WGU C211 OA Global Economics Exam Questions and
Answers Graded A+
1. view that claims phenomenon of globalization was initially driven by the
desire of Western economies to exploit their power through MNE's
ANS new
2. view that claims globalization is a long-run historical evolution since the
dawn of humanity. Says it is nothing new and that it will always exist
ANS evolu- tionary
3. view that claims globalization is swinging from one extreme to another from
time to time
ANS pendulum
4. investment in, controlling, and managing value-added activities in other
countries
ANS foreign direct investment
5. political view hostile to FDI. believes it is an instrument of imperialism
and vehicle for exploitation of domestic resources by foreign capitalists and
firms
ANS radical
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28
,6. suggests that FDI, unrestricted by government intervention, will enable
countries to tap into their absolute or comparative advantages by specializing
in the production of certain goods and services
ANS free market
7. views FDI as having pros and cons and only approving FDI when its benefits
outweigh costs
ANS pragmatic nationalis
8. what benefits exist to a country receiving FDI
ANS capital inflow, technology spillovers, advanced management know-how,
creates jobs
9. what costs exist to a country receiving FDI
ANS loss of sovereignty, adverse effects on competition, net outflow in the
capital account
10. The aggregation of importing and exporting that leads to the country-level
trade surplus or deficit.
ANS balance of trade
11. firms with a degree of resource similarity are likely to have similar
competitive actions
ANS high
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28
, 12. a high degree of resource similarity but low market commonality =
intensity of rivalry
ANS highest
13. little resource similarity but high market commonality = intensity of
rivalry
ANS lowest
14. mercantilism, absolute advantage and comparative advantage belong to
what theory of international trade
ANS classical
15. theory of international trade that relies on more realistic product life cycles
and first mover advantages
ANS modern
16. under free trade, a nation gains by specializing in economic activities in
which it has advantage
ANS absolute
17. focuses on the idea that if a country does not have absolute advantage,
they can still choose to specialize in the production of one good where it has
advantage
ANS comparative
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28
Answers Graded A+
1. view that claims phenomenon of globalization was initially driven by the
desire of Western economies to exploit their power through MNE's
ANS new
2. view that claims globalization is a long-run historical evolution since the
dawn of humanity. Says it is nothing new and that it will always exist
ANS evolu- tionary
3. view that claims globalization is swinging from one extreme to another from
time to time
ANS pendulum
4. investment in, controlling, and managing value-added activities in other
countries
ANS foreign direct investment
5. political view hostile to FDI. believes it is an instrument of imperialism
and vehicle for exploitation of domestic resources by foreign capitalists and
firms
ANS radical
1/
28
,6. suggests that FDI, unrestricted by government intervention, will enable
countries to tap into their absolute or comparative advantages by specializing
in the production of certain goods and services
ANS free market
7. views FDI as having pros and cons and only approving FDI when its benefits
outweigh costs
ANS pragmatic nationalis
8. what benefits exist to a country receiving FDI
ANS capital inflow, technology spillovers, advanced management know-how,
creates jobs
9. what costs exist to a country receiving FDI
ANS loss of sovereignty, adverse effects on competition, net outflow in the
capital account
10. The aggregation of importing and exporting that leads to the country-level
trade surplus or deficit.
ANS balance of trade
11. firms with a degree of resource similarity are likely to have similar
competitive actions
ANS high
2/
28
, 12. a high degree of resource similarity but low market commonality =
intensity of rivalry
ANS highest
13. little resource similarity but high market commonality = intensity of
rivalry
ANS lowest
14. mercantilism, absolute advantage and comparative advantage belong to
what theory of international trade
ANS classical
15. theory of international trade that relies on more realistic product life cycles
and first mover advantages
ANS modern
16. under free trade, a nation gains by specializing in economic activities in
which it has advantage
ANS absolute
17. focuses on the idea that if a country does not have absolute advantage,
they can still choose to specialize in the production of one good where it has
advantage
ANS comparative
3/
28
