C211 WGU EXAM | 2025-2026 LATEST UPDATE| COMPLETE QUESTIONS AND
100% RATED CORRECT ANSWERS
Wholly owned subsidiary (WOS) A subsidiary located in a foreign country that is entirely
owned by the parent multinational.
Beijing Consensus A view that questions Washington Consensus' belief in the superiority of
private ownership over state ownership in economic policy making, which is often associated
with the position held by the Chinese government.
Bounded rationality The necessity of making rational decisions in the absence of complete
information.
Civil law A legal tradition that uses comprehensive statutes and codes as a primary means to
form legal judgments.
Cognitive pillar The internalized (or taken-for-granted) values and beliefs that guide
individual and firm behavior.
Command economy An economy that is characterized by government ownership and control
of factors of production.
Common law A legal tradition that is shaped by precedents and traditions from previous
judicial decisions.
Copyright Exclusive legal right of authors and publishers to publish and disseminate their
work.
,Democracy A political system in which citizens elect representatives to govern the country
on their behalf.
Economic system Rules of the game on how a country is governed economically.
Formal institutions Institutions represented by laws, regulations, and rules.
Informal institutions Institutions represented by cultures, ethics, and norms.
Institution-based view A leading perspective in global business that suggests that the success
and failure of firms are enabled and constrained by institutions.
Institutional framework Formal and informal institutions governing individual and firm
behavior.
Institutional transitions Fundamental and comprehensive changes introduced to the formal
and informal rules of the game that affect firms as players.
Institutions Formal and informal rules of the game.
Intellectual property Intangible property that is the result of intellectual activity.
Intellectual property rights (IPR) Rights associated with the ownership of intellectual
property.
Legal system The rules of the game on how a country's laws are enacted and enforced.
, Market economy An economy that is characterized by the "invisible hand" of market forces.
Mixed economy An economy that has elements of both a market economy and a command
economy.
Moral hazard Recklessness when people and organizations (including firms and
governments) do not have to face the full consequences of their actions.
Normative pillar The mechanism through which norms influence individual and firm
behavior.
Norms Values, beliefs, and actions of relevant players that influence the focal individuals and
firms.
Opportunism The act of seeking self-interest with guile.
Patent Exclusive legal right of inventors of new products or processes to derive income from
such inventions.
Piracy Unauthorized use of intellectual property.
Political risk Risk associated with political changes that may negatively impact domestic and
foreign firms.
Political system The rules of the game on how a country is governed politically.
100% RATED CORRECT ANSWERS
Wholly owned subsidiary (WOS) A subsidiary located in a foreign country that is entirely
owned by the parent multinational.
Beijing Consensus A view that questions Washington Consensus' belief in the superiority of
private ownership over state ownership in economic policy making, which is often associated
with the position held by the Chinese government.
Bounded rationality The necessity of making rational decisions in the absence of complete
information.
Civil law A legal tradition that uses comprehensive statutes and codes as a primary means to
form legal judgments.
Cognitive pillar The internalized (or taken-for-granted) values and beliefs that guide
individual and firm behavior.
Command economy An economy that is characterized by government ownership and control
of factors of production.
Common law A legal tradition that is shaped by precedents and traditions from previous
judicial decisions.
Copyright Exclusive legal right of authors and publishers to publish and disseminate their
work.
,Democracy A political system in which citizens elect representatives to govern the country
on their behalf.
Economic system Rules of the game on how a country is governed economically.
Formal institutions Institutions represented by laws, regulations, and rules.
Informal institutions Institutions represented by cultures, ethics, and norms.
Institution-based view A leading perspective in global business that suggests that the success
and failure of firms are enabled and constrained by institutions.
Institutional framework Formal and informal institutions governing individual and firm
behavior.
Institutional transitions Fundamental and comprehensive changes introduced to the formal
and informal rules of the game that affect firms as players.
Institutions Formal and informal rules of the game.
Intellectual property Intangible property that is the result of intellectual activity.
Intellectual property rights (IPR) Rights associated with the ownership of intellectual
property.
Legal system The rules of the game on how a country's laws are enacted and enforced.
, Market economy An economy that is characterized by the "invisible hand" of market forces.
Mixed economy An economy that has elements of both a market economy and a command
economy.
Moral hazard Recklessness when people and organizations (including firms and
governments) do not have to face the full consequences of their actions.
Normative pillar The mechanism through which norms influence individual and firm
behavior.
Norms Values, beliefs, and actions of relevant players that influence the focal individuals and
firms.
Opportunism The act of seeking self-interest with guile.
Patent Exclusive legal right of inventors of new products or processes to derive income from
such inventions.
Piracy Unauthorized use of intellectual property.
Political risk Risk associated with political changes that may negatively impact domestic and
foreign firms.
Political system The rules of the game on how a country is governed politically.
