WGU C211 OA GLOBAL ECONOMICS EXAM
2026 DETAILED REVISION AND LEARNING
SERIES
◉ Which of the following is true of globalization according to the
"pendulum view" perspective? Answer: Globalization is a not a one-
directional phenomenon.
◉ The _____ of globalization suggests that globalization is neither
recent nor one-directional. Answer: pendulum view
◉ Which of the following is true of semiglobalization? Answer: It is a
type of globalization that lies between total isolation and total
globalization.
◉ Globalization can be viewed as: Answer: 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.
◉ Name the three views of globalization. Answer: A recent force, a
long-running evolution, and a pendulum
,◉ The _____ theory viewed international trade as a zero-sum game.
Answer: mercantilism
◉ The _____ principle advocated that governments should actively
protect domestic industries from imports and vigorously promote
exports. Answer: protectionism
◉ Which of the following is a modern trade theory? Answer:
National competitive advantage
◉ The _____ theory is based on the assumption that the wealth of the
world is fixed. Answer: mercantilism
◉ Import quotas are a type of _____. Answer: tariff barrier
◉ According to the theory of absolute advantage, under free trade,
Answer: 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)?
Answer: 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? Answer: 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?
Answer: Strategic trade theory
◉ Free trade is defined as: Answer: The idea that market forces
should determine how much to trade with little or no government
intervention.
◉ According to the theory of absolute advantage, under free trade,
Answer: 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)?
Answer: Cultural distance
◉ Protectionism is similar to mercantilism as they both advocated
_____. Answer: government involvement in international trade
, ◉ OLI advantages refer to a firm's quest for _____via FDI. Answer:
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 _____. Answer: ownership
◉ Firms prefer FDI to licensing because FDI_____. Answer: 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? Answer: Pragmatic nationalism
◉ Which of the following is a benefit of FDI to home countries?
Answer: 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? Answer: 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. Answer: Currency swap
2026 DETAILED REVISION AND LEARNING
SERIES
◉ Which of the following is true of globalization according to the
"pendulum view" perspective? Answer: Globalization is a not a one-
directional phenomenon.
◉ The _____ of globalization suggests that globalization is neither
recent nor one-directional. Answer: pendulum view
◉ Which of the following is true of semiglobalization? Answer: It is a
type of globalization that lies between total isolation and total
globalization.
◉ Globalization can be viewed as: Answer: 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.
◉ Name the three views of globalization. Answer: A recent force, a
long-running evolution, and a pendulum
,◉ The _____ theory viewed international trade as a zero-sum game.
Answer: mercantilism
◉ The _____ principle advocated that governments should actively
protect domestic industries from imports and vigorously promote
exports. Answer: protectionism
◉ Which of the following is a modern trade theory? Answer:
National competitive advantage
◉ The _____ theory is based on the assumption that the wealth of the
world is fixed. Answer: mercantilism
◉ Import quotas are a type of _____. Answer: tariff barrier
◉ According to the theory of absolute advantage, under free trade,
Answer: 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)?
Answer: 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? Answer: 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?
Answer: Strategic trade theory
◉ Free trade is defined as: Answer: The idea that market forces
should determine how much to trade with little or no government
intervention.
◉ According to the theory of absolute advantage, under free trade,
Answer: 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)?
Answer: Cultural distance
◉ Protectionism is similar to mercantilism as they both advocated
_____. Answer: government involvement in international trade
, ◉ OLI advantages refer to a firm's quest for _____via FDI. Answer:
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 _____. Answer: ownership
◉ Firms prefer FDI to licensing because FDI_____. Answer: 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? Answer: Pragmatic nationalism
◉ Which of the following is a benefit of FDI to home countries?
Answer: 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? Answer: 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. Answer: Currency swap
