WGU C211 UPDATED Exam Questions
and CORECT Answers
Which view claims that the phenomenon of globalization was initially driven by the desire of
Western economies to exploit their power through multinational enterprises? - CORRECT
ANSWER - The new force view
Economic gains come from international trade because one country's exported goods, services or
other items are unique, valuable, and difficult to duplicate to importing country - CORRECT
ANSWER - Resource-based view
What is the aggregation of importing and exporting that leads to the country-level trade surplus
or deficit? - CORRECT ANSWER - Balance of Trade
What is a cost of foreign direct investment? - CORRECT ANSWER - Developing countries
may be exploited by multinational enterprises (MNE)
Which type of managerial capability is both challenging and difficult to imitate? - CORRECT
ANSWER - Intangible capability
What may precious, rare and hard to duplicate resources and capabilities lead to for a firm? -
CORRECT ANSWER - Sustained comparative advantage
Which theory of international trade states that poor countries often experience faster rates of
economic growth compared to wealthy countries? - CORRECT ANSWER - The catch-up
effect
What is the financial environment in which exchange rates and payments for goods and services
are conducted? - CORRECT ANSWER - Commodity Exchange
, What happens to a country's real exchange rates and nominal interest rate as the price level
increases, assuming all other factors are unchanged? - CORRECT ANSWER - Exchange rates
depreciate, interest rates increase
What is the easiest method non-financial companies use to handle currency fluctuations? -
CORRECT ANSWER - Commodity Trading
Which strategy minimizes the risk for unanticipated changes in future exchange rates? -
CORRECT ANSWER - Currency Swap
A company is looking for a location with an abundance of ground breaking individuals, firms
and universities. Which type of strategic goal is this company demonstrating? - CORRECT
ANSWER - Innovation-seeking
What advantage comes with not sharing benefits with late entrants? - CORRECT ANSWER -
First-mover advantage
Which entry mode is a non-equity arrangement for a company contemplating entry into a foreign
market? - CORRECT ANSWER - Licensing
What size commitment is required for a non-equity mode of entry into a foreign market? -
CORRECT ANSWER - Small commitment
What are two supportive pillars for an informal institution? - CORRECT ANSWER -
Normative and Cognitive
What is the key role of an institution, according to the institution-based view? - CORRECT
ANSWER - To reduce uncertainty
What are the rules, enforcement mechanisms, and organizations that support market
transactions? - CORRECT ANSWER - Institutions
and CORECT Answers
Which view claims that the phenomenon of globalization was initially driven by the desire of
Western economies to exploit their power through multinational enterprises? - CORRECT
ANSWER - The new force view
Economic gains come from international trade because one country's exported goods, services or
other items are unique, valuable, and difficult to duplicate to importing country - CORRECT
ANSWER - Resource-based view
What is the aggregation of importing and exporting that leads to the country-level trade surplus
or deficit? - CORRECT ANSWER - Balance of Trade
What is a cost of foreign direct investment? - CORRECT ANSWER - Developing countries
may be exploited by multinational enterprises (MNE)
Which type of managerial capability is both challenging and difficult to imitate? - CORRECT
ANSWER - Intangible capability
What may precious, rare and hard to duplicate resources and capabilities lead to for a firm? -
CORRECT ANSWER - Sustained comparative advantage
Which theory of international trade states that poor countries often experience faster rates of
economic growth compared to wealthy countries? - CORRECT ANSWER - The catch-up
effect
What is the financial environment in which exchange rates and payments for goods and services
are conducted? - CORRECT ANSWER - Commodity Exchange
, What happens to a country's real exchange rates and nominal interest rate as the price level
increases, assuming all other factors are unchanged? - CORRECT ANSWER - Exchange rates
depreciate, interest rates increase
What is the easiest method non-financial companies use to handle currency fluctuations? -
CORRECT ANSWER - Commodity Trading
Which strategy minimizes the risk for unanticipated changes in future exchange rates? -
CORRECT ANSWER - Currency Swap
A company is looking for a location with an abundance of ground breaking individuals, firms
and universities. Which type of strategic goal is this company demonstrating? - CORRECT
ANSWER - Innovation-seeking
What advantage comes with not sharing benefits with late entrants? - CORRECT ANSWER -
First-mover advantage
Which entry mode is a non-equity arrangement for a company contemplating entry into a foreign
market? - CORRECT ANSWER - Licensing
What size commitment is required for a non-equity mode of entry into a foreign market? -
CORRECT ANSWER - Small commitment
What are two supportive pillars for an informal institution? - CORRECT ANSWER -
Normative and Cognitive
What is the key role of an institution, according to the institution-based view? - CORRECT
ANSWER - To reduce uncertainty
What are the rules, enforcement mechanisms, and organizations that support market
transactions? - CORRECT ANSWER - Institutions
