1
C 211 Global Economics for Managers
WGU Pre Assessment and Retake
Sections if you failed the OA. 2026
Latest Questions and Answers (100%
Expert Answers) 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
Which of the following is true of globalization according to the
"pendulum view" perspective? [ Ans: ] Globalization is a not a one-
directional phenomenon.
The _____ of globalization suggests that globalization is neither recent
nor one-directional. [ Ans: ] pendulum view
© 2026
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
,2
The _____ principle advocated that governments should actively protect
domestic industries from imports and vigorously promote exports. [ Ans:
] protectionism
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
© 2026
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? [ 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
,3
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
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
© 2026
Which of the following foreign exchange transactions provide 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 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
, 4
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
Why do managers, at some of the largest global corporations, fail to
engage in currency hedging? [ Ans: ] They believe that the protection
against fluctuations in exchange rates is not worth the potentially high
cost of currency hedging.
Risk analysis of any country must include an analysis of the country's: [
Ans: ] currency risks
© 2026
With regard to foreign market entry, the resource-based view argues that
foreign firms need to [ Ans: ] deploy overwhelming resources and
capabilities to offset their liability of foreignness.
Which of the following is a first-mover advantage? [ Ans: ] Avoidance of
clash with a dominant firm at home
Which of the following is an equity mode of entry? [ Ans: ] Wholly owned
subsidiaries
Which of the following entry modes is a type of strategic alliance? [ Ans:
] Licensing
Which of the following is a disadvantage of licensing and franchising? [
Ans: ] Little control over marketing
Miami is an ideal city for both North American firms looking to expand
their business to Central and South America and for Latin American
C 211 Global Economics for Managers
WGU Pre Assessment and Retake
Sections if you failed the OA. 2026
Latest Questions and Answers (100%
Expert Answers) 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
Which of the following is true of globalization according to the
"pendulum view" perspective? [ Ans: ] Globalization is a not a one-
directional phenomenon.
The _____ of globalization suggests that globalization is neither recent
nor one-directional. [ Ans: ] pendulum view
© 2026
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
,2
The _____ principle advocated that governments should actively protect
domestic industries from imports and vigorously promote exports. [ Ans:
] protectionism
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
© 2026
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? [ 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
,3
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
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
© 2026
Which of the following foreign exchange transactions provide 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 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
, 4
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
Why do managers, at some of the largest global corporations, fail to
engage in currency hedging? [ Ans: ] They believe that the protection
against fluctuations in exchange rates is not worth the potentially high
cost of currency hedging.
Risk analysis of any country must include an analysis of the country's: [
Ans: ] currency risks
© 2026
With regard to foreign market entry, the resource-based view argues that
foreign firms need to [ Ans: ] deploy overwhelming resources and
capabilities to offset their liability of foreignness.
Which of the following is a first-mover advantage? [ Ans: ] Avoidance of
clash with a dominant firm at home
Which of the following is an equity mode of entry? [ Ans: ] Wholly owned
subsidiaries
Which of the following entry modes is a type of strategic alliance? [ Ans:
] Licensing
Which of the following is a disadvantage of licensing and franchising? [
Ans: ] Little control over marketing
Miami is an ideal city for both North American firms looking to expand
their business to Central and South America and for Latin American
