WGU C211 EXAM QUESTIONS AND
ANSWERS. VERIFIED 2025/2026.
Main views on globalization - ANS New, evolutionary, and pendulum
New View on Globalization - ANS A force sweeping through the world in recent times.
Evolutionary View on Globalization - ANS A long-run historical evolution since the dawn of
human history
Pendulum View on Globalization - ANS One that swings from one extreme to another from
time to time. Rapid globalization, but has to stop due to lash back.
What is FDI - ANS foreign direct investment
Foreign Direct Investment - ANS the control and management of activities in a foreign
country.
Green Field Investment - ANS Brand new business in the host country, requires largest equity
investment. Purchase of land, factory, etc.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Wholly Owned Subsidiary - ANS Company simply purchases an entire company that is already
doing business in the host country.
Partnership - ANS When a company partners with company that already exists in the host
country, some proportion of ownership/collaboration but not the entire company.
Licensing - ANS non-equity method of investment. Simply license brand name, logo,
manufacturing process, etc. To entrepreneur in host country; Low risk.
Political views on FDI - ANS Radical View, Free Market View, Pragmatic Nationalism
Radical view on FDI - ANS a political view which argues that globalization is the product of
western civilization and specifically the MNE's which derive from there. This view argues
globalization should be avoided as its ecological and social costs are too high. Argue for
protectionism.
Free market view on FDI - ANS A political view that suggests that FDI unrestricted by
government intervention is the best. Discourages tariffs and is pro-globalization.
Pragmatic nationalism view on FDI - ANS a political view that approves FDI only when its
benefits outweigh its costs. Particularly looks at national interest.
Benefits to a country receiving FDI - ANS Capital Inflow, Technology Spillover, Advanced
Management Know-How, Job creation
Costs to a country receiving FDI - ANS Job loss, Loss of Sovereignty, more competition, Capital
outflow.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Sovereignty - ANS Ability of a state to govern its territory free from control of its internal
affairs by other states.
How do resources and capabilities influence the competitive dynamics of a business? -
ANS VRIO: Value, Rarity, Imitability, and Organization
Value - ANS Is the firm able to exploit an opportunity or neutralize an external threat with the
resource/capability
Rarity - ANS Is control of the resource/capability in the hands of a relative few?
Imitability - ANS Is it difficult to imitate, and will there be significant cost disadvantage to a
firm trying to obtain, develop, or duplicate the resource/capability?
Organization - ANS Is the firm organized, ready, and able to exploit the resource/capability?"
"Is the firm organized to capture value?
What is resource similarity and how does this impact competitive dynamics? -
ANS companies with high resource similarity and low market commonality will find
themselves in regular adversarial interactions.
Classical Theory of International Trade - ANS Mercantilism: A zero-sum game theory that
argues countries get richer when they sell more than they import.
Modern Theory of International Trade - ANS More dynamic view on trade that goes into
multi-variable realistic trade models.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, absolute advantage - ANS the ability of an individual, a firm, or a country to produce more of
a good or service than competitors, using the same amount of resources
comparitive advantage - ANS the ability to produce a good at a lower opportunity cost than
another producer (comparative to another country or business)
Mercantilism - ANS A theory that suggests that the wealth of the world is fixed and that a
nation that exports more and imports less will be richer.
Base of the Pyramid - ANS Economies where people make less than $2,000 per capita per
year.
BRIC - ANS Brazil, Russia, India, and China.
Emerging Economies - ANS A term that has gradually replaced the term "developing
countries" since the 1990s.
Emerging Markets - ANS A term that is often used interchangeably with "emerging
economies."
Expatriate manager (expat) - ANS A manager who works abroad, or "expat" for short.
Foreign Direct Investment (FDI) - ANS Investment in, controlling, and managing value-added
activities in other countries.
Global Business - ANS Business around the globe.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS. VERIFIED 2025/2026.
Main views on globalization - ANS New, evolutionary, and pendulum
New View on Globalization - ANS A force sweeping through the world in recent times.
Evolutionary View on Globalization - ANS A long-run historical evolution since the dawn of
human history
Pendulum View on Globalization - ANS One that swings from one extreme to another from
time to time. Rapid globalization, but has to stop due to lash back.
What is FDI - ANS foreign direct investment
Foreign Direct Investment - ANS the control and management of activities in a foreign
country.
Green Field Investment - ANS Brand new business in the host country, requires largest equity
investment. Purchase of land, factory, etc.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Wholly Owned Subsidiary - ANS Company simply purchases an entire company that is already
doing business in the host country.
Partnership - ANS When a company partners with company that already exists in the host
country, some proportion of ownership/collaboration but not the entire company.
Licensing - ANS non-equity method of investment. Simply license brand name, logo,
manufacturing process, etc. To entrepreneur in host country; Low risk.
Political views on FDI - ANS Radical View, Free Market View, Pragmatic Nationalism
Radical view on FDI - ANS a political view which argues that globalization is the product of
western civilization and specifically the MNE's which derive from there. This view argues
globalization should be avoided as its ecological and social costs are too high. Argue for
protectionism.
Free market view on FDI - ANS A political view that suggests that FDI unrestricted by
government intervention is the best. Discourages tariffs and is pro-globalization.
Pragmatic nationalism view on FDI - ANS a political view that approves FDI only when its
benefits outweigh its costs. Particularly looks at national interest.
Benefits to a country receiving FDI - ANS Capital Inflow, Technology Spillover, Advanced
Management Know-How, Job creation
Costs to a country receiving FDI - ANS Job loss, Loss of Sovereignty, more competition, Capital
outflow.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Sovereignty - ANS Ability of a state to govern its territory free from control of its internal
affairs by other states.
How do resources and capabilities influence the competitive dynamics of a business? -
ANS VRIO: Value, Rarity, Imitability, and Organization
Value - ANS Is the firm able to exploit an opportunity or neutralize an external threat with the
resource/capability
Rarity - ANS Is control of the resource/capability in the hands of a relative few?
Imitability - ANS Is it difficult to imitate, and will there be significant cost disadvantage to a
firm trying to obtain, develop, or duplicate the resource/capability?
Organization - ANS Is the firm organized, ready, and able to exploit the resource/capability?"
"Is the firm organized to capture value?
What is resource similarity and how does this impact competitive dynamics? -
ANS companies with high resource similarity and low market commonality will find
themselves in regular adversarial interactions.
Classical Theory of International Trade - ANS Mercantilism: A zero-sum game theory that
argues countries get richer when they sell more than they import.
Modern Theory of International Trade - ANS More dynamic view on trade that goes into
multi-variable realistic trade models.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, absolute advantage - ANS the ability of an individual, a firm, or a country to produce more of
a good or service than competitors, using the same amount of resources
comparitive advantage - ANS the ability to produce a good at a lower opportunity cost than
another producer (comparative to another country or business)
Mercantilism - ANS A theory that suggests that the wealth of the world is fixed and that a
nation that exports more and imports less will be richer.
Base of the Pyramid - ANS Economies where people make less than $2,000 per capita per
year.
BRIC - ANS Brazil, Russia, India, and China.
Emerging Economies - ANS A term that has gradually replaced the term "developing
countries" since the 1990s.
Emerging Markets - ANS A term that is often used interchangeably with "emerging
economies."
Expatriate manager (expat) - ANS A manager who works abroad, or "expat" for short.
Foreign Direct Investment (FDI) - ANS Investment in, controlling, and managing value-added
activities in other countries.
Global Business - ANS Business around the globe.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
