WGU C211 Pre-Assessment Questions with Verified Answers (Correct
Update)
Question 1: Which view claims that the phenomenon of globalization was initially driven by the
desire of
Western economies to exploit their power through multinational enterprise?
Answer: The newforce view
Question 2: Economic gains come from international trade because one country's exported
goods, services,
or other items are unique, valuable, and difficult to duplicate to the importing countries. Which
view does this statement portray?
Answer: Resource-based view
Question 3: What is the aggregation of importing and exporting that leads to the country-level
trade surplus
or deficit?
Answer: Balance of trade
Question 4: What is a cost of foreign direct investment?
Answer: Developing countries may be exploited by
multinational enterprises (MNE).
Question 5: What may precious, rare, and hard-to-duplicate resources and capabilities lead to
for a firm?
Answer: Sustained comparative advantage
Question 6: Which theory states that patterns of international trade change across new,
maturing, and
standardized states?
Answer: Product life cycle theory
Question 7: What is the financial environment in which exchange rates and payments for goods
and services
are conducted?
Answer: International monetary system
Page 1
, Question 8: What happens to a country's real exchange rate and nominal interest rate as the
price level
increases, assuming all other factors are unchanged?
Answer: Exchange rates depreciate; interest
rates increase
Question 9: What is the easiest method nonfinancial companies use to handle currency
fluctuations?
Answer: Currency diversification
Question 10: Which strategy minimizes the risk of unanticipated changes in future exchange
rates?
Answer: Currency swap
Question 11: A company is looking for a location with an abundance of ground-breaking
individuals, firms,
and universities. Which type of strategic goal is this company demonstrating?
Answer: Innovationseeking
Question 12: What advantage comes with not sharing benefits with late entrants?
Answer: First-mover
advantage
Question 13: Which entry mode is a non-equity arrangement for a company entry into a foreign
market?
Answer: Licensing
Question 14: What size commitment is required for a non-equity mode of entry into a foreign
market?
Answer: Small commitment
Question 15: What are two supportive pillars for an informal institution?
Answer: Cognitive, Normative
Page 2
Update)
Question 1: Which view claims that the phenomenon of globalization was initially driven by the
desire of
Western economies to exploit their power through multinational enterprise?
Answer: The newforce view
Question 2: Economic gains come from international trade because one country's exported
goods, services,
or other items are unique, valuable, and difficult to duplicate to the importing countries. Which
view does this statement portray?
Answer: Resource-based view
Question 3: What is the aggregation of importing and exporting that leads to the country-level
trade surplus
or deficit?
Answer: Balance of trade
Question 4: What is a cost of foreign direct investment?
Answer: Developing countries may be exploited by
multinational enterprises (MNE).
Question 5: What may precious, rare, and hard-to-duplicate resources and capabilities lead to
for a firm?
Answer: Sustained comparative advantage
Question 6: Which theory states that patterns of international trade change across new,
maturing, and
standardized states?
Answer: Product life cycle theory
Question 7: What is the financial environment in which exchange rates and payments for goods
and services
are conducted?
Answer: International monetary system
Page 1
, Question 8: What happens to a country's real exchange rate and nominal interest rate as the
price level
increases, assuming all other factors are unchanged?
Answer: Exchange rates depreciate; interest
rates increase
Question 9: What is the easiest method nonfinancial companies use to handle currency
fluctuations?
Answer: Currency diversification
Question 10: Which strategy minimizes the risk of unanticipated changes in future exchange
rates?
Answer: Currency swap
Question 11: A company is looking for a location with an abundance of ground-breaking
individuals, firms,
and universities. Which type of strategic goal is this company demonstrating?
Answer: Innovationseeking
Question 12: What advantage comes with not sharing benefits with late entrants?
Answer: First-mover
advantage
Question 13: Which entry mode is a non-equity arrangement for a company entry into a foreign
market?
Answer: Licensing
Question 14: What size commitment is required for a non-equity mode of entry into a foreign
market?
Answer: Small commitment
Question 15: What are two supportive pillars for an informal institution?
Answer: Cognitive, Normative
Page 2
