WGU C211 OA FINAL PAPER 2026 ACTUAL
EXAM QUESTIONS WITH CORRECT ANSWERS
◉ New View on Globalization. Answer: A force sweeping through the
world in recent times.
◉ Evolutionary View on Globalization. Answer: A long-run historical
evolution since the dawn of human history
◉ Pendulum View on Globalization. Answer: One that swings from
one extreme to another from time to time. Rapid globalization, but
has to stop due to lash back.
◉ What is FDI. Answer: foreign direct investment
◉ Foreign Direct Investment. Answer: the control and management
of activities in a foreign country.
◉ Green Field Investment. Answer: Brand new business in the host
country, requires largest equity investment. Purchase of land,
factory, etc.
,◉ Wholly Owned Subsidiary. Answer: Company simply purchases an
entire company that is already doing business in the host country.
◉ Partnership. Answer: When a company partners with company
that already exists in the host country, some proportion of
ownership/collaboration but not the entire company.
◉ Licensing. Answer: non-equity method of investment. Simply
license brand name, logo, manufacturing process, etc. To
entrepreneur in host country; Low risk.
◉ Political views on FDI. Answer: Radical View, Free Market View,
Pragmatic Nationalism
◉ Radical view on FDI. Answer: a political view which argues that
globalization is the product of western civilization and specifically
the MNE's which derive from there. This view argues globalization
should be avoided as its ecological and social costs are too high.
Argue for protectionism.
◉ Free market view on FDI. Answer: A political view that suggests
that FDI unrestricted by government intervention is the best.
Discourages tariffs and is pro-globalization.
,◉ Pragmatic nationalism view on FDI. Answer: a political view that
approves FDI only when its benefits outweigh its costs. Particularly
looks at national interest.
◉ Benefits to a country receiving FDI. Answer: Capital Inflow,
Technology Spillover, Advanced Management Know-How, Job
creation
◉ Costs to a country receiving FDI. Answer: Job loss, Loss of
Sovereignty, more competition, Capital outflow.
◉ Sovereignty. Answer: Ability of a state to govern its territory free
from control of its internal affairs by other states.
◉ How do resources and capabilities influence the competitive
dynamics of a business?. Answer: VRIO: Value, Rarity, Imitability, and
Organization
◉ Value. Answer: Is the firm able to exploit an opportunity or
neutralize an external threat with the resource/capability
◉ Rarity. Answer: Is control of the resource/capability in the hands
of a relative few?
, ◉ Imitability. Answer: Is it difficult to imitate, and will there be
significant cost disadvantage to a firm trying to obtain, develop, or
duplicate the resource/capability?
◉ Organization. Answer: Is the firm organized, ready, and able to
exploit the resource/capability?" "Is the firm organized to capture
value?
◉ What is resource similarity and how does this impact competitive
dynamics?. Answer: companies with high resource similarity and
low market commonality will find themselves in regular adversarial
interactions.
◉ Classical Theory of International Trade. Answer: Mercantilism: A
zero-sum game theory that argues countries get richer when they
sell more than they import.
◉ Modern Theory of International Trade. Answer: More dynamic
view on trade that goes into multi-variable realistic trade models.
◉ absolute advantage. Answer: the ability of an individual, a firm, or
a country to produce more of a good or service than competitors,
using the same amount of resources
EXAM QUESTIONS WITH CORRECT ANSWERS
◉ New View on Globalization. Answer: A force sweeping through the
world in recent times.
◉ Evolutionary View on Globalization. Answer: A long-run historical
evolution since the dawn of human history
◉ Pendulum View on Globalization. Answer: One that swings from
one extreme to another from time to time. Rapid globalization, but
has to stop due to lash back.
◉ What is FDI. Answer: foreign direct investment
◉ Foreign Direct Investment. Answer: the control and management
of activities in a foreign country.
◉ Green Field Investment. Answer: Brand new business in the host
country, requires largest equity investment. Purchase of land,
factory, etc.
,◉ Wholly Owned Subsidiary. Answer: Company simply purchases an
entire company that is already doing business in the host country.
◉ Partnership. Answer: When a company partners with company
that already exists in the host country, some proportion of
ownership/collaboration but not the entire company.
◉ Licensing. Answer: non-equity method of investment. Simply
license brand name, logo, manufacturing process, etc. To
entrepreneur in host country; Low risk.
◉ Political views on FDI. Answer: Radical View, Free Market View,
Pragmatic Nationalism
◉ Radical view on FDI. Answer: a political view which argues that
globalization is the product of western civilization and specifically
the MNE's which derive from there. This view argues globalization
should be avoided as its ecological and social costs are too high.
Argue for protectionism.
◉ Free market view on FDI. Answer: A political view that suggests
that FDI unrestricted by government intervention is the best.
Discourages tariffs and is pro-globalization.
,◉ Pragmatic nationalism view on FDI. Answer: a political view that
approves FDI only when its benefits outweigh its costs. Particularly
looks at national interest.
◉ Benefits to a country receiving FDI. Answer: Capital Inflow,
Technology Spillover, Advanced Management Know-How, Job
creation
◉ Costs to a country receiving FDI. Answer: Job loss, Loss of
Sovereignty, more competition, Capital outflow.
◉ Sovereignty. Answer: Ability of a state to govern its territory free
from control of its internal affairs by other states.
◉ How do resources and capabilities influence the competitive
dynamics of a business?. Answer: VRIO: Value, Rarity, Imitability, and
Organization
◉ Value. Answer: Is the firm able to exploit an opportunity or
neutralize an external threat with the resource/capability
◉ Rarity. Answer: Is control of the resource/capability in the hands
of a relative few?
, ◉ Imitability. Answer: Is it difficult to imitate, and will there be
significant cost disadvantage to a firm trying to obtain, develop, or
duplicate the resource/capability?
◉ Organization. Answer: Is the firm organized, ready, and able to
exploit the resource/capability?" "Is the firm organized to capture
value?
◉ What is resource similarity and how does this impact competitive
dynamics?. Answer: companies with high resource similarity and
low market commonality will find themselves in regular adversarial
interactions.
◉ Classical Theory of International Trade. Answer: Mercantilism: A
zero-sum game theory that argues countries get richer when they
sell more than they import.
◉ Modern Theory of International Trade. Answer: More dynamic
view on trade that goes into multi-variable realistic trade models.
◉ absolute advantage. Answer: the ability of an individual, a firm, or
a country to produce more of a good or service than competitors,
using the same amount of resources
