WGU C211 EXAM 350 QUESTIONS AND CORRECT ANSWERS ALREADY A+ GRADED WITH EXPERT FEEDBACK 2025 LATEST UPDATE

The term "emerging economies" has replaced the term _____. - Correct Ans-developing countries The gross domestic product plus the income from non-resident sources abroad gives the ____. - Correct Ans-gross national product More than 25% of global GDP comes from _____. - Correct Ans-BRICS countries Viewing the global economy as a pyramid, the Triad refers to _____. - Correct Ans North America, Western Europe, and Japan People who earn _____ a year comprise the base of the global economic pyramid. - Correct Ans-less than $2,000 What would be an example of a top down innovation? - Correct Ans-Lowering prices and features of existing products to meet emerging market needs What is true of the Group of 20 (G-20)? - Correct Ans-It only has 19 member countries. What does the institution-based view of global business lay emphasis on? - Correct Ans-Understanding the laws and values of the firm's host nation 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 The liability of foreignness is the inherent disadvantage faced by _____. - Correct Ans foreign firms in host nations due to their non-native status What is true of globalization according to the "new force" perspective? - Correct Ans-It is a western ideology focused on exploiting and dominating the world through MNEs The concept of _____ suggests that barriers to market integration at borders are high, but not high enough to completely insulate countries from each other. - Correct Ans semiglobalization WGU C211 WGU C211 The strategy of treating each country as a unique market and in total isolation is referred to as _____. - Correct Ans-localization MNEs from the Triad dominate the list of the 500 largest MNEs; their share has been _____. - Correct Ans-shrinking Protectionism is similar to mercantilism as they both advocated _____. - Correct Ans government involvement in international trade The _____ principle advocated that governments should actively protect domestic industries from imports and vigorously promote exports. - Correct Ans-protectionism What is a modern trade theory? - Correct Ans-National competitive advantage What trade theories divides the nations of the world into three categories? - Correct Ans-product life cycle What was the first international trade theory to account for changes in the patterns of trade over time? - Correct Ans-product life cycle theory In the third stage of the product life cycle theory, the _____. - Correct Ans-product is standardized What describes resource mobility as assumed by the classical theories of international trade? - Correct Ans-It is the assumption that a resource used in producing a product for one industry can be shifted and put to use in another industry. The theory of comparative advantage _____. - Correct Ans-explains patterns of trade based on factor endowments Deadweight costs are net losses that occur when _____ are imposed. - Correct Ans import tariffs _____ are government payments to domestic firms. - Correct Ans-subsidies What is true of voluntary export restraints? - Correct Ans-It is an export quota levied by a country on the quantity of its exports. _____ are tariffs levied on imports sold below costs to drive domestic firms out of business. - Correct Ans-antidumping duties Multinational enterprises (MNEs) are: - Correct Ans-firms that engage in foreign direct investment (FDI). WGU C211 WGU C211 Foreign direct investment (FDI) is: - Correct Ans-investment in activities that control and manage value-added activities in foreign countries Foreign portfolio investment (FPI) is: - Correct Ans-investment in foreign stocks and bonds that do not involve the active management of foreign assets. What is one advantage of FDI compared with licensing? - Correct Ans-FDI provides tight control over foreign operations The advantages of agglomeration result from all of the following EXCEPT: - Correct Ans-Fewer competitors in the same location An oligopoly is an: - Correct Ans-industry dominated by a small number of competitors. The primary political views on FDI are: - Correct Ans-Free market and pragmatic nationalism In addition to FDI, other ways a firm can enter foreign markets include: - Correct Ans outsource; license and trademark; and import and export What is the primary difference between FDI and FPI? - Correct Ans-FDI is direct and FPI is indirect. FDI is defined as a 10% or more equity stake and FPI is less than 10%. FDI is foreign direct investment and FPI is foreign portfolio investment. A mortgage broker that dominates the American Southwest has decided to expand into Mexico and several Central American countries. Its new offices in the host countries offer the same mortgage services as in the home country. This is an example of: - Correct Ans-horizontal FDI A large-scale French dairy that produces milk, cheese, yogurt, and other related products decides to buy a chain of mini-marts located throughout many EU countries. Their objective is to sell their dairy products, as well as other products, through these mini-marts. This is an example of: - Correct Ans-vertical FDI Which three countries invest the most money in other countries (FDI outflow)? - Correct Ans-United States, France, Germany The three OLI advantages are: - Correct Ans-ownership, location, internalization A Spain-based chain of tapas bars authorizes a French company to open a chain of tapas bars using the Spanish company's name, logo, menu, process, and advertising. This is an example of: - Correct Ans-licensing WGU C211 WGU C211 A good example of agglomeration is: - Correct Ans-hundreds of small, medium, and large internet-based, high-tech companies all located in Silicon Valley in California. An industry dominated by a small number of players is called: - Correct Ans-an oligopoly Firms can increase their chances of success with FDI by: - Correct Ans-leveraging OLI advantages in a way that is valuable, unique, and hard to imitate by rival firms assessing whether FDI is justified, in light of other options. understanding that political realities either facilitate or constrain FDI. FPI refers to the _____. - Correct Ans-investment in a portfolio of foreign securities that do not entail the active management of foreign assets A vertical FDI refers to a type of FDI in which _____. - Correct Ans-a firm moves upstream or downstream at different value chain stages in a host country FDI Stock - Correct Ans-_____ refers to the total accumulation of inbound FDI in a country or outbound FDI from a country. OLI advantages refer to a firm's quest for _____via FDI. - Correct Ans-ownership advantages, location advantages, and internalization advantages Internalization - Correct Ans-_____ refers to the replacement of cross-border markets with one firm locating in two or more countries. Firms prefer FDI to licensing because FDI_____. - Correct Ans-provides the firm with direct ownership to its foreign assets Agglomeration - Correct Ans-_____ refers to the clustering of economic activities in certain locations. The television industry in the United States is controlled by seven giant corporations: The Walt Disney Company, CBS Corporation, Viacom, Comcast, Hearst Corporation, Time Warner, and News Corporation. Thus, the television industry in the U.S. is a typical _____ industry. - Correct Ans-oligopolistic Which of the following economic perspectives on FDI has its principles rooted in Marxism? - Correct Ans-The radical view Which of the following is a benefit of FDI to home countries? - Correct Ans-Learning from operations _____ refers to the deal struck by MNEs and host governments, which change their requirements after the initial FDI entry. - Correct Ans-Obsolescing bargain WGU C211 WGU C211 Costs that a firm has to endure even when its investment turns out to be unsatisfactory are referred to as _____. - Correct Ans-sunk costs Beyond the enforcement of antitrust laws, collusion often fails because: - Correct Ans-it has incentive problems associated with the "prisoners' dilemma." Example of explicit collusion? - Correct Ans-Creating a cartel and directly negotiating an agreement to fix prices. Price setting by a monopolist at a level higher than the competitive price level is: - Correct Ans-collusive price setting. Types of attacks - Correct Ans-price reduction, new product introduction, and advertising campaign Facing strong competition from MNE cosmetics firms, an Israeli firm focused on products with unique components extracted from the Dead Sea that couldn't be found in other parts of the world. This is an example of: - Correct Ans-de