WGU C211 OA Global Economics Exam Questions
and Answers (Verified Answers) (Latest Update 2026)
C 211 Global Economics for Managers WGU for OA
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.
Globalization can be viewed as: - ............ANSWER..........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.
Name the three views of globalization. - ............ANSWER..........A
recent force, a long-running evolution, and a pendulum
,
The _____ theory viewed international trade as a zero-sum game.
- ............ANSWER..........mercantilism
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.
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
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
Foreign exchange rates are influenced by:
- ............ANSWER..........Interest rates and money supply.
Relative price differences and purchasing power parity.
Supply and demand of the currencies.
and Answers (Verified Answers) (Latest Update 2026)
C 211 Global Economics for Managers WGU for OA
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.
Globalization can be viewed as: - ............ANSWER..........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.
Name the three views of globalization. - ............ANSWER..........A
recent force, a long-running evolution, and a pendulum
,
The _____ theory viewed international trade as a zero-sum game.
- ............ANSWER..........mercantilism
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.
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
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
Foreign exchange rates are influenced by:
- ............ANSWER..........Interest rates and money supply.
Relative price differences and purchasing power parity.
Supply and demand of the currencies.
