WGU C211 OA GLOBAL ECONOMICS EXAM
• 250 High-Yield Exam-Style Questions & Verified Answers
Important: These are original exam-style practice questions built from publicly available C211 study-guide concepts and public previews. They are not leaked or
reproduced official WGU OA questions, and no study resource can honestly guarantee a passing score.
Real-world photo reference: NY Stock Exchange trading floor
Public-domain Library of Congress photograph via Wikimedia Commons.
Real-world photo reference: Federal Reserve building
Photographic reference via Wikimedia Commons.
Real-world photo reference: market trader
Photographic reference via Wikimedia Commons.
Photo-source references are provided as clickable links because this PDF-generation environment cannot reliably fetch external image files for embedding. Vector
diagrams below are embedded directly.
Supply & Demand
P
S
E
D
Q
1. Global Business & Globalization
1. Which concept is best described by the following statement?
Globalization is best described as the close integration of countries and peoples through cross-border flows of goods, services,
capital, information, and people.
globalization
✓
● horizontal FDI
● licensing
● location advantage
2. A manufacturer begins sourcing components abroad, selling through several countries, and coordinating production across
borders. Which concept best fits this situation?
● ownership advantage
● institution-based view
globalization
✓
● strategic alliance
3. A manager wants the concept most directly associated with this idea: “Globalization is best described as the close integration of
countries and peoples through cross-border flows of goods, services, capital, information, and people.” Which term should the
manager select?
● late-mover advantage
WGU C211 Global Economics — Practice/Test Bank Page 1 of 33
, ● strategic alliance
globalization
✓
● franchising
4. Which concept is best described by the following statement?
The institution-based view emphasizes how formal and informal rules in the external environment shape firm behavior and
outcomes.
● licensing
● ownership advantage
institution-based view
✓
● wholly owned subsidiary
5. A manager studies a host country's laws, regulations, norms, and business customs before deciding how to compete. Which
perspective is being applied?
institution-based view
✓
● standardization
● strategic alliance
● FDI radical view
6. A manager wants the concept most directly associated with this idea: “The institution-based view emphasizes how formal and
informal rules in the external environment shape firm behavior and outcomes.” Which term should the manager select?
● FDI radical view
● sunk cost
institution-based view
✓
● franchising
7. Which concept is best described by the following statement?
The resource-based view emphasizes internal resources and capabilities that can create competitive advantage when they are
valuable, rare, difficult to imitate, and effectively organized.
● wholly owned subsidiary
● franchising
● strategic alliance
resource-based view
✓
8. A firm relies on a proprietary technology and difficult-to-copy capabilities to outperform rivals. Which perspective best explains its
advantage?
● localization
● sunk cost
resource-based view
✓
● location advantage
9. A manager wants the concept most directly associated with this idea: “The resource-based view emphasizes internal resources
and capabilities that can create competitive advantage when they are valuable, rare, difficult to imitate, and effectively organized.”
Which term should the manager select?
resource-based view
✓
● strategic alliance
● wholly owned subsidiary
● first-mover advantage
10. Which concept is best described by the following statement?
Liability of foreignness is the inherent disadvantage foreign firms may face because they are not native to the host country.
● sunk cost
● location advantage
liability of foreignness
✓
● FDI
11. A foreign entrant faces extra costs because local customers, regulators, and suppliers favor established domestic firms. What
concept is illustrated?
WGU C211 Global Economics — Practice/Test Bank Page 2 of 33
, liability of foreignness
✓
● FDI free-market view
● late-mover advantage
● horizontal FDI
12. A manager wants the concept most directly associated with this idea: “Liability of foreignness is the inherent disadvantage
foreign firms may face because they are not native to the host country.” Which term should the manager select?
● horizontal FDI
● standardization
liability of foreignness
✓
● franchising
13. Which concept is best described by the following statement?
Semiglobalization means borders still matter: markets are integrated internationally, but cross-border barriers remain significant.
● sunk cost
● localization
● FDI pragmatic nationalism
semiglobalization
✓
14. A company finds that international markets are integrated but language, regulation, and consumer preferences still create
meaningful borders. What concept applies?
● strategic alliance
● first-mover advantage
● licensing
semiglobalization
✓
15. A manager wants the concept most directly associated with this idea: “Semiglobalization means borders still matter: markets
are integrated internationally, but cross-border barriers remain significant.” Which term should the manager select?
● internalization advantage
semiglobalization
✓
● resource-based view
● wholly owned subsidiary
16. Which concept is best described by the following statement?
Standardization treats the world as one broad market and emphasizes similarities across countries.
● FDI
standardization
✓
● resource-based view
● ownership advantage
17. A company sells nearly the same product and marketing message worldwide because it views the world as one broad market.
What strategy is this?
● internalization advantage
standardization
✓
● FDI pragmatic nationalism
● horizontal FDI
18. A manager wants the concept most directly associated with this idea: “Standardization treats the world as one broad market
and emphasizes similarities across countries.” Which term should the manager select?
● liability of foreignness
● wholly owned subsidiary
● FDI radical view
standardization
✓
19. Which concept is best described by the following statement?
Localization treats each country as a distinct market and adapts products or strategies to local conditions.
● OLI
● globalization
WGU C211 Global Economics — Practice/Test Bank Page 3 of 33
, ● semiglobalization
localization
✓
20. A firm redesigns its product, advertising, and pricing separately for each national market. What strategy is this?
localization
✓
● FDI
● first-mover advantage
● OLI
21. A manager wants the concept most directly associated with this idea: “Localization treats each country as a distinct market and
adapts products or strategies to local conditions.” Which term should the manager select?
● licensing
localization
✓
● horizontal FDI
● vertical FDI
22. Which concept is best described by the following statement?
Foreign direct investment involves investing in, controlling, and managing value-added activities in another country.
● strategic alliance
● OLI
● FDI radical view
FDI
✓
23. A company builds and manages a production facility in another country rather than merely exporting to it. What international
activity is this?
FDI
✓
● late-mover advantage
● institution-based view
● vertical FDI
24. A manager wants the concept most directly associated with this idea: “Foreign direct investment involves investing in,
controlling, and managing value-added activities in another country.” Which term should the manager select?
FDI
✓
● FDI radical view
● late-mover advantage
● ownership advantage
25. Which concept is best described by the following statement?
Horizontal FDI replicates similar value-chain activities in another country, such as opening a foreign plant that makes the same
product.
● FDI
● OLI
● FDI pragmatic nationalism
horizontal FDI
✓
26. A U.S. carmaker builds a similar assembly plant in Mexico to produce the same type of vehicles it makes at home. What type of
FDI is this?
● standardization
● vertical FDI
● location advantage
horizontal FDI
✓
27. A manager wants the concept most directly associated with this idea: “Horizontal FDI replicates similar value-chain activities in
another country, such as opening a foreign plant that makes the same product.” Which term should the manager select?
● wholly owned subsidiary
● FDI radical view
horizontal FDI
✓
● FDI pragmatic nationalism
WGU C211 Global Economics — Practice/Test Bank Page 4 of 33
• 250 High-Yield Exam-Style Questions & Verified Answers
Important: These are original exam-style practice questions built from publicly available C211 study-guide concepts and public previews. They are not leaked or
reproduced official WGU OA questions, and no study resource can honestly guarantee a passing score.
Real-world photo reference: NY Stock Exchange trading floor
Public-domain Library of Congress photograph via Wikimedia Commons.
Real-world photo reference: Federal Reserve building
Photographic reference via Wikimedia Commons.
Real-world photo reference: market trader
Photographic reference via Wikimedia Commons.
Photo-source references are provided as clickable links because this PDF-generation environment cannot reliably fetch external image files for embedding. Vector
diagrams below are embedded directly.
Supply & Demand
P
S
E
D
Q
1. Global Business & Globalization
1. Which concept is best described by the following statement?
Globalization is best described as the close integration of countries and peoples through cross-border flows of goods, services,
capital, information, and people.
globalization
✓
● horizontal FDI
● licensing
● location advantage
2. A manufacturer begins sourcing components abroad, selling through several countries, and coordinating production across
borders. Which concept best fits this situation?
● ownership advantage
● institution-based view
globalization
✓
● strategic alliance
3. A manager wants the concept most directly associated with this idea: “Globalization is best described as the close integration of
countries and peoples through cross-border flows of goods, services, capital, information, and people.” Which term should the
manager select?
● late-mover advantage
WGU C211 Global Economics — Practice/Test Bank Page 1 of 33
, ● strategic alliance
globalization
✓
● franchising
4. Which concept is best described by the following statement?
The institution-based view emphasizes how formal and informal rules in the external environment shape firm behavior and
outcomes.
● licensing
● ownership advantage
institution-based view
✓
● wholly owned subsidiary
5. A manager studies a host country's laws, regulations, norms, and business customs before deciding how to compete. Which
perspective is being applied?
institution-based view
✓
● standardization
● strategic alliance
● FDI radical view
6. A manager wants the concept most directly associated with this idea: “The institution-based view emphasizes how formal and
informal rules in the external environment shape firm behavior and outcomes.” Which term should the manager select?
● FDI radical view
● sunk cost
institution-based view
✓
● franchising
7. Which concept is best described by the following statement?
The resource-based view emphasizes internal resources and capabilities that can create competitive advantage when they are
valuable, rare, difficult to imitate, and effectively organized.
● wholly owned subsidiary
● franchising
● strategic alliance
resource-based view
✓
8. A firm relies on a proprietary technology and difficult-to-copy capabilities to outperform rivals. Which perspective best explains its
advantage?
● localization
● sunk cost
resource-based view
✓
● location advantage
9. A manager wants the concept most directly associated with this idea: “The resource-based view emphasizes internal resources
and capabilities that can create competitive advantage when they are valuable, rare, difficult to imitate, and effectively organized.”
Which term should the manager select?
resource-based view
✓
● strategic alliance
● wholly owned subsidiary
● first-mover advantage
10. Which concept is best described by the following statement?
Liability of foreignness is the inherent disadvantage foreign firms may face because they are not native to the host country.
● sunk cost
● location advantage
liability of foreignness
✓
● FDI
11. A foreign entrant faces extra costs because local customers, regulators, and suppliers favor established domestic firms. What
concept is illustrated?
WGU C211 Global Economics — Practice/Test Bank Page 2 of 33
, liability of foreignness
✓
● FDI free-market view
● late-mover advantage
● horizontal FDI
12. A manager wants the concept most directly associated with this idea: “Liability of foreignness is the inherent disadvantage
foreign firms may face because they are not native to the host country.” Which term should the manager select?
● horizontal FDI
● standardization
liability of foreignness
✓
● franchising
13. Which concept is best described by the following statement?
Semiglobalization means borders still matter: markets are integrated internationally, but cross-border barriers remain significant.
● sunk cost
● localization
● FDI pragmatic nationalism
semiglobalization
✓
14. A company finds that international markets are integrated but language, regulation, and consumer preferences still create
meaningful borders. What concept applies?
● strategic alliance
● first-mover advantage
● licensing
semiglobalization
✓
15. A manager wants the concept most directly associated with this idea: “Semiglobalization means borders still matter: markets
are integrated internationally, but cross-border barriers remain significant.” Which term should the manager select?
● internalization advantage
semiglobalization
✓
● resource-based view
● wholly owned subsidiary
16. Which concept is best described by the following statement?
Standardization treats the world as one broad market and emphasizes similarities across countries.
● FDI
standardization
✓
● resource-based view
● ownership advantage
17. A company sells nearly the same product and marketing message worldwide because it views the world as one broad market.
What strategy is this?
● internalization advantage
standardization
✓
● FDI pragmatic nationalism
● horizontal FDI
18. A manager wants the concept most directly associated with this idea: “Standardization treats the world as one broad market
and emphasizes similarities across countries.” Which term should the manager select?
● liability of foreignness
● wholly owned subsidiary
● FDI radical view
standardization
✓
19. Which concept is best described by the following statement?
Localization treats each country as a distinct market and adapts products or strategies to local conditions.
● OLI
● globalization
WGU C211 Global Economics — Practice/Test Bank Page 3 of 33
, ● semiglobalization
localization
✓
20. A firm redesigns its product, advertising, and pricing separately for each national market. What strategy is this?
localization
✓
● FDI
● first-mover advantage
● OLI
21. A manager wants the concept most directly associated with this idea: “Localization treats each country as a distinct market and
adapts products or strategies to local conditions.” Which term should the manager select?
● licensing
localization
✓
● horizontal FDI
● vertical FDI
22. Which concept is best described by the following statement?
Foreign direct investment involves investing in, controlling, and managing value-added activities in another country.
● strategic alliance
● OLI
● FDI radical view
FDI
✓
23. A company builds and manages a production facility in another country rather than merely exporting to it. What international
activity is this?
FDI
✓
● late-mover advantage
● institution-based view
● vertical FDI
24. A manager wants the concept most directly associated with this idea: “Foreign direct investment involves investing in,
controlling, and managing value-added activities in another country.” Which term should the manager select?
FDI
✓
● FDI radical view
● late-mover advantage
● ownership advantage
25. Which concept is best described by the following statement?
Horizontal FDI replicates similar value-chain activities in another country, such as opening a foreign plant that makes the same
product.
● FDI
● OLI
● FDI pragmatic nationalism
horizontal FDI
✓
26. A U.S. carmaker builds a similar assembly plant in Mexico to produce the same type of vehicles it makes at home. What type of
FDI is this?
● standardization
● vertical FDI
● location advantage
horizontal FDI
✓
27. A manager wants the concept most directly associated with this idea: “Horizontal FDI replicates similar value-chain activities in
another country, such as opening a foreign plant that makes the same product.” Which term should the manager select?
● wholly owned subsidiary
● FDI radical view
horizontal FDI
✓
● FDI pragmatic nationalism
WGU C211 Global Economics — Practice/Test Bank Page 4 of 33
