WGU C211 PREP FOR OA EXAM
QUESTIONS AND ANSWERS. VERIFIED
2025/2026.
Globalization can be viewed as - ANS a new force sweeping through the world in recent
times.
a Option pendulum that swings from one extreme to another from time to time.
a long-run historical evolution since the dawn of human history.
What is the definition of an institution-based view of global business? - ANS An institution-
based view suggests that the success and failure of firms are enabled and constrained by
institutions, also known as the rules of the game, such as regulations, laws, cultures, ethics, and
norms.
From an institution-based view, a government's legal requirement for a business to pay taxes
would be an example of: - ANS the influence of a formal institution.
Which are the three views of globalization? - ANS A recent force, a long-running evolution,
and a pendulum
Trade deficit refers to: - ANS an economic condition in which a nation imports more than it
exports.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, The modern trade theories include the following EXCEPT: - ANS Theory of comparative
advantage
The theory of mercantilism: - ANS views international trade as a zero-sum game.
According to the theory of absolute advantage, under free trade, - ANS each nation gains by
specializing in economic activities in which a nation has absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)? - ANS Cultural distance
Which of the following theories does NOT lead to the conclusion that unrestricted free trade is
in the best interests of all countries? - ANS Strategic trade theory
An import quota is: - ANS Restriction on the quantity of imports that can be brought into a
country.
The three modern theories of international trade are: - ANS product life cycle, strategic trade,
national competitive advantage of industries.
Free trade is defined as: - ANS The idea that market forces should determine how much to
trade with little or no government intervention.
Multinational enterprises (MNEs) are: - ANS firms that engage in foreign direct investment
(FDI).
Foreign direct investment (FDI) is: - ANS investment in activities that control and manage
value-added activities in foreign countries.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS. VERIFIED
2025/2026.
Globalization can be viewed as - ANS a new force sweeping through the world in recent
times.
a Option pendulum that swings from one extreme to another from time to time.
a long-run historical evolution since the dawn of human history.
What is the definition of an institution-based view of global business? - ANS An institution-
based view suggests that the success and failure of firms are enabled and constrained by
institutions, also known as the rules of the game, such as regulations, laws, cultures, ethics, and
norms.
From an institution-based view, a government's legal requirement for a business to pay taxes
would be an example of: - ANS the influence of a formal institution.
Which are the three views of globalization? - ANS A recent force, a long-running evolution,
and a pendulum
Trade deficit refers to: - ANS an economic condition in which a nation imports more than it
exports.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, The modern trade theories include the following EXCEPT: - ANS Theory of comparative
advantage
The theory of mercantilism: - ANS views international trade as a zero-sum game.
According to the theory of absolute advantage, under free trade, - ANS each nation gains by
specializing in economic activities in which a nation has absolute advantage.
Which of the following is NOT a nontariff trade barrier (NTB)? - ANS Cultural distance
Which of the following theories does NOT lead to the conclusion that unrestricted free trade is
in the best interests of all countries? - ANS Strategic trade theory
An import quota is: - ANS Restriction on the quantity of imports that can be brought into a
country.
The three modern theories of international trade are: - ANS product life cycle, strategic trade,
national competitive advantage of industries.
Free trade is defined as: - ANS The idea that market forces should determine how much to
trade with little or no government intervention.
Multinational enterprises (MNEs) are: - ANS firms that engage in foreign direct investment
(FDI).
Foreign direct investment (FDI) is: - ANS investment in activities that control and manage
value-added activities in foreign countries.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
