1
WGU C211 Global Economics for Managers:
Complete OA Exam Guide (Questions 1-200)
WGU C211 Global Economics for Managers – OA
Exam
135 Practice Questions with Multiple Choice,
Correct ☑VERIFIED ANSWERs, and Rationales
SECTION 1: GLOBALIZATION & THE GLOBAL
ECONOMY (Questions 1–15)
1. Which view claims that globalization was
initially driven by the desire of Western economies
to exploit their power through multinational
enterprises?
A. Long-run view
B. Pendulum view
C. New-force view
D. Evolutionary view
Correct ☑VERIFIED ANSWER: C. New-force view
,2
Rationale: The new-force view claims that
globalization was initially driven by the desire of
Western economies to exploit their power through
multinational enterprises. This perspective sees
globalization as a relatively recent phenomenon
driven by Western economic interests. The
evolutionary view sees globalization as a long
historical process, while the pendulum view suggests
globalization swings between extremes over time .
2. Economic gains come from international trade
because one country's exported goods, services, or
other items are unique, valuable, and difficult to
duplicate to the importing country. This describes
which view?
A. Institution-based view
B. Resource-based view
C. New-force view
D. Pendulum view
,3
Correct ☑VERIFIED ANSWER: B. Resource-based
view
Rationale: The resource-based view argues that
economic gains from international trade arise
because countries possess unique, valuable, and
hard-to-imitate resources and capabilities. Firms
that leverage these resources can achieve sustained
competitive advantage in global markets .
3. What is the aggregation of importing and
exporting that leads to the country-level trade
surplus or deficit?
A. Balance of payments
B. Balance of trade
C. Current account
D. Capital account
Correct ☑VERIFIED ANSWER: B. Balance of trade
Rationale: The balance of trade is the aggregation
of a country's imports and exports. A trade surplus
, 4
occurs when exports exceed imports, while a trade
deficit occurs when imports exceed exports .
4. What is a cost of foreign direct investment?
A. Technology transfer
B. Job creation
C. Developing countries may be exploited by
multinational enterprises (MNEs)
D. Increased competition
Correct ☑VERIFIED ANSWER: C. Developing
countries may be exploited by multinational
enterprises (MNEs)
Rationale: A significant cost of FDI is that developing
countries may be exploited by MNEs through
practices such as resource extraction, labor
exploitation, and environmental degradation. While
technology transfer and job creation are benefits of
FDI, exploitation of host countries is a recognized
drawback .
WGU C211 Global Economics for Managers:
Complete OA Exam Guide (Questions 1-200)
WGU C211 Global Economics for Managers – OA
Exam
135 Practice Questions with Multiple Choice,
Correct ☑VERIFIED ANSWERs, and Rationales
SECTION 1: GLOBALIZATION & THE GLOBAL
ECONOMY (Questions 1–15)
1. Which view claims that globalization was
initially driven by the desire of Western economies
to exploit their power through multinational
enterprises?
A. Long-run view
B. Pendulum view
C. New-force view
D. Evolutionary view
Correct ☑VERIFIED ANSWER: C. New-force view
,2
Rationale: The new-force view claims that
globalization was initially driven by the desire of
Western economies to exploit their power through
multinational enterprises. This perspective sees
globalization as a relatively recent phenomenon
driven by Western economic interests. The
evolutionary view sees globalization as a long
historical process, while the pendulum view suggests
globalization swings between extremes over time .
2. Economic gains come from international trade
because one country's exported goods, services, or
other items are unique, valuable, and difficult to
duplicate to the importing country. This describes
which view?
A. Institution-based view
B. Resource-based view
C. New-force view
D. Pendulum view
,3
Correct ☑VERIFIED ANSWER: B. Resource-based
view
Rationale: The resource-based view argues that
economic gains from international trade arise
because countries possess unique, valuable, and
hard-to-imitate resources and capabilities. Firms
that leverage these resources can achieve sustained
competitive advantage in global markets .
3. What is the aggregation of importing and
exporting that leads to the country-level trade
surplus or deficit?
A. Balance of payments
B. Balance of trade
C. Current account
D. Capital account
Correct ☑VERIFIED ANSWER: B. Balance of trade
Rationale: The balance of trade is the aggregation
of a country's imports and exports. A trade surplus
, 4
occurs when exports exceed imports, while a trade
deficit occurs when imports exceed exports .
4. What is a cost of foreign direct investment?
A. Technology transfer
B. Job creation
C. Developing countries may be exploited by
multinational enterprises (MNEs)
D. Increased competition
Correct ☑VERIFIED ANSWER: C. Developing
countries may be exploited by multinational
enterprises (MNEs)
Rationale: A significant cost of FDI is that developing
countries may be exploited by MNEs through
practices such as resource extraction, labor
exploitation, and environmental degradation. While
technology transfer and job creation are benefits of
FDI, exploitation of host countries is a recognized
drawback .
