WGU C211 Objective Assessment (OA) –
Global Economics for Managers | 2025/2026
Latest Exam Prep
view that claims phenomenon of globalization was initially driven by the desire of
Western economies to exploit their power through MNE's - correct answernew
view that claims globalization is a long-run historical evolution since the dawn of
humanity. Says it is nothing new and that it will always exist - correct
answerevolutionary
view that claims globalization is swinging from one extreme to another from time to time
- correct answerpendulum
investment in, controlling, and managing value-added activities in other countries -
correct answerforeign direct investment
political view hostile to FDI. believes it is an instrument of imperialism and vehicle for
exploitation of domestic resources by foreign capitalists and firms - correct
answerradical
suggests that FDI, unrestricted by government intervention, will enable countries to tap
into their absolute or comparative advantages by specializing in the production of
certain goods and services - correct answerfree market
views FDI as having pros and cons and only approving FDI when its benefits outweigh
costs - correct answerpragmatic nationalis
what benefits exist to a country receiving FDI? - correct answercapital inflow,
technology spillovers, advanced management know-how, creates jobs
what costs exist to a country receiving FDI? - correct answerloss of sovereignty,
adverse effects on competition, net outflow in the capital account
The aggregation of importing and exporting that leads to the country-level trade surplus
or deficit. - correct answerbalance of trade
firms with a _____ degree of resource similarity are likely to have similar competitive
actions - correct answerhigh
, a high degree of resource similarity but low market commonality = _______ intensity of
rivalry - correct answerhighest
little resource similarity but high market commonality = _____ intensity of rivalry -
correct answerlowest
mercantilism, absolute advantage and comparative advantage belong to what theory of
international trade - correct answerclassical
theory of international trade that relies on more realistic product life cycles and first
mover advantages - correct answermodern
under free trade, a nation gains by specializing in economic activities in which it has
_____advantage - correct answerabsolute
focuses on the idea that if a country does not have absolute advantage, they can still
choose to specialize in the production of one good where it has ______ advantage -
correct answercomparative
comparative advantage and absolute advantage stem from - correct answerfactor
endowments
theory that the wealth of the world is fixed and that a nation that imports more and
exports less will be richer - correct answermercantilism
stage of the product life cycle where production of a new product that commands a price
premium will concentrate in the US - correct answernew
stage of the product life cycle where demand and ability to produce grow in other
developed nations - correct answermaturing
stage of the product life cycle where the previously new product is commoditized and
production will now move to low-cost developing nations - correct answerstandardized
comparative advantage may change over time because patterns of ______ change over
time - correct answertrade
theory that suggests that intervention by governments in certain industries can enhance
their odds for international success - correct answerstrategic trade
if a company seeks to limit foreign exchange rate exposure in the forward direction,
what is the most effective way to do this? - correct answercurrency hedging
exchange rate risk associating with the time delay between entering a contract and
settling it - correct answertransaction risk
Global Economics for Managers | 2025/2026
Latest Exam Prep
view that claims phenomenon of globalization was initially driven by the desire of
Western economies to exploit their power through MNE's - correct answernew
view that claims globalization is a long-run historical evolution since the dawn of
humanity. Says it is nothing new and that it will always exist - correct
answerevolutionary
view that claims globalization is swinging from one extreme to another from time to time
- correct answerpendulum
investment in, controlling, and managing value-added activities in other countries -
correct answerforeign direct investment
political view hostile to FDI. believes it is an instrument of imperialism and vehicle for
exploitation of domestic resources by foreign capitalists and firms - correct
answerradical
suggests that FDI, unrestricted by government intervention, will enable countries to tap
into their absolute or comparative advantages by specializing in the production of
certain goods and services - correct answerfree market
views FDI as having pros and cons and only approving FDI when its benefits outweigh
costs - correct answerpragmatic nationalis
what benefits exist to a country receiving FDI? - correct answercapital inflow,
technology spillovers, advanced management know-how, creates jobs
what costs exist to a country receiving FDI? - correct answerloss of sovereignty,
adverse effects on competition, net outflow in the capital account
The aggregation of importing and exporting that leads to the country-level trade surplus
or deficit. - correct answerbalance of trade
firms with a _____ degree of resource similarity are likely to have similar competitive
actions - correct answerhigh
, a high degree of resource similarity but low market commonality = _______ intensity of
rivalry - correct answerhighest
little resource similarity but high market commonality = _____ intensity of rivalry -
correct answerlowest
mercantilism, absolute advantage and comparative advantage belong to what theory of
international trade - correct answerclassical
theory of international trade that relies on more realistic product life cycles and first
mover advantages - correct answermodern
under free trade, a nation gains by specializing in economic activities in which it has
_____advantage - correct answerabsolute
focuses on the idea that if a country does not have absolute advantage, they can still
choose to specialize in the production of one good where it has ______ advantage -
correct answercomparative
comparative advantage and absolute advantage stem from - correct answerfactor
endowments
theory that the wealth of the world is fixed and that a nation that imports more and
exports less will be richer - correct answermercantilism
stage of the product life cycle where production of a new product that commands a price
premium will concentrate in the US - correct answernew
stage of the product life cycle where demand and ability to produce grow in other
developed nations - correct answermaturing
stage of the product life cycle where the previously new product is commoditized and
production will now move to low-cost developing nations - correct answerstandardized
comparative advantage may change over time because patterns of ______ change over
time - correct answertrade
theory that suggests that intervention by governments in certain industries can enhance
their odds for international success - correct answerstrategic trade
if a company seeks to limit foreign exchange rate exposure in the forward direction,
what is the most effective way to do this? - correct answercurrency hedging
exchange rate risk associating with the time delay between entering a contract and
settling it - correct answertransaction risk
