WGU C211 GLOBAL ECONOMICS EXAM 2025
UPDATED ACCURATE REAL EXAM QUESTIONS WITH
A STUDY GUIDE VERIFIED FOR GUARANTEED PASS
OA AND PA
Compare absolute advantage to comparative advantage. What differences exist? -
CORRECT ANSWER Absolute advantage is the ability of an individual, firm or
country to produce more of a good or service than competitors when using the
same amount of resources. (WinWin)
Comparative advantage is the ability of an individual, firm or country to produce a
good or service at a lower opportunity cost than other producers. (Opportunity
cost)
What is mercantilism and why is this an important term? - CORRECT ANSWER
An economic theory that advocates government regulation of international trade.
It is an important tool in creating more wealth for by reducing the trade deficit.
(Zero-sum WinLose)
Explain the New, Evolutionary, and Pendulum views of Globalization. How do
these differ from one another? - CORRECT ANSWER New globalization is a new
force sweeping through the world in recent times. Pendulum globalization is a
pendulum that swings from one extreme to the the other from time to time.
Evolutionary globalization is a long historical evolution since the dawn of human
history.
What is Foreign Direct Investment? - CORRECT ANSWER Investment in
controlling and managing value-added activities in other countries.
What is resource similarity and how does this impact competitive dynamics? -
CORRECT ANSWER Extent to which a given competitor possesses strategic
endownment comparable, in terms of both type and amount, to those of the focal
firm.
Give a description of the classical theory of international trade. - CORRECT
ANSWER Mercantilism, absolute advantage, comparative advantage
?
, WGU C211 GLOBAL ECONOMICS EXAM 2025
UPDATED ACCURATE REAL EXAM QUESTIONS WITH
A STUDY GUIDE VERIFIED FOR GUARANTEED PASS
OA AND PA
How would the modern theory compare to the classical theory? - CORRECT
ANSWER Modern Trade Theories are 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 instead of
relying on simple factor analysis, modern theories rely on more realistic product
life cycles, first-mover advantages, and the "diamond" to explain and predict
patterns of trade.
?
, WGU C211 GLOBAL ECONOMICS EXAM 2025
UPDATED ACCURATE REAL EXAM QUESTIONS WITH
A STUDY GUIDE VERIFIED FOR GUARANTEED PASS
OA AND PA
What different political views exist on FDI? - CORRECT ANSWER Radical -
hostile to FDI, roots to Marxism, treates FDI as an instrument of imperialism and
as a vehicle for exploitation of domestic resources by foreign capitalists and firms.
Free Market - suggests that FDI unrestricted by government intervention will
enable countries to tap into their absolute comparative advantages by specializing
in the production of certain goods and services.. win-win logic FDI friendly
polices Brazil, China, Hungary, India, Ireland, Russia.
Pragmatic Nationalism - Practiced by most countries. Viewing FDI as having both
pros and cons and only aprroving FDI when its benefits outweigh costs.
What benefits exist to a country receiving FDI? - CORRECT ANSWER Capital
inflow - can help improve a host country's balance of payments
Technology - can create technology spillovers that benefit domestic firms and
industries Advanced managment - know-how may be highly valued.
FDI creates jobs both directly and indirectly. Direct benefits arise when MNEs
employ individuals locally. Indirect benefits include jobs created when local
suppliers increase hiring and when MNE employees spend money locally resulting
in more jobs. Repatriated earnings from profits from FDI. Increased exports of
components and services to host countries. Learning via FDI from operations
abroad.
What costs exist to a country receiving FDI? - CORRECT ANSWER -Loss of
sovereignty because of decisions to invest, produce and market products and/or to
close plants and lay off workers in a host country are being made by foreigners.
-Adverse effects on competiton. May drive some domestic firms out of business.
Having driven domestic firms out of business MNE's in theory may be able to
monopolize local markets.
-Capital outflow when MNE's make profits in host countries and repatriate (send
back) such earnings to headquarters in home countries, host countries experience a
net outflow in the capital account in their balance of payments.
?
, WGU C211 GLOBAL ECONOMICS EXAM 2025
UPDATED ACCURATE REAL EXAM QUESTIONS WITH
A STUDY GUIDE VERIFIED FOR GUARANTEED PASS
OA AND PA
How do resources and capabilities influence the competitive dynamics of a
business? - CORRECT ANSWER Strong resources and capabilities help to
compete and/or cooperate more effectively.
?
UPDATED ACCURATE REAL EXAM QUESTIONS WITH
A STUDY GUIDE VERIFIED FOR GUARANTEED PASS
OA AND PA
Compare absolute advantage to comparative advantage. What differences exist? -
CORRECT ANSWER Absolute advantage is the ability of an individual, firm or
country to produce more of a good or service than competitors when using the
same amount of resources. (WinWin)
Comparative advantage is the ability of an individual, firm or country to produce a
good or service at a lower opportunity cost than other producers. (Opportunity
cost)
What is mercantilism and why is this an important term? - CORRECT ANSWER
An economic theory that advocates government regulation of international trade.
It is an important tool in creating more wealth for by reducing the trade deficit.
(Zero-sum WinLose)
Explain the New, Evolutionary, and Pendulum views of Globalization. How do
these differ from one another? - CORRECT ANSWER New globalization is a new
force sweeping through the world in recent times. Pendulum globalization is a
pendulum that swings from one extreme to the the other from time to time.
Evolutionary globalization is a long historical evolution since the dawn of human
history.
What is Foreign Direct Investment? - CORRECT ANSWER Investment in
controlling and managing value-added activities in other countries.
What is resource similarity and how does this impact competitive dynamics? -
CORRECT ANSWER Extent to which a given competitor possesses strategic
endownment comparable, in terms of both type and amount, to those of the focal
firm.
Give a description of the classical theory of international trade. - CORRECT
ANSWER Mercantilism, absolute advantage, comparative advantage
?
, WGU C211 GLOBAL ECONOMICS EXAM 2025
UPDATED ACCURATE REAL EXAM QUESTIONS WITH
A STUDY GUIDE VERIFIED FOR GUARANTEED PASS
OA AND PA
How would the modern theory compare to the classical theory? - CORRECT
ANSWER Modern Trade Theories are 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 instead of
relying on simple factor analysis, modern theories rely on more realistic product
life cycles, first-mover advantages, and the "diamond" to explain and predict
patterns of trade.
?
, WGU C211 GLOBAL ECONOMICS EXAM 2025
UPDATED ACCURATE REAL EXAM QUESTIONS WITH
A STUDY GUIDE VERIFIED FOR GUARANTEED PASS
OA AND PA
What different political views exist on FDI? - CORRECT ANSWER Radical -
hostile to FDI, roots to Marxism, treates FDI as an instrument of imperialism and
as a vehicle for exploitation of domestic resources by foreign capitalists and firms.
Free Market - suggests that FDI unrestricted by government intervention will
enable countries to tap into their absolute comparative advantages by specializing
in the production of certain goods and services.. win-win logic FDI friendly
polices Brazil, China, Hungary, India, Ireland, Russia.
Pragmatic Nationalism - Practiced by most countries. Viewing FDI as having both
pros and cons and only aprroving FDI when its benefits outweigh costs.
What benefits exist to a country receiving FDI? - CORRECT ANSWER Capital
inflow - can help improve a host country's balance of payments
Technology - can create technology spillovers that benefit domestic firms and
industries Advanced managment - know-how may be highly valued.
FDI creates jobs both directly and indirectly. Direct benefits arise when MNEs
employ individuals locally. Indirect benefits include jobs created when local
suppliers increase hiring and when MNE employees spend money locally resulting
in more jobs. Repatriated earnings from profits from FDI. Increased exports of
components and services to host countries. Learning via FDI from operations
abroad.
What costs exist to a country receiving FDI? - CORRECT ANSWER -Loss of
sovereignty because of decisions to invest, produce and market products and/or to
close plants and lay off workers in a host country are being made by foreigners.
-Adverse effects on competiton. May drive some domestic firms out of business.
Having driven domestic firms out of business MNE's in theory may be able to
monopolize local markets.
-Capital outflow when MNE's make profits in host countries and repatriate (send
back) such earnings to headquarters in home countries, host countries experience a
net outflow in the capital account in their balance of payments.
?
, WGU C211 GLOBAL ECONOMICS EXAM 2025
UPDATED ACCURATE REAL EXAM QUESTIONS WITH
A STUDY GUIDE VERIFIED FOR GUARANTEED PASS
OA AND PA
How do resources and capabilities influence the competitive dynamics of a
business? - CORRECT ANSWER Strong resources and capabilities help to
compete and/or cooperate more effectively.
?
