WGU C211 - Global Economics for Managers
EXAM LATEST UPDATE THIS YEAR | 300
Questions with Verified Answers &
Rationales | INSTANT PDF DOWNLOAD
1. What are the three recognized views of globalization?
A) Old, New, and Future
B) New, Evolutionary, and Pendulum
C) Fast, Slow, and Moderate
D) Economic, Political, and Cultural
Answer B: New, Evolutionary, and Pendulum
Rationale: The "New" view sees globalization as recent; "Evolutionary" traces it to ancient trade routes;
"Pendulum" recognizes it can reverse direction .
2. Which view of globalization claims that the phenomenon was initially driven by the desire of
Western economies to exploit their power through multinational enterprises?
A) Evolutionary view
B) New view
C) Pendulum view
D) Historical view
Answer B: New view
Rationale: The New view emphasizes MNEs as drivers of economic integration since the mid-20th
century, driven by Western economic power .
,3. Which view of globalization argues that it is a long-run historical evolution since the dawn of
human civilization?
A) Evolutionary view
B) New view
C) Pendulum view
D) Cyclical view
Answer A: Evolutionary view
Rationale: This perspective traces globalization from early trade routes like the Silk Road to modern
digital commerce .
4. Which view of globalization recognizes that it can swing from one extreme to another
depending on political, economic, and social forces?
A) New view
B) Evolutionary view
C) Pendulum view
D) Linear view
Answer C: Pendulum view
Rationale: The Pendulum view accounts for periods of integration (free trade) and protectionism (trade
wars, deglobalization) .
5. Economic gains from international trade occur because one country's exported goods are
unique, valuable, and difficult to duplicate for the importing country. This describes which view?
A) Absolute advantage
B) Resource-based view (RBV)
C) Comparative advantage
D) New trade theory
Answer B: Resource-based view (RBV)
,Rationale: RBV explains firm performance through internal resources that are Valuable, Rare, Hard-to-
Imitate, and Organizationally embedded (VRIO) .
6. What is the correct definition of Foreign Direct Investment (FDI)?
A) Purchase of foreign stocks and bonds
B) Direct investment in, control, and management of value-added activities in other countries
C) Exporting goods to foreign markets
D) Licensing technology to foreign firms
Answer B: Direct investment in, control, and management of value-added activities in other
countries
Rationale: FDI differs from foreign portfolio investment by involving management control and typically
requires at least 10% ownership of voting shares .
7. What are the three political views on FDI?
A) Liberal, Conservative, and Socialist
B) Radical, Free Market, and Pragmatic Nationalism
C) Protectionist, Neutral, and Expansionist
D) Nationalistic, Globalist, and Isolationist
Answer B: Radical, Free Market, and Pragmatic Nationalism
Rationale: Radical view is hostile to FDI; Free Market view calls for minimal restriction; Pragmatic
Nationalism weighs benefits and costs case-by-case .
8. Which political view on FDI is hostile to foreign investment, viewing it as exploitation of host
countries by multinational enterprises?
A) Free Market view
B) Radical view
C) Pragmatic Nationalism
D) Liberal view
, Answer B: Radical view
Rationale: The Radical view sees FDI as a tool of imperialist exploitation, often associated with Marxist
and dependency theories .
9. Which political view on FDI calls for minimal government restriction, believing that FDI creates a
win-win situation for both home and host countries?
A) Radical view
B) Free Market view
C) Pragmatic Nationalism
D) Protectionist view
Answer B: Free Market view
Rationale: The Free Market view is based on neoclassical economics, arguing that market forces allocate
resources efficiently across borders .
10. Which political view on FDI represents a middle-ground approach, weighing the benefits and
costs of each investment case-by-case?
A) Radical view
B) Free Market view
C) Pragmatic Nationalism
D) Laissez-faire view
Answer C: Pragmatic Nationalism
Rationale: This pragmatic approach allows FDI when benefits (jobs, technology) outweigh costs (loss of
sovereignty, competition) .
11. Select all that apply: What are the benefits to a country receiving FDI?
A) Capital Inflow
B) Technology Spillover
C) Advanced Management Know-How
EXAM LATEST UPDATE THIS YEAR | 300
Questions with Verified Answers &
Rationales | INSTANT PDF DOWNLOAD
1. What are the three recognized views of globalization?
A) Old, New, and Future
B) New, Evolutionary, and Pendulum
C) Fast, Slow, and Moderate
D) Economic, Political, and Cultural
Answer B: New, Evolutionary, and Pendulum
Rationale: The "New" view sees globalization as recent; "Evolutionary" traces it to ancient trade routes;
"Pendulum" recognizes it can reverse direction .
2. Which view of globalization claims that the phenomenon was initially driven by the desire of
Western economies to exploit their power through multinational enterprises?
A) Evolutionary view
B) New view
C) Pendulum view
D) Historical view
Answer B: New view
Rationale: The New view emphasizes MNEs as drivers of economic integration since the mid-20th
century, driven by Western economic power .
,3. Which view of globalization argues that it is a long-run historical evolution since the dawn of
human civilization?
A) Evolutionary view
B) New view
C) Pendulum view
D) Cyclical view
Answer A: Evolutionary view
Rationale: This perspective traces globalization from early trade routes like the Silk Road to modern
digital commerce .
4. Which view of globalization recognizes that it can swing from one extreme to another
depending on political, economic, and social forces?
A) New view
B) Evolutionary view
C) Pendulum view
D) Linear view
Answer C: Pendulum view
Rationale: The Pendulum view accounts for periods of integration (free trade) and protectionism (trade
wars, deglobalization) .
5. Economic gains from international trade occur because one country's exported goods are
unique, valuable, and difficult to duplicate for the importing country. This describes which view?
A) Absolute advantage
B) Resource-based view (RBV)
C) Comparative advantage
D) New trade theory
Answer B: Resource-based view (RBV)
,Rationale: RBV explains firm performance through internal resources that are Valuable, Rare, Hard-to-
Imitate, and Organizationally embedded (VRIO) .
6. What is the correct definition of Foreign Direct Investment (FDI)?
A) Purchase of foreign stocks and bonds
B) Direct investment in, control, and management of value-added activities in other countries
C) Exporting goods to foreign markets
D) Licensing technology to foreign firms
Answer B: Direct investment in, control, and management of value-added activities in other
countries
Rationale: FDI differs from foreign portfolio investment by involving management control and typically
requires at least 10% ownership of voting shares .
7. What are the three political views on FDI?
A) Liberal, Conservative, and Socialist
B) Radical, Free Market, and Pragmatic Nationalism
C) Protectionist, Neutral, and Expansionist
D) Nationalistic, Globalist, and Isolationist
Answer B: Radical, Free Market, and Pragmatic Nationalism
Rationale: Radical view is hostile to FDI; Free Market view calls for minimal restriction; Pragmatic
Nationalism weighs benefits and costs case-by-case .
8. Which political view on FDI is hostile to foreign investment, viewing it as exploitation of host
countries by multinational enterprises?
A) Free Market view
B) Radical view
C) Pragmatic Nationalism
D) Liberal view
, Answer B: Radical view
Rationale: The Radical view sees FDI as a tool of imperialist exploitation, often associated with Marxist
and dependency theories .
9. Which political view on FDI calls for minimal government restriction, believing that FDI creates a
win-win situation for both home and host countries?
A) Radical view
B) Free Market view
C) Pragmatic Nationalism
D) Protectionist view
Answer B: Free Market view
Rationale: The Free Market view is based on neoclassical economics, arguing that market forces allocate
resources efficiently across borders .
10. Which political view on FDI represents a middle-ground approach, weighing the benefits and
costs of each investment case-by-case?
A) Radical view
B) Free Market view
C) Pragmatic Nationalism
D) Laissez-faire view
Answer C: Pragmatic Nationalism
Rationale: This pragmatic approach allows FDI when benefits (jobs, technology) outweigh costs (loss of
sovereignty, competition) .
11. Select all that apply: What are the benefits to a country receiving FDI?
A) Capital Inflow
B) Technology Spillover
C) Advanced Management Know-How
