WGU C211 Prep for OA

WGU C211 PREP FOR OA EXAM WITH 100% CORRECT ANSWERS Globalization can be viewed as - correct answer a new force sweeping through the world in recent times. a Option pendulum that swings from one extreme to another from time to time. a long-run historical evolution since the dawn of human history. What is the definition of an institution-based view of global business? - correct answer An institution-based view suggests that the success and failure of firms are enabled and constrained by institutions, also known as the rules of the game, such as regulations, laws, cultures, ethics, and norms. From an institution-based view, a government's legal requirement for a business to pay taxes would be an example of: - correct answer the influence of a formal institution. Which are the three views of globalization? - correct answer A recent force, a long-running evolution, and a pendulum Trade deficit refers to: - correct answer an economic condition in which a nation imports more than it exports. The modern trade theories include the following EXCEPT: - correct answer Theory of comparative advantage The theory of mercantilism: - correct answer views international trade as a zero-sum game. According to the theory of absolute advantage, under free trade, - correct answer each nation gains by specializing in economic activities in which a nation has absolute advantage. Which of the following is NOT a nontariff trade barrier (NTB)? - correct answer Cultural distance Which of the following theories does NOT lead to the conclusion that unrestricted free trade is in the best interests of all countries? - correct answer Strategic trade theory An import quota is: - correct answer Restriction on the quantity of imports that can be brought into a country. The three modern theories of international trade are: - correct answer product life cycle, strategic trade, national competitive advantage of industries. Free trade is defined as: - correct answer The idea that market forces should determine how much to trade with little or no government intervention. Multinational enterprises (MNEs) are: - correct answer firms that engage in foreign direct investment (FDI). Foreign direct investment (FDI) is: - correct answer investment in activities that control and manage value-added activities in foreign countries. An oligopoly is an: - correct answer industry dominated by a small number of competitors. The primary political views on FDI are: - correct answer Free market and pragmatic nationalism Some of the benefits of FDI to the host country are: - correct answer Job creation Advanced technology Capital inflow In addition to FDI, other ways a firm can enter foreign markets include: - correct answer License and trademark Outsource Import and export Which of the following statements about the effects of FDI on host countries is true? - correct answer While FDI creates jobs and encourages the development of management know-how within the host country, it can also lead to adverse effects on competition and capital outflow. Beyond the enforcement of antitrust laws, collusion often fails because: - correct answer it has incentive problems associated with the "prisoners' dilemma." Which of the following industry characteristic makes collusion difficult? - correct answer Low entry barriers Which of the following situation represents the LOWEST intensity of rivalry between two companies? - correct answer Low resource similarity and high market commonality How do firms create value when engaging rivals? - correct answer Hold a dominant position in key markets. Launch products in multiple markets. Secure patents on key products. Political view most hostile to FDI - correct answer Radical View Classical theories of international trade - correct answer mercantilism absolute advantage comparative advantage Location specific refers to - correct answer benefits a firm reaps from features specific to a place Competitive