WGU C211 Study Guide | Actual Verified Study with Complete
Solutions | 2026 Updates | 100% correct
C211 Study Guide Questions
COMPETENCY: Globalization (Peng Chapters 1, 5, 6, 11)
• Explain the New, Evolutionary, and Pendulum views of Globalization. How do these differ from
one another?
o Ex question. What are 3 views of globalization? A recent force, a long running evolution
and a pendulum (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)
• What is Foreign Direct Investment?
o Investment in activities that control and manage value added activities in foreign
countries.
• What different political views exist on FDI?
o The primary political views on FDI are free market and pragmatic nationalism.
• What benefits exist to a country receiving FDI? Elaborate.
o Capital inflow, advanced technology, job creation.
• What costs exist to a country receiving FDI? Elaborate.
o Loss of sovereignty, competition, capital outflow, job loss.
• What is resource similarity and how does this impact competitive dynamics?
o Resource similarity is the extent to which a give competitor processes strategic
endowment comparable in terms of both type and amount to those of the local firm.
, COMPETENCY: International Trade and Foreign Exchange Market (Peng Chapters 5, 7, 10)
Give a description of the classical theory of international trade.
o The major theories of international trade that were advanced before the 20th century
(mercantilism, absolute advantage, comparative advantage)
How would the modern theory compare to the classical theory?
o The major theories of international trade that were advanced in the 20th century
(strategic trade, product life cycle, national competitive advantage of industries)
• Compare absolute advantage to comparative advantage. What differences exist?
o Absolute advantage is when each nation gains by specializing in economic activities in
which a nation has absolute advantage. It involves being more efficient than anyone
else in the production of a good or services (ex. Portugal has better soil, water and
weather so they can grow grapes and wine. England has a better production of sheep
to get wool. So they free trade and both countries benefit).
o Comparative advantage is the relative advantage in one economic activity that one
nation enjoys in comparison with other nations (you gave up less to produce a good-
factor endowment)
o Ex question. Peru is rich with gold and copper mines. Assume that Peruvians have set
up expert systems for mining and exporting more of these natural resources that any
other country. This is absolute advantage.
o Ex question. 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… France has a comparative advantage in wine.
• 4- What is mercantilism and why is this an important term?
o The theory of mercantilism views international trade as a zero-sum game (export
more, import less)
• What are the critical features of the product life cycle?
o First theory to incorporate dynamic changes in patterns of trade. More realistic with
trade industrial products in the 20th century.
• How would you describe strategic trade?
o Strategic intervention by the governments may help domestic firms reap first mover
advantages in certain industries and enhance their odds for international success.
Solutions | 2026 Updates | 100% correct
C211 Study Guide Questions
COMPETENCY: Globalization (Peng Chapters 1, 5, 6, 11)
• Explain the New, Evolutionary, and Pendulum views of Globalization. How do these differ from
one another?
o Ex question. What are 3 views of globalization? A recent force, a long running evolution
and a pendulum (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)
• What is Foreign Direct Investment?
o Investment in activities that control and manage value added activities in foreign
countries.
• What different political views exist on FDI?
o The primary political views on FDI are free market and pragmatic nationalism.
• What benefits exist to a country receiving FDI? Elaborate.
o Capital inflow, advanced technology, job creation.
• What costs exist to a country receiving FDI? Elaborate.
o Loss of sovereignty, competition, capital outflow, job loss.
• What is resource similarity and how does this impact competitive dynamics?
o Resource similarity is the extent to which a give competitor processes strategic
endowment comparable in terms of both type and amount to those of the local firm.
, COMPETENCY: International Trade and Foreign Exchange Market (Peng Chapters 5, 7, 10)
Give a description of the classical theory of international trade.
o The major theories of international trade that were advanced before the 20th century
(mercantilism, absolute advantage, comparative advantage)
How would the modern theory compare to the classical theory?
o The major theories of international trade that were advanced in the 20th century
(strategic trade, product life cycle, national competitive advantage of industries)
• Compare absolute advantage to comparative advantage. What differences exist?
o Absolute advantage is when each nation gains by specializing in economic activities in
which a nation has absolute advantage. It involves being more efficient than anyone
else in the production of a good or services (ex. Portugal has better soil, water and
weather so they can grow grapes and wine. England has a better production of sheep
to get wool. So they free trade and both countries benefit).
o Comparative advantage is the relative advantage in one economic activity that one
nation enjoys in comparison with other nations (you gave up less to produce a good-
factor endowment)
o Ex question. Peru is rich with gold and copper mines. Assume that Peruvians have set
up expert systems for mining and exporting more of these natural resources that any
other country. This is absolute advantage.
o Ex question. 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… France has a comparative advantage in wine.
• 4- What is mercantilism and why is this an important term?
o The theory of mercantilism views international trade as a zero-sum game (export
more, import less)
• What are the critical features of the product life cycle?
o First theory to incorporate dynamic changes in patterns of trade. More realistic with
trade industrial products in the 20th century.
• How would you describe strategic trade?
o Strategic intervention by the governments may help domestic firms reap first mover
advantages in certain industries and enhance their odds for international success.
