WGU C211 Study Guide Questions | Actual Questions and
Answers complete Solutions | 2026 Updates | 100%
correct
C211 Study Guide Questions
The following questions are developed as a study aid for the C211 COS. They cover important concepts
in each competency. The questions are not comprehensive but are only designed to serve as an indicator
of your preparedness to take the C211 assessment. After reading the material for each competency, use
these questions to reinforce your understanding and review further as necessary.
Competency 1
COMPETENCY: Globalization (Peng Chapters 1, 5, 6, 11)
1- Explain the New, Evolutionary, and Pendulum views of Globalization. How do these differ from
one another?
New globalization is a new force sweeping through the world in recent times. Pendulum globalization is a
pendulum that wings from one exreme to anorthr from time to time. Evolutionary globalization is a long
historical evolution since the dawn of human history. 2- What is Foreign Direct Investment?
A foreign direct investment (FDI) is a purchase of an interest in a company by a company or an investor
located outside its borders. Generally, the term is used to describe a business decision to acquire a
substantial stake in a foreign business or to buy it outright in order to expand its operations to a new
region. 3- What different political views exist on FDI?
FDI is investing, controlling, and managing value-added activities in other countries. 3. What different
political views exist on FDI? ... They have more capital inflow, technology, management job creation.
4- What benefits exist to a country receiving FDI? Elaborate.
They have more capital inflow, technology, management job creation.
5- What costs exist to a country receiving FDI? Elaborate.
They have loss of sovereignty competition, and capital outflow, possible job loss. 6- How do
resources and capabilities influence the competitive dynamics of a business?
The firm's resources and capabilities together form its distinctive competencies. These competencies
enable innovation, efficiency, quality, and customer responsiveness, all of which can be leveraged
to create a cost advantage or a differentiation advantage.
7- What is resource similarity and how does this impact competitive dynamics?
Resource similarity is the extent to which the firm’s tangible and intangible resources are comparable to a competitor’s in terms
of both type and amount.
, COMPETENCY: International Trade and Foreign Exchange Market (Peng Chapters 5, 7, 10)
1- Give a description of the classical theory of international trade.
The classical theory of trade is based on the labour cost theory of value. This theory states that goods are
exchanged against one another according to the relative amounts of labour embodied in them. Goods
which have equal prices embody equal amounts of labour. Adam Smith gives the following well-known
illustration.
2- How would the modern theory compare to the classical theory?
How would the modern theory compare to the classical theory? The classical theory tries to demonstrate
the gains from international trade, while the; modern theory concentrates on the basis of trade. The
classical theory does not provide the cause of differences in comparative advantage. 3- Compare absolute
advantage to comparative advantage. What differences exist? Absolute advantage refers to the ability to
produce more or better goods and services than somebody else. Comparative advantage refers to the
ability to produce goods and services at a lower opportunity cost, not necessarily at a greater volume or
quality. 4- What is mercantilism and why is this an important term?
Mercantilism is an economic practice by which governments used their economies to augment state
power at the expense of other countries. Governments sought to ensure that exports exceeded
imports and to accumulate wealth in the form of bullion (mostly gold and silver). 5- What are the
critical features of the product life cycle?
There are four stages in a product's life cycle—introduction, growth, maturity, and decline. The
concept of product life cycle helps inform business decisionmaking, from pricing and promotion to
expansion or cost-cutting. Newer, more successful products push older ones out of the market. 6- How
would you describe strategic trade?
Strategic trade policy is defined as trade policy that conditions or alters a strategic relationship
between firms, implying that strategic trade policy focuses primarily on trade policy in the
presence of oligopoly. 7- How are supply and demand related to the exchange rate of a country?
The economics of supply and demand dictate that when demand is high, prices rise and the currency
appreciates in value. In contrast, if a country imports more than it exports, there is relatively less
demand for its currency, so prices should decline. In the case of currency, it depreciates or loses value.
8- Which theory came first, mercantilism or modern-day protectionism?
Mercantilism came first then modern-day protectionism due to FDI.
9- If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the
most effective way to do this?
If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the most
effective way to do this? a transaction, such as forward transactions, that protects traders and investors
from exposure to the fluctuations of the spot rate. 10- What is transaction risk?
Transaction risk refers to the adverse effect that foreign exchange rate fluctuations can have on a
completed transaction prior to settlement. It is the exchange rate, or currency risk associated
specifically with the time delay between entering into a trade or contract and then settling it. 11- Explain
the concept of “hedging” as it relates to reducing various types of risk.
Hedging is a risk management strategy employed to offset losses in investments by taking an opposite
position in a related asset. The reduction in risk provided by hedging also typically results in a reduction
in potential profits. Hedging strategies typically involve derivatives, such as options and futures contracts.
12- What is the difference between currency hedging and strategic hedging?
Currency hedging offsets any currency losses in one region through gains in other regions, while strategic
hedging focuses on one region
13- What advantages exist with first mover?
Answers complete Solutions | 2026 Updates | 100%
correct
C211 Study Guide Questions
The following questions are developed as a study aid for the C211 COS. They cover important concepts
in each competency. The questions are not comprehensive but are only designed to serve as an indicator
of your preparedness to take the C211 assessment. After reading the material for each competency, use
these questions to reinforce your understanding and review further as necessary.
Competency 1
COMPETENCY: Globalization (Peng Chapters 1, 5, 6, 11)
1- Explain the New, Evolutionary, and Pendulum views of Globalization. How do these differ from
one another?
New globalization is a new force sweeping through the world in recent times. Pendulum globalization is a
pendulum that wings from one exreme to anorthr from time to time. Evolutionary globalization is a long
historical evolution since the dawn of human history. 2- What is Foreign Direct Investment?
A foreign direct investment (FDI) is a purchase of an interest in a company by a company or an investor
located outside its borders. Generally, the term is used to describe a business decision to acquire a
substantial stake in a foreign business or to buy it outright in order to expand its operations to a new
region. 3- What different political views exist on FDI?
FDI is investing, controlling, and managing value-added activities in other countries. 3. What different
political views exist on FDI? ... They have more capital inflow, technology, management job creation.
4- What benefits exist to a country receiving FDI? Elaborate.
They have more capital inflow, technology, management job creation.
5- What costs exist to a country receiving FDI? Elaborate.
They have loss of sovereignty competition, and capital outflow, possible job loss. 6- How do
resources and capabilities influence the competitive dynamics of a business?
The firm's resources and capabilities together form its distinctive competencies. These competencies
enable innovation, efficiency, quality, and customer responsiveness, all of which can be leveraged
to create a cost advantage or a differentiation advantage.
7- What is resource similarity and how does this impact competitive dynamics?
Resource similarity is the extent to which the firm’s tangible and intangible resources are comparable to a competitor’s in terms
of both type and amount.
, COMPETENCY: International Trade and Foreign Exchange Market (Peng Chapters 5, 7, 10)
1- Give a description of the classical theory of international trade.
The classical theory of trade is based on the labour cost theory of value. This theory states that goods are
exchanged against one another according to the relative amounts of labour embodied in them. Goods
which have equal prices embody equal amounts of labour. Adam Smith gives the following well-known
illustration.
2- How would the modern theory compare to the classical theory?
How would the modern theory compare to the classical theory? The classical theory tries to demonstrate
the gains from international trade, while the; modern theory concentrates on the basis of trade. The
classical theory does not provide the cause of differences in comparative advantage. 3- Compare absolute
advantage to comparative advantage. What differences exist? Absolute advantage refers to the ability to
produce more or better goods and services than somebody else. Comparative advantage refers to the
ability to produce goods and services at a lower opportunity cost, not necessarily at a greater volume or
quality. 4- What is mercantilism and why is this an important term?
Mercantilism is an economic practice by which governments used their economies to augment state
power at the expense of other countries. Governments sought to ensure that exports exceeded
imports and to accumulate wealth in the form of bullion (mostly gold and silver). 5- What are the
critical features of the product life cycle?
There are four stages in a product's life cycle—introduction, growth, maturity, and decline. The
concept of product life cycle helps inform business decisionmaking, from pricing and promotion to
expansion or cost-cutting. Newer, more successful products push older ones out of the market. 6- How
would you describe strategic trade?
Strategic trade policy is defined as trade policy that conditions or alters a strategic relationship
between firms, implying that strategic trade policy focuses primarily on trade policy in the
presence of oligopoly. 7- How are supply and demand related to the exchange rate of a country?
The economics of supply and demand dictate that when demand is high, prices rise and the currency
appreciates in value. In contrast, if a country imports more than it exports, there is relatively less
demand for its currency, so prices should decline. In the case of currency, it depreciates or loses value.
8- Which theory came first, mercantilism or modern-day protectionism?
Mercantilism came first then modern-day protectionism due to FDI.
9- If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the
most effective way to do this?
If a company seeks to limit foreign exchange rate exposure in the forward direction, what is the most
effective way to do this? a transaction, such as forward transactions, that protects traders and investors
from exposure to the fluctuations of the spot rate. 10- What is transaction risk?
Transaction risk refers to the adverse effect that foreign exchange rate fluctuations can have on a
completed transaction prior to settlement. It is the exchange rate, or currency risk associated
specifically with the time delay between entering into a trade or contract and then settling it. 11- Explain
the concept of “hedging” as it relates to reducing various types of risk.
Hedging is a risk management strategy employed to offset losses in investments by taking an opposite
position in a related asset. The reduction in risk provided by hedging also typically results in a reduction
in potential profits. Hedging strategies typically involve derivatives, such as options and futures contracts.
12- What is the difference between currency hedging and strategic hedging?
Currency hedging offsets any currency losses in one region through gains in other regions, while strategic
hedging focuses on one region
13- What advantages exist with first mover?
