1
For Expert help and assignment solutions, +254707240657
C 211 Global Economics for Managers
WGU for OA Questions and Answers (100%
Correct Answers) Already Graded A+
The resource-based view of global business differs from the
institution-based view of global business in that the resource-
based view _____.—Ans: focuses on the internal strengths on the
firm
© 2025 Assignment Expert
Which of the following is true of globalization according to the
"pendulum view" perspective?—Ans: Globalization is a not a one-
directional phenomenon.
Guru01 - Stuvia
The _____ of globalization suggests that globalization is neither
recent nor one-directional.—Ans: pendulum view
Which of the following is true of semiglobalization?—Ans: It is a
type of globalization that lies between total isolation and total
globalization.
Globalization can be viewed as:—Ans: 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.—Ans: A recent force, a
long-running evolution, and a pendulum
The _____ theory viewed international trade as a zero-sum
game.—Ans: mercantilism
The _____ principle advocated that governments should actively
protect domestic industries from imports and vigorously promote
exports.—Ans: protectionism
, 2
For Expert help and assignment solutions, +254707240657
Which of the following is a modern trade theory?—Ans: National
competitive advantage
The _____ theory is based on the assumption that the wealth of the
world is fixed.—Ans: mercantilism
Import quotas are a type of _____.—Ans: tariff barrier
According to the theory of absolute advantage, under free
trade,—Ans: 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)?—Ans:
Cultural distance
Chile requires 50 units of resource to produce one ton of wine and
© 2025 Assignment Expert
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
Guru01 - Stuvia
following is true?—Ans: 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?—Ans: Strategic trade theory
Free trade is defined as:—Ans: 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,—Ans: 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)?—Ans:
Cultural distance
Protectionism is similar to mercantilism as they both advocated
_____.—Ans: government involvement in international trade
OLI advantages refer to a firm's quest for _____via FDI.—Ans:
ownership advantages, location advantages, and internalization
advantages
, 3
For Expert help and assignment solutions, +254707240657
MNEs' possession and leveraging of certain valuable, rare, hard-
to-imitate, and organizationally embedded (VRIO) assets overseas
in the context of FDI refer to _____.—Ans: ownership
Firms prefer FDI to licensing because FDI_____.—Ans: 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?—Ans: Pragmatic nationalism
Which of the following is a benefit of FDI to home countries?—Ans:
Learning from operations
Which of the following foreign exchange transactions provide
© 2025 Assignment Expert
protection to traders and investors from being exposed to
fluctuations of the spot rate?—Ans: Forward transactions
_____ is defined as the conversion of one currency into another at
Guru01 - Stuvia
Time 1, with an agreement to revert it back to the original
currency at a specific Time 2 in the future.—Ans: Currency swap
Foreign exchange rates are influenced by:—Ans: Interest rates
and money supply.
Relative price differences and purchasing power parity.
Supply and demand of the currencies.
A savvy global business manger must understand the following
concepts to be considered literate about foreign exchange:—
Ans: Understand the factors that influence exchange rates
Understand the ways to hedge currency risks
Understand the foreign exchange market
Which of the following are the primary types of foreign exchange
transactions made by financial companies?—Ans: Swaps, spot
transactions, forward transactions
A home appliance manufacturer located in The Netherlands
decides to open two new manufacturing plants, one in Poland
and the other in Thailand. Its purpose is to offset currency losses
through:—Ans: strategic hedging
For Expert help and assignment solutions, +254707240657
C 211 Global Economics for Managers
WGU for OA Questions and Answers (100%
Correct Answers) Already Graded A+
The resource-based view of global business differs from the
institution-based view of global business in that the resource-
based view _____.—Ans: focuses on the internal strengths on the
firm
© 2025 Assignment Expert
Which of the following is true of globalization according to the
"pendulum view" perspective?—Ans: Globalization is a not a one-
directional phenomenon.
Guru01 - Stuvia
The _____ of globalization suggests that globalization is neither
recent nor one-directional.—Ans: pendulum view
Which of the following is true of semiglobalization?—Ans: It is a
type of globalization that lies between total isolation and total
globalization.
Globalization can be viewed as:—Ans: 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.—Ans: A recent force, a
long-running evolution, and a pendulum
The _____ theory viewed international trade as a zero-sum
game.—Ans: mercantilism
The _____ principle advocated that governments should actively
protect domestic industries from imports and vigorously promote
exports.—Ans: protectionism
, 2
For Expert help and assignment solutions, +254707240657
Which of the following is a modern trade theory?—Ans: National
competitive advantage
The _____ theory is based on the assumption that the wealth of the
world is fixed.—Ans: mercantilism
Import quotas are a type of _____.—Ans: tariff barrier
According to the theory of absolute advantage, under free
trade,—Ans: 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)?—Ans:
Cultural distance
Chile requires 50 units of resource to produce one ton of wine and
© 2025 Assignment Expert
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
Guru01 - Stuvia
following is true?—Ans: 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?—Ans: Strategic trade theory
Free trade is defined as:—Ans: 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,—Ans: 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)?—Ans:
Cultural distance
Protectionism is similar to mercantilism as they both advocated
_____.—Ans: government involvement in international trade
OLI advantages refer to a firm's quest for _____via FDI.—Ans:
ownership advantages, location advantages, and internalization
advantages
, 3
For Expert help and assignment solutions, +254707240657
MNEs' possession and leveraging of certain valuable, rare, hard-
to-imitate, and organizationally embedded (VRIO) assets overseas
in the context of FDI refer to _____.—Ans: ownership
Firms prefer FDI to licensing because FDI_____.—Ans: 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?—Ans: Pragmatic nationalism
Which of the following is a benefit of FDI to home countries?—Ans:
Learning from operations
Which of the following foreign exchange transactions provide
© 2025 Assignment Expert
protection to traders and investors from being exposed to
fluctuations of the spot rate?—Ans: Forward transactions
_____ is defined as the conversion of one currency into another at
Guru01 - Stuvia
Time 1, with an agreement to revert it back to the original
currency at a specific Time 2 in the future.—Ans: Currency swap
Foreign exchange rates are influenced by:—Ans: Interest rates
and money supply.
Relative price differences and purchasing power parity.
Supply and demand of the currencies.
A savvy global business manger must understand the following
concepts to be considered literate about foreign exchange:—
Ans: Understand the factors that influence exchange rates
Understand the ways to hedge currency risks
Understand the foreign exchange market
Which of the following are the primary types of foreign exchange
transactions made by financial companies?—Ans: Swaps, spot
transactions, forward transactions
A home appliance manufacturer located in The Netherlands
decides to open two new manufacturing plants, one in Poland
and the other in Thailand. Its purpose is to offset currency losses
through:—Ans: strategic hedging
