1
WGUC211OANEWEST2024- z z z z
2025 ACTUAL EXAM WITH COMPLETE 6z z z z z
00+ STUDY QUESTIONS AND VERIFIED
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CORRECT ANSWERS/RATED A++ z z
Which view claims that the phenomenon of globalization was initially
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driven by the desire of Western economies to exploit their power thro
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ugh multinational enterprises? - ANSWER The new-force view
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Economic gains come from international trade because one country's
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exported goods, services, or other items are unique, valuable, and diffi
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cult to duplicate to the importing countries.
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Which view does this statement portray? - ANSWER Resource-
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based view z
What is the aggregation of importing and exporting that leads to the c
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ountry-level trade surplus or deficit? - ANSWER Balance of trade
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What is a cost of foreign direct investment? -
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ANSWER Developing countries may be exploited by multinational en
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terprises (MNE) z
What may precious, rare, and hard-to-
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duplicate resources and capabilities lead to for a firm? -
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ANSWER Sustained comparative advantage
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, 2
Which theory states that patterns of international trade change across
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new, maturing, and standardized stages? -
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ANSWER Product life cycle theory
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What is the financial environment in which exchange rates and payme
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nts for goods and services are conducted? -
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ANSWER International monetary system
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Why do nations trade? -
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zANSWER Firms in one nation generate valuable, unique, and har
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d to imitate exports that firms in other nations find it beneficial to
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import.
Balance of trade - z z z
ANSWER The aggregation of buying (importing) and selling (exportin
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g) by both sides leads to the country-level surplus or deficit.
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Export - ANSWER Selling abroad z z z z
Importing - ANSWER Buying from abroad z z z z z
Merchandise - ANSWER Transactions involving tangible goods z z z z z z
Trade deficit - z z
ANSWER Economic condition in which a nation imports more than it e
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xports
Trade surplus - z z
ANSWER Economic condition in which a nation exports more than it i
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mports
Classical trade theories - z z z
ANSWER 1. Mercantile, 2. Absolute advantage, 3. comparative advant
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age
Modern theories of trade - z z z z
ANSWER 1. Product life cycles, 2. Strategic trade, 3. Diamond
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, 3
Absolute advantage - z z
ANSWER Involves being more efficient than anyone else in the produ
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ction of any good or service
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Comparative advantage - z z
ANSWER the relative (not absolute) in one economic activity that one
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nation enjoys in comparison with other nations
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Factor endowments - z z
ANSWER The extent to which different countries possess various fact
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ors such as labor, land, and tech
z z z z z z
Factor endowment theory or Heckscher-Ohlin
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theory - z
ANSWER proposed that nations will develop comparative advantage
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based on their locally abundant factors
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First-mover advantage - z z
ANSWER Advantages that first entrants enjoy and do not share with la
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te entrants
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Free trade - z z
ANSWER The idea that free market forces should determine how muc
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h to trade with little or no government intervention.
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Mercantilism - z
ANSWER Classical trade theory that viewed international trade as a ze
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ro-sum game z
Opportunity cost - z z
ANSWER Given the alternatives, the cost of pursuing one activity at th
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e expense of another activity
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Product Life cycle theory - z z z z
ANSWER Theory that accounts for changes in the patterns of trade ov
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er time z
, Protectionalism - z
ANSWER The idea that governments should actively protect domestic
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industries from imports and vigorously promote exports
z z z z z z z
WGUC211OANEWEST2024- z z z z
2025 ACTUAL EXAM WITH COMPLETE 6z z z z z
00+ STUDY QUESTIONS AND VERIFIED
z z z z z
CORRECT ANSWERS/RATED A++ z z
Which view claims that the phenomenon of globalization was initially
z z z z z z z z z z
driven by the desire of Western economies to exploit their power thro
z z z z z z z z z z z
ugh multinational enterprises? - ANSWER The new-force view
z z z z z z z
Economic gains come from international trade because one country's
z z z z z z z z z
exported goods, services, or other items are unique, valuable, and diffi
z z z z z z z z z z
cult to duplicate to the importing countries.
z z z z z z
Which view does this statement portray? - ANSWER Resource-
z z z z z z z z
based view z
What is the aggregation of importing and exporting that leads to the c
z z z z z z z z z z z z
ountry-level trade surplus or deficit? - ANSWER Balance of trade
z z z z z z z z z
What is a cost of foreign direct investment? -
z z z z z z z z
ANSWER Developing countries may be exploited by multinational en
z z z z z z z z z
terprises (MNE) z
What may precious, rare, and hard-to-
z z z z z
duplicate resources and capabilities lead to for a firm? -
z z z z z z z z z
ANSWER Sustained comparative advantage
z z z z
, 2
Which theory states that patterns of international trade change across
z z z z z z z z z
new, maturing, and standardized stages? -
z z z z z z
ANSWER Product life cycle theory
z z z z z
What is the financial environment in which exchange rates and payme
z z z z z z z z z z
nts for goods and services are conducted? -
z z z z z z z
ANSWER International monetary system
z z z z
Why do nations trade? -
z z z z
zANSWER Firms in one nation generate valuable, unique, and har
z z z z z z z z z
d to imitate exports that firms in other nations find it beneficial to
z z z z z z z z z z z z z
import.
Balance of trade - z z z
ANSWER The aggregation of buying (importing) and selling (exportin
z z z z z z z z z
g) by both sides leads to the country-level surplus or deficit.
z z z z z z z z z z
Export - ANSWER Selling abroad z z z z
Importing - ANSWER Buying from abroad z z z z z
Merchandise - ANSWER Transactions involving tangible goods z z z z z z
Trade deficit - z z
ANSWER Economic condition in which a nation imports more than it e
z z z z z z z z z z z z
xports
Trade surplus - z z
ANSWER Economic condition in which a nation exports more than it i
z z z z z z z z z z z z
mports
Classical trade theories - z z z
ANSWER 1. Mercantile, 2. Absolute advantage, 3. comparative advant
z z z z z z z z z
age
Modern theories of trade - z z z z
ANSWER 1. Product life cycles, 2. Strategic trade, 3. Diamond
z z z z z z z z z z
, 3
Absolute advantage - z z
ANSWER Involves being more efficient than anyone else in the produ
z z z z z z z z z z z
ction of any good or service
z z z z z
Comparative advantage - z z
ANSWER the relative (not absolute) in one economic activity that one
z z z z z z z z z z z z
nation enjoys in comparison with other nations
z z z z z z
Factor endowments - z z
ANSWER The extent to which different countries possess various fact
z z z z z z z z z z
ors such as labor, land, and tech
z z z z z z
Factor endowment theory or Heckscher-Ohlin
z z z z
theory - z
ANSWER proposed that nations will develop comparative advantage
z z z z z z z z z
based on their locally abundant factors
z z z z z
First-mover advantage - z z
ANSWER Advantages that first entrants enjoy and do not share with la
z z z z z z z z z z z z
te entrants
z
Free trade - z z
ANSWER The idea that free market forces should determine how muc
z z z z z z z z z z z
h to trade with little or no government intervention.
z z z z z z z z
Mercantilism - z
ANSWER Classical trade theory that viewed international trade as a ze
z z z z z z z z z z z
ro-sum game z
Opportunity cost - z z
ANSWER Given the alternatives, the cost of pursuing one activity at th
z z z z z z z z z z z z
e expense of another activity
z z z z
Product Life cycle theory - z z z z
ANSWER Theory that accounts for changes in the patterns of trade ov
z z z z z z z z z z z z
er time z
, Protectionalism - z
ANSWER The idea that governments should actively protect domestic
z z z z z z z z z
industries from imports and vigorously promote exports
z z z z z z z
