WGU C211 Global Economics for
Managers OA Exam 150 Practice
Questions with Verified Answers
& Rationales (2025–2026)
SECTION 1: GLOBALIZATION VIEWS & TRENDS (Q1–15)
Q1: 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?
A) The "New" view
B) The "Evolutionary" view
C) The "Pendulum" view
D) The "Static" view
Answer: B
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 digital economy
of today . The "New" view sees it as a recent phenomenon, while the "Pendulum" view suggests
it swings between extremes .
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?
A) The Evolutionary view
B) The New view
C) The Pendulum view
D) The Resource-based view
,Answer: B
Rationale: The "New" view claims that globalization was initially driven by the desire of Western
economies to exploit their power through multinational enterprises . This perspective
emphasizes the role of MNEs in driving economic integration since the mid-20th century .
Q3: According to the "pendulum view" perspective on globalization, which of the following is
true?
A) Globalization is a recent phenomenon
B) Globalization is a one-directional force toward greater integration
C) Globalization is not a one-directional phenomenon
D) Globalization only benefits developed countries
Answer: C
Rationale: The Pendulum view recognizes that globalization can reverse direction, swinging
between periods of integration and protectionism . It is neither recent nor one-directional .
Q4: What are the three recognized views of globalization?
A) New, Evolutionary, and Pendulum
B) Modern, Traditional, and Cyclical
C) Progressive, Regressive, and Static
D) Linear, Cyclical, and Spiral
Answer: A
Rationale: The three views represent different perspectives on how global economic integration
has developed: the New view (recent phenomenon driven by MNEs), the Evolutionary view
(long-running historical process), and the Pendulum view (can swing between integration and
protectionism) .
Q5: Which of the following is true regarding semi-globalization?
A) It represents complete isolation of national economies
B) It represents total global integration
,C) It is a type of globalization that lies between total isolation and total globalization
D) It only applies to developed nations
Answer: C
Rationale: Semi-globalization is a type of globalization that lies between total isolation and total
globalization , acknowledging that many firms operate in an environment that is neither fully
global nor purely local.
Q6: Globalization can be viewed as: (Select all that apply)
A) A new force sweeping through the world in recent times
B) A long-run historical evolution since the dawn of human history
C) A pendulum that swings from one extreme to another from time to time
D) A fixed and unchanging state
Answer: A, B, C
Rationale: Globalization can be understood through all three perspectives: as a recent force, a
long-running historical evolution, and a pendulum that can swing between extremes .
Q7: What is the approximate total size of global GDP calculated at the official nominal exchange
rate?
A) $20 trillion
B) $40 trillion
C) Approximately $60 trillion
D) $100 trillion
Answer: C
Rationale: The total size of global GDP calculated at the official nominal exchange rate is
approximately $60 trillion . Multinational enterprises are sizable economic entities within this
global marketplace.
Q8: The resource-based view of global business differs from the institution-based view in that
the resource-based view:
, A) Focuses on the external environment of the firm
B) Focuses on the internal strengths of the firm
C) Emphasizes government regulations
D) Prioritizes cultural factors
Answer: B
Rationale: The resource-based view focuses on the internal strengths of the firm, including
valuable, rare, hard-to-imitate, and organizationally embedded (VRIO) resources .
Q9: What is the key role of an institution, according to the institution-based view?
A) To maximize profits for firms
B) To reduce uncertainty
C) To eliminate competition
D) To promote protectionism
Answer: B
Rationale: The key role of institutions is to reduce uncertainty, curtail transaction costs, and
combat opportunism . Institutions are popularly known as the "rules of the game" .
Q10: What are the rules, enforcement mechanisms, and organizations that support market
transactions?
A) Trade barriers
B) Institutions
C) Market structures
D) Economic policies
Answer: B
Rationale: Institutions are defined as the rules, enforcement mechanisms, and organizations
that support market transactions . They provide the framework for economic activity.
Q11: Which of the following is a core proposition underpinning the institution-based view of
global business?
Managers OA Exam 150 Practice
Questions with Verified Answers
& Rationales (2025–2026)
SECTION 1: GLOBALIZATION VIEWS & TRENDS (Q1–15)
Q1: 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?
A) The "New" view
B) The "Evolutionary" view
C) The "Pendulum" view
D) The "Static" view
Answer: B
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 digital economy
of today . The "New" view sees it as a recent phenomenon, while the "Pendulum" view suggests
it swings between extremes .
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?
A) The Evolutionary view
B) The New view
C) The Pendulum view
D) The Resource-based view
,Answer: B
Rationale: The "New" view claims that globalization was initially driven by the desire of Western
economies to exploit their power through multinational enterprises . This perspective
emphasizes the role of MNEs in driving economic integration since the mid-20th century .
Q3: According to the "pendulum view" perspective on globalization, which of the following is
true?
A) Globalization is a recent phenomenon
B) Globalization is a one-directional force toward greater integration
C) Globalization is not a one-directional phenomenon
D) Globalization only benefits developed countries
Answer: C
Rationale: The Pendulum view recognizes that globalization can reverse direction, swinging
between periods of integration and protectionism . It is neither recent nor one-directional .
Q4: What are the three recognized views of globalization?
A) New, Evolutionary, and Pendulum
B) Modern, Traditional, and Cyclical
C) Progressive, Regressive, and Static
D) Linear, Cyclical, and Spiral
Answer: A
Rationale: The three views represent different perspectives on how global economic integration
has developed: the New view (recent phenomenon driven by MNEs), the Evolutionary view
(long-running historical process), and the Pendulum view (can swing between integration and
protectionism) .
Q5: Which of the following is true regarding semi-globalization?
A) It represents complete isolation of national economies
B) It represents total global integration
,C) It is a type of globalization that lies between total isolation and total globalization
D) It only applies to developed nations
Answer: C
Rationale: Semi-globalization is a type of globalization that lies between total isolation and total
globalization , acknowledging that many firms operate in an environment that is neither fully
global nor purely local.
Q6: Globalization can be viewed as: (Select all that apply)
A) A new force sweeping through the world in recent times
B) A long-run historical evolution since the dawn of human history
C) A pendulum that swings from one extreme to another from time to time
D) A fixed and unchanging state
Answer: A, B, C
Rationale: Globalization can be understood through all three perspectives: as a recent force, a
long-running historical evolution, and a pendulum that can swing between extremes .
Q7: What is the approximate total size of global GDP calculated at the official nominal exchange
rate?
A) $20 trillion
B) $40 trillion
C) Approximately $60 trillion
D) $100 trillion
Answer: C
Rationale: The total size of global GDP calculated at the official nominal exchange rate is
approximately $60 trillion . Multinational enterprises are sizable economic entities within this
global marketplace.
Q8: The resource-based view of global business differs from the institution-based view in that
the resource-based view:
, A) Focuses on the external environment of the firm
B) Focuses on the internal strengths of the firm
C) Emphasizes government regulations
D) Prioritizes cultural factors
Answer: B
Rationale: The resource-based view focuses on the internal strengths of the firm, including
valuable, rare, hard-to-imitate, and organizationally embedded (VRIO) resources .
Q9: What is the key role of an institution, according to the institution-based view?
A) To maximize profits for firms
B) To reduce uncertainty
C) To eliminate competition
D) To promote protectionism
Answer: B
Rationale: The key role of institutions is to reduce uncertainty, curtail transaction costs, and
combat opportunism . Institutions are popularly known as the "rules of the game" .
Q10: What are the rules, enforcement mechanisms, and organizations that support market
transactions?
A) Trade barriers
B) Institutions
C) Market structures
D) Economic policies
Answer: B
Rationale: Institutions are defined as the rules, enforcement mechanisms, and organizations
that support market transactions . They provide the framework for economic activity.
Q11: Which of the following is a core proposition underpinning the institution-based view of
global business?
