WGU C211 STUDY GUIDE QUESTIONS WITH 100% COMLETE jj jj jj jj jj jj jj
GUIDE A+ SOLUTIONS. jj jj jj
NOTE: The student who completed this study guide, details their study method in the 2 bullet points below.
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
• I just passed the Global Econ class in less than 2 weeks, and that was with spending an average of an hour studying
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
every day. I have attached the study guide that I created and used to pass. This was the only course resource that I
jj j j jj jj jj jj jj jj jj jj jj jj jj jj j j jj jj jj jj jj jj jj
used. I didn't watch any videos or use any of the textbooks.
jj jj jj jj jj jj jj jj jj jj jj jj
• I used all of the PowerPoint decks for this class, a combination of different Quizlet decks, and Google for a couple of
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
questions.
• As an extra measure, recorded webinars links are on the last 2 pages
jj jj jj jj jj jj jj jj jj jj jj jj
The following questions are developed as a study aid for the C211 COS. They cover important concepts in each
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
competency. The questions are not comprehensive but are only designed to serve as an indicator of your preparedness to
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
take the C211 assessment. After reading the material for each competency, use these questions to reinforce your
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
understanding and review further as necessary.
jj jj jj jj jj jj
COMPETENCY: Globalization (Peng Chapters 1, 5, 6, 11) j jj jj jj j j j
1- Explain the New, Evolutionary, and Pendulum views of Globalization. How do these differ from one another?
j jj j jj j j jj jj j jj j j j jj jj
Depending on what sources you read, globalization could be jj jj jj jj jj jj jj jj
• opponents of globalization suggest that it is a new phenomenon beginning in the late 20th century, jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
driven by recent technological innovations and a Western ideology focused on exploiting and dominating
jj jj j jj j jj jj j jj jj jj j jj j
the world through MNEs jj jj jj jj
• a long-run historical evolution since the dawn of human history jj jj jj jj jj jj jj jj jj
• A pendulum that swings from one extreme to another from time to time. A third view suggests that
jj jj jj jj jj jj jj jj jj jj jj jj j j jj jj jj jj
globalization is the “closer integration of the countries and peoples of the world which has been brought
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
about by the enormous reduction of the costs of transportation and communication, and the breaking
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
down of artificial barriers to the flows of goods, services, capital, knowledge, and (to a lesser extent)
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
people across borders.” Globalization is neither recent nor one-directional. It is, more accurately, a
jj jj jj jj jj jj jj jj jj jj jj jj jj jj
process similar to the swing of a pendulum. jj jj jj jj jj jj jj jj
2- What is Foreign Direct Investment?
jj jj jj jj
Investments in, controlling, and managing value added activities in other countries jj jj jj jj jj jj jj jj jj jj
Horizontal FDI – Producing the same products or offering the same services in a host country as firms do at home
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
Vertical FDI - Firm moves upstream or downstream in different value chain stages in a host country through FDI
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj j jj
3- What different political views exist on FDI?
j j j j j j
An institution-based view suggests that the success and failure of firms are enabled and constrained by
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
institutions. By institutions, we mean the rules of the game. Doing business around the globe requires intimate
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
knowledge about both formal rules (such as laws) and informal rules (such as values) that govern competition in
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
Page 1 of 30 jj jj jj
,various countries. If you establish a firm in a given country, you will work within that country’s institutional
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
framework, which consists of the formal and informal institutions that govern individual and firm behavior. Firms that
jj jj jj j jj j j j j j jj j j jj j jj jj
do not do their homework and thus remain ignorant of the rules of the game in a certain country are not likely to
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
emerge as winners.
jj jj jj
Formal Rules - requirements that treat domestic and foreign firms as equals enhance the potential odds for
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
foreign firms’ success or those that discriminate against foreign firms, would undermine the chances for foreign
jj jj jj jj jj jj j j jj jj jj jj jj jj jj jj
entrants
jj
Informal Rules - cultures, ethics, and norms play an important part in shaping the success and failure of firms around
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
the globe
jj jj
The resource-based view helps overcome this drawback. While the institution based view primarily deals with the
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
external environment, the resource-based view focuses on a firm’s internal resources and capabilities.
jj jj jj jj jj jj jj jj jj jj jj jj jj
A resource-based view suggests that the success and failure of firms are determined by their environments
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
Liability of Foreignness - inherent disadvantage that foreign firms experience in host countries because of their
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj j
nonnative status
jj jj
Radical View - view of FDI - treats FDI as an instrument of imperialism and a vehicle for exploiting domestic
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
resources, industries, and people by foreign capitalists and firms
jj jj jj jj jj jj jj jj jj
Page 2 of 30 jj jj jj
, Free Market View - view of FDI - unrestricted by government intervention FDI will enable countries to tap into
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
their absolute or comparative advantages by specializing in the production of certain goods and services
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
Pragmatic Nationalism - view of FDI - considering both the pros and cons of FDI and approving FDI only when its
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
benefits outweigh its costs
jj jj jj jj
4- What benefits and costs exist to a country receiving FDI? Elaborate.
jj jj jj jj jj jj jj jj jj jj
6- How do resources and capabilities influence the competitive dynamics of a business?
jj jj jj jj jj jj jj jj jj jj jj
Resource similarity - Extent to which a given competitor possesses strategic endowment comparable, in terms of
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
both type and amount, to those of the focal firm
jj jj jj jj jj jj jj jj jj jj
Price leader - Firm that has dominant market share and sets “acceptable” prices and margins in the industry
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
Capacity to punish - Price leader has sufficient resources to deter and combat defection
jj jj jj jj jj jj jj jj jj jj jj jj jj
Factor endowment - Extent to which different countries possess various factors of production such as labor, land,
j jj j j j jj jj j j j jj jj j jj j jj
and technology
jj jj
Factor endowment theory (Heckscher-Ohlin theory) - Nations will develop comparative advantages based on their
jj jj jj jj jj j jj jj jj jj jj jj jj
locally abundant factors
jj jj jj
7- What is resource similarity and how does this impact competitive dynamics?
jj jj jj jj jj jj jj jj jj jj
Extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount,
jj j jj jj jj jj jj jj jj jj jj j jj jj jj jj
to those of the focal firm
jj jj jj jj jj jj
COMPETENCY: International Trade and Foreign Exchange Market (Peng Chapters 5, 7, 10) 1-
j j j j j j j j j j j jj
Give a description of the classical theory of international trade.
jj jj jj jj jj jj jj jj jj
Page 3 of 30 jj jj jj
GUIDE A+ SOLUTIONS. jj jj jj
NOTE: The student who completed this study guide, details their study method in the 2 bullet points below.
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
• I just passed the Global Econ class in less than 2 weeks, and that was with spending an average of an hour studying
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
every day. I have attached the study guide that I created and used to pass. This was the only course resource that I
jj j j jj jj jj jj jj jj jj jj jj jj jj jj j j jj jj jj jj jj jj jj
used. I didn't watch any videos or use any of the textbooks.
jj jj jj jj jj jj jj jj jj jj jj jj
• I used all of the PowerPoint decks for this class, a combination of different Quizlet decks, and Google for a couple of
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
questions.
• As an extra measure, recorded webinars links are on the last 2 pages
jj jj jj jj jj jj jj jj jj jj jj jj
The following questions are developed as a study aid for the C211 COS. They cover important concepts in each
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
competency. The questions are not comprehensive but are only designed to serve as an indicator of your preparedness to
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
take the C211 assessment. After reading the material for each competency, use these questions to reinforce your
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
understanding and review further as necessary.
jj jj jj jj jj jj
COMPETENCY: Globalization (Peng Chapters 1, 5, 6, 11) j jj jj jj j j j
1- Explain the New, Evolutionary, and Pendulum views of Globalization. How do these differ from one another?
j jj j jj j j jj jj j jj j j j jj jj
Depending on what sources you read, globalization could be jj jj jj jj jj jj jj jj
• opponents of globalization suggest that it is a new phenomenon beginning in the late 20th century, jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
driven by recent technological innovations and a Western ideology focused on exploiting and dominating
jj jj j jj j jj jj j jj jj jj j jj j
the world through MNEs jj jj jj jj
• a long-run historical evolution since the dawn of human history jj jj jj jj jj jj jj jj jj
• A pendulum that swings from one extreme to another from time to time. A third view suggests that
jj jj jj jj jj jj jj jj jj jj jj jj j j jj jj jj jj
globalization is the “closer integration of the countries and peoples of the world which has been brought
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
about by the enormous reduction of the costs of transportation and communication, and the breaking
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
down of artificial barriers to the flows of goods, services, capital, knowledge, and (to a lesser extent)
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
people across borders.” Globalization is neither recent nor one-directional. It is, more accurately, a
jj jj jj jj jj jj jj jj jj jj jj jj jj jj
process similar to the swing of a pendulum. jj jj jj jj jj jj jj jj
2- What is Foreign Direct Investment?
jj jj jj jj
Investments in, controlling, and managing value added activities in other countries jj jj jj jj jj jj jj jj jj jj
Horizontal FDI – Producing the same products or offering the same services in a host country as firms do at home
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
Vertical FDI - Firm moves upstream or downstream in different value chain stages in a host country through FDI
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj j jj
3- What different political views exist on FDI?
j j j j j j
An institution-based view suggests that the success and failure of firms are enabled and constrained by
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
institutions. By institutions, we mean the rules of the game. Doing business around the globe requires intimate
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
knowledge about both formal rules (such as laws) and informal rules (such as values) that govern competition in
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
Page 1 of 30 jj jj jj
,various countries. If you establish a firm in a given country, you will work within that country’s institutional
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
framework, which consists of the formal and informal institutions that govern individual and firm behavior. Firms that
jj jj jj j jj j j j j j jj j j jj j jj jj
do not do their homework and thus remain ignorant of the rules of the game in a certain country are not likely to
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
emerge as winners.
jj jj jj
Formal Rules - requirements that treat domestic and foreign firms as equals enhance the potential odds for
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
foreign firms’ success or those that discriminate against foreign firms, would undermine the chances for foreign
jj jj jj jj jj jj j j jj jj jj jj jj jj jj jj
entrants
jj
Informal Rules - cultures, ethics, and norms play an important part in shaping the success and failure of firms around
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
the globe
jj jj
The resource-based view helps overcome this drawback. While the institution based view primarily deals with the
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
external environment, the resource-based view focuses on a firm’s internal resources and capabilities.
jj jj jj jj jj jj jj jj jj jj jj jj jj
A resource-based view suggests that the success and failure of firms are determined by their environments
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
Liability of Foreignness - inherent disadvantage that foreign firms experience in host countries because of their
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj j
nonnative status
jj jj
Radical View - view of FDI - treats FDI as an instrument of imperialism and a vehicle for exploiting domestic
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
resources, industries, and people by foreign capitalists and firms
jj jj jj jj jj jj jj jj jj
Page 2 of 30 jj jj jj
, Free Market View - view of FDI - unrestricted by government intervention FDI will enable countries to tap into
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
their absolute or comparative advantages by specializing in the production of certain goods and services
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
Pragmatic Nationalism - view of FDI - considering both the pros and cons of FDI and approving FDI only when its
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
benefits outweigh its costs
jj jj jj jj
4- What benefits and costs exist to a country receiving FDI? Elaborate.
jj jj jj jj jj jj jj jj jj jj
6- How do resources and capabilities influence the competitive dynamics of a business?
jj jj jj jj jj jj jj jj jj jj jj
Resource similarity - Extent to which a given competitor possesses strategic endowment comparable, in terms of
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
both type and amount, to those of the focal firm
jj jj jj jj jj jj jj jj jj jj
Price leader - Firm that has dominant market share and sets “acceptable” prices and margins in the industry
jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj jj
Capacity to punish - Price leader has sufficient resources to deter and combat defection
jj jj jj jj jj jj jj jj jj jj jj jj jj
Factor endowment - Extent to which different countries possess various factors of production such as labor, land,
j jj j j j jj jj j j j jj jj j jj j jj
and technology
jj jj
Factor endowment theory (Heckscher-Ohlin theory) - Nations will develop comparative advantages based on their
jj jj jj jj jj j jj jj jj jj jj jj jj
locally abundant factors
jj jj jj
7- What is resource similarity and how does this impact competitive dynamics?
jj jj jj jj jj jj jj jj jj jj
Extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount,
jj j jj jj jj jj jj jj jj jj jj j jj jj jj jj
to those of the focal firm
jj jj jj jj jj jj
COMPETENCY: International Trade and Foreign Exchange Market (Peng Chapters 5, 7, 10) 1-
j j j j j j j j j j j jj
Give a description of the classical theory of international trade.
jj jj jj jj jj jj jj jj jj
Page 3 of 30 jj jj jj
