WGU C211 OA Exam Questions with Verified Answers (Correct
Update)
Question 1: view that claims phenomenon of globalization was initially driven by the desire of
Western economies to exploit their power through MNE's
Answer: new
Question 2: view that claims globalization is a long-run historical evolution since the dawn of
humanity. Says it is nothing new and that it will always exist
Answer: evolutionary
Question 3: view that claims globalization is swinging from one extreme to another from time
to time
Answer: pendulum
Question 4: investment in, controlling, and managing value-added activities in other countries
Answer: foreign direct investment
Question 5: political view hostile to FDI. believes it is an instrument of imperialism and vehicle
for exploitation of domestic resources by foreign capitalists and firms
Answer: radical
Question 6: suggests that FDI, unrestricted by government intervention, will enable countries
to tap into their absolute or comparative advantages by specializing in the production of
certain goods and services
Answer: free market
Page 1
,Question 7: views FDI as having pros and cons and only approving FDI when its benefits
outweigh costs
Answer: pragmatic nationalis
Question 8: what benefits exist to a country receiving FDI?
Answer: capital inflow, technology spillovers, advanced management know-how, creates jobs
Question 9: what costs exist to a country receiving FDI?
Answer: loss of sovereignty, adverse effects on competition, net outflow in the capital account
Question 10: The aggregation of importing and exporting that leads to the country-level trade
surplus or deficit.
Answer: balance of trade
Question 11: little resource similarity but high market commonality = _____ intensity of
rivalry
Answer: lowest
Question 12: mercantilism, absolute advantage and comparative advantage belong to what
theory of international trade
Answer: classical
Question 13: theory of international trade that relies on more realistic product life cycles and
first mover advantages
Answer: modern
Page 2
, Question 14: under free trade, a nation gains by specializing in economic activities in which it
has _____advantage
Answer: absolute
Question 15: focuses on the idea that if a country does not have absolute advantage, they can
still choose to specialize in the production of one good where it has ______ advantage
Answer: comparative
Question 16: comparative advantage and absolute advantage stem from
Answer: factor endowments
Question 17: theory that the wealth of the world is fixed and that a nation that imports more
and exports less will be richer
Answer: mercantilism
Question 18: stage of the product life cycle where production of a new product that commands
a price premium will concentrate in the US
Answer: new
Question 19: stage of the product life cycle where demand and ability to produce grow in other
developed nations
Answer: maturing
Page 3
Update)
Question 1: view that claims phenomenon of globalization was initially driven by the desire of
Western economies to exploit their power through MNE's
Answer: new
Question 2: view that claims globalization is a long-run historical evolution since the dawn of
humanity. Says it is nothing new and that it will always exist
Answer: evolutionary
Question 3: view that claims globalization is swinging from one extreme to another from time
to time
Answer: pendulum
Question 4: investment in, controlling, and managing value-added activities in other countries
Answer: foreign direct investment
Question 5: political view hostile to FDI. believes it is an instrument of imperialism and vehicle
for exploitation of domestic resources by foreign capitalists and firms
Answer: radical
Question 6: suggests that FDI, unrestricted by government intervention, will enable countries
to tap into their absolute or comparative advantages by specializing in the production of
certain goods and services
Answer: free market
Page 1
,Question 7: views FDI as having pros and cons and only approving FDI when its benefits
outweigh costs
Answer: pragmatic nationalis
Question 8: what benefits exist to a country receiving FDI?
Answer: capital inflow, technology spillovers, advanced management know-how, creates jobs
Question 9: what costs exist to a country receiving FDI?
Answer: loss of sovereignty, adverse effects on competition, net outflow in the capital account
Question 10: The aggregation of importing and exporting that leads to the country-level trade
surplus or deficit.
Answer: balance of trade
Question 11: little resource similarity but high market commonality = _____ intensity of
rivalry
Answer: lowest
Question 12: mercantilism, absolute advantage and comparative advantage belong to what
theory of international trade
Answer: classical
Question 13: theory of international trade that relies on more realistic product life cycles and
first mover advantages
Answer: modern
Page 2
, Question 14: under free trade, a nation gains by specializing in economic activities in which it
has _____advantage
Answer: absolute
Question 15: focuses on the idea that if a country does not have absolute advantage, they can
still choose to specialize in the production of one good where it has ______ advantage
Answer: comparative
Question 16: comparative advantage and absolute advantage stem from
Answer: factor endowments
Question 17: theory that the wealth of the world is fixed and that a nation that imports more
and exports less will be richer
Answer: mercantilism
Question 18: stage of the product life cycle where production of a new product that commands
a price premium will concentrate in the US
Answer: new
Question 19: stage of the product life cycle where demand and ability to produce grow in other
developed nations
Answer: maturing
Page 3
