WGU C211 OA Global Economics Exam Questions with Verified
Answers (Correct Update)
Question 1: The resource-based view of global business differs from the institution-based view
of global business in that the resource-based view _____.
Answer: focuses on the internal strengths on the firm
Question 2: Which of the following is true of globalization according to the "pendulum view"
perspective?
Answer: Globalization is a not a one-directional phenomenon.
Question 3: The _____ of globalization suggests that globalization is neither recent nor
one-directional.
Answer: pendulum view
Question 4: Which of the following is true of semiglobalization?
Answer: It is a type of globalization that lies between total isolation and total globalization.
Question 5: Globalization can be viewed as:
Answer: A new force sweeping through the world in recent times. A long-run historical evolution
since the dawn of human history. A pendulum that swings from one extreme to another from time
to time.
Question 6: Name the three views of globalization.
Answer: A recent force, a long-running evolution, and a pendulum
Page 1
,Question 7: The _____ theory viewed international trade as a zero-sum game.
Answer: mercantilism
Question 8: The _____ principle advocated that governments should actively protect domestic
industries from imports and vigorously promote exports.
Answer: protectionism
Question 9: Which of the following is a modern trade theory?
Answer: National competitive advantage
Question 10: The _____ theory is based on the assumption that the wealth of the world is fixed.
Answer: mercantilism
Question 11: Import quotas are a type of _____.
Answer: tariff barrier
Question 12: According to the theory of absolute advantage, under free trade,
Answer: Each nation gains by specializing in economic activities in which a nation has absolute
advantage.
Question 13: Which of the following is NOT a nontariff trade barrier (NTB)?
Answer: Cultural distance
Page 2
, Question 14: Chile requires 50 units of resource to produce one ton of wine and 20 units of
resource to produce one ton of blueberries. France requires 30 units of resource to produce
one ton of wine and 40 units of resource to produce one ton of blueberries. Which of the
following is true?
Answer: France has a comparative advantage in wine.
Question 15: Which of the following theories does NOT lead to the conclusion that unrestricted
free trade is in the best interests of all countries?
Answer: Strategic trade theory
Question 16: Free trade is defined as:
Answer: The idea that market forces should determine how much to trade with little or no
government intervention.
Question 17: According to the theory of absolute advantage, under free trade,
Answer: each nation gains by specializing in economic activities in which a nation has absolute
advantage.
Question 18: Which of the following is NOT a nontariff trade barrier (NTB)?
Answer: Cultural distance
Question 19: Protectionism is similar to mercantilism as they both advocated _____.
Answer: government involvement in international trade
Page 3
Answers (Correct Update)
Question 1: The resource-based view of global business differs from the institution-based view
of global business in that the resource-based view _____.
Answer: focuses on the internal strengths on the firm
Question 2: Which of the following is true of globalization according to the "pendulum view"
perspective?
Answer: Globalization is a not a one-directional phenomenon.
Question 3: The _____ of globalization suggests that globalization is neither recent nor
one-directional.
Answer: pendulum view
Question 4: Which of the following is true of semiglobalization?
Answer: It is a type of globalization that lies between total isolation and total globalization.
Question 5: Globalization can be viewed as:
Answer: A new force sweeping through the world in recent times. A long-run historical evolution
since the dawn of human history. A pendulum that swings from one extreme to another from time
to time.
Question 6: Name the three views of globalization.
Answer: A recent force, a long-running evolution, and a pendulum
Page 1
,Question 7: The _____ theory viewed international trade as a zero-sum game.
Answer: mercantilism
Question 8: The _____ principle advocated that governments should actively protect domestic
industries from imports and vigorously promote exports.
Answer: protectionism
Question 9: Which of the following is a modern trade theory?
Answer: National competitive advantage
Question 10: The _____ theory is based on the assumption that the wealth of the world is fixed.
Answer: mercantilism
Question 11: Import quotas are a type of _____.
Answer: tariff barrier
Question 12: According to the theory of absolute advantage, under free trade,
Answer: Each nation gains by specializing in economic activities in which a nation has absolute
advantage.
Question 13: Which of the following is NOT a nontariff trade barrier (NTB)?
Answer: Cultural distance
Page 2
, Question 14: Chile requires 50 units of resource to produce one ton of wine and 20 units of
resource to produce one ton of blueberries. France requires 30 units of resource to produce
one ton of wine and 40 units of resource to produce one ton of blueberries. Which of the
following is true?
Answer: France has a comparative advantage in wine.
Question 15: Which of the following theories does NOT lead to the conclusion that unrestricted
free trade is in the best interests of all countries?
Answer: Strategic trade theory
Question 16: Free trade is defined as:
Answer: The idea that market forces should determine how much to trade with little or no
government intervention.
Question 17: According to the theory of absolute advantage, under free trade,
Answer: each nation gains by specializing in economic activities in which a nation has absolute
advantage.
Question 18: Which of the following is NOT a nontariff trade barrier (NTB)?
Answer: Cultural distance
Question 19: Protectionism is similar to mercantilism as they both advocated _____.
Answer: government involvement in international trade
Page 3
