WGU C211
WGU C211 Exam Study Guide Questions
and Answers 2025
Views of globalization (Chp 1.4) -Correct Answer ✔1. It's a new phenomenom, starting
in the late 20th century.
2. It's a long term part of human history.
3. Neither recent nor one directional, it's a pendulum that swings back and forth.
Strategic goal = Natural resource—seeking -Correct Answer ✔Location specific
advantage = Possession of natural resources and related transport and communication
infrastructure
Strategic goal = Market-seeking -Correct Answer ✔Location specific advantage =
Abundance of strong market demand and customers willing to pay
Strategic goal = Efficiency-seeking -Correct Answer ✔Location specific advantage =
Economies of scale and abundance of low-cost factors
Strategic goal = Innovation-seeking -Correct Answer ✔Location specific advantage =
Abundance of innovative individuals, firms, and universities
Name first mover advantages: (Chp 10.3) -Correct Answer ✔1. Proprietary,
technological leadership
2. Pre-emption of scarce resources
3. Establishment of entry barriers for late entrants
4. Avoidance of clash with dominant firms at home
5. Relationships with key stakeholders such as governments
Name late mover advantages: (Chp 10.3) -Correct Answer ✔1. Opportunity to free ride
on first-mover investments
2. Resolution of technological and market uncertainty
3. First mover's difficulty to adapt to market changes
Name strategic goals supported by location specific advantages (Chp 10.2) -Correct
Answer ✔1. Natural resources
2. Market
3. Efficiency
4. Innovation
Proposition (1) underpinning an institution based view of global business. -Correct
Answer ✔Managers and firms rationally pursue their interests and make choices within
the formal and informal constraints in a given institutional framework
WGU C211
, WGU C211
Proposition (2) underpinning an institution based view of global business. -Correct
Answer ✔While formal and informal institutions combine to govern firm behavior, in
situations where formal constraints are unclear or fail, informal constraints will play a
larger role in reducing uncertainty and providing constancy to managers and firms
Market economy -Correct Answer ✔An economy that is characterized by the "invisible
hand" of market forces.
Command economy -Correct Answer ✔An economy that is characterized by
government ownership and control of factors of production.
Mixed economy -Correct Answer ✔An economy that has elements of both a market
economy and a command economy.
Property rights -Correct Answer ✔The legal rights to use an economic property
(resource) and to derive income and benefits from it.
Purpose of property rights -Correct Answer ✔The formal protection of property rights
helps to facilitate economic growth.
Civil Law -Correct Answer ✔A legal tradition that uses comprehensive statutes and
codes as a primary means to form legal judgments.
Common Law -Correct Answer ✔A legal tradition that is shaped by precedents and
traditions from previous judicial decisions.
Theocratic Law -Correct Answer ✔A legal system based on religious teachings.
Democracy -Correct Answer ✔Right to freedom of expression and organization.
Totalitarianism -Correct Answer ✔One person or party exercises absolute control.
How do institutions reduce uncertainty? (Chp 2-2) -Correct Answer ✔By signaling which
conduct is legitimate and which is not they constrain the range of acceptable actions.
Comprehensive model of foreign market entries -Correct Answer ✔1. How to enter
depends on the scale of entry: large-scale versus small-scale entries.
2. First focuses on the equity (ownership) issue.
3. Second step focuses on making the actual selection, such as exports, contractual
agreements, joint ventures and wholly owned subsidiaries.
Political realities governing international trade. -Correct Answer ✔The net impact of
various tariffs and nontariff barriers is that the whole nation is worse off while certain
special interest groups (such as certain industries, firms, and regions) benefit.
WGU C211
WGU C211 Exam Study Guide Questions
and Answers 2025
Views of globalization (Chp 1.4) -Correct Answer ✔1. It's a new phenomenom, starting
in the late 20th century.
2. It's a long term part of human history.
3. Neither recent nor one directional, it's a pendulum that swings back and forth.
Strategic goal = Natural resource—seeking -Correct Answer ✔Location specific
advantage = Possession of natural resources and related transport and communication
infrastructure
Strategic goal = Market-seeking -Correct Answer ✔Location specific advantage =
Abundance of strong market demand and customers willing to pay
Strategic goal = Efficiency-seeking -Correct Answer ✔Location specific advantage =
Economies of scale and abundance of low-cost factors
Strategic goal = Innovation-seeking -Correct Answer ✔Location specific advantage =
Abundance of innovative individuals, firms, and universities
Name first mover advantages: (Chp 10.3) -Correct Answer ✔1. Proprietary,
technological leadership
2. Pre-emption of scarce resources
3. Establishment of entry barriers for late entrants
4. Avoidance of clash with dominant firms at home
5. Relationships with key stakeholders such as governments
Name late mover advantages: (Chp 10.3) -Correct Answer ✔1. Opportunity to free ride
on first-mover investments
2. Resolution of technological and market uncertainty
3. First mover's difficulty to adapt to market changes
Name strategic goals supported by location specific advantages (Chp 10.2) -Correct
Answer ✔1. Natural resources
2. Market
3. Efficiency
4. Innovation
Proposition (1) underpinning an institution based view of global business. -Correct
Answer ✔Managers and firms rationally pursue their interests and make choices within
the formal and informal constraints in a given institutional framework
WGU C211
, WGU C211
Proposition (2) underpinning an institution based view of global business. -Correct
Answer ✔While formal and informal institutions combine to govern firm behavior, in
situations where formal constraints are unclear or fail, informal constraints will play a
larger role in reducing uncertainty and providing constancy to managers and firms
Market economy -Correct Answer ✔An economy that is characterized by the "invisible
hand" of market forces.
Command economy -Correct Answer ✔An economy that is characterized by
government ownership and control of factors of production.
Mixed economy -Correct Answer ✔An economy that has elements of both a market
economy and a command economy.
Property rights -Correct Answer ✔The legal rights to use an economic property
(resource) and to derive income and benefits from it.
Purpose of property rights -Correct Answer ✔The formal protection of property rights
helps to facilitate economic growth.
Civil Law -Correct Answer ✔A legal tradition that uses comprehensive statutes and
codes as a primary means to form legal judgments.
Common Law -Correct Answer ✔A legal tradition that is shaped by precedents and
traditions from previous judicial decisions.
Theocratic Law -Correct Answer ✔A legal system based on religious teachings.
Democracy -Correct Answer ✔Right to freedom of expression and organization.
Totalitarianism -Correct Answer ✔One person or party exercises absolute control.
How do institutions reduce uncertainty? (Chp 2-2) -Correct Answer ✔By signaling which
conduct is legitimate and which is not they constrain the range of acceptable actions.
Comprehensive model of foreign market entries -Correct Answer ✔1. How to enter
depends on the scale of entry: large-scale versus small-scale entries.
2. First focuses on the equity (ownership) issue.
3. Second step focuses on making the actual selection, such as exports, contractual
agreements, joint ventures and wholly owned subsidiaries.
Political realities governing international trade. -Correct Answer ✔The net impact of
various tariffs and nontariff barriers is that the whole nation is worse off while certain
special interest groups (such as certain industries, firms, and regions) benefit.
WGU C211
