WGU C211 Globalization (peng 1,5,6,11) Exam Questions with
Verified Answers (Correct Update)
Question 1: global business
Answer: business around the globe
Question 2: international business
Answer: business (firm) that engages in international (cross -border) economic activities and the
action of doing business abroad.
Question 3: base of the pyramid
Answer: part of the view of the global economy as a pyramid. The vast majority of humanity,
about four billion people, lives at the base making less than $2,000 a year
Question 4: BRIC
Answer: Brazil, Russia, India, China
Question 5: emerging economies
Answer: Developing countries, such as India or Singapore, that over the past two or three decades
have begun to develop a strong industrial base.
Question 6: emerging markets
Answer: another name for emerging economies
Question 7: foreign direct investment (FDI)
Answer: direct investment in, control, and management of value-added activities in other countries
Page 1
,Question 8: Gross Domestic Product (GDP)
Answer: A nation's total output of goods and services
Question 9: Gross National Product (GNP)
Answer: GDP plus income from non-resident sources abroad
Question 10: Gross National Income (GNI)
Answer: GNI is the term used by the World Bank and other international organizations to
supersede the term GNP but is the same.
Question 11: International Business (IB)
Answer: a business firm that engages in international (cross border) economic activities and/or the
action of doing business abroad
Question 12: Multinational Enterprise (MNE)
Answer: a firm that engages in foreign direct investment by directly investing in, controlling, and
managing value-added activities in other countries
Question 13: Purchasing Power Parity (PPP)
Answer: An adjustment in gross domestic product per capita to reflect differences in the cost of
living
Question 14: reverse innovation
Answer: an innovation that is adopted first in emerging economies and then diffused around the
world.
Page 2
, Question 15: triad
Answer: refers to the developed economies in the three regions that consist of North America,
Western Europe, and Japan
Question 16: purpose of studying global business
Answer: to better compete in the corporate world that will require global expertise and to enhance
your understanding of what is going on in the global economy
Question 17: Expatriate Manager
Answer: a manager who works in a country other than his or her home country
Question 18: Group of 20 (G-20)
Answer: The group of 19 major countries plus the European Union (EU) whose leaders meet on a
biannual basis to solve global economic problems.
Question 19: international premium
Answer: Managers who work abroad (expats) often command a significant pay raise when
working overseas
Question 20: what determines the success and failure of firms around the globe?
Answer: institution-based view and resource based view
Question 21: Institution-based view
Answer: Success and failure of firms are enabled and constrained by institutions
Page 3
Verified Answers (Correct Update)
Question 1: global business
Answer: business around the globe
Question 2: international business
Answer: business (firm) that engages in international (cross -border) economic activities and the
action of doing business abroad.
Question 3: base of the pyramid
Answer: part of the view of the global economy as a pyramid. The vast majority of humanity,
about four billion people, lives at the base making less than $2,000 a year
Question 4: BRIC
Answer: Brazil, Russia, India, China
Question 5: emerging economies
Answer: Developing countries, such as India or Singapore, that over the past two or three decades
have begun to develop a strong industrial base.
Question 6: emerging markets
Answer: another name for emerging economies
Question 7: foreign direct investment (FDI)
Answer: direct investment in, control, and management of value-added activities in other countries
Page 1
,Question 8: Gross Domestic Product (GDP)
Answer: A nation's total output of goods and services
Question 9: Gross National Product (GNP)
Answer: GDP plus income from non-resident sources abroad
Question 10: Gross National Income (GNI)
Answer: GNI is the term used by the World Bank and other international organizations to
supersede the term GNP but is the same.
Question 11: International Business (IB)
Answer: a business firm that engages in international (cross border) economic activities and/or the
action of doing business abroad
Question 12: Multinational Enterprise (MNE)
Answer: a firm that engages in foreign direct investment by directly investing in, controlling, and
managing value-added activities in other countries
Question 13: Purchasing Power Parity (PPP)
Answer: An adjustment in gross domestic product per capita to reflect differences in the cost of
living
Question 14: reverse innovation
Answer: an innovation that is adopted first in emerging economies and then diffused around the
world.
Page 2
, Question 15: triad
Answer: refers to the developed economies in the three regions that consist of North America,
Western Europe, and Japan
Question 16: purpose of studying global business
Answer: to better compete in the corporate world that will require global expertise and to enhance
your understanding of what is going on in the global economy
Question 17: Expatriate Manager
Answer: a manager who works in a country other than his or her home country
Question 18: Group of 20 (G-20)
Answer: The group of 19 major countries plus the European Union (EU) whose leaders meet on a
biannual basis to solve global economic problems.
Question 19: international premium
Answer: Managers who work abroad (expats) often command a significant pay raise when
working overseas
Question 20: what determines the success and failure of firms around the globe?
Answer: institution-based view and resource based view
Question 21: Institution-based view
Answer: Success and failure of firms are enabled and constrained by institutions
Page 3
