WGU C211 GLOBAL ECONOMICS FOR
MANAGERS REVISION HANDBOOK 2026
MACROECONOMIC POLICY AND
INTERNATIONAL TRADE THEORY
◉ New force in recent times, a long-running historical evolution, a
pendulum swinging between extremes.
Answer: What are the three views of globalization?
◉ "Four Tigers".
Answer: Hong Kong, Singapore, South Korea and Taiwan
◉ Absolute advantage.
Answer: The economic advantage one nation enjoys that is
absolutely superior to other nations.
◉ Administrative policy.
Answer: Bureaucratic rules that make it harder to import foreign
goods.
◉ antidumping duty.
,Answer: Tariffs levied on imports that have been "dumped" (selling
below costs to "unfairly" drive domestic firms out of business).
◉ Balance of Trade.
Answer: The aggregation of importing and exporting that leads to
the country-level trade surplus or deficit.
◉ Classical trade theories.
Answer: The major theories of international trade that were
advanced before the 20th century, which consist of (1) mercantilism,
(2) absolute advantage, and (3) comparative advantage.
◉ Comparative advantage.
Answer: Relative (not absolute) advantage in one economic activity
that one nation enjoys in comparison with other nations.
◉ Deadweight cost.
Answer: Net losses that occur in an economy as a result of tariffs.
◉ Export.
Answer: Selling abroad.
◉ Factor endowment.
,Answer: The extent to which different countries possess various
factors of production such as labor, land, and technology.
◉ Factor endowment theory.
Answer: A theory that suggests that nations will develop
comparative advantages based on their locally abundant factors.
◉ Heckscher-Ohlin theory.
Answer: Another name for factor endowment theory
◉ First-mover advantage.
Answer: Advantage that first movers enjoy and do not share with
late entrants.
◉ Free trade.
Answer: The idea that free market forces should determine how
much to trade with little or no government intervention.
◉ Import.
Answer: Buying from abroad.
◉ Import quota.
Answer: Restriction on the quantity of imports.
, ◉ Import tariff.
Answer: A tax imposed on imports.
◉ Infant industry argument.
Answer: The argument that if domestic firms are as young as
"infants," in the absence of government intervention, they stand no
chances of surviving and will be crushed by mature foreign rivals.
◉ Local content requirement.
Answer: A requirement stipulating that a certain proportion of the
value of the goods made in one country must originate from that
country.
◉ Merchandise.
Answer: Tangible products being traded.
◉ Modern trade theories.
Answer: The major theories of international trade that were
advanced in the 20th century, which consist of (1) product life cycle,
(2) strategic trade, and (3) national competitive advantage of
industries.
◉ Nontariff barrier (NTB).
MANAGERS REVISION HANDBOOK 2026
MACROECONOMIC POLICY AND
INTERNATIONAL TRADE THEORY
◉ New force in recent times, a long-running historical evolution, a
pendulum swinging between extremes.
Answer: What are the three views of globalization?
◉ "Four Tigers".
Answer: Hong Kong, Singapore, South Korea and Taiwan
◉ Absolute advantage.
Answer: The economic advantage one nation enjoys that is
absolutely superior to other nations.
◉ Administrative policy.
Answer: Bureaucratic rules that make it harder to import foreign
goods.
◉ antidumping duty.
,Answer: Tariffs levied on imports that have been "dumped" (selling
below costs to "unfairly" drive domestic firms out of business).
◉ Balance of Trade.
Answer: The aggregation of importing and exporting that leads to
the country-level trade surplus or deficit.
◉ Classical trade theories.
Answer: The major theories of international trade that were
advanced before the 20th century, which consist of (1) mercantilism,
(2) absolute advantage, and (3) comparative advantage.
◉ Comparative advantage.
Answer: Relative (not absolute) advantage in one economic activity
that one nation enjoys in comparison with other nations.
◉ Deadweight cost.
Answer: Net losses that occur in an economy as a result of tariffs.
◉ Export.
Answer: Selling abroad.
◉ Factor endowment.
,Answer: The extent to which different countries possess various
factors of production such as labor, land, and technology.
◉ Factor endowment theory.
Answer: A theory that suggests that nations will develop
comparative advantages based on their locally abundant factors.
◉ Heckscher-Ohlin theory.
Answer: Another name for factor endowment theory
◉ First-mover advantage.
Answer: Advantage that first movers enjoy and do not share with
late entrants.
◉ Free trade.
Answer: The idea that free market forces should determine how
much to trade with little or no government intervention.
◉ Import.
Answer: Buying from abroad.
◉ Import quota.
Answer: Restriction on the quantity of imports.
, ◉ Import tariff.
Answer: A tax imposed on imports.
◉ Infant industry argument.
Answer: The argument that if domestic firms are as young as
"infants," in the absence of government intervention, they stand no
chances of surviving and will be crushed by mature foreign rivals.
◉ Local content requirement.
Answer: A requirement stipulating that a certain proportion of the
value of the goods made in one country must originate from that
country.
◉ Merchandise.
Answer: Tangible products being traded.
◉ Modern trade theories.
Answer: The major theories of international trade that were
advanced in the 20th century, which consist of (1) product life cycle,
(2) strategic trade, and (3) national competitive advantage of
industries.
◉ Nontariff barrier (NTB).
