WGU C211 Global Economics for Managers Final Exam Comprehensive
Examination
Complete 100-Question Assessment
Section 1: Globalization and International Business (Questions 1-25)
1. According to the Resource-Based View (RBV), a firm's competitive advantage is
primarily determined by:
• A) External market conditions
• B) Government regulations
• C) Unique internal resources and capabilities
• D) Cultural factors
2. The Institution-Based View suggests that firm success depends on:
• A) Having superior technology
• B) Adapting to formal and informal external rules
• C) Maximizing shareholder value
• D) Minimizing production costs
3. Which view of globalization argues that it has been present throughout human
history?
• A) New force view
• B) Long-run historical evolution view
• C) Pendulum view
• D) Modernization view
4. Horizontal FDI occurs when a company:
• A) Invests in a supplier in a foreign country
• B) Replicates its domestic business model in a new international market
• C) Acquires a distributor in a foreign market
• D) Purchases existing facilities abroad
,5. In the OLI framework, "O" stands for:
• A) Operations
• B) Ownership advantages
• C) Organization
• D) Opportunities
6. Which political view on FDI is most hostile to foreign investment?
• A) Free market view
• B) Radical view
• C) Pragmatic nationalism view
• D) Liberal view
7. When Carrier moved its manufacturing plant from Ohio to Mexico, which country is
the host country?
• A) United States
• B) Mexico
• C) Both countries
• D) Neither country
8. What is a benefit of FDI to the home country?
• A) Job losses
• B) Reduced exports
• C) Lower production costs and increased profitability
• D) Loss of sovereignty
9. What is dumping?
• A) Selling products above market price
• B) Exporting a product at a price below its normal value
• C) Importing goods illegally
• D) Subsidizing domestic producers
10. Which market characteristic makes collusion difficult?
, • A) Few firms
• B) Identical products
• C) Easy entry into the market
• D) Stable market conditions
11. According to the VRIO framework, a resource must be Valuable, Rare, Inimitable, and:
• A) Observable
• B) Transferable
• C) Organized
• D) Profitable
12. Resource similarity refers to:
• A) How many markets firms share
• B) The extent to which competing firms possess comparable resources
• C) How similar firms' products are
• D) The size of firms' market share
13. Which strategy involves a local firm focusing locally using unique local advantages?
• A) Extender
• B) Defender
• C) Dodger
• D) Contender
14. A trade deficit occurs when:
• A) A nation exports more than it imports
• B) A nation imports more than it exports
• C) Exports equal imports
• D) Trade barriers are removed
15. Which classical trade theory is considered a zero-sum game?
• A) Absolute advantage
• B) Comparative advantage
• C) Mercantilism
Examination
Complete 100-Question Assessment
Section 1: Globalization and International Business (Questions 1-25)
1. According to the Resource-Based View (RBV), a firm's competitive advantage is
primarily determined by:
• A) External market conditions
• B) Government regulations
• C) Unique internal resources and capabilities
• D) Cultural factors
2. The Institution-Based View suggests that firm success depends on:
• A) Having superior technology
• B) Adapting to formal and informal external rules
• C) Maximizing shareholder value
• D) Minimizing production costs
3. Which view of globalization argues that it has been present throughout human
history?
• A) New force view
• B) Long-run historical evolution view
• C) Pendulum view
• D) Modernization view
4. Horizontal FDI occurs when a company:
• A) Invests in a supplier in a foreign country
• B) Replicates its domestic business model in a new international market
• C) Acquires a distributor in a foreign market
• D) Purchases existing facilities abroad
,5. In the OLI framework, "O" stands for:
• A) Operations
• B) Ownership advantages
• C) Organization
• D) Opportunities
6. Which political view on FDI is most hostile to foreign investment?
• A) Free market view
• B) Radical view
• C) Pragmatic nationalism view
• D) Liberal view
7. When Carrier moved its manufacturing plant from Ohio to Mexico, which country is
the host country?
• A) United States
• B) Mexico
• C) Both countries
• D) Neither country
8. What is a benefit of FDI to the home country?
• A) Job losses
• B) Reduced exports
• C) Lower production costs and increased profitability
• D) Loss of sovereignty
9. What is dumping?
• A) Selling products above market price
• B) Exporting a product at a price below its normal value
• C) Importing goods illegally
• D) Subsidizing domestic producers
10. Which market characteristic makes collusion difficult?
, • A) Few firms
• B) Identical products
• C) Easy entry into the market
• D) Stable market conditions
11. According to the VRIO framework, a resource must be Valuable, Rare, Inimitable, and:
• A) Observable
• B) Transferable
• C) Organized
• D) Profitable
12. Resource similarity refers to:
• A) How many markets firms share
• B) The extent to which competing firms possess comparable resources
• C) How similar firms' products are
• D) The size of firms' market share
13. Which strategy involves a local firm focusing locally using unique local advantages?
• A) Extender
• B) Defender
• C) Dodger
• D) Contender
14. A trade deficit occurs when:
• A) A nation exports more than it imports
• B) A nation imports more than it exports
• C) Exports equal imports
• D) Trade barriers are removed
15. Which classical trade theory is considered a zero-sum game?
• A) Absolute advantage
• B) Comparative advantage
• C) Mercantilism
