WGU C211 OA Exam Questions and answers
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view that claims phenomenon of globalization was initially driven by the desire of Western economies to
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
exploit their power through MNE's - Correct Answers new
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! view that claims globalization is a long-run historical evolution since the dawn of humanity. Says it is
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! nothing new and that it will always exist - Correct Answers evolutionary
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! view that claims globalization is swinging from one extreme to another from time to time - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers pendulum II! II! II! II!
II! investment in, controlling, and managing value-added activities in other countries - Correct Answers
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! foreign direct investment II! II!
II! political view hostile to FDI. believes it is an instrument of imperialism and vehicle for exploitation of
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! domestic resources by foreign capitalists and firms - Correct Answers radical
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! suggests that FDI, unrestricted by government intervention, will enable countries to tap into their
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! absolute or comparative advantages by specializing in the production of certain goods and services -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Correct Answers free market II! II! II! II! II! II!
II! views FDI as having pros and cons and only approving FDI when its benefits outweigh costs - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers pragmatic nationalis II! II! II! II! II!
II! what benefits exist to a country receiving FDI? - Correct Answers capital inflow, technology spillovers,
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! advanced management know-how, creates jobs II! II! II! II!
II! what costs exist to a country receiving FDI? - Correct Answers loss of sovereignty, adverse effects on
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! competition, net outflow in the capital account II! II! II! II! II! II!
,II! The aggregation of importing and exporting that leads to the country-level trade surplus or deficit. -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Correct Answers balance of trade II! II! II! II! II! II! II!
II! firms with a _____ degree of resource similarity are likely to have similar competitive actions - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers high II! II! II! II!
II! a high degree of resource similarity but low market commonality = _______ intensity of rivalry - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers highest II! II! II! II!
II! little resource similarity but high market commonality = _____ intensity of rivalry - Correct Answers
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! lowest
II! mercantilism, absolute advantage and comparative advantage belong to what theory of international II! II! II! II! II! II! II! II! II! II! II!
II! trade - Correct Answers classical
II! II! II! II! II! II! II! II!
II! theory of international trade that relies on more realistic product life cycles and first mover advantages -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Correct Answers modern II! II! II! II! II!
II! under free trade, a nation gains by specializing in economic activities in which it has _____advantage -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Correct Answers absolute II! II! II! II! II!
II! focuses on the idea that if a country does not have absolute advantage, they can still choose to specialize
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! in the production of one good where it has ______ advantage - Correct Answers comparative
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! comparative advantage and absolute advantage stem from - Correct Answers factor endowments II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! theory that the wealth of the world is fixed and that a nation that imports more and exports less will be
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! richer - Correct Answers mercantilism
II! II! II! II! II! II! II! II!
II! stage of the product life cycle where production of a new product that commands a price premium will
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! concentrate in the US - Correct Answers new II! II! II! II! II! II! II! II! II! II! II!
, II! stage of the product life cycle where demand and ability to produce grow in other developed nations -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Correct Answers maturing II! II! II! II! II!
II! stage of the product life cycle where the previously new product is commoditized and production will
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! now move to low-cost developing nations - Correct Answers standardized
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! comparative advantage may change over time because patterns of ______ change over time - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers trade II! II! II! II!
II! theory that suggests that intervention by governments in certain industries can enhance their odds for
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! international success - Correct Answers strategic trade II! II! II! II! II! II! II! II! II! II!
II! if a company seeks to limit foreign exchange rate exposure in the forward direction, what is the most
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! effective way to do this? - Correct Answers currency hedging
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! exchange rate risk associating with the time delay between entering a contract and settling it - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers transaction risk II! II! II! II! II!
II! forward transaction that protects traders and investors from exposure to fluctuations of the spot rate -
II! II! II! II! II! II! II ! II! II! II! II! II! II! II! II! II!
II! Correct Answers hedging II! II! II! II! II!
II! a means of spreading out activities in different currency zones in order to offset the currency losses in
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! certain regions through gains in other regions - Correct Answers strategic heding
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! amount of resources committed to entering a foreign market - Correct Answers scale of entry
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! how do institutions reduce uncertainty? - Correct Answers by signaling which conduct is legit and which
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! is not
II!
II! pillar of formal institution, coercive power of government - Correct Answers regulatory
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
Guaranteed success latest 2025/26 100% PASS
view that claims phenomenon of globalization was initially driven by the desire of Western economies to
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
exploit their power through MNE's - Correct Answers new
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! view that claims globalization is a long-run historical evolution since the dawn of humanity. Says it is
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! nothing new and that it will always exist - Correct Answers evolutionary
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! view that claims globalization is swinging from one extreme to another from time to time - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers pendulum II! II! II! II!
II! investment in, controlling, and managing value-added activities in other countries - Correct Answers
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! foreign direct investment II! II!
II! political view hostile to FDI. believes it is an instrument of imperialism and vehicle for exploitation of
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! domestic resources by foreign capitalists and firms - Correct Answers radical
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! suggests that FDI, unrestricted by government intervention, will enable countries to tap into their
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! absolute or comparative advantages by specializing in the production of certain goods and services -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Correct Answers free market II! II! II! II! II! II!
II! views FDI as having pros and cons and only approving FDI when its benefits outweigh costs - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers pragmatic nationalis II! II! II! II! II!
II! what benefits exist to a country receiving FDI? - Correct Answers capital inflow, technology spillovers,
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! advanced management know-how, creates jobs II! II! II! II!
II! what costs exist to a country receiving FDI? - Correct Answers loss of sovereignty, adverse effects on
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! competition, net outflow in the capital account II! II! II! II! II! II!
,II! The aggregation of importing and exporting that leads to the country-level trade surplus or deficit. -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Correct Answers balance of trade II! II! II! II! II! II! II!
II! firms with a _____ degree of resource similarity are likely to have similar competitive actions - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers high II! II! II! II!
II! a high degree of resource similarity but low market commonality = _______ intensity of rivalry - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers highest II! II! II! II!
II! little resource similarity but high market commonality = _____ intensity of rivalry - Correct Answers
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! lowest
II! mercantilism, absolute advantage and comparative advantage belong to what theory of international II! II! II! II! II! II! II! II! II! II! II!
II! trade - Correct Answers classical
II! II! II! II! II! II! II! II!
II! theory of international trade that relies on more realistic product life cycles and first mover advantages -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Correct Answers modern II! II! II! II! II!
II! under free trade, a nation gains by specializing in economic activities in which it has _____advantage -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Correct Answers absolute II! II! II! II! II!
II! focuses on the idea that if a country does not have absolute advantage, they can still choose to specialize
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! in the production of one good where it has ______ advantage - Correct Answers comparative
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! comparative advantage and absolute advantage stem from - Correct Answers factor endowments II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! theory that the wealth of the world is fixed and that a nation that imports more and exports less will be
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! richer - Correct Answers mercantilism
II! II! II! II! II! II! II! II!
II! stage of the product life cycle where production of a new product that commands a price premium will
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! concentrate in the US - Correct Answers new II! II! II! II! II! II! II! II! II! II! II!
, II! stage of the product life cycle where demand and ability to produce grow in other developed nations -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Correct Answers maturing II! II! II! II! II!
II! stage of the product life cycle where the previously new product is commoditized and production will
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! now move to low-cost developing nations - Correct Answers standardized
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! comparative advantage may change over time because patterns of ______ change over time - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers trade II! II! II! II!
II! theory that suggests that intervention by governments in certain industries can enhance their odds for
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! international success - Correct Answers strategic trade II! II! II! II! II! II! II! II! II! II!
II! if a company seeks to limit foreign exchange rate exposure in the forward direction, what is the most
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! effective way to do this? - Correct Answers currency hedging
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! exchange rate risk associating with the time delay between entering a contract and settling it - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers transaction risk II! II! II! II! II!
II! forward transaction that protects traders and investors from exposure to fluctuations of the spot rate -
II! II! II! II! II! II! II ! II! II! II! II! II! II! II! II! II!
II! Correct Answers hedging II! II! II! II! II!
II! a means of spreading out activities in different currency zones in order to offset the currency losses in
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! certain regions through gains in other regions - Correct Answers strategic heding
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! amount of resources committed to entering a foreign market - Correct Answers scale of entry
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! how do institutions reduce uncertainty? - Correct Answers by signaling which conduct is legit and which
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! is not
II!
II! pillar of formal institution, coercive power of government - Correct Answers regulatory
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
