WGU C211 UPDATED ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS
Question 1.
Main views on globalization
ANSWER
i. New
ii. evolutionary
iii. and pendulum
Question 2.
New View on Globalization
ANSWER
A force sweeping through the world in recent times.
Question 3.
Evolutionary View on Globalization
ANSWER
A long-run historical evolution since the dawn of human history
Question 4.
Pendulum View on Globalization
ANSWER
One that swings from one extreme to another from time to time. Rapid globalization, but has
to stop due to lash back.
Question 5.
What is FDI
ANSWER
foreign direct investment
,Question 6.
Foreign Direct Investment
ANSWER
the control and management of activities in a foreign country.
Question 7.
Green Field Investment
ANSWER
Brand new business in the host country, requires largest equity investment. Purchase of land,
factory, etc.
Question 8.
Wholly Owned Subsidiary
ANSWER
Company simply purchases an entire company that is already doing business in the host
country.
Question 9.
Partnership
ANSWER
When a company partners with company that already exists in the host country, some
proportion of ownership/collaboration but not the entire company.
Question 10.
Licensing
ANSWER
non-equity method of investment. Simply license brand name, logo, manufacturing process,
etc. To entrepreneur in host country; Low risk.
Question 11.
Political views on FDI
ANSWER
i. Radical View
, ii. Free Market View
iii. Pragmatic Nationalism
Question 12.
Radical view on FDI
ANSWER
a political view which argues that globalization is the product of western civilization and
specifically the MNE's which derive from there. This view
argues globalization should be avoided as its ecological and social costs are too high. Argue for
protectionism.
Question 13.
Free market view on FDI
ANSWER
A political view that suggests that FDI unrestricted by government intervention is the best.
Discourages tariffs and is pro-globalization.
Question 14.
Pragmatic nationalism view on FDI
ANSWER
a political view that approves FDI only when its benefits outweigh its costs. Particularly looks at
national interest.
Question 15.
Benefits to a country receiving FDI
ANSWER
i. Capital Inflow
ii. Technology Spillover
iii. Advanced Management Know-How
iv. Job creation
Question 16.
Costs to a country receiving FDI
ANSWER
, i. Job loss
ii. Loss of Sovereignty
iii. more competition
iv. Capital outflow.
Question 17.
Sovereignty
ANSWER
Ability of a state to govern its territory free from control of its internal affairs by other states.
Question 18.
How do resources and capabilities influence the competitive dynamics of a business?
ANSWER
i. VRIO: Value
ii. Rarity
iii. Imitability
iv. and Organization
Question 19.
Value
ANSWER
Is the firm able to exploit an opportunity or neutralize an external threat with the
resource/capability
Question 20.
Rarity
ANSWER
Is control of the resource/capability in the hands of a relative few?
Question 21.
Imitability
ANSWER
CORRECT ANSWERS
Question 1.
Main views on globalization
ANSWER
i. New
ii. evolutionary
iii. and pendulum
Question 2.
New View on Globalization
ANSWER
A force sweeping through the world in recent times.
Question 3.
Evolutionary View on Globalization
ANSWER
A long-run historical evolution since the dawn of human history
Question 4.
Pendulum View on Globalization
ANSWER
One that swings from one extreme to another from time to time. Rapid globalization, but has
to stop due to lash back.
Question 5.
What is FDI
ANSWER
foreign direct investment
,Question 6.
Foreign Direct Investment
ANSWER
the control and management of activities in a foreign country.
Question 7.
Green Field Investment
ANSWER
Brand new business in the host country, requires largest equity investment. Purchase of land,
factory, etc.
Question 8.
Wholly Owned Subsidiary
ANSWER
Company simply purchases an entire company that is already doing business in the host
country.
Question 9.
Partnership
ANSWER
When a company partners with company that already exists in the host country, some
proportion of ownership/collaboration but not the entire company.
Question 10.
Licensing
ANSWER
non-equity method of investment. Simply license brand name, logo, manufacturing process,
etc. To entrepreneur in host country; Low risk.
Question 11.
Political views on FDI
ANSWER
i. Radical View
, ii. Free Market View
iii. Pragmatic Nationalism
Question 12.
Radical view on FDI
ANSWER
a political view which argues that globalization is the product of western civilization and
specifically the MNE's which derive from there. This view
argues globalization should be avoided as its ecological and social costs are too high. Argue for
protectionism.
Question 13.
Free market view on FDI
ANSWER
A political view that suggests that FDI unrestricted by government intervention is the best.
Discourages tariffs and is pro-globalization.
Question 14.
Pragmatic nationalism view on FDI
ANSWER
a political view that approves FDI only when its benefits outweigh its costs. Particularly looks at
national interest.
Question 15.
Benefits to a country receiving FDI
ANSWER
i. Capital Inflow
ii. Technology Spillover
iii. Advanced Management Know-How
iv. Job creation
Question 16.
Costs to a country receiving FDI
ANSWER
, i. Job loss
ii. Loss of Sovereignty
iii. more competition
iv. Capital outflow.
Question 17.
Sovereignty
ANSWER
Ability of a state to govern its territory free from control of its internal affairs by other states.
Question 18.
How do resources and capabilities influence the competitive dynamics of a business?
ANSWER
i. VRIO: Value
ii. Rarity
iii. Imitability
iv. and Organization
Question 19.
Value
ANSWER
Is the firm able to exploit an opportunity or neutralize an external threat with the
resource/capability
Question 20.
Rarity
ANSWER
Is control of the resource/capability in the hands of a relative few?
Question 21.
Imitability
ANSWER
