WGU C211 Exam Prep Questions and Answers

Globalization can be viewed as - ANSWER a new force sweeping through the world in recent times. a Option pendulum that swings from one extreme to another from time to time. a long-run historical evolution since the dawn of human history. What is the definition of an institution-based view of global business? - ANSWER An institution-based view suggests that the success and failure of firms are enabled and constrained by institutions, also known as the rules of the game, such as regulations, laws, cultures, ethics, and norms. From an institution-based view, a government's legal requirement for a business to pay taxes would be an example of: - ANSWER the influence of a formal institution. Which are the three views of globalization? - ANSWER A recent force, a longrunning evolution, and a pendulum Trade deficit refers to: - ANSWER an economic condition in which a nation imports more than it exports. The modern trade theories include the following EXCEPT: - ANSWER Theory of comparative advantage The theory of mercantilism: - ANSWER views international trade as a zerosum game. According to the theory of absolute advantage, under free trade, - ANSWER 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)? - ANSWER Cultural distance Which of the following theories does NOT lead to the conclusion that unrestricted free trade is in the best interests of all countries? - ANSWER Strategic trade theory An import quota is: - ANSWER Restriction