WGU C211 Study Guide Exam Questions with Verified Answers
(Correct Update)
Question 1: Views of globalization (Chp 1.4)
Answer: 1. It's a new phenomenom, starting in the late 20th century. 2. It's a long term part of
human history. 3. Neither recent nor one directional, it's a pendulum that swings back and forth.
Question 2: Strategic goal = Natural resource-seeking
Answer: Location specific advantage = Possession of natural resources and related transport and
communication infrastructure
Question 3: Strategic goal = Market-seeking
Answer: Location specific advantage = Abundance of strong market demand and customers
willing to pay
Question 4: Strategic goal = Efficiency-seeking
Answer: Location specific advantage = Economies of scale and abundance of low-cost factors
Question 5: Strategic goal = Innovation-seeking
Answer: Location specific advantage = Abundance of innovative individuals, firms, and
universities
Question 6: Name first mover advantages: (Chp 10.3)
Answer: 1. Proprietary, technological leadership 2. Pre-emption of scarce resources 3.
Establishment of entry barriers for late entrants 4. Avoidance of clash with dominant firms at home
Page 1
, Question 7: Name late mover advantages: (Chp 10.3)
Answer: 1. Opportunity to free ride on first-mover investments 2. Resolution of technological and
market uncertainty 3. First mover's difficulty to adapt to market changes
Question 8: Name strategic goals supported by location specific advantages (Chp 10.2)
Answer: 1. Natural resources 2. Market 3. Efficiency 4. Innovation
Question 9: Proposition (1) underpinning an institution based view of global business.
Answer: Managers and firms rationally pursue their interests and make choices within the formal
and informal constraints in a given institutional framework
Question 10: Proposition (2) underpinning an institution based view of global business.
Answer: While formal and informal institutions combine to govern firm behavior, in situations
where formal constraints are unclear or fail, informal constraints will play a larger role in reducing
uncertainty and providing constancy to managers and firms
Question 11: Market economy
Answer: An economy that is characterized by the "invisible hand" of market forces.
Question 12: Command economy
Answer: An economy that is characterized by government ownership and control of factors of
production.
Question 13: Mixed economy
Answer: An economy that has elements of both a market economy and a command economy.
Page 2
(Correct Update)
Question 1: Views of globalization (Chp 1.4)
Answer: 1. It's a new phenomenom, starting in the late 20th century. 2. It's a long term part of
human history. 3. Neither recent nor one directional, it's a pendulum that swings back and forth.
Question 2: Strategic goal = Natural resource-seeking
Answer: Location specific advantage = Possession of natural resources and related transport and
communication infrastructure
Question 3: Strategic goal = Market-seeking
Answer: Location specific advantage = Abundance of strong market demand and customers
willing to pay
Question 4: Strategic goal = Efficiency-seeking
Answer: Location specific advantage = Economies of scale and abundance of low-cost factors
Question 5: Strategic goal = Innovation-seeking
Answer: Location specific advantage = Abundance of innovative individuals, firms, and
universities
Question 6: Name first mover advantages: (Chp 10.3)
Answer: 1. Proprietary, technological leadership 2. Pre-emption of scarce resources 3.
Establishment of entry barriers for late entrants 4. Avoidance of clash with dominant firms at home
Page 1
, Question 7: Name late mover advantages: (Chp 10.3)
Answer: 1. Opportunity to free ride on first-mover investments 2. Resolution of technological and
market uncertainty 3. First mover's difficulty to adapt to market changes
Question 8: Name strategic goals supported by location specific advantages (Chp 10.2)
Answer: 1. Natural resources 2. Market 3. Efficiency 4. Innovation
Question 9: Proposition (1) underpinning an institution based view of global business.
Answer: Managers and firms rationally pursue their interests and make choices within the formal
and informal constraints in a given institutional framework
Question 10: Proposition (2) underpinning an institution based view of global business.
Answer: While formal and informal institutions combine to govern firm behavior, in situations
where formal constraints are unclear or fail, informal constraints will play a larger role in reducing
uncertainty and providing constancy to managers and firms
Question 11: Market economy
Answer: An economy that is characterized by the "invisible hand" of market forces.
Question 12: Command economy
Answer: An economy that is characterized by government ownership and control of factors of
production.
Question 13: Mixed economy
Answer: An economy that has elements of both a market economy and a command economy.
Page 2
