WGU C211 Prep for OA
Globalization can be viewed as - ANSa 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? - ANSAn
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: - ANSthe influence of a formal institution.
Which are the three views of globalization? - ANSA recent force, a long-running evolution,
and a pendulum
Trade deficit refers to: - ANSan economic condition in which a nation imports more than it
exports.
The modern trade theories include the following EXCEPT: - ANSTheory of comparative
advantage
The theory of mercantilism: - ANSviews international trade as a zero-sum game.
According to the theory of absolute advantage, under free trade, - ANSeach 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)? - ANSCultural distance
Which of the following theories does NOT lead to the conclusion that unrestricted free trade
is in the best interests of all countries? - ANSStrategic trade theory
An import quota is: - ANSRestriction on the quantity of imports that can be brought into a
country.
The three modern theories of international trade are: - ANSproduct life cycle, strategic trade,
national competitive advantage of industries.
Free trade is defined as: - ANSThe idea that market forces should determine how much to
trade with little or no government intervention.
Multinational enterprises (MNEs) are: - ANSfirms that engage in foreign direct investment
(FDI).
, Foreign direct investment (FDI) is: - ANSinvestment in activities that control and manage
value-added activities in foreign countries.
An oligopoly is an: - ANSindustry dominated by a small number of competitors.
The primary political views on FDI are: - ANSFree market and pragmatic nationalism
Some of the benefits of FDI to the host country are: - ANSJob creation
Advanced technology
Capital inflow
In addition to FDI, other ways a firm can enter foreign markets include: - ANSLicense and
trademark
Outsource
Import and export
Which of the following statements about the effects of FDI on host countries is true? -
ANSWhile FDI creates jobs and encourages the development of management know-how
within the host country, it can also lead to adverse effects on competition and capital outflow.
Beyond the enforcement of antitrust laws, collusion often fails because: - ANSit has incentive
problems associated with the "prisoners' dilemma."
Which of the following industry characteristic makes collusion difficult? - ANSLow entry
barriers
Which of the following situation represents the LOWEST intensity of rivalry between two
companies? - ANSLow resource similarity and high market commonality
How do firms create value when engaging rivals? - ANSHold a dominant position in key
markets.
Launch products in multiple markets.
Secure patents on key products.
Political view most hostile to FDI - ANSRadical View
Classical theories of international trade - ANSmercantilism
absolute advantage
comparative advantage
Location specific refers to - ANSbenefits a firm reaps from features specific to a place
Competitive dynamics means - ANSactions or responses undertaken by competing firms
Forward transaction is - ANSforeign transaction in which participants buy or sell currencies
for future delivery
Globalization can be viewed as - ANSa 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? - ANSAn
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: - ANSthe influence of a formal institution.
Which are the three views of globalization? - ANSA recent force, a long-running evolution,
and a pendulum
Trade deficit refers to: - ANSan economic condition in which a nation imports more than it
exports.
The modern trade theories include the following EXCEPT: - ANSTheory of comparative
advantage
The theory of mercantilism: - ANSviews international trade as a zero-sum game.
According to the theory of absolute advantage, under free trade, - ANSeach 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)? - ANSCultural distance
Which of the following theories does NOT lead to the conclusion that unrestricted free trade
is in the best interests of all countries? - ANSStrategic trade theory
An import quota is: - ANSRestriction on the quantity of imports that can be brought into a
country.
The three modern theories of international trade are: - ANSproduct life cycle, strategic trade,
national competitive advantage of industries.
Free trade is defined as: - ANSThe idea that market forces should determine how much to
trade with little or no government intervention.
Multinational enterprises (MNEs) are: - ANSfirms that engage in foreign direct investment
(FDI).
, Foreign direct investment (FDI) is: - ANSinvestment in activities that control and manage
value-added activities in foreign countries.
An oligopoly is an: - ANSindustry dominated by a small number of competitors.
The primary political views on FDI are: - ANSFree market and pragmatic nationalism
Some of the benefits of FDI to the host country are: - ANSJob creation
Advanced technology
Capital inflow
In addition to FDI, other ways a firm can enter foreign markets include: - ANSLicense and
trademark
Outsource
Import and export
Which of the following statements about the effects of FDI on host countries is true? -
ANSWhile FDI creates jobs and encourages the development of management know-how
within the host country, it can also lead to adverse effects on competition and capital outflow.
Beyond the enforcement of antitrust laws, collusion often fails because: - ANSit has incentive
problems associated with the "prisoners' dilemma."
Which of the following industry characteristic makes collusion difficult? - ANSLow entry
barriers
Which of the following situation represents the LOWEST intensity of rivalry between two
companies? - ANSLow resource similarity and high market commonality
How do firms create value when engaging rivals? - ANSHold a dominant position in key
markets.
Launch products in multiple markets.
Secure patents on key products.
Political view most hostile to FDI - ANSRadical View
Classical theories of international trade - ANSmercantilism
absolute advantage
comparative advantage
Location specific refers to - ANSbenefits a firm reaps from features specific to a place
Competitive dynamics means - ANSactions or responses undertaken by competing firms
Forward transaction is - ANSforeign transaction in which participants buy or sell currencies
for future delivery
