C 211 Global Economics for Managers
WGU Pre TEST and Retake Sections if
you failed the OA.
,The resource-based view of global business differs from the institution-based
view of global business in that the resource-based view _____. - correct
ans:focuses on the internal strengths on the firm
Which of the following is true of globalization according to the "pendulum
view" perspective? - correct ans:Globalization is a not a one-directional
phenomenon.
The _____ of globalization suggests that globalization is neither recent nor
one-directional. - correct ans:pendulum view
Which of the following is true of semiglobalization? - correct ans:It is a type
of globalization that lies between total isolation and total globalization.
Globalization can be viewed as: - correct ans: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.
Name the three views of globalization. - correct ans:A recent force, a long-
running evolution, and a pendulum
The _____ theory viewed international trade as a zero-sum game. - correct
ans:mercantilism
The _____ principle advocated that governments should actively protect
domestic industries from imports and vigorously promote exports. - correct
ans:protectionism
Which of the following is a modern trade theory? - correct ans:National
competitive advantage
,The _____ theory is based on the assumption that the wealth of the world is
fixed. - correct ans:mercantilism
Import quotas are a type of _____. - correct ans:tariff barrier
According to the theory of absolute advantage, under free trade, - correct
ans:Each nation gains by specializing in economic activities in which a nation
has absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)? - correct
ans:Cultural distance
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? - correct ans:France has a
comparative advantage in wine.
Which of the following theories does NOT lead to the conclusion that
unrestricted free trade is in the best interests of all countries? - correct
ans:Strategic trade theory
Free trade is defined as: - correct ans:The idea that market forces should
determine how much to trade with little or no government intervention.
According to the theory of absolute advantage, under free trade, - correct
ans:each nation gains by specializing in economic activities in which a nation
has absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)? - correct
ans:Cultural distance
, Protectionism is similar to mercantilism as they both advocated _____. -
correct ans:government involvement in international trade
OLI advantages refer to a firm's quest for _____via FDI. - correct
ans:ownership advantages, location advantages, and internalization
advantages
MNEs' possession and leveraging of certain valuable, rare, hard-to-imitate,
and organizationally embedded (VRIO) assets overseas in the context of FDI
refer to _____. - correct ans:ownership
Firms prefer FDI to licensing because FDI_____. - correct ans:provides the firm
with direct ownership to its foreign assets
Which of the following political perspectives maintains the view that FDI has
both pros and cons and can only be approved when its benefits outweigh
costs? - correct ans:Pragmatic nationalism
Which of the following is a benefit of FDI to home countries? - correct
ans:Learning from operations
Which of the following foreign exchange transactions provide protection to
traders and investors from being exposed to fluctuations of the spot rate? -
correct ans:Forward transactions
_____ is defined as the conversion of one currency into another at Time 1,
with an agreement to revert it back to the original currency at a specific Time
2 in the future. - correct ans:Currency swap
WGU Pre TEST and Retake Sections if
you failed the OA.
,The resource-based view of global business differs from the institution-based
view of global business in that the resource-based view _____. - correct
ans:focuses on the internal strengths on the firm
Which of the following is true of globalization according to the "pendulum
view" perspective? - correct ans:Globalization is a not a one-directional
phenomenon.
The _____ of globalization suggests that globalization is neither recent nor
one-directional. - correct ans:pendulum view
Which of the following is true of semiglobalization? - correct ans:It is a type
of globalization that lies between total isolation and total globalization.
Globalization can be viewed as: - correct ans: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.
Name the three views of globalization. - correct ans:A recent force, a long-
running evolution, and a pendulum
The _____ theory viewed international trade as a zero-sum game. - correct
ans:mercantilism
The _____ principle advocated that governments should actively protect
domestic industries from imports and vigorously promote exports. - correct
ans:protectionism
Which of the following is a modern trade theory? - correct ans:National
competitive advantage
,The _____ theory is based on the assumption that the wealth of the world is
fixed. - correct ans:mercantilism
Import quotas are a type of _____. - correct ans:tariff barrier
According to the theory of absolute advantage, under free trade, - correct
ans:Each nation gains by specializing in economic activities in which a nation
has absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)? - correct
ans:Cultural distance
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? - correct ans:France has a
comparative advantage in wine.
Which of the following theories does NOT lead to the conclusion that
unrestricted free trade is in the best interests of all countries? - correct
ans:Strategic trade theory
Free trade is defined as: - correct ans:The idea that market forces should
determine how much to trade with little or no government intervention.
According to the theory of absolute advantage, under free trade, - correct
ans:each nation gains by specializing in economic activities in which a nation
has absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)? - correct
ans:Cultural distance
, Protectionism is similar to mercantilism as they both advocated _____. -
correct ans:government involvement in international trade
OLI advantages refer to a firm's quest for _____via FDI. - correct
ans:ownership advantages, location advantages, and internalization
advantages
MNEs' possession and leveraging of certain valuable, rare, hard-to-imitate,
and organizationally embedded (VRIO) assets overseas in the context of FDI
refer to _____. - correct ans:ownership
Firms prefer FDI to licensing because FDI_____. - correct ans:provides the firm
with direct ownership to its foreign assets
Which of the following political perspectives maintains the view that FDI has
both pros and cons and can only be approved when its benefits outweigh
costs? - correct ans:Pragmatic nationalism
Which of the following is a benefit of FDI to home countries? - correct
ans:Learning from operations
Which of the following foreign exchange transactions provide protection to
traders and investors from being exposed to fluctuations of the spot rate? -
correct ans:Forward transactions
_____ is defined as the conversion of one currency into another at Time 1,
with an agreement to revert it back to the original currency at a specific Time
2 in the future. - correct ans:Currency swap
