C 211 Global Economics for Managers
WGU Pre Assessment Questions And
Answers
The resource-based view of global business differs from the institution-
based view of global business in that the resource-based view _____. - -
correct answer ✅focuses on the internal strengths on the firm
Which of the following is true of globalization according to the
"pendulum view" perspective? - - correct answer ✅Globalization is a
not a one-directional phenomenon.
The _____ of globalization suggests that globalization is neither recent
nor one-directional. - - correct answer ✅pendulum view
Which of the following is true of semiglobalization? - - correct answer
✅It is a type of globalization that lies between total isolation and total
globalization.
Globalization can be viewed as: - - correct 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.
Name the three views of globalization. - - correct answer ✅A recent
force, a long-running evolution, and a pendulum
,C 211 Global Economics for Managers
WGU Pre Assessment Questions And
Answers
The _____ theory viewed international trade as a zero-sum game. - -
correct answer ✅mercantilism
The _____ principle advocated that governments should actively
protect domestic industries from imports and vigorously promote
exports. - - correct answer ✅protectionism
Which of the following is a modern trade theory? - - correct answer
✅National competitive advantage
The _____ theory is based on the assumption that the wealth of the
world is fixed. - - correct answer ✅mercantilism
Import quotas are a type of _____. - - correct answer ✅tariff barrier
According to the theory of absolute advantage, under free trade, - -
correct answer ✅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
answer ✅Cultural distance
,C 211 Global Economics for Managers
WGU Pre Assessment Questions And
Answers
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 answer ✅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
answer ✅Strategic trade theory
Free trade is defined as: - - correct answer ✅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 answer ✅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
answer ✅Cultural distance
, C 211 Global Economics for Managers
WGU Pre Assessment Questions And
Answers
Protectionism is similar to mercantilism as they both advocated _____. -
- correct answer ✅government involvement in international trade
OLI advantages refer to a firm's quest for _____via FDI. - - correct
answer ✅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 answer ✅ownership
Firms prefer FDI to licensing because FDI_____. - - correct answer
✅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 answer ✅Pragmatic nationalism
Which of the following is a benefit of FDI to home countries? - - correct
answer ✅Learning from operations
WGU Pre Assessment Questions And
Answers
The resource-based view of global business differs from the institution-
based view of global business in that the resource-based view _____. - -
correct answer ✅focuses on the internal strengths on the firm
Which of the following is true of globalization according to the
"pendulum view" perspective? - - correct answer ✅Globalization is a
not a one-directional phenomenon.
The _____ of globalization suggests that globalization is neither recent
nor one-directional. - - correct answer ✅pendulum view
Which of the following is true of semiglobalization? - - correct answer
✅It is a type of globalization that lies between total isolation and total
globalization.
Globalization can be viewed as: - - correct 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.
Name the three views of globalization. - - correct answer ✅A recent
force, a long-running evolution, and a pendulum
,C 211 Global Economics for Managers
WGU Pre Assessment Questions And
Answers
The _____ theory viewed international trade as a zero-sum game. - -
correct answer ✅mercantilism
The _____ principle advocated that governments should actively
protect domestic industries from imports and vigorously promote
exports. - - correct answer ✅protectionism
Which of the following is a modern trade theory? - - correct answer
✅National competitive advantage
The _____ theory is based on the assumption that the wealth of the
world is fixed. - - correct answer ✅mercantilism
Import quotas are a type of _____. - - correct answer ✅tariff barrier
According to the theory of absolute advantage, under free trade, - -
correct answer ✅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
answer ✅Cultural distance
,C 211 Global Economics for Managers
WGU Pre Assessment Questions And
Answers
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 answer ✅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
answer ✅Strategic trade theory
Free trade is defined as: - - correct answer ✅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 answer ✅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
answer ✅Cultural distance
, C 211 Global Economics for Managers
WGU Pre Assessment Questions And
Answers
Protectionism is similar to mercantilism as they both advocated _____. -
- correct answer ✅government involvement in international trade
OLI advantages refer to a firm's quest for _____via FDI. - - correct
answer ✅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 answer ✅ownership
Firms prefer FDI to licensing because FDI_____. - - correct answer
✅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 answer ✅Pragmatic nationalism
Which of the following is a benefit of FDI to home countries? - - correct
answer ✅Learning from operations
