C211 WGU OA PRACTICE
EXAMINATION 2026 QUESTIONS
WITH ANSWERS GRADED A+
◍ Globalization can be viewed as.
Answer: a new force sweeping through the world in recent times.a Option
pendulum that swings from one extreme to another from time to time. a
long-run historical evolution since the dawn of human history.
◍ What is the definition of an institution-based view of global business?.
Answer: An institution-based view suggests that the success and failure of
firms are enabled and constrained by institutions, also known as the rules of
the game, such as regulations, laws, cultures, ethics, and norms.
◍ view that claims phenomenon of globalization was initially driven by the
desire of Western economies to exploit their power through MNE's.
Answer: new
◍ view that claims globalization is a long-run historical evolution since the
dawn of humanity. Says it is nothing new and that it will always exist.
Answer: evolutionary
◍ view that claims globalization is swinging from one extreme to another from
time to time.
Answer: pendulum
◍ From an institution-based view, a government's legal requirement for a
business to pay taxes would be an example of:.
Answer: the influence of a formal institution.
◍ investment in, controlling, and managing value-added activities in other
countries.
, Answer: foreign direct investment
◍ political view hostile to FD
I. believes it is an instrument of imperialism and vehicle for exploitation of
domestic resources by foreign capitalists and firms.
Answer: radical
◍ suggests that FDI, unrestricted by government intervention, will enable
countries to tap into their absolute or comparative advantages by
specializing in the production of certain goods and services.
Answer: free market
◍ views FDI as having pros and cons and only approving FDI when its
benefits outweigh costs.
Answer: pragmatic nationalis
◍ Which are the three views of globalization?.
Answer: A recent force, a long-running evolution, and a pendulum
◍ Trade deficit refers to:.
Answer: an economic condition in which a nation imports more than it
exports.
◍ what benefits exist to a country receiving FDI?.
Answer: capital inflow, technology spillovers, advanced management
know-how, creates jobs
◍ what costs exist to a country receiving FDI?.
Answer: loss of sovereignty, adverse effects on competition, net outflow in
the capital account
◍ The aggregation of importing and exporting that leads to the country-level
trade surplus or deficit..
Answer: balance of trade
◍ firms with a _____ degree of resource similarity are likely to have similar
competitive actions.
Answer: high
, ◍ a high degree of resource similarity but low market commonality = _______
intensity of rivalry.
Answer: highest
◍ The modern trade theories include the following EXCEPT:.
Answer: Theory of comparative advantage
◍ The theory of mercantilism:.
Answer: views international trade as a zero-sum game.
◍ little resource similarity but high market commonality = _____ intensity of
rivalry.
Answer: lowest
◍ mercantilism, absolute advantage and comparative advantage belong to what
theory of international trade.
Answer: classical
◍ An import quota is:.
Answer: Restriction on the quantity of imports that can be brought into a
country.
◍ The three modern theories of international trade are:.
Answer: product life cycle, strategic trade, national competitive advantage
of industries.
◍ theory of international trade that relies on more realistic product life cycles
and first mover advantages.
Answer: modern
◍ Multinational enterprises (MNEs) are:.
Answer: firms that engage in foreign direct investment (FDI).
◍ under free trade, a nation gains by specializing in economic activities in
which it has _____advantage.
Answer: absolute
◍ focuses on the idea that if a country does not have absolute advantage, they
EXAMINATION 2026 QUESTIONS
WITH ANSWERS GRADED A+
◍ Globalization can be viewed as.
Answer: a new force sweeping through the world in recent times.a Option
pendulum that swings from one extreme to another from time to time. a
long-run historical evolution since the dawn of human history.
◍ What is the definition of an institution-based view of global business?.
Answer: An institution-based view suggests that the success and failure of
firms are enabled and constrained by institutions, also known as the rules of
the game, such as regulations, laws, cultures, ethics, and norms.
◍ view that claims phenomenon of globalization was initially driven by the
desire of Western economies to exploit their power through MNE's.
Answer: new
◍ view that claims globalization is a long-run historical evolution since the
dawn of humanity. Says it is nothing new and that it will always exist.
Answer: evolutionary
◍ view that claims globalization is swinging from one extreme to another from
time to time.
Answer: pendulum
◍ From an institution-based view, a government's legal requirement for a
business to pay taxes would be an example of:.
Answer: the influence of a formal institution.
◍ investment in, controlling, and managing value-added activities in other
countries.
, Answer: foreign direct investment
◍ political view hostile to FD
I. believes it is an instrument of imperialism and vehicle for exploitation of
domestic resources by foreign capitalists and firms.
Answer: radical
◍ suggests that FDI, unrestricted by government intervention, will enable
countries to tap into their absolute or comparative advantages by
specializing in the production of certain goods and services.
Answer: free market
◍ views FDI as having pros and cons and only approving FDI when its
benefits outweigh costs.
Answer: pragmatic nationalis
◍ Which are the three views of globalization?.
Answer: A recent force, a long-running evolution, and a pendulum
◍ Trade deficit refers to:.
Answer: an economic condition in which a nation imports more than it
exports.
◍ what benefits exist to a country receiving FDI?.
Answer: capital inflow, technology spillovers, advanced management
know-how, creates jobs
◍ what costs exist to a country receiving FDI?.
Answer: loss of sovereignty, adverse effects on competition, net outflow in
the capital account
◍ The aggregation of importing and exporting that leads to the country-level
trade surplus or deficit..
Answer: balance of trade
◍ firms with a _____ degree of resource similarity are likely to have similar
competitive actions.
Answer: high
, ◍ a high degree of resource similarity but low market commonality = _______
intensity of rivalry.
Answer: highest
◍ The modern trade theories include the following EXCEPT:.
Answer: Theory of comparative advantage
◍ The theory of mercantilism:.
Answer: views international trade as a zero-sum game.
◍ little resource similarity but high market commonality = _____ intensity of
rivalry.
Answer: lowest
◍ mercantilism, absolute advantage and comparative advantage belong to what
theory of international trade.
Answer: classical
◍ An import quota is:.
Answer: Restriction on the quantity of imports that can be brought into a
country.
◍ The three modern theories of international trade are:.
Answer: product life cycle, strategic trade, national competitive advantage
of industries.
◍ theory of international trade that relies on more realistic product life cycles
and first mover advantages.
Answer: modern
◍ Multinational enterprises (MNEs) are:.
Answer: firms that engage in foreign direct investment (FDI).
◍ under free trade, a nation gains by specializing in economic activities in
which it has _____advantage.
Answer: absolute
◍ focuses on the idea that if a country does not have absolute advantage, they
