C211 OA
C211 WGU OA Global Economics for
Managers Exam Questions with
Certified Solutions 2024-2025.
view that claims phenomenon of globalization was initially driven by the desire of
Western economies to exploit their power through MNE's - Answer: new
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
view that claims globalization is swinging from one extreme to another from time
to time - Answer: pendulum
1|Page
, C211 OA
investment in, controlling, and managing value-added activities in other countries
- Answer: foreign direct investment
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
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
views FDI as having pros and cons and only approving FDI when its benefits
outweigh costs - Answer: pragmatic nationalis
what benefits exist to a country receiving FDI? - Answer: capital inflow, technology
spillovers, advanced management know-how, creates jobs
what costs exist to a country receiving FDI? - Answer: loss of sovereignty, adverse
effects on competition, net outflow in the capital account
The aggregation of importing and exporting that leads to the country-level trade
surplus or deficit. - Answer: balance of trade
firms with a _____ degree of resource similarity are likely to have similar
competitive actions - Answer: high
2|Page
, C211 OA
a high degree of resource similarity but low market commonality = _______
intensity of rivalry - Answer: highest
little resource similarity but high market commonality = _____ intensity of rivalry -
Answer: lowest
mercantilism, absolute advantage and comparative advantage belong to what
theory of international trade - Answer: classical
theory of international trade that relies on more realistic product life cycles and
first mover advantages - Answer: modern
under free trade, a nation gains by specializing in economic activities in which it
has _____advantage - Answer: absolute
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
comparative advantage and absolute advantage stem from - Answer: factor
endowments
theory that the wealth of the world is fixed and that a nation that imports more
and exports less will be richer - Answer: mercantilism
3|Page
C211 WGU OA Global Economics for
Managers Exam Questions with
Certified Solutions 2024-2025.
view that claims phenomenon of globalization was initially driven by the desire of
Western economies to exploit their power through MNE's - Answer: new
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
view that claims globalization is swinging from one extreme to another from time
to time - Answer: pendulum
1|Page
, C211 OA
investment in, controlling, and managing value-added activities in other countries
- Answer: foreign direct investment
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
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
views FDI as having pros and cons and only approving FDI when its benefits
outweigh costs - Answer: pragmatic nationalis
what benefits exist to a country receiving FDI? - Answer: capital inflow, technology
spillovers, advanced management know-how, creates jobs
what costs exist to a country receiving FDI? - Answer: loss of sovereignty, adverse
effects on competition, net outflow in the capital account
The aggregation of importing and exporting that leads to the country-level trade
surplus or deficit. - Answer: balance of trade
firms with a _____ degree of resource similarity are likely to have similar
competitive actions - Answer: high
2|Page
, C211 OA
a high degree of resource similarity but low market commonality = _______
intensity of rivalry - Answer: highest
little resource similarity but high market commonality = _____ intensity of rivalry -
Answer: lowest
mercantilism, absolute advantage and comparative advantage belong to what
theory of international trade - Answer: classical
theory of international trade that relies on more realistic product life cycles and
first mover advantages - Answer: modern
under free trade, a nation gains by specializing in economic activities in which it
has _____advantage - Answer: absolute
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
comparative advantage and absolute advantage stem from - Answer: factor
endowments
theory that the wealth of the world is fixed and that a nation that imports more
and exports less will be richer - Answer: mercantilism
3|Page
