements or restrict certain industries.
FDI Pros
Correct Answer: Capital inflow, tech transfer, management skills, jobs.
1. Capital inflow finances investment without increasing external debt.
2. Technology transfer improves domestic productivity through demonstration effects.
3. Management know-how and direct job creation raise local incomes.
Globalization, Trade, FDI & Economic Principles | Q&A | Grade A | 100%
Correct (Verified Answers) – WGU Program
Subject: WGU C211 – Global Economics: Globalization, FDI, Trade Theories, Exchange Rates, Market
Structures, Monetary/Fiscal Policy, Trade Barriers
Source: Classical & Modern Trade Theories, Federal Reserve, Micro/Macroeconomic Principles, OLI
Framework
Format: Q&A Guide with Economic Rationale | 100% Verified for MBA & Global Management Exam
Globalization
Correct Answer: Recent phenomenon sweeping the world.
1. The "new" view sees globalization as a recent force driven by technology and trade
liberalization since 1980s.
2. Characterized by increased cross-border flows of goods, capital, information, and people.
3. Critics note that earlier eras also had significant global integration.
Evolutionary Globalization
Correct Answer: Ongoing historical process.
1. Argues globalization began centuries ago with ancient trade routes (Silk Road).
2. Recognizes multiple waves including colonial-era and post-WWII integration.
3. Emphasizes continuity rather than recent discontinuity.
Pendulum Globalization
Correct Answer: Swings between extremes of globalization and isolation.
1. Recognizes cyclical pattern: 1870-1914 (globalization), 1914-1945 (retreat), 1945-2008
(advance).
2. Current period may represent another swing due to protectionist sentiment.
3. Policy choices and major shocks influence direction.
, Foreign Direct Investment (FDI)
Correct Answer: Investment made by a company or individual in one country in business interests in
another country.
1. FDI involves controlling ownership in a foreign business enterprise.
2. Unlike portfolio investment, FDI implies management control and long-term commitment.
3. Typically exceeds 10% ownership threshold in a foreign firm.
Radical View of FDI
Correct Answer: Hostile to FDI.
1. Radical view sees FDI as exploitation of host countries by multinational corporations.
2. Historically associated with Marxist perspective.
3. Argues FDI extracts wealth from developing countries and perpetuates dependency.
Free Market View of FDI
Correct Answer: Minimal restrictions, win-win.
1. Free market view argues FDI benefits both home and host countries through efficiency gains.
2. Capital and technology flow to where they earn highest returns.
3. Supports minimal government intervention in cross-border investment.
Pragmatic Nationalism
Correct Answer: Weigh costs vs. benefits of FDI.
1. Pragmatic nationalism balances potential gains from FDI against possible losses.
2. Host countries selectively allow FDI that brings technology and jobs.
3. May impose performance requirements or restrict certain industries.
FDI Pros
Correct Answer: Capital inflow, tech transfer, management skills, jobs.
1. Capital inflow finances investment without increasing external debt.
2. Technology transfer improves domestic productivity through demonstration effects.
3. Management know-how and direct job creation raise local incomes.
