C211 WGU OA CERTIFICATION ASSESSMENT
2026 EXTENSIVE QUESTIONS AND PRECISE
CORRECT ANSWERS GUARANTEED PASS
GRADED A+
⩥ OLI advantages refer to a firm's quest for _____via FDI. Answer:
ownership advantages, location advantages, and internalization
advantages
⩥ MNEs' possession and leveraging of certain valuable, rare, hard-to-
imitate, and organizationally embedded (VRIO) assets overseas in the
context of FDI refer to _____. Answer: ownership
⩥ Firms prefer FDI to licensing because FDI_____. Answer: provides
the firm with direct ownership to its foreign assets
⩥ Which of the following political perspectives maintains the view that
FDI has both pros and cons and can only be approved when its benefits
outweigh costs? Answer: Pragmatic nationalism
⩥ Which of the following is a benefit of FDI to home countries?
Answer: Learning from operations
,⩥ Which of the following foreign exchange transactions provide
protection to traders and investors from being exposed to fluctuations of
the spot rate? Answer: Forward transactions
⩥ _____ is defined as the conversion of one currency into another at
Time 1, with an agreement to revert it back to the original currency at a
specific Time 2 in the future. Answer: Currency swap
⩥ Foreign exchange rates are influenced by: Answer: Interest rates and
money supply.
Relative price differences and purchasing power parity.
Supply and demand of the currencies.
⩥ A savvy global business manger must understand the following
concepts to be considered literate about foreign exchange: Answer:
Understand the factors that influence exchange rates
Understand the ways to hedge currency risks
Understand the foreign exchange market
⩥ Which of the following are the primary types of foreign exchange
transactions made by financial companies? Answer: Swaps, spot
transactions, forward transactions
⩥ A home appliance manufacturer located in The Netherlands decides to
open two new manufacturing plants, one in Poland and the other in
, Thailand. Its purpose is to offset currency losses through: Answer:
strategic hedging
⩥ Why do managers, at some of the largest global corporations, fail to
engage in currency hedging? Answer: They believe that the protection
against fluctuations in exchange rates is not worth the potentially high
cost of currency hedging.
⩥ Risk analysis of any country must include an analysis of the country's:
Answer: currency risks
⩥ With regard to foreign market entry, the resource-based view argues
that foreign firms need to Answer: deploy overwhelming resources and
capabilities to offset their liability of foreignness.
⩥ Which of the following is a first-mover advantage? Answer:
Avoidance of clash with a dominant firm at home
⩥ Which of the following is an equity mode of entry? Answer: Wholly
owned subsidiaries
⩥ Which of the following entry modes is a type of strategic alliance?
Answer: Licensing
2026 EXTENSIVE QUESTIONS AND PRECISE
CORRECT ANSWERS GUARANTEED PASS
GRADED A+
⩥ OLI advantages refer to a firm's quest for _____via FDI. Answer:
ownership advantages, location advantages, and internalization
advantages
⩥ MNEs' possession and leveraging of certain valuable, rare, hard-to-
imitate, and organizationally embedded (VRIO) assets overseas in the
context of FDI refer to _____. Answer: ownership
⩥ Firms prefer FDI to licensing because FDI_____. Answer: provides
the firm with direct ownership to its foreign assets
⩥ Which of the following political perspectives maintains the view that
FDI has both pros and cons and can only be approved when its benefits
outweigh costs? Answer: Pragmatic nationalism
⩥ Which of the following is a benefit of FDI to home countries?
Answer: Learning from operations
,⩥ Which of the following foreign exchange transactions provide
protection to traders and investors from being exposed to fluctuations of
the spot rate? Answer: Forward transactions
⩥ _____ is defined as the conversion of one currency into another at
Time 1, with an agreement to revert it back to the original currency at a
specific Time 2 in the future. Answer: Currency swap
⩥ Foreign exchange rates are influenced by: Answer: Interest rates and
money supply.
Relative price differences and purchasing power parity.
Supply and demand of the currencies.
⩥ A savvy global business manger must understand the following
concepts to be considered literate about foreign exchange: Answer:
Understand the factors that influence exchange rates
Understand the ways to hedge currency risks
Understand the foreign exchange market
⩥ Which of the following are the primary types of foreign exchange
transactions made by financial companies? Answer: Swaps, spot
transactions, forward transactions
⩥ A home appliance manufacturer located in The Netherlands decides to
open two new manufacturing plants, one in Poland and the other in
, Thailand. Its purpose is to offset currency losses through: Answer:
strategic hedging
⩥ Why do managers, at some of the largest global corporations, fail to
engage in currency hedging? Answer: They believe that the protection
against fluctuations in exchange rates is not worth the potentially high
cost of currency hedging.
⩥ Risk analysis of any country must include an analysis of the country's:
Answer: currency risks
⩥ With regard to foreign market entry, the resource-based view argues
that foreign firms need to Answer: deploy overwhelming resources and
capabilities to offset their liability of foreignness.
⩥ Which of the following is a first-mover advantage? Answer:
Avoidance of clash with a dominant firm at home
⩥ Which of the following is an equity mode of entry? Answer: Wholly
owned subsidiaries
⩥ Which of the following entry modes is a type of strategic alliance?
Answer: Licensing
