C211 GLOBAL ECONOMICS FOR
MANAGERS WGU PRE ASSESSMENT
AND RETAKE SECTIONS IF YOU FAILED
THE OA. EXAM QUESTIONS AND
ANSWERS GRADED A+ 2025/2026
The resource-based view of global business differs from the institution-based view of global
business in that the resource-based view _____. - ANS focuses on the internal strengths on
the firm
Which of the following is true of globalization according to the "pendulum view" perspective? -
ANS Globalization is a not a one-directional phenomenon.
The _____ of globalization suggests that globalization is neither recent nor one-directional. -
ANS pendulum view
Which of the following is true of semiglobalization? - ANS It is a type of globalization that lies
between total isolation and total globalization.
Globalization can be viewed as: - ANS A new force sweeping through the world in recent
times.
A long-run historical evolution since the dawn of human history.
A pendulum that swings from one extreme to another from time to time.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Name the three views of globalization. - ANS A recent force, a long-running evolution, and a
pendulum
The _____ theory viewed international trade as a zero-sum game. - ANS mercantilism
The _____ principle advocated that governments should actively protect domestic industries
from imports and vigorously promote exports. - ANS protectionism
Which of the following is a modern trade theory? - ANS National competitive advantage
The _____ theory is based on the assumption that the wealth of the world is fixed. -
ANS mercantilism
Import quotas are a type of _____. - ANS tariff barrier
According to the theory of absolute advantage, under free trade, - ANS Each nation gains by
specializing in economic activities in which a nation has absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)? - ANS 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? -
ANS France has a comparative advantage in wine.
Which of the following theories does NOT lead to the conclusion that unrestricted free trade is
in the best interests of all countries? - ANS Strategic trade theory
Free trade is defined as: - ANS The idea that market forces should determine how much to
trade with little or no government intervention.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,According to the theory of absolute advantage, under free trade, - ANS each nation gains by
specializing in economic activities in which a nation has absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)? - ANS Cultural distance
Protectionism is similar to mercantilism as they both advocated _____. - ANS government
involvement in international trade
OLI advantages refer to a firm's quest for _____via FDI. - ANS ownership advantages, location
advantages, and internalization 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 _____. - ANS ownership
Firms prefer FDI to licensing because FDI_____. - ANS provides the firm with direct
ownership to its foreign assets
Which of the following political perspectives maintains the view that FDI has both pros and cons
and can only be approved when its benefits outweigh costs? - ANS Pragmatic nationalism
Which of the following is a benefit of FDI to home countries? - ANS Learning from operations
Which of the following foreign exchange transactions provide protection to traders and
investors from being exposed to fluctuations of the spot rate? - ANS Forward transactions
_____ is defined as the conversion of one currency into another at Time 1, with an agreement
to revert it back to the original currency at a specific Time 2 in the future. - ANS Currency
swap
Foreign exchange rates are influenced by: - ANS Interest rates and money supply.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Relative price differences and purchasing power parity.
Supply and demand of the currencies.
A savvy global business manger must understand the following concepts to be considered
literate about foreign exchange: - ANS Understand the factors that influence exchange rates
Understand the ways to hedge currency risks
Understand the foreign exchange market
Which of the following are the primary types of foreign exchange transactions made by financial
companies? - ANS Swaps, spot transactions, forward transactions
A home appliance manufacturer located in The Netherlands decides to open two new
manufacturing plants, one in Poland and the other in Thailand. Its purpose is to offset currency
losses through: - ANS strategic hedging
Why do managers, at some of the largest global corporations, fail to engage in currency
hedging? - ANS They believe that the protection against fluctuations in exchange rates is not
worth the potentially high cost of currency hedging.
Risk analysis of any country must include an analysis of the country's: - ANS currency risks
With regard to foreign market entry, the resource-based view argues that foreign firms need to -
ANS deploy overwhelming resources and capabilities to offset their liability of foreignness.
Which of the following is a first-mover advantage? - ANS Avoidance of clash with a dominant
firm at home
Which of the following is an equity mode of entry? - ANS Wholly owned subsidiaries
Which of the following entry modes is a type of strategic alliance? - ANS Licensing
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
MANAGERS WGU PRE ASSESSMENT
AND RETAKE SECTIONS IF YOU FAILED
THE OA. EXAM QUESTIONS AND
ANSWERS GRADED A+ 2025/2026
The resource-based view of global business differs from the institution-based view of global
business in that the resource-based view _____. - ANS focuses on the internal strengths on
the firm
Which of the following is true of globalization according to the "pendulum view" perspective? -
ANS Globalization is a not a one-directional phenomenon.
The _____ of globalization suggests that globalization is neither recent nor one-directional. -
ANS pendulum view
Which of the following is true of semiglobalization? - ANS It is a type of globalization that lies
between total isolation and total globalization.
Globalization can be viewed as: - ANS A new force sweeping through the world in recent
times.
A long-run historical evolution since the dawn of human history.
A pendulum that swings from one extreme to another from time to time.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Name the three views of globalization. - ANS A recent force, a long-running evolution, and a
pendulum
The _____ theory viewed international trade as a zero-sum game. - ANS mercantilism
The _____ principle advocated that governments should actively protect domestic industries
from imports and vigorously promote exports. - ANS protectionism
Which of the following is a modern trade theory? - ANS National competitive advantage
The _____ theory is based on the assumption that the wealth of the world is fixed. -
ANS mercantilism
Import quotas are a type of _____. - ANS tariff barrier
According to the theory of absolute advantage, under free trade, - ANS Each nation gains by
specializing in economic activities in which a nation has absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)? - ANS 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? -
ANS France has a comparative advantage in wine.
Which of the following theories does NOT lead to the conclusion that unrestricted free trade is
in the best interests of all countries? - ANS Strategic trade theory
Free trade is defined as: - ANS The idea that market forces should determine how much to
trade with little or no government intervention.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,According to the theory of absolute advantage, under free trade, - ANS each nation gains by
specializing in economic activities in which a nation has absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)? - ANS Cultural distance
Protectionism is similar to mercantilism as they both advocated _____. - ANS government
involvement in international trade
OLI advantages refer to a firm's quest for _____via FDI. - ANS ownership advantages, location
advantages, and internalization 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 _____. - ANS ownership
Firms prefer FDI to licensing because FDI_____. - ANS provides the firm with direct
ownership to its foreign assets
Which of the following political perspectives maintains the view that FDI has both pros and cons
and can only be approved when its benefits outweigh costs? - ANS Pragmatic nationalism
Which of the following is a benefit of FDI to home countries? - ANS Learning from operations
Which of the following foreign exchange transactions provide protection to traders and
investors from being exposed to fluctuations of the spot rate? - ANS Forward transactions
_____ is defined as the conversion of one currency into another at Time 1, with an agreement
to revert it back to the original currency at a specific Time 2 in the future. - ANS Currency
swap
Foreign exchange rates are influenced by: - ANS Interest rates and money supply.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Relative price differences and purchasing power parity.
Supply and demand of the currencies.
A savvy global business manger must understand the following concepts to be considered
literate about foreign exchange: - ANS Understand the factors that influence exchange rates
Understand the ways to hedge currency risks
Understand the foreign exchange market
Which of the following are the primary types of foreign exchange transactions made by financial
companies? - ANS Swaps, spot transactions, forward transactions
A home appliance manufacturer located in The Netherlands decides to open two new
manufacturing plants, one in Poland and the other in Thailand. Its purpose is to offset currency
losses through: - ANS strategic hedging
Why do managers, at some of the largest global corporations, fail to engage in currency
hedging? - ANS They believe that the protection against fluctuations in exchange rates is not
worth the potentially high cost of currency hedging.
Risk analysis of any country must include an analysis of the country's: - ANS currency risks
With regard to foreign market entry, the resource-based view argues that foreign firms need to -
ANS deploy overwhelming resources and capabilities to offset their liability of foreignness.
Which of the following is a first-mover advantage? - ANS Avoidance of clash with a dominant
firm at home
Which of the following is an equity mode of entry? - ANS Wholly owned subsidiaries
Which of the following entry modes is a type of strategic alliance? - ANS Licensing
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
