WGU C211 GLOBAL ECONOMICS QUIZ
QUESTIONS AND ANSWERS | 2025/2026
UPDATE | 100% CORRECT
How many member countries does the G-20 have?
(A) 20
(B) 21 (C) 22
(D) 19
(E) 18
Which city has the largest number of Fortune Global 500 company headquarters?
(operational headquarters where top executives go to work, not place of registration) (A)
Beijing
(B) Hong Kong
(C) London
(D) New York
(E) Tokyo
A 2,000-employee manufacturing plant is closing in a developed economy, and production is moving
to an emerging economy. How many of the 2,000 jobs will the company keep? (A) 0
(B) 5–10
(C) 10–20
(D) 20–30 (E) 30–50
The resource-based view of global business differs from the institution-based view of global business in
that the resource-based view _____.
a. advocates adopting a single method for achieving globalization
b. supports the ideology of total globalization
c. postulates the ideology of localization
d. focuses on the internal strengths on the firm
Which of the following is true of globalization according to the “pendulum view” perspective?
a. Globalization is a recent phenomenon of human trade.
b. Globalization is being interrupted by artificial barriers to the flows of goods, services, capital, and
knowledge.
c. Globalization is a Western ideology focused on exploiting and dominating the world through MNEs.
d. Globalization is a not a one-directional phenomenon.
1
, The _____ of globalization suggests that globalization is neither recent nor one-directional.
a. pendulum view
b. long-run historical view
c. colonial view
d. new-force view
Which of the following is true of semiglobalization?
a. It is a type of globalization that lies between total isolation and total globalization.
b. It is a form of globalization that considers each nation in isolation when conducting business.
c. It is a type of globalization that adopts a strategy of treating the entire world as one market.
d. It is a form of globalization that treats each country as a unique market.
Globalization can be viewed as:
a. A new force sweeping through the world in recent times.
b. A long-run historical evolution since the dawn of human history.
c. A pendulum that swings from one extreme to another from time to time.
d. All of these answers.
Name the three views of globalization.
a. A recent force, a long-running evolution, and a pendulum
b. Economic, political, and geographic
c. Profits, losses, and total sales
d. Past, present, and future
The _____ view of global business focuses on internal factors that can help a firm overcome its external
environment.
a. socio-cultural
b. institution-based
c. resource-based
d. industry-based
The strategy of treating each country as a unique market and in total isolation is referred to as _____.
a. localization
b. semiglobalization
c. standardization
d. total globalization
The fundamental question in global business is:
a. What determines the success and failure of firms' new product globalization?
b. What determines the success and failure of firms' foreign entry?
c. What determines the success and failure of firms around the globe?
d. What determines the success and failure of firms based in the US?
Imagine your manufacturing plant gets most of its raw materials from suppliers along the Gulf Coast of
the United States. However, you have alternate suppliers from other parts of the country lined up, just in
case the Gulf Coast is hit with a devastating hurricane or other debilitating disaster and your suppliers
there can't deliver the raw goods. You have engaged in: a. A formal institution
2
, b. Resource planning
c. Semiglobalization
d. Scenario planning
The most important driver for the global economy is likely to be:
India
China
Russia
Brazil
In the future, we are likely to see the rise
of: tribal capitalism state capitalism
stakeholder capitalism community
capitalism
The _____ theory viewed international trade as a zero-sum game.
a. comparative advantage
b. strategic trade
c. national competitive advantage of industries
d. mercantilism
The _____ principle advocated that governments should actively protect domestic industries from
imports and vigorously promote exports.
a. comparative advantage
b. absolute advantage
c. factor endowment
d. protectionism
Import quotas are a type of _____.
a. tariff barrier
b. nontariff barrier
c. antidumping duty
d. voluntary export restraint
Which of the following is NOT a nontariff trade barrier (NTB)?
a. Subsidies
b. Local content requirements
c. Import quotas
d. Cultural 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?
a. Chile has a comparative advantage in wine.
b. France has a comparative advantage in blueberries.
c. There is no reason for Chile and France to trade.
d. France has a comparative advantage in wine.
3
, Free trade is defined as:
a. The idea that market forces should determine how much to trade with little or no government
intervention.
b. The exchange of goods and services for similar goods or services rather than currency.
c. The absence of laws, tariffs, or any other types of barriers to trade.
d. The economic advantage one nation enjoys by trading with other nations.
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.
An import quota is:
a. Restriction on the quantity of imports that can be brought into a country.
b. Requirements that a certain proportion of the value of the goods must be made in one country.c.
Restriction on selling below costs.
d. Government payments to domestic firms to produce a competitive advantage.
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
Which of the following is NOT a motivation for trading internationally?
a. Institutions can either limit or facilitate trade.
b. The people of a country have the opportunity to purchase valuable, rare, and inimitable goods from
other countries that would be difficult or impossible to produce in their own countries at a reasonable
price.
c. Countries can earn revenue by collecting taxes on imports and exports.
d. Firms that are producing valuable, rare, and inimitable goods can earn more revenue by selling their
goods to a broader audience.
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
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. internalization
c. location
d. market imperfections
4
QUESTIONS AND ANSWERS | 2025/2026
UPDATE | 100% CORRECT
How many member countries does the G-20 have?
(A) 20
(B) 21 (C) 22
(D) 19
(E) 18
Which city has the largest number of Fortune Global 500 company headquarters?
(operational headquarters where top executives go to work, not place of registration) (A)
Beijing
(B) Hong Kong
(C) London
(D) New York
(E) Tokyo
A 2,000-employee manufacturing plant is closing in a developed economy, and production is moving
to an emerging economy. How many of the 2,000 jobs will the company keep? (A) 0
(B) 5–10
(C) 10–20
(D) 20–30 (E) 30–50
The resource-based view of global business differs from the institution-based view of global business in
that the resource-based view _____.
a. advocates adopting a single method for achieving globalization
b. supports the ideology of total globalization
c. postulates the ideology of localization
d. focuses on the internal strengths on the firm
Which of the following is true of globalization according to the “pendulum view” perspective?
a. Globalization is a recent phenomenon of human trade.
b. Globalization is being interrupted by artificial barriers to the flows of goods, services, capital, and
knowledge.
c. Globalization is a Western ideology focused on exploiting and dominating the world through MNEs.
d. Globalization is a not a one-directional phenomenon.
1
, The _____ of globalization suggests that globalization is neither recent nor one-directional.
a. pendulum view
b. long-run historical view
c. colonial view
d. new-force view
Which of the following is true of semiglobalization?
a. It is a type of globalization that lies between total isolation and total globalization.
b. It is a form of globalization that considers each nation in isolation when conducting business.
c. It is a type of globalization that adopts a strategy of treating the entire world as one market.
d. It is a form of globalization that treats each country as a unique market.
Globalization can be viewed as:
a. A new force sweeping through the world in recent times.
b. A long-run historical evolution since the dawn of human history.
c. A pendulum that swings from one extreme to another from time to time.
d. All of these answers.
Name the three views of globalization.
a. A recent force, a long-running evolution, and a pendulum
b. Economic, political, and geographic
c. Profits, losses, and total sales
d. Past, present, and future
The _____ view of global business focuses on internal factors that can help a firm overcome its external
environment.
a. socio-cultural
b. institution-based
c. resource-based
d. industry-based
The strategy of treating each country as a unique market and in total isolation is referred to as _____.
a. localization
b. semiglobalization
c. standardization
d. total globalization
The fundamental question in global business is:
a. What determines the success and failure of firms' new product globalization?
b. What determines the success and failure of firms' foreign entry?
c. What determines the success and failure of firms around the globe?
d. What determines the success and failure of firms based in the US?
Imagine your manufacturing plant gets most of its raw materials from suppliers along the Gulf Coast of
the United States. However, you have alternate suppliers from other parts of the country lined up, just in
case the Gulf Coast is hit with a devastating hurricane or other debilitating disaster and your suppliers
there can't deliver the raw goods. You have engaged in: a. A formal institution
2
, b. Resource planning
c. Semiglobalization
d. Scenario planning
The most important driver for the global economy is likely to be:
India
China
Russia
Brazil
In the future, we are likely to see the rise
of: tribal capitalism state capitalism
stakeholder capitalism community
capitalism
The _____ theory viewed international trade as a zero-sum game.
a. comparative advantage
b. strategic trade
c. national competitive advantage of industries
d. mercantilism
The _____ principle advocated that governments should actively protect domestic industries from
imports and vigorously promote exports.
a. comparative advantage
b. absolute advantage
c. factor endowment
d. protectionism
Import quotas are a type of _____.
a. tariff barrier
b. nontariff barrier
c. antidumping duty
d. voluntary export restraint
Which of the following is NOT a nontariff trade barrier (NTB)?
a. Subsidies
b. Local content requirements
c. Import quotas
d. Cultural 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?
a. Chile has a comparative advantage in wine.
b. France has a comparative advantage in blueberries.
c. There is no reason for Chile and France to trade.
d. France has a comparative advantage in wine.
3
, Free trade is defined as:
a. The idea that market forces should determine how much to trade with little or no government
intervention.
b. The exchange of goods and services for similar goods or services rather than currency.
c. The absence of laws, tariffs, or any other types of barriers to trade.
d. The economic advantage one nation enjoys by trading with other nations.
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.
An import quota is:
a. Restriction on the quantity of imports that can be brought into a country.
b. Requirements that a certain proportion of the value of the goods must be made in one country.c.
Restriction on selling below costs.
d. Government payments to domestic firms to produce a competitive advantage.
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
Which of the following is NOT a motivation for trading internationally?
a. Institutions can either limit or facilitate trade.
b. The people of a country have the opportunity to purchase valuable, rare, and inimitable goods from
other countries that would be difficult or impossible to produce in their own countries at a reasonable
price.
c. Countries can earn revenue by collecting taxes on imports and exports.
d. Firms that are producing valuable, rare, and inimitable goods can earn more revenue by selling their
goods to a broader audience.
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
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. internalization
c. location
d. market imperfections
4
