1|Page
WGU C211 OA GLOBAL ECONOMICS EXAM WITH
CORRECT ACTUAL QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST ALREADY GRADED A+
The resource-based view of global business differs from the institution-
based view of global business in that the resource-based view _____.
......ANSWER......focuses on the internal strengths on the firm
Which of the following is true of globalization according to the
"pendulum view" perspective? ......ANSWER......Globalization is a not a
one-directional phenomenon.
The _____ of globalization suggests that globalization is neither recent
nor one-directional. ......ANSWER......pendulum view
Which of the following is true of semiglobalization? ......ANSWER......It is
a type of globalization that lies between total isolation and total
globalization.
The _____ theory viewed international trade as a zero-sum game.
......ANSWER......mercantilism
pg. 1
,2|Page
The _____ principle advocated that governments should actively
protect domestic industries from imports and vigorously promote
exports. ......ANSWER......protectionism
Which of the following is a modern trade theory?
......ANSWER......National competitive advantage
The _____ theory is based on the assumption that the wealth of the
world is fixed. ......ANSWER......mercantilism
Import quotas are a type of _____. ......ANSWER......tariff barrier
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
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?
......ANSWER......France has a comparative advantage in wine.
pg. 2
,3|Page
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
Free trade is defined as: ......ANSWER......The idea that market forces
should determine how much to trade with little or no government
intervention.
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
Protectionism is similar to mercantilism as they both advocated _____.
......ANSWER......government involvement in international trade
OLI advantages refer to a firm's quest for _____via FDI.
......ANSWER......ownership advantages, location advantages, and
internalization advantages
MNEs' possession and leveraging of certain valuable, rare, hard-to-
imitate, and organizationally embedded (VRIO) assets overseas in the
context of FDI refer to _____. ......ANSWER......ownership
pg. 3
, 4|Page
Firms prefer FDI to licensing because FDI_____.
......ANSWER......provides the firm with direct ownership to its foreign
assets
Which of the following political perspectives maintains the view that
FDI has both pros and cons and can only be approved when its benefits
outweigh costs? ......ANSWER......Pragmatic nationalism
Which of the following is a benefit of FDI to home countries?
......ANSWER......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? ......ANSWER......Forward transactions
_____ is defined as the conversion of one currency into another at Time
1, with an agreement to revert it back to the original currency at a
specific Time 2 in the future. ......ANSWER......Currency swap
A savvy global business manger must understand the following
concepts to be considered literate about foreign exchange:
......ANSWER......Understand the factors that influence exchange rates
Understand the ways to hedge currency risks
Understand the foreign exchange market
pg. 4
WGU C211 OA GLOBAL ECONOMICS EXAM WITH
CORRECT ACTUAL QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST ALREADY GRADED A+
The resource-based view of global business differs from the institution-
based view of global business in that the resource-based view _____.
......ANSWER......focuses on the internal strengths on the firm
Which of the following is true of globalization according to the
"pendulum view" perspective? ......ANSWER......Globalization is a not a
one-directional phenomenon.
The _____ of globalization suggests that globalization is neither recent
nor one-directional. ......ANSWER......pendulum view
Which of the following is true of semiglobalization? ......ANSWER......It is
a type of globalization that lies between total isolation and total
globalization.
The _____ theory viewed international trade as a zero-sum game.
......ANSWER......mercantilism
pg. 1
,2|Page
The _____ principle advocated that governments should actively
protect domestic industries from imports and vigorously promote
exports. ......ANSWER......protectionism
Which of the following is a modern trade theory?
......ANSWER......National competitive advantage
The _____ theory is based on the assumption that the wealth of the
world is fixed. ......ANSWER......mercantilism
Import quotas are a type of _____. ......ANSWER......tariff barrier
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
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?
......ANSWER......France has a comparative advantage in wine.
pg. 2
,3|Page
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
Free trade is defined as: ......ANSWER......The idea that market forces
should determine how much to trade with little or no government
intervention.
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
Protectionism is similar to mercantilism as they both advocated _____.
......ANSWER......government involvement in international trade
OLI advantages refer to a firm's quest for _____via FDI.
......ANSWER......ownership advantages, location advantages, and
internalization advantages
MNEs' possession and leveraging of certain valuable, rare, hard-to-
imitate, and organizationally embedded (VRIO) assets overseas in the
context of FDI refer to _____. ......ANSWER......ownership
pg. 3
, 4|Page
Firms prefer FDI to licensing because FDI_____.
......ANSWER......provides the firm with direct ownership to its foreign
assets
Which of the following political perspectives maintains the view that
FDI has both pros and cons and can only be approved when its benefits
outweigh costs? ......ANSWER......Pragmatic nationalism
Which of the following is a benefit of FDI to home countries?
......ANSWER......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? ......ANSWER......Forward transactions
_____ is defined as the conversion of one currency into another at Time
1, with an agreement to revert it back to the original currency at a
specific Time 2 in the future. ......ANSWER......Currency swap
A savvy global business manger must understand the following
concepts to be considered literate about foreign exchange:
......ANSWER......Understand the factors that influence exchange rates
Understand the ways to hedge currency risks
Understand the foreign exchange market
pg. 4
