C211 WGU – Global Economics for Managers
Chapter Questions | 2025/2026 Latest Exam
Prep & Q&A
Globalization can be viewed as: - correct answer1. a new force sweeping through the
world in recent times.
2. a long-run historical evolution since the dawn of human history.
3. a pendulum that swings from one extreme to another from time to time.
Which are the three views of globalization? - correct answerA recent force, a long-
running evolution, and a pendulum
An import quota is: - correct answerrestriction on the quantity of imports that can be
brought into a country.
Examples of nontariff trade barrier (NTB) - correct answerImport quotas
Local content requirements
Subsidies
Free trade is defined as: - correct answerThe idea that market forces should determine
how much to trade with little or no government intervention.
political argument against free trade - correct answerConsumer protection
National security
Environmental and social responsibility
To express its opposition to the political regime in Myanmar, the United States has
banned the importation of jade and other gemstones from that country. This is an
example of a - correct answertrade embargo
The primary political views on FDI are: - correct answerFree market and pragmatic
nationalism
Firms can increase their chances of success with FDI by - correct answer1. assessing
whether FDI is justified, in light of other options.
2. understanding that political realities either facilitate or constrain FDI.
3. leveraging OLI advantages in a way that is valuable, unique, and hard to imitate by
rival firms.
How do firms create value when engaging rivals - correct answer1. Secure patents on
key products.
,2. All of these
3. Launch products in multiple markets.
4. Hold a dominant position in key markets.
The theory of comparative advantage was advocated by - correct answerDavid Ricardo
The modern trade theories include the following - correct answer1. Theory of product
life cycle
2. Theory of national competitive advantage of industries
3. Theory of strategic trade
The theory of mercantilism - correct answerviews international trade as a zero-sum
game.
According to the theory of absolute advantage, under free trade - correct answereach
nation gains by specializing in economic activities in which a nation has absolute
advantage
comparative advantage - correct answerthe ability to produce a good at a lower
opportunity cost than another producer
Absolute Advantage - correct answerThe economic advantage one nation enjoys that is
absolutely superior to other nations.
Strategic trade theory - correct answerA theory that suggests that strategic intervention
by governments in certain industries can enhance their odds for international success.
Product life cycle theory - correct answerA theory that accounts for changes in the
patterns of trade over time by focusing on product life cycles.
The three modern theories of international trade - correct answer1. product life cycle
2. strategic trade
3. national competitive advantage of industries.
Base of the pyramid (BOP) - correct answerEconomies where people make less than
$2,000 per capita per year.
BRICA - correct answerBrazil, Russia, India, and China.
Emerging economies - correct answerterm that has gradually replaced the term
"developing countries" since the 1990s.
Emerging markets - correct answerA term that is often used interchangeably with
"emerging economies."
Expatriate manager - correct answerA manager who works abroad, or "expat" for short.
,Foreign direct investment (FDI) - correct answerInvestment in, controlling, and
managing value-added activities in other countries.
Global Business - correct answerBusiness around the globe.
Globalization - correct answerThe close integration of countries and peoples of the
world.
Gross domestic product (GDP) - correct answerThe sum of value added by resident
firms, households, and governments operating in an economy.
Gross national income (GNI) - correct answerGDP plus income from non-resident
sources abroad. The term used by the World Bank and other international organizations
to supersede the term GNP.
Gross national product (GNP) - correct answerGDP plus income from non-resident
sources abroad
Group of 20 (G-20) - correct answerThe group of 19 major countries plus the European
Union (EU) whose leaders meet on a biannual basis to solve global economic problems.
International business (IB) - correct answer(1) A business (or firm) that engages in
international (cross-border) economic activities and/or (2) the action of doing business
abroad.
International premium - correct answerA significant pay raise when working overseas.
Liability of foreignness - correct answerThe inherent disadvantage that foreign firms
experience in host countries because of their non-native status.
Multinational enterprise (MNE) - correct answerA firm that engages in foreign direct
investment (FDI).
Nongovernmental organization (NGO) - correct answerAn organization that is not
affiliated with governments.
Purchasing power parity (PPP) - correct answerA conversion that determines the
equivalent amount of goods and services that different currencies can purchase.
Reverse innovation - correct answerAn innovation that is adopted first in emerging
economies and is then diffused around the world.
Risk management - correct answerThe identification and assessment of risks and the
preparation to minimize the impact of high-risk, unfortunate events.
, Scenario planning - correct answerA technique to prepare and plan for multiple
scenarios (either high or low risk).
Semiglobalization - correct answerA perspective that suggests that barriers to market
integration at borders are high, but not high enough to insulate countries from each
other completely.
Triad - correct answerNorth America, Western Europe, and Japan.
Purchasing power parity (PPP) - correct answeradjustment made to the GDP to reflect
differences in the cost of living
The bottom billion - correct answerConcentrated in Africa and Central Asia - 58 small
countries, stuck at the bottom in terms of growth, incomes and human development
Enhance employability & advance career, better preparation to be expat, competence in
interacting with foreign suppliers/partners/competitors/employees - correct answerWhy
study global business?
Institution-based view - correct answerA core perspective. Success and failure of firms
are constrained by institutions
Formal rules - correct answerrequirements that treat domestic and foreign firms as
equals enhance the potential odds
for foreign firms' success or those that discriminate against foreign firms, would
undermine the chances for foreign entrants
Informal rules - correct answercultures, ethics, and norms play an important part in
shaping the success and failure of firms around the globe
Resource-based view - correct answerA core perspective. Success and failure of firms
is determined by their environment
New force in recent times, a long-running historical evolution, a pendulum swinging
between extremes - correct answerWhat are the three views of globalization?
"Four Tigers" - correct answerHong Kong, Singapore, South Korea and Taiwan
Absolute advantage - correct answerThe economic advantage one nation enjoys that is
absolutely superior to other nations.
Administrative policy - correct answerBureaucratic rules that make it harder to import
foreign goods.
antidumping duty - correct answerTariffs levied on imports that have been "dumped"
(selling below costs to "unfairly" drive domestic firms out of business).
Chapter Questions | 2025/2026 Latest Exam
Prep & Q&A
Globalization can be viewed as: - correct answer1. a new force sweeping through the
world in recent times.
2. a long-run historical evolution since the dawn of human history.
3. a pendulum that swings from one extreme to another from time to time.
Which are the three views of globalization? - correct answerA recent force, a long-
running evolution, and a pendulum
An import quota is: - correct answerrestriction on the quantity of imports that can be
brought into a country.
Examples of nontariff trade barrier (NTB) - correct answerImport quotas
Local content requirements
Subsidies
Free trade is defined as: - correct answerThe idea that market forces should determine
how much to trade with little or no government intervention.
political argument against free trade - correct answerConsumer protection
National security
Environmental and social responsibility
To express its opposition to the political regime in Myanmar, the United States has
banned the importation of jade and other gemstones from that country. This is an
example of a - correct answertrade embargo
The primary political views on FDI are: - correct answerFree market and pragmatic
nationalism
Firms can increase their chances of success with FDI by - correct answer1. assessing
whether FDI is justified, in light of other options.
2. understanding that political realities either facilitate or constrain FDI.
3. leveraging OLI advantages in a way that is valuable, unique, and hard to imitate by
rival firms.
How do firms create value when engaging rivals - correct answer1. Secure patents on
key products.
,2. All of these
3. Launch products in multiple markets.
4. Hold a dominant position in key markets.
The theory of comparative advantage was advocated by - correct answerDavid Ricardo
The modern trade theories include the following - correct answer1. Theory of product
life cycle
2. Theory of national competitive advantage of industries
3. Theory of strategic trade
The theory of mercantilism - correct answerviews international trade as a zero-sum
game.
According to the theory of absolute advantage, under free trade - correct answereach
nation gains by specializing in economic activities in which a nation has absolute
advantage
comparative advantage - correct answerthe ability to produce a good at a lower
opportunity cost than another producer
Absolute Advantage - correct answerThe economic advantage one nation enjoys that is
absolutely superior to other nations.
Strategic trade theory - correct answerA theory that suggests that strategic intervention
by governments in certain industries can enhance their odds for international success.
Product life cycle theory - correct answerA theory that accounts for changes in the
patterns of trade over time by focusing on product life cycles.
The three modern theories of international trade - correct answer1. product life cycle
2. strategic trade
3. national competitive advantage of industries.
Base of the pyramid (BOP) - correct answerEconomies where people make less than
$2,000 per capita per year.
BRICA - correct answerBrazil, Russia, India, and China.
Emerging economies - correct answerterm that has gradually replaced the term
"developing countries" since the 1990s.
Emerging markets - correct answerA term that is often used interchangeably with
"emerging economies."
Expatriate manager - correct answerA manager who works abroad, or "expat" for short.
,Foreign direct investment (FDI) - correct answerInvestment in, controlling, and
managing value-added activities in other countries.
Global Business - correct answerBusiness around the globe.
Globalization - correct answerThe close integration of countries and peoples of the
world.
Gross domestic product (GDP) - correct answerThe sum of value added by resident
firms, households, and governments operating in an economy.
Gross national income (GNI) - correct answerGDP plus income from non-resident
sources abroad. The term used by the World Bank and other international organizations
to supersede the term GNP.
Gross national product (GNP) - correct answerGDP plus income from non-resident
sources abroad
Group of 20 (G-20) - correct answerThe group of 19 major countries plus the European
Union (EU) whose leaders meet on a biannual basis to solve global economic problems.
International business (IB) - correct answer(1) A business (or firm) that engages in
international (cross-border) economic activities and/or (2) the action of doing business
abroad.
International premium - correct answerA significant pay raise when working overseas.
Liability of foreignness - correct answerThe inherent disadvantage that foreign firms
experience in host countries because of their non-native status.
Multinational enterprise (MNE) - correct answerA firm that engages in foreign direct
investment (FDI).
Nongovernmental organization (NGO) - correct answerAn organization that is not
affiliated with governments.
Purchasing power parity (PPP) - correct answerA conversion that determines the
equivalent amount of goods and services that different currencies can purchase.
Reverse innovation - correct answerAn innovation that is adopted first in emerging
economies and is then diffused around the world.
Risk management - correct answerThe identification and assessment of risks and the
preparation to minimize the impact of high-risk, unfortunate events.
, Scenario planning - correct answerA technique to prepare and plan for multiple
scenarios (either high or low risk).
Semiglobalization - correct answerA perspective that suggests that barriers to market
integration at borders are high, but not high enough to insulate countries from each
other completely.
Triad - correct answerNorth America, Western Europe, and Japan.
Purchasing power parity (PPP) - correct answeradjustment made to the GDP to reflect
differences in the cost of living
The bottom billion - correct answerConcentrated in Africa and Central Asia - 58 small
countries, stuck at the bottom in terms of growth, incomes and human development
Enhance employability & advance career, better preparation to be expat, competence in
interacting with foreign suppliers/partners/competitors/employees - correct answerWhy
study global business?
Institution-based view - correct answerA core perspective. Success and failure of firms
are constrained by institutions
Formal rules - correct answerrequirements that treat domestic and foreign firms as
equals enhance the potential odds
for foreign firms' success or those that discriminate against foreign firms, would
undermine the chances for foreign entrants
Informal rules - correct answercultures, ethics, and norms play an important part in
shaping the success and failure of firms around the globe
Resource-based view - correct answerA core perspective. Success and failure of firms
is determined by their environment
New force in recent times, a long-running historical evolution, a pendulum swinging
between extremes - correct answerWhat are the three views of globalization?
"Four Tigers" - correct answerHong Kong, Singapore, South Korea and Taiwan
Absolute advantage - correct answerThe economic advantage one nation enjoys that is
absolutely superior to other nations.
Administrative policy - correct answerBureaucratic rules that make it harder to import
foreign goods.
antidumping duty - correct answerTariffs levied on imports that have been "dumped"
(selling below costs to "unfairly" drive domestic firms out of business).
