Page |1
C 211 GLOBAL ECONOMICS FOR
MANAGERS WGU FOR OA 2025
QUESTIONS AND ANSWERS.
1. For which of the following types of economies would the factors of
production depend on the relative distribution of market forces versus
command forces? - correct answer - Mixed economy
2. Which of the following is true of private ownership? - correct answer - It
tends to force firms into liquidation due to high competition.
3. Which of the following is NOT a proposition of the institution-based view
of global business? - correct answer - Informal institutions do not govern
firm behavior.
4. Democracy is: - correct answer - A political system in which citizens
elect representatives to govern the country.
5. Which of the following statement is NOT true about market economy? -
correct answer - All factors of production should be government owned
and controlled.
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6. What are the two core propositions behind the institution-based view of
global business? - correct answer - Managers and firms pursue their
interests and make choices rationally in situations; and where formal
constraints are unclear or fail, informal constraints will play a larger role
in reducing uncertainty and providing constancy to managers and firms.
7. Which economic system is the most common? - correct answer - A
mixed economy
8. Which of the following is NOT a proposition of the institution-based view
of global business? - correct answer - Informal institutions do not govern
firm behavior.
9. 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
10. The _____ of globalization suggests that globalization is neither
recent nor one-directional. - correct answer - pendulum view
11. Globalization can be viewed as: - correct answer - All of these
answers
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12. Globalization can be viewed as: - correct answer - All of these
13. 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.
14. 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.
15. Free trade is defined as - correct answer - The idea that market
forces should determine how much to trade with little or no government
intervention.
16. Which of the following is NOT a nontariff trade barrier (NTB)? -
correct answer - Cultural distance
17. Protectionism is similar to mercantilism as they both advocated
_____. - correct answer - government involvement in international trade
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18. The _____ principle advocated that governments should actively
protect domestic industries from imports and vigorously promote
exports. - correct answer - protectionism
19. The _____ theory is based on the assumption that the wealth of the
world is fixed. - correct answer - mercantilism
20. OLI advantages refer to a firm's quest for _____via FDI. - correct
answer - ownership advantages, location advantages, and
internalization advantages
21. Firms prefer FDI to licensing because FDI_____. - correct answer -
provides the firm with direct ownership to its foreign assets
22. Which of the following is a benefit of FDI to home countries? - correct
answer - Learning from operations
23. Which of the following foreign exchange transactions provide
protection to traders and investors from being exposed to fluctuations of
the spot rate? - correct answer - Forward transactions
24. Foreign exchange rates are influenced by: - correct answer - All of
these
C 211 GLOBAL ECONOMICS FOR
MANAGERS WGU FOR OA 2025
QUESTIONS AND ANSWERS.
1. For which of the following types of economies would the factors of
production depend on the relative distribution of market forces versus
command forces? - correct answer - Mixed economy
2. Which of the following is true of private ownership? - correct answer - It
tends to force firms into liquidation due to high competition.
3. Which of the following is NOT a proposition of the institution-based view
of global business? - correct answer - Informal institutions do not govern
firm behavior.
4. Democracy is: - correct answer - A political system in which citizens
elect representatives to govern the country.
5. Which of the following statement is NOT true about market economy? -
correct answer - All factors of production should be government owned
and controlled.
, Page |2
6. What are the two core propositions behind the institution-based view of
global business? - correct answer - Managers and firms pursue their
interests and make choices rationally in situations; and where formal
constraints are unclear or fail, informal constraints will play a larger role
in reducing uncertainty and providing constancy to managers and firms.
7. Which economic system is the most common? - correct answer - A
mixed economy
8. Which of the following is NOT a proposition of the institution-based view
of global business? - correct answer - Informal institutions do not govern
firm behavior.
9. 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
10. The _____ of globalization suggests that globalization is neither
recent nor one-directional. - correct answer - pendulum view
11. Globalization can be viewed as: - correct answer - All of these
answers
, Page |3
12. Globalization can be viewed as: - correct answer - All of these
13. 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.
14. 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.
15. Free trade is defined as - correct answer - The idea that market
forces should determine how much to trade with little or no government
intervention.
16. Which of the following is NOT a nontariff trade barrier (NTB)? -
correct answer - Cultural distance
17. Protectionism is similar to mercantilism as they both advocated
_____. - correct answer - government involvement in international trade
, Page |4
18. The _____ principle advocated that governments should actively
protect domestic industries from imports and vigorously promote
exports. - correct answer - protectionism
19. The _____ theory is based on the assumption that the wealth of the
world is fixed. - correct answer - mercantilism
20. OLI advantages refer to a firm's quest for _____via FDI. - correct
answer - ownership advantages, location advantages, and
internalization advantages
21. Firms prefer FDI to licensing because FDI_____. - correct answer -
provides the firm with direct ownership to its foreign assets
22. Which of the following is a benefit of FDI to home countries? - correct
answer - Learning from operations
23. Which of the following foreign exchange transactions provide
protection to traders and investors from being exposed to fluctuations of
the spot rate? - correct answer - Forward transactions
24. Foreign exchange rates are influenced by: - correct answer - All of
these
