WGU C211 OA
WGU C211 OA Exam (178 Questions)
With 100% Verified Answers.
View that claims phenomenon of globalization was initially driven by the desire of Western
economies to exploit their power through MNE's - ✔✔✔ - 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 - ✔✔✔ - evolutionary
View that claims globalization is swinging from one extreme to another from time to time -
✔✔✔ - pendulum
Investment in, controlling, and managing value-added activities in other countries - ✔✔✔ -
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 - ✔✔✔ - 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 - ✔✔✔ - free market
Views FDI as having pros and cons and only approving FDI when its benefits outweigh costs -
✔✔✔ - pragmatic nationalis
What benefits exist to a country receiving FDI? - ✔✔✔ - capital inflow, technology spillovers,
advanced management know-how, creates jobs
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,WGU C211 OA
What costs exist to a country receiving FDI? - ✔✔✔ - 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. - ✔✔✔ - balance of trade
Firms with a _____ degree of resource similarity are likely to have similar competitive actions -
✔✔✔ - high
A high degree of resource similarity but low market commonality = _______ intensity of rivalry -
✔✔✔ - highest
Little resource similarity but high market commonality = _____ intensity of rivalry - ✔✔✔ -
lowest
Mercantilism, absolute advantage and comparative advantage belong to what theory of
international trade - ✔✔✔ - classical
Theory of international trade that relies on more realistic product life cycles and first mover
advantages - ✔✔✔ - modern
Under free trade, a nation gains by specializing in economic activities in which it has
_____advantage - ✔✔✔ - 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 - ✔✔✔ - comparative
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, WGU C211 OA
Comparative advantage and absolute advantage stem from - ✔✔✔ - factor endowments
Theory that the wealth of the world is fixed and that a nation that imports more and exports less
will be richer - ✔✔✔ - mercantilism
Stage of the product life cycle where production of a new product that commands a price
premium will concentrate in the US - ✔✔✔ - new
Stage of the product life cycle where demand and ability to produce grow in other developed
nations - ✔✔✔ - maturing
Stage of the product life cycle where the previously new product is commoditized and
production will now move to low-cost developing nations - ✔✔✔ - standardized
Comparative advantage may change over time because patterns of ______ change over time -
✔✔✔ - trade
Theory that suggests that intervention by governments in certain industries can enhance their
odds for international success - ✔✔✔ - strategic trade
If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the
most effective way to do this? - ✔✔✔ - currency hedging
Exchange rate risk associating with the time delay between entering a contract and settling it -
✔✔✔ - transaction risk
WGU C211 OA Page 3
WGU C211 OA Exam (178 Questions)
With 100% Verified Answers.
View that claims phenomenon of globalization was initially driven by the desire of Western
economies to exploit their power through MNE's - ✔✔✔ - 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 - ✔✔✔ - evolutionary
View that claims globalization is swinging from one extreme to another from time to time -
✔✔✔ - pendulum
Investment in, controlling, and managing value-added activities in other countries - ✔✔✔ -
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 - ✔✔✔ - 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 - ✔✔✔ - free market
Views FDI as having pros and cons and only approving FDI when its benefits outweigh costs -
✔✔✔ - pragmatic nationalis
What benefits exist to a country receiving FDI? - ✔✔✔ - capital inflow, technology spillovers,
advanced management know-how, creates jobs
WGU C211 OA Page 1
,WGU C211 OA
What costs exist to a country receiving FDI? - ✔✔✔ - 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. - ✔✔✔ - balance of trade
Firms with a _____ degree of resource similarity are likely to have similar competitive actions -
✔✔✔ - high
A high degree of resource similarity but low market commonality = _______ intensity of rivalry -
✔✔✔ - highest
Little resource similarity but high market commonality = _____ intensity of rivalry - ✔✔✔ -
lowest
Mercantilism, absolute advantage and comparative advantage belong to what theory of
international trade - ✔✔✔ - classical
Theory of international trade that relies on more realistic product life cycles and first mover
advantages - ✔✔✔ - modern
Under free trade, a nation gains by specializing in economic activities in which it has
_____advantage - ✔✔✔ - 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 - ✔✔✔ - comparative
WGU C211 OA Page 2
, WGU C211 OA
Comparative advantage and absolute advantage stem from - ✔✔✔ - factor endowments
Theory that the wealth of the world is fixed and that a nation that imports more and exports less
will be richer - ✔✔✔ - mercantilism
Stage of the product life cycle where production of a new product that commands a price
premium will concentrate in the US - ✔✔✔ - new
Stage of the product life cycle where demand and ability to produce grow in other developed
nations - ✔✔✔ - maturing
Stage of the product life cycle where the previously new product is commoditized and
production will now move to low-cost developing nations - ✔✔✔ - standardized
Comparative advantage may change over time because patterns of ______ change over time -
✔✔✔ - trade
Theory that suggests that intervention by governments in certain industries can enhance their
odds for international success - ✔✔✔ - strategic trade
If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the
most effective way to do this? - ✔✔✔ - currency hedging
Exchange rate risk associating with the time delay between entering a contract and settling it -
✔✔✔ - transaction risk
WGU C211 OA Page 3
