WGU C211 Attempt #2 Study Set
Questions and Answers 100% Pass
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
The _____ of globalization suggests that globalization is neither recent nor one-directional.
✔✔pendulum view
Globalization can be viewed as: ✔✔ALL OF THESE ANSWERS - 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.
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.
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.
Free trade is defined as: ✔✔The idea that market forces should determine how much to trade with
little or no government intervention.
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
, The _____ principle advocated that governments should actively protect domestic industries from
imports and vigorously promote exports. ✔✔protectionism
The _____ theory is based on the assumption that the wealth of the world is fixed. ✔✔mercantilism
OLI advantages refer to a firm's quest for _____via FDI. ✔✔ownership advantages, location
advantages, and internalization advantages
Firms prefer FDI to licensing because FDI_____. ✔✔provides the firm with direct ownership to
its foreign assets
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
Foreign exchange rates are influenced by: ✔✔ALL OF THESE - interest rates and money supply;
relative price differences and purchasing power parity; supply and demand of the currencies.
If an IMF member country were to find itself in a severe balance of payments crisis that threatened
its financial stability, the IMF would most likely: ✔✔give the country a loan but require the
country to make long-term policy reforms.
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.
Risk analysis of any country must include an analysis of the country's: ✔✔currency risks.
Questions and Answers 100% Pass
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
The _____ of globalization suggests that globalization is neither recent nor one-directional.
✔✔pendulum view
Globalization can be viewed as: ✔✔ALL OF THESE ANSWERS - 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.
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.
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.
Free trade is defined as: ✔✔The idea that market forces should determine how much to trade with
little or no government intervention.
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
, The _____ principle advocated that governments should actively protect domestic industries from
imports and vigorously promote exports. ✔✔protectionism
The _____ theory is based on the assumption that the wealth of the world is fixed. ✔✔mercantilism
OLI advantages refer to a firm's quest for _____via FDI. ✔✔ownership advantages, location
advantages, and internalization advantages
Firms prefer FDI to licensing because FDI_____. ✔✔provides the firm with direct ownership to
its foreign assets
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
Foreign exchange rates are influenced by: ✔✔ALL OF THESE - interest rates and money supply;
relative price differences and purchasing power parity; supply and demand of the currencies.
If an IMF member country were to find itself in a severe balance of payments crisis that threatened
its financial stability, the IMF would most likely: ✔✔give the country a loan but require the
country to make long-term policy reforms.
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.
Risk analysis of any country must include an analysis of the country's: ✔✔currency risks.
