WGU C211 OA EXAM FULL QUESTIONS AND
ANSWERS 2026 GRADED A+
◉ 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 long-running 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 zero-sum 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 on the quantity of
imports that can be brought into a country.
◉ The three modern theories of international trade are: Answer:
product life cycle, strategic trade, national competitive advantage of
industries.
◉ Free trade is defined as: Answer: The idea that market forces
should determine how much to trade with little or no government
intervention.
◉ Multinational enterprises (MNEs) are: Answer: firms that engage
in foreign direct investment (FDI).
ANSWERS 2026 GRADED A+
◉ 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 long-running 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 zero-sum 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 on the quantity of
imports that can be brought into a country.
◉ The three modern theories of international trade are: Answer:
product life cycle, strategic trade, national competitive advantage of
industries.
◉ Free trade is defined as: Answer: The idea that market forces
should determine how much to trade with little or no government
intervention.
◉ Multinational enterprises (MNEs) are: Answer: firms that engage
in foreign direct investment (FDI).
