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WGU C211 Objective Assessment Final Exam 2025,
global economics exam, WGU business test,
international trade questions, C211 2025 answers,
economic strategy, global market exam
According to the theory of absolute advantage, under free trade,
a. each nation gains by specializing in economic activities in
which a nation has absolute advantage.
b. no country has an absolute advantage in economic activities.
c. each nation loses by specializing in economic activities in
which a nation has absolute advantage.
d. every country has an absolute advantage in a certain
economic activity.
Correct Answer: a
Which of the following is NOT a nontariff trade barrier (NTB)?
a. Local content requirements
b. Cultural distance
c. Import quotas
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d. Subsidies
Correct Answer: b
Protectionism is similar to mercantilism as they both advocated
_____.
a.
dividing the nations of the world into three categories based on
its innovation capabilities
b.
government involvement in international trade
c.
developing comparative advantages based on a nation's locally
abundant factors
d.
specializing in economic activities in which a nation can have an
absolute advantage
Correct Answer: b
We have an expert-written solution to this problem!
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OLI advantages refer to a firm's quest for _____via FDI.
a.
organization advantages, leadership advantages, and innovation
advantages
b.
oligopolistic advantages, laissez-faire advantages, and intrafirm
trade advantages
c.
ownership advantages, location advantages, and internalization
advantages
d.
outsourcing advantages, licensing advantages, and importing
advantages
Correct Answer: c
MNEs' possession and leveraging of certain valuable, rare, hard-
to-imitate, and organizationally embedded (VRIO) assets
overseas in the context of FDI refer to _____.
a.
ownership
b.
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internalization
c.
location
d.
market imperfections
Correct Answer: a
Firms prefer FDI to licensing because FDI_____.
a.
increases the chances of opportunism when dealing with a host
nation entity
b.
protects the firm from economic agglomeration
c.
provides the firm with direct ownership to its foreign assets
d.
requires complete dissemination of technological know-how to
host nation entity
Correct Answer: c
WGU C211 Objective Assessment Final Exam 2025,
global economics exam, WGU business test,
international trade questions, C211 2025 answers,
economic strategy, global market exam
According to the theory of absolute advantage, under free trade,
a. each nation gains by specializing in economic activities in
which a nation has absolute advantage.
b. no country has an absolute advantage in economic activities.
c. each nation loses by specializing in economic activities in
which a nation has absolute advantage.
d. every country has an absolute advantage in a certain
economic activity.
Correct Answer: a
Which of the following is NOT a nontariff trade barrier (NTB)?
a. Local content requirements
b. Cultural distance
c. Import quotas
,2|Page
d. Subsidies
Correct Answer: b
Protectionism is similar to mercantilism as they both advocated
_____.
a.
dividing the nations of the world into three categories based on
its innovation capabilities
b.
government involvement in international trade
c.
developing comparative advantages based on a nation's locally
abundant factors
d.
specializing in economic activities in which a nation can have an
absolute advantage
Correct Answer: b
We have an expert-written solution to this problem!
,3|Page
OLI advantages refer to a firm's quest for _____via FDI.
a.
organization advantages, leadership advantages, and innovation
advantages
b.
oligopolistic advantages, laissez-faire advantages, and intrafirm
trade advantages
c.
ownership advantages, location advantages, and internalization
advantages
d.
outsourcing advantages, licensing advantages, and importing
advantages
Correct Answer: c
MNEs' possession and leveraging of certain valuable, rare, hard-
to-imitate, and organizationally embedded (VRIO) assets
overseas in the context of FDI refer to _____.
a.
ownership
b.
, 4|Page
internalization
c.
location
d.
market imperfections
Correct Answer: a
Firms prefer FDI to licensing because FDI_____.
a.
increases the chances of opportunism when dealing with a host
nation entity
b.
protects the firm from economic agglomeration
c.
provides the firm with direct ownership to its foreign assets
d.
requires complete dissemination of technological know-how to
host nation entity
Correct Answer: c
