WGU C211 Exam Questions and Answers
Graded A+
Main views on globalization - Correct answer-New, evolutionary, and pendulum
New View on Globalization - Correct answer-A force sweeping through the world
in recent times.
Evolutionary View on Globalization - Correct answer-A long-run historical
evolution since the dawn of human history
Pendulum View on Globalization - Correct answer-One that swings from one
extreme to another from time to time. Rapid globalization, but has to stop due to
lash back.
What is FDI - Correct answer-foreign direct investment
Foreign Direct Investment - Correct answer-the control and management of
activities in a foreign country.
Green Field Investment - Correct answer-Brand new business in the host country,
requires largest equity investment. Purchase of land, factory, etc.
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,Wholly Owned Subsidiary - Correct answer-Company simply purchases an entire
company that is already doing business in the host country.
Partnership - Correct answer-When a company partners with company that already
exists in the host country, some proportion of ownership/collaboration but not the
entire company.
Licensing - Correct answer-non-equity method of investment. Simply license brand
name, logo, manufacturing process, etc. To entrepreneur in host country; Low risk.
Political views on FDI - Correct answer-Radical View, Free Market View,
Pragmatic Nationalism
Radical view on FDI - Correct answer-a political view which argues that
globalization is the product of western civilization and specifically the MNE's
which derive from there. This view argues globalization should be avoided as its
ecological and social costs are too high. Argue for protectionism.
Free market view on FDI - Correct answer-A political view that suggests that FDI
unrestricted by government intervention is the best. Discourages tariffs and is pro-
globalization.
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,Pragmatic nationalism view on FDI - Correct answer-a political view that approves
FDI only when its benefits outweigh its costs. Particularly looks at national
interest.
Benefits to a country receiving FDI - Correct answer-Capital Inflow, Technology
Spillover, Advanced Management Know-How, Job creation
Costs to a country receiving FDI - Correct answer-Job loss, Loss of Sovereignty,
more competition, Capital outflow.
Sovereignty - Correct answer-Ability of a state to govern its territory free from
control of its internal affairs by other states.
How do resources and capabilities influence the competitive dynamics of a
business? - Correct answer-VRIO: Value, Rarity, Imitability, and Organization
Value - Correct answer-Is the firm able to exploit an opportunity or neutralize an
external threat with the resource/capability
Rarity - Correct answer-Is control of the resource/capability in the hands of a
relative few?
Imitability - Correct answer-Is it difficult to imitate, and will there be significant
cost disadvantage to a firm trying to obtain, develop, or duplicate the
resource/capability?
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, Organization - Correct answer-Is the firm organized, ready, and able to exploit the
resource/capability?" "Is the firm organized to capture value?
What is resource similarity and how does this impact competitive dynamics? -
Correct answer-companies with high resource similarity and low market
commonality will find themselves in regular adversarial interactions.
Classical Theory of International Trade - Correct answer-Mercantilism: A zero-sum
game theory that argues countries get richer when they sell more than they import.
Modern Theory of International Trade - Correct answer-More dynamic view on
trade that goes into multi-variable realistic trade models.
absolute advantage - Correct answer-the ability of an individual, a firm, or a
country to produce more of a good or service than competitors, using the same
amount of resources
comparitive advantage - Correct answer-the ability to produce a good at a lower
opportunity cost than another producer (comparative to another country or
business)
Mercantilism - Correct answer-A theory that suggests that the wealth of the world
is fixed and that a nation that exports more and imports less will be richer.
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Graded A+
Main views on globalization - Correct answer-New, evolutionary, and pendulum
New View on Globalization - Correct answer-A force sweeping through the world
in recent times.
Evolutionary View on Globalization - Correct answer-A long-run historical
evolution since the dawn of human history
Pendulum View on Globalization - Correct answer-One that swings from one
extreme to another from time to time. Rapid globalization, but has to stop due to
lash back.
What is FDI - Correct answer-foreign direct investment
Foreign Direct Investment - Correct answer-the control and management of
activities in a foreign country.
Green Field Investment - Correct answer-Brand new business in the host country,
requires largest equity investment. Purchase of land, factory, etc.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Wholly Owned Subsidiary - Correct answer-Company simply purchases an entire
company that is already doing business in the host country.
Partnership - Correct answer-When a company partners with company that already
exists in the host country, some proportion of ownership/collaboration but not the
entire company.
Licensing - Correct answer-non-equity method of investment. Simply license brand
name, logo, manufacturing process, etc. To entrepreneur in host country; Low risk.
Political views on FDI - Correct answer-Radical View, Free Market View,
Pragmatic Nationalism
Radical view on FDI - Correct answer-a political view which argues that
globalization is the product of western civilization and specifically the MNE's
which derive from there. This view argues globalization should be avoided as its
ecological and social costs are too high. Argue for protectionism.
Free market view on FDI - Correct answer-A political view that suggests that FDI
unrestricted by government intervention is the best. Discourages tariffs and is pro-
globalization.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,Pragmatic nationalism view on FDI - Correct answer-a political view that approves
FDI only when its benefits outweigh its costs. Particularly looks at national
interest.
Benefits to a country receiving FDI - Correct answer-Capital Inflow, Technology
Spillover, Advanced Management Know-How, Job creation
Costs to a country receiving FDI - Correct answer-Job loss, Loss of Sovereignty,
more competition, Capital outflow.
Sovereignty - Correct answer-Ability of a state to govern its territory free from
control of its internal affairs by other states.
How do resources and capabilities influence the competitive dynamics of a
business? - Correct answer-VRIO: Value, Rarity, Imitability, and Organization
Value - Correct answer-Is the firm able to exploit an opportunity or neutralize an
external threat with the resource/capability
Rarity - Correct answer-Is control of the resource/capability in the hands of a
relative few?
Imitability - Correct answer-Is it difficult to imitate, and will there be significant
cost disadvantage to a firm trying to obtain, develop, or duplicate the
resource/capability?
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, Organization - Correct answer-Is the firm organized, ready, and able to exploit the
resource/capability?" "Is the firm organized to capture value?
What is resource similarity and how does this impact competitive dynamics? -
Correct answer-companies with high resource similarity and low market
commonality will find themselves in regular adversarial interactions.
Classical Theory of International Trade - Correct answer-Mercantilism: A zero-sum
game theory that argues countries get richer when they sell more than they import.
Modern Theory of International Trade - Correct answer-More dynamic view on
trade that goes into multi-variable realistic trade models.
absolute advantage - Correct answer-the ability of an individual, a firm, or a
country to produce more of a good or service than competitors, using the same
amount of resources
comparitive advantage - Correct answer-the ability to produce a good at a lower
opportunity cost than another producer (comparative to another country or
business)
Mercantilism - Correct answer-A theory that suggests that the wealth of the world
is fixed and that a nation that exports more and imports less will be richer.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
