C 211 Global Economics for Managers
WGU Pre Assessment and Retake Sections
Latest version Guide 2025/2026.
100% Certified by Experts.
The resource-based view of global business differs from the institution-based view of global
business in that the resource-based view _____. - ANSfocuses on the internal strengths on the
firm
Which of the following is true of globalization according to the "pendulum view"
perspective? - ANSGlobalization is a not a one-directional phenomenon.
The _____ of globalization suggests that globalization is neither recent nor one-directional. -
ANSpendulum view
Which of the following is true of semiglobalization? - ANSIt is a type of globalization that
lies between total isolation and total globalization.
Globalization can be viewed as: - ANSA new force sweeping through the world in recent
times.
A long-run historical evolution since the dawn of human history.
A pendulum that swings from one extreme to another from time to time.
Name the three views of globalization. - ANSA recent force, a long-running evolution, and a
pendulum
The _____ theory viewed international trade as a zero-sum game. - ANSmercantilism
The _____ principle advocated that governments should actively protect domestic industries
from imports and vigorously promote exports. - ANSprotectionism
Which of the following is a modern trade theory? - ANSNational competitive advantage
The _____ theory is based on the assumption that the wealth of the world is fixed. -
ANSmercantilism
Import quotas are a type of _____. - ANStariff barrier
According to the theory of absolute advantage, under free trade, - ANSEach 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)? - ANSCultural distance
Chile requires 50 units of resource to produce one ton of wine and 20 units of resource to
produce one ton of blueberries. France requires 30 units of resource to produce one ton of
wine and 40 units of resource to produce one ton of blueberries. Which of the following is
true? - ANSFrance has a comparative advantage in wine.
Which of the following theories does NOT lead to the conclusion that unrestricted free trade
is in the best interests of all countries? - ANSStrategic trade theory
Free trade is defined as: - ANSThe idea that market forces should determine how much to
trade with little or no government intervention.
According to the theory of absolute advantage, under free trade, - ANSeach 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)? - ANSCultural distance
Protectionism is similar to mercantilism as they both advocated _____. - ANSgovernment
involvement in international trade
OLI advantages refer to a firm's quest for _____via FDI. - ANSownership advantages,
location advantages, and internalization advantages
,C 211 Global Economics for Managers
WGU Pre Assessment and Retake Sections
Latest version Guide 2025/2026.
100% Certified by Experts.
MNEs' possession and leveraging of certain valuable, rare, hard-to-imitate, and
organizationally embedded (VRIO) assets overseas in the context of FDI refer to _____. -
ANSownership
Firms prefer FDI to licensing because FDI_____. - ANSprovides the firm with direct
ownership to its foreign assets
Which of the following political perspectives maintains the view that FDI has both pros and
cons and can only be approved when its benefits outweigh costs? - ANSPragmatic
nationalism
Which of the following is a benefit of FDI to home countries? - ANSLearning from
operations
Which of the following foreign exchange transactions provide protection to traders and
investors from being exposed to fluctuations of the spot rate? - ANSForward transactions
_____ is defined as the conversion of one currency into another at Time 1, with an agreement
to revert it back to the original currency at a specific Time 2 in the future. - ANSCurrency
swap
Foreign exchange rates are influenced by: - ANSInterest rates and money supply.
Relative price differences and purchasing power parity.
Supply and demand of the currencies.
A savvy global business manger must understand the following concepts to be considered
literate about foreign exchange: - ANSUnderstand the factors that influence exchange rates
Understand the ways to hedge currency risks
Understand the foreign exchange market
Which of the following are the primary types of foreign exchange transactions made by
financial companies? - ANSSwaps, spot transactions, forward transactions
A home appliance manufacturer located in The Netherlands decides to open two new
manufacturing plants, one in Poland and the other in Thailand. Its purpose is to offset
currency losses through: - ANSstrategic hedging
Why do managers, at some of the largest global corporations, fail to engage in currency
hedging? - ANSThey believe that the protection against fluctuations in exchange rates is not
worth the potentially high cost of currency hedging.
Risk analysis of any country must include an analysis of the country's: - ANScurrency risks
With regard to foreign market entry, the resource-based view argues that foreign firms need
to - ANSdeploy overwhelming resources and capabilities to offset their liability of
foreignness.
Which of the following is a first-mover advantage? - ANSAvoidance of clash with a
dominant firm at home
Which of the following is an equity mode of entry? - ANSWholly owned subsidiaries
Which of the following entry modes is a type of strategic alliance? - ANSLicensing
Which of the following is a disadvantage of licensing and franchising? - ANSLittle control
over marketing
, C 211 Global Economics for Managers
WGU Pre Assessment and Retake Sections
Latest version Guide 2025/2026.
100% Certified by Experts.
Miami is an ideal city for both North American firms looking to expand their business to
Central and South America and for Latin American companies to expand their business to
North America. This is an example of a(n): - ANSlocation-specific advantage.
The following are examples of location-specific advantages: - ANSIndustry demand that
creates a skilled labor force.
Industry demand that facilitates a pool of specialized suppliers and buyers.
Knowledge spillovers among closely located firms.
Which of the following is a first-mover advantage? - ANSAvoid clashing with dominant
firms in their home market.
Which of type of entry mode is a wholly owned subsidiary? - ANSEquity mode
What are the possible benefits of being a late mover? - ANSOpportunity to free ride on first-
mover investments
First mover's difficulty to adapt to market changes
Resolution of technological and market uncertainty
Assume that a firm is looking to expand into a foreign market, but it needs an opportunity
that has low development costs and little risk. Its best choice would be: - ANSa contractual
agreement.
Assume that a major technology company is looking to expand into a foreign market but it
can't risk losing its core innovations by sharing them with anyone outside the corporation. Its
best choice would be: - ANSa wholly owned subsidiary.
The price leader's _____ is defined as sufficient resources possessed to deter and combat
defection. - ANScapacity to punish
_____ is defined as the extent to which a given competitor possesses strategic endowment
comparable, in terms of both type and amount, to those of the focal firm. - ANSResource
similarity
Which of the following sets of words describes the initial set of actions a firm uses to gain
competitive advantage and the other firm's response to it? - ANSAttack, counterattack
When firms indirectly coordinate actions by signaling their intentions, often in an attempt to
reduce output and maintain pricing above competitive levels, they are engaging in: -
ANStacit collusion.
Which of the following is NOT a method used by competitors to signal their intention to
reduce competitive intensity to other competitors? - ANSDeveloping new markets where
there is less competition
How do firms create value when engaging rivals? - ANSLaunch products in multiple
markets.
Hold a dominant position in key markets.
Secure patents on key products.
The resource-based view of global business differs from the institution-based view of global
business in that the resource-based view _____. - ANSfocuses on the internal strengths on the
firm
WGU Pre Assessment and Retake Sections
Latest version Guide 2025/2026.
100% Certified by Experts.
The resource-based view of global business differs from the institution-based view of global
business in that the resource-based view _____. - ANSfocuses on the internal strengths on the
firm
Which of the following is true of globalization according to the "pendulum view"
perspective? - ANSGlobalization is a not a one-directional phenomenon.
The _____ of globalization suggests that globalization is neither recent nor one-directional. -
ANSpendulum view
Which of the following is true of semiglobalization? - ANSIt is a type of globalization that
lies between total isolation and total globalization.
Globalization can be viewed as: - ANSA new force sweeping through the world in recent
times.
A long-run historical evolution since the dawn of human history.
A pendulum that swings from one extreme to another from time to time.
Name the three views of globalization. - ANSA recent force, a long-running evolution, and a
pendulum
The _____ theory viewed international trade as a zero-sum game. - ANSmercantilism
The _____ principle advocated that governments should actively protect domestic industries
from imports and vigorously promote exports. - ANSprotectionism
Which of the following is a modern trade theory? - ANSNational competitive advantage
The _____ theory is based on the assumption that the wealth of the world is fixed. -
ANSmercantilism
Import quotas are a type of _____. - ANStariff barrier
According to the theory of absolute advantage, under free trade, - ANSEach 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)? - ANSCultural distance
Chile requires 50 units of resource to produce one ton of wine and 20 units of resource to
produce one ton of blueberries. France requires 30 units of resource to produce one ton of
wine and 40 units of resource to produce one ton of blueberries. Which of the following is
true? - ANSFrance has a comparative advantage in wine.
Which of the following theories does NOT lead to the conclusion that unrestricted free trade
is in the best interests of all countries? - ANSStrategic trade theory
Free trade is defined as: - ANSThe idea that market forces should determine how much to
trade with little or no government intervention.
According to the theory of absolute advantage, under free trade, - ANSeach 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)? - ANSCultural distance
Protectionism is similar to mercantilism as they both advocated _____. - ANSgovernment
involvement in international trade
OLI advantages refer to a firm's quest for _____via FDI. - ANSownership advantages,
location advantages, and internalization advantages
,C 211 Global Economics for Managers
WGU Pre Assessment and Retake Sections
Latest version Guide 2025/2026.
100% Certified by Experts.
MNEs' possession and leveraging of certain valuable, rare, hard-to-imitate, and
organizationally embedded (VRIO) assets overseas in the context of FDI refer to _____. -
ANSownership
Firms prefer FDI to licensing because FDI_____. - ANSprovides the firm with direct
ownership to its foreign assets
Which of the following political perspectives maintains the view that FDI has both pros and
cons and can only be approved when its benefits outweigh costs? - ANSPragmatic
nationalism
Which of the following is a benefit of FDI to home countries? - ANSLearning from
operations
Which of the following foreign exchange transactions provide protection to traders and
investors from being exposed to fluctuations of the spot rate? - ANSForward transactions
_____ is defined as the conversion of one currency into another at Time 1, with an agreement
to revert it back to the original currency at a specific Time 2 in the future. - ANSCurrency
swap
Foreign exchange rates are influenced by: - ANSInterest rates and money supply.
Relative price differences and purchasing power parity.
Supply and demand of the currencies.
A savvy global business manger must understand the following concepts to be considered
literate about foreign exchange: - ANSUnderstand the factors that influence exchange rates
Understand the ways to hedge currency risks
Understand the foreign exchange market
Which of the following are the primary types of foreign exchange transactions made by
financial companies? - ANSSwaps, spot transactions, forward transactions
A home appliance manufacturer located in The Netherlands decides to open two new
manufacturing plants, one in Poland and the other in Thailand. Its purpose is to offset
currency losses through: - ANSstrategic hedging
Why do managers, at some of the largest global corporations, fail to engage in currency
hedging? - ANSThey believe that the protection against fluctuations in exchange rates is not
worth the potentially high cost of currency hedging.
Risk analysis of any country must include an analysis of the country's: - ANScurrency risks
With regard to foreign market entry, the resource-based view argues that foreign firms need
to - ANSdeploy overwhelming resources and capabilities to offset their liability of
foreignness.
Which of the following is a first-mover advantage? - ANSAvoidance of clash with a
dominant firm at home
Which of the following is an equity mode of entry? - ANSWholly owned subsidiaries
Which of the following entry modes is a type of strategic alliance? - ANSLicensing
Which of the following is a disadvantage of licensing and franchising? - ANSLittle control
over marketing
, C 211 Global Economics for Managers
WGU Pre Assessment and Retake Sections
Latest version Guide 2025/2026.
100% Certified by Experts.
Miami is an ideal city for both North American firms looking to expand their business to
Central and South America and for Latin American companies to expand their business to
North America. This is an example of a(n): - ANSlocation-specific advantage.
The following are examples of location-specific advantages: - ANSIndustry demand that
creates a skilled labor force.
Industry demand that facilitates a pool of specialized suppliers and buyers.
Knowledge spillovers among closely located firms.
Which of the following is a first-mover advantage? - ANSAvoid clashing with dominant
firms in their home market.
Which of type of entry mode is a wholly owned subsidiary? - ANSEquity mode
What are the possible benefits of being a late mover? - ANSOpportunity to free ride on first-
mover investments
First mover's difficulty to adapt to market changes
Resolution of technological and market uncertainty
Assume that a firm is looking to expand into a foreign market, but it needs an opportunity
that has low development costs and little risk. Its best choice would be: - ANSa contractual
agreement.
Assume that a major technology company is looking to expand into a foreign market but it
can't risk losing its core innovations by sharing them with anyone outside the corporation. Its
best choice would be: - ANSa wholly owned subsidiary.
The price leader's _____ is defined as sufficient resources possessed to deter and combat
defection. - ANScapacity to punish
_____ is defined as the extent to which a given competitor possesses strategic endowment
comparable, in terms of both type and amount, to those of the focal firm. - ANSResource
similarity
Which of the following sets of words describes the initial set of actions a firm uses to gain
competitive advantage and the other firm's response to it? - ANSAttack, counterattack
When firms indirectly coordinate actions by signaling their intentions, often in an attempt to
reduce output and maintain pricing above competitive levels, they are engaging in: -
ANStacit collusion.
Which of the following is NOT a method used by competitors to signal their intention to
reduce competitive intensity to other competitors? - ANSDeveloping new markets where
there is less competition
How do firms create value when engaging rivals? - ANSLaunch products in multiple
markets.
Hold a dominant position in key markets.
Secure patents on key products.
The resource-based view of global business differs from the institution-based view of global
business in that the resource-based view _____. - ANSfocuses on the internal strengths on the
firm
