WGU C211 OA EXAM QUESTIONS AND
ANSWERS GRADED A+ 2025/2026
View that claims phenomenon of globalization was initially driven by the desire of Western
economies to exploit their power through MNE's - ANS new
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 - ANS evolutionary
view that claims globalization is swinging from one extreme to another from time to time -
ANS pendulum
investment in, controlling, and managing value-added activities in other countries -
ANS foreign 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 - ANS radical
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 - ANS free market
views FDI as having pros and cons and only approving FDI when its benefits outweigh costs -
ANS pragmatic nationalis
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,what benefits exist to a country receiving FDI? - ANS capital inflow, technology spillovers,
advanced management know-how, creates jobs
what costs exist to a country receiving FDI? - ANS loss 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. - ANS balance of trade
firms with a _____ degree of resource similarity are likely to have similar competitive actions -
ANS high
a high degree of resource similarity but low market commonality = _______ intensity of rivalry -
ANS highest
little resource similarity but high market commonality = _____ intensity of rivalry -
ANS lowest
mercantilism, absolute advantage and comparative advantage belong to what theory of
international trade - ANS classical
theory of international trade that relies on more realistic product life cycles and first mover
advantages - ANS modern
under free trade, a nation gains by specializing in economic activities in which it has
_____advantage - ANS absolute
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 - ANS comparative
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, comparative advantage and absolute advantage stem from - ANS factor endowments
theory that the wealth of the world is fixed and that a nation that imports more and exports
less will be richer - ANS mercantilism
stage of the product life cycle where production of a new product that commands a price
premium will concentrate in the US - ANS new
stage of the product life cycle where demand and ability to produce grow in other developed
nations - ANS maturing
stage of the product life cycle where the previously new product is commoditized and
production will now move to low-cost developing nations - ANS standardized
comparative advantage may change over time because patterns of ______ change over time -
ANS trade
theory that suggests that intervention by governments in certain industries can enhance their
odds for international success - ANS strategic trade
if a company seeks to limit foreign exchange rate exposure in the forward direction, what is the
most effective way to do this? - ANS currency hedging
exchange rate risk associating with the time delay between entering a contract and settling it -
ANS transaction risk
forward transaction that protects traders and investors from exposure to fluctuations of the
spot rate - ANS hedging
a means of spreading out activities in different currency zones in order to offset the currency
losses in certain regions through gains in other regions - ANS strategic heding
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS GRADED A+ 2025/2026
View that claims phenomenon of globalization was initially driven by the desire of Western
economies to exploit their power through MNE's - ANS new
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 - ANS evolutionary
view that claims globalization is swinging from one extreme to another from time to time -
ANS pendulum
investment in, controlling, and managing value-added activities in other countries -
ANS foreign 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 - ANS radical
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 - ANS free market
views FDI as having pros and cons and only approving FDI when its benefits outweigh costs -
ANS pragmatic nationalis
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,what benefits exist to a country receiving FDI? - ANS capital inflow, technology spillovers,
advanced management know-how, creates jobs
what costs exist to a country receiving FDI? - ANS loss 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. - ANS balance of trade
firms with a _____ degree of resource similarity are likely to have similar competitive actions -
ANS high
a high degree of resource similarity but low market commonality = _______ intensity of rivalry -
ANS highest
little resource similarity but high market commonality = _____ intensity of rivalry -
ANS lowest
mercantilism, absolute advantage and comparative advantage belong to what theory of
international trade - ANS classical
theory of international trade that relies on more realistic product life cycles and first mover
advantages - ANS modern
under free trade, a nation gains by specializing in economic activities in which it has
_____advantage - ANS absolute
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 - ANS comparative
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, comparative advantage and absolute advantage stem from - ANS factor endowments
theory that the wealth of the world is fixed and that a nation that imports more and exports
less will be richer - ANS mercantilism
stage of the product life cycle where production of a new product that commands a price
premium will concentrate in the US - ANS new
stage of the product life cycle where demand and ability to produce grow in other developed
nations - ANS maturing
stage of the product life cycle where the previously new product is commoditized and
production will now move to low-cost developing nations - ANS standardized
comparative advantage may change over time because patterns of ______ change over time -
ANS trade
theory that suggests that intervention by governments in certain industries can enhance their
odds for international success - ANS strategic trade
if a company seeks to limit foreign exchange rate exposure in the forward direction, what is the
most effective way to do this? - ANS currency hedging
exchange rate risk associating with the time delay between entering a contract and settling it -
ANS transaction risk
forward transaction that protects traders and investors from exposure to fluctuations of the
spot rate - ANS hedging
a means of spreading out activities in different currency zones in order to offset the currency
losses in certain regions through gains in other regions - ANS strategic heding
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
