WGU C211 Exams Questions with
Comprehensive Resolutions
EXAM
Topic 1: Globalization – The Three Views
Q1: What are the three recognized views of globalization?
Answer: New, Evolutionary, and Pendulum.
Rationale: The "New" view sees globalization as a recent
phenomenon driven by technology and multinational
enterprises. The "Evolutionary" view traces trade back to
ancient routes like the Silk Road, arguing globalization is a
long-running historical process. The "Pendulum" view
recognizes that globalization can reverse direction, swinging
between periods of integration and protectionism.
Q2: Which view claims that the phenomenon of globalization
was initially driven by the desire of Western economies to
exploit their power through multinational enterprises?
Answer: The "New" view.
Rationale: The "New" view sees globalization as a force
sweeping through the world in recent times, driven by
Western economies and multinational enterprises exploiting
their power.
Q3: A student business researcher claims that economic
integration has naturally evolved over time, moving from the
,Silk Road to modern digital trade. Which view of
globalization does this represent?
Answer: The "Evolutionary" view.
Rationale: The "Evolutionary" view posits that globalization is
a long-run historical evolution since the dawn of human
history, moving from early trade routes to the complex,
interconnected digital economy of today.
Q4: Which view of globalization suggests that the
phenomenon swings from one extreme to another over time?
Answer: The "Pendulum" view.
Rationale: The "Pendulum" view describes globalization as
swinging from one extreme to another from time to time,
reflecting periods of increased integration followed by
protectionism and isolation.
Topic 2: Institutions and Institutional-Based View
Q5: What is the key role of an institution, according to the
institution-based view?
Answer: To reduce uncertainty.
Rationale: Institutions (both formal laws and informal norms)
create a stable and predictable environment for business
transactions, reducing the uncertainty that managers face
when operating in different countries.
,Q6: What are two supportive pillars for an informal
institution?
Answer: Normative and Cognitive.
Rationale: Informal institutions are supported by normative
pillars (values, beliefs, norms) and cognitive pillars
(internalized cultural scripts), which together shape behavior
and expectations.
Q7: What is a core proposition underpinning an institutional-
based view of global business?
Answer: Bounded Rationality.
Rationale: The institution-based view recognizes that
managers face bounded rationality—they cannot possibly
know everything about foreign markets—so they rely on
institutions to provide frameworks for decision-making.
Q8: In which type of political system do citizens elect
representatives to govern the country on their behalf?
Answer: Democracy.
Rationale: In a democratic political system, citizens exercise
power through elected representatives, creating a
governance structure that can impact business operations
through laws, regulations, and policies.
Q9: Which legal system uses comprehensive lists of rules and
written codes?
Answer: Civil Law.
, Rationale: Civil law systems are based on comprehensive
written codes and statutes, as opposed to common law
systems which rely more heavily on judicial precedent.
Q10: What are the legal privileges associated with the use of
economic property to obtain income and other benefits from
its use?
Answer: Property Rights.
Rationale: Property rights legally protect the use of tangible
and intangible property and allow its lawful owner to derive
income and other benefits from it.
Topic 3: International Trade Theories
Q11: 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 the
formal and informal rules of the game.
Rationale: This view emphasizes that managers must
understand and adapt to the "rules of the game" (laws,
regulations, culture, norms) in different countries to succeed.
Q12: Which theory of international trade states that poor
countries often experience faster rates of economic growth
compared to wealthy countries?
Answer: The catch-up effect.
Comprehensive Resolutions
EXAM
Topic 1: Globalization – The Three Views
Q1: What are the three recognized views of globalization?
Answer: New, Evolutionary, and Pendulum.
Rationale: The "New" view sees globalization as a recent
phenomenon driven by technology and multinational
enterprises. The "Evolutionary" view traces trade back to
ancient routes like the Silk Road, arguing globalization is a
long-running historical process. The "Pendulum" view
recognizes that globalization can reverse direction, swinging
between periods of integration and protectionism.
Q2: Which view claims that the phenomenon of globalization
was initially driven by the desire of Western economies to
exploit their power through multinational enterprises?
Answer: The "New" view.
Rationale: The "New" view sees globalization as a force
sweeping through the world in recent times, driven by
Western economies and multinational enterprises exploiting
their power.
Q3: A student business researcher claims that economic
integration has naturally evolved over time, moving from the
,Silk Road to modern digital trade. Which view of
globalization does this represent?
Answer: The "Evolutionary" view.
Rationale: The "Evolutionary" view posits that globalization is
a long-run historical evolution since the dawn of human
history, moving from early trade routes to the complex,
interconnected digital economy of today.
Q4: Which view of globalization suggests that the
phenomenon swings from one extreme to another over time?
Answer: The "Pendulum" view.
Rationale: The "Pendulum" view describes globalization as
swinging from one extreme to another from time to time,
reflecting periods of increased integration followed by
protectionism and isolation.
Topic 2: Institutions and Institutional-Based View
Q5: What is the key role of an institution, according to the
institution-based view?
Answer: To reduce uncertainty.
Rationale: Institutions (both formal laws and informal norms)
create a stable and predictable environment for business
transactions, reducing the uncertainty that managers face
when operating in different countries.
,Q6: What are two supportive pillars for an informal
institution?
Answer: Normative and Cognitive.
Rationale: Informal institutions are supported by normative
pillars (values, beliefs, norms) and cognitive pillars
(internalized cultural scripts), which together shape behavior
and expectations.
Q7: What is a core proposition underpinning an institutional-
based view of global business?
Answer: Bounded Rationality.
Rationale: The institution-based view recognizes that
managers face bounded rationality—they cannot possibly
know everything about foreign markets—so they rely on
institutions to provide frameworks for decision-making.
Q8: In which type of political system do citizens elect
representatives to govern the country on their behalf?
Answer: Democracy.
Rationale: In a democratic political system, citizens exercise
power through elected representatives, creating a
governance structure that can impact business operations
through laws, regulations, and policies.
Q9: Which legal system uses comprehensive lists of rules and
written codes?
Answer: Civil Law.
, Rationale: Civil law systems are based on comprehensive
written codes and statutes, as opposed to common law
systems which rely more heavily on judicial precedent.
Q10: What are the legal privileges associated with the use of
economic property to obtain income and other benefits from
its use?
Answer: Property Rights.
Rationale: Property rights legally protect the use of tangible
and intangible property and allow its lawful owner to derive
income and other benefits from it.
Topic 3: International Trade Theories
Q11: 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 the
formal and informal rules of the game.
Rationale: This view emphasizes that managers must
understand and adapt to the "rules of the game" (laws,
regulations, culture, norms) in different countries to succeed.
Q12: Which theory of international trade states that poor
countries often experience faster rates of economic growth
compared to wealthy countries?
Answer: The catch-up effect.
