WGU C211 OBJECTIVE ASSESSMENT / WGU C211 GLOBAL
ECONOMICS ACTUAL OA EXAM 2026/2027 TESTBANK AND STUDY
GUIDE COMPLETE ACCURATE EXAM REAL QUESTIONS AND
CORRECT DETAILED ANSWERS WITH RATIONALES (100%
CORRECT VERIFIED SOLUTIONS) CURRENTLY UPDATED VERSION
2026 EDITION |GUARANTEED PASS A+
1. What are the three recognized views of globalization?
A) New, Evolutionary, and Static
B) New, Evolutionary, and Pendulum
C) Old, Evolutionary, and Cyclical
D) Modern, Historical, and Reversible
Correct Answer: B
Rationale: The "New" view considers globalization a recent phenomenon driven
by technology and multinational enterprises. The "Evolutionary" view traces
trade back to ancient routes, arguing globalization is a long-running historical
process. The "Pendulum" view recognizes that globalization can reverse
direction, swinging between periods of integration and protectionism .
2. Which view claims that globalization was initially driven by the desire of
Western economies to exploit their power through multinational enterprises?
A) The Evolutionary view
B) The Pendulum view
C) The New view
D) The Historical view
Correct Answer: C
,Rationale: The "New" view of globalization emphasizes the role of Western
multinational enterprises (MNEs) in driving economic integration since the mid-
20th century. This perspective highlights the power dynamics inherent in
globalization, where developed economies with strong corporations have shaped
international trade rules and investment flows to their advantage .
3. Which statement about globalization aligns with the "Pendulum view"?
A) Globalization is a one-directional phenomenon toward ever-greater integration
B) Globalization is a recent phenomenon driven by technology
C) Globalization is not a one-directional phenomenon
D) Globalization has existed since the dawn of human history
Correct Answer: C
Rationale: The pendulum view rejects the idea that globalization is a linear, one-
way process. Instead, it recognizes that economic integration can swing
backward (protectionism, trade wars, deglobalization) as well as forward,
depending on political, economic, and social forces .
4. Which two phrases represent the views of globalization? (Choose two answers)
A) A pendulum that swings from one extreme to another
B) A competition among key financial centers and markets
C) A continuing force sweeping through the world
D) An unplanned result of corporate responses to opportunities
Correct Answer: A and C
Rationale: The "Pendulum view" describes globalization as swinging from one
extreme to another, while the "New view" describes it as a continuing force
sweeping through the world. These are two of the three recognized views of
globalization .
,5. What is Foreign Direct Investment (FDI)?
A) Investment in foreign stocks and bonds without management control
B) Direct investment in, control, and management of value-added activities in
other countries
C) Purchase of foreign government securities
D) Short-term currency speculation in foreign markets
Correct Answer: B
Rationale: FDI differs from foreign portfolio investment (FPI) by involving
management control and active participation in the foreign operation. The
typical threshold for FDI classification is 10% ownership of voting shares. FDI
represents a long-term commitment to a foreign market .
6. What are the three political views on FDI?
A) Radical View, Free Market View, and Pragmatic Nationalism
B) Protectionist View, Liberal View, and Socialist View
C) Radical View, Conservative View, and Moderate View
D) Free Trade View, Restrictive View, and Balanced View
Correct Answer: A
Rationale: The Radical View is hostile to FDI, viewing it as exploitation. The
Free Market View calls for minimal government restriction, leading to a win-win
situation for both home and host countries. Pragmatic Nationalism represents
the middle-ground approach, weighing benefits and costs of FDI on a case-by-
case basis .
, 7. Which benefits come to the host country as a result of Foreign Direct
Investment? (Choose two answers)
A) Capital Inflow
B) Loss of Sovereignty
C) Technology Spillover
D) Capital Outflow
Correct Answer: A and C
Rationale: Host countries gain from FDI through multiple channels: capital
inflow directly finances investment; technology spillover occurs when foreign
firms' advanced techniques diffuse to local firms. Job creation and advanced
management know-how are additional benefits. Loss of sovereignty and capital
outflow are costs, not benefits .
8. Which is a cost to a country receiving Foreign Direct Investment?
A) Creation of domestic jobs
B) Technology spillover
C) Loss of Sovereignty
D) Advanced management know-how
Correct Answer: C
Rationale: Costs of FDI to the host country include loss of sovereignty (decision-
making power resides abroad), adverse competition effects (MNEs may drive
local firms out of business), and capital outflow (when profits are repatriated).
Job creation, technology spillover, and management know-how are benefits .
9. What are two trade barriers? (Choose two answers)
A) Nontariffs
ECONOMICS ACTUAL OA EXAM 2026/2027 TESTBANK AND STUDY
GUIDE COMPLETE ACCURATE EXAM REAL QUESTIONS AND
CORRECT DETAILED ANSWERS WITH RATIONALES (100%
CORRECT VERIFIED SOLUTIONS) CURRENTLY UPDATED VERSION
2026 EDITION |GUARANTEED PASS A+
1. What are the three recognized views of globalization?
A) New, Evolutionary, and Static
B) New, Evolutionary, and Pendulum
C) Old, Evolutionary, and Cyclical
D) Modern, Historical, and Reversible
Correct Answer: B
Rationale: The "New" view considers globalization a recent phenomenon driven
by technology and multinational enterprises. The "Evolutionary" view traces
trade back to ancient routes, arguing globalization is a long-running historical
process. The "Pendulum" view recognizes that globalization can reverse
direction, swinging between periods of integration and protectionism .
2. Which view claims that globalization was initially driven by the desire of
Western economies to exploit their power through multinational enterprises?
A) The Evolutionary view
B) The Pendulum view
C) The New view
D) The Historical view
Correct Answer: C
,Rationale: The "New" view of globalization emphasizes the role of Western
multinational enterprises (MNEs) in driving economic integration since the mid-
20th century. This perspective highlights the power dynamics inherent in
globalization, where developed economies with strong corporations have shaped
international trade rules and investment flows to their advantage .
3. Which statement about globalization aligns with the "Pendulum view"?
A) Globalization is a one-directional phenomenon toward ever-greater integration
B) Globalization is a recent phenomenon driven by technology
C) Globalization is not a one-directional phenomenon
D) Globalization has existed since the dawn of human history
Correct Answer: C
Rationale: The pendulum view rejects the idea that globalization is a linear, one-
way process. Instead, it recognizes that economic integration can swing
backward (protectionism, trade wars, deglobalization) as well as forward,
depending on political, economic, and social forces .
4. Which two phrases represent the views of globalization? (Choose two answers)
A) A pendulum that swings from one extreme to another
B) A competition among key financial centers and markets
C) A continuing force sweeping through the world
D) An unplanned result of corporate responses to opportunities
Correct Answer: A and C
Rationale: The "Pendulum view" describes globalization as swinging from one
extreme to another, while the "New view" describes it as a continuing force
sweeping through the world. These are two of the three recognized views of
globalization .
,5. What is Foreign Direct Investment (FDI)?
A) Investment in foreign stocks and bonds without management control
B) Direct investment in, control, and management of value-added activities in
other countries
C) Purchase of foreign government securities
D) Short-term currency speculation in foreign markets
Correct Answer: B
Rationale: FDI differs from foreign portfolio investment (FPI) by involving
management control and active participation in the foreign operation. The
typical threshold for FDI classification is 10% ownership of voting shares. FDI
represents a long-term commitment to a foreign market .
6. What are the three political views on FDI?
A) Radical View, Free Market View, and Pragmatic Nationalism
B) Protectionist View, Liberal View, and Socialist View
C) Radical View, Conservative View, and Moderate View
D) Free Trade View, Restrictive View, and Balanced View
Correct Answer: A
Rationale: The Radical View is hostile to FDI, viewing it as exploitation. The
Free Market View calls for minimal government restriction, leading to a win-win
situation for both home and host countries. Pragmatic Nationalism represents
the middle-ground approach, weighing benefits and costs of FDI on a case-by-
case basis .
, 7. Which benefits come to the host country as a result of Foreign Direct
Investment? (Choose two answers)
A) Capital Inflow
B) Loss of Sovereignty
C) Technology Spillover
D) Capital Outflow
Correct Answer: A and C
Rationale: Host countries gain from FDI through multiple channels: capital
inflow directly finances investment; technology spillover occurs when foreign
firms' advanced techniques diffuse to local firms. Job creation and advanced
management know-how are additional benefits. Loss of sovereignty and capital
outflow are costs, not benefits .
8. Which is a cost to a country receiving Foreign Direct Investment?
A) Creation of domestic jobs
B) Technology spillover
C) Loss of Sovereignty
D) Advanced management know-how
Correct Answer: C
Rationale: Costs of FDI to the host country include loss of sovereignty (decision-
making power resides abroad), adverse competition effects (MNEs may drive
local firms out of business), and capital outflow (when profits are repatriated).
Job creation, technology spillover, and management know-how are benefits .
9. What are two trade barriers? (Choose two answers)
A) Nontariffs
