WGU D080 Exam UPDATED
QUESTIONS AND CORRECT ANSWERS
Globalization - CORRECT ANSWER Worldwide interconnections in virtually every sphere of
activity including the spread of products, technology, information, and job opportunities.
Globalization can result in blurred boundaries between nations, organizations, and investors
trade - CORRECT ANSWER The action of buying and selling goods and services
capital - CORRECT ANSWER Financial assets such as funds but also equipment, facilities,
and other means of production
outsource - CORRECT ANSWER To obtain goods or services from an outside or foreign
supplier
nongovernmental organizations (NGOs) - CORRECT ANSWER Not for profit organizations
that are independent of the government and are active in humanitarian causes
Which type of globalization refers to the international movement of goods, capital, and services? -
CORRECT ANSWER Economic
patents - CORRECT ANSWER Protects inventions and improvements to existing inventions
for a limited period of time in exchange for detailed public disclosure of those inventions
copyrights - CORRECT ANSWER A government authority or license giving the owner of an
invention the right to exclude others from making or selling the invention for a set period of time
trademarks - CORRECT ANSWER Protection for any word, name, symbol, device, or any
combination used in commerce to identify and distinguish the goods of one manufacturer or seller
from goods manufactured or sold by others
assets - CORRECT ANSWER A useful or valuable thing; something you own such as building,
inventory, or cash
,liabilities - CORRECT ANSWER Being responsible for a debt or financial obligation,
something you owe
financial instrument - CORRECT ANSWER A monetary contract between parties
multinational firms - CORRECT ANSWER A large corporation incorporated in one country
which produces or sells goods or services in various countries
The 5 Stages of going Global - CORRECT ANSWER Stage 1 ~ Market Entry
Stage 2 ~ Product Specialization
Stage 3 ~ Value Chain Disaggregation
Stage 4 ~ Value Chain Reengineering
Stage 5 ~ Creation of New Markets
Economies of scale - CORRECT ANSWER A proportionate savings in costs gained by an
increased level of production
Economies of scope - CORRECT ANSWER To develop efficiencies in terms of variety not
volume
A CEO seeks to better use the economies of scale and scope of production to increase the international
company's profits.
Which type of globalization driver is the CEO seeking to use? - CORRECT ANSWER Cost
A CEO seeks to better use the economies of scale and scope of production to increase the international
company's profits.
Which type of globalization driver is the CEO seeking to use? - CORRECT ANSWER Cost
A CEO is discussing an expansion of production of a company's highly perishable dairy line in a
country that can offer low labor costs and good internet connections. The country has no highways,
and roads are poorly maintained.
,Which challenge to international business expansion do the road conditions present? - CORRECT
ANSWER Infrastructure
Six Sigma - CORRECT ANSWER A method that provides tools for organizations to increase
performance and decrease process variation
Which factor of CAGE addresses differences in country size that affect barriers to globalization? -
CORRECT ANSWER Economics
Gini coefficient - CORRECT ANSWER Measures the inequality among values of a frequency
distribution such as levels of income
Happy Planet Index - CORRECT ANSWER Measures how well nations are doing at achieving
long, happy, sustainable lives
Which argument is used by critics who wish to discourage movement towards globalization? -
CORRECT ANSWER It increases the wealth of the rich rather than the poor.
gross domestic product (GDP) - CORRECT ANSWER The total value of goods and services
provided in a country in a one-year period
gross national product (GNP) - CORRECT ANSWER The total value of goods and services
provided by a country, both inside and outside of its borders, in a one-year period
Which type of economy is decentralized and allows firms and households to participate in global trade
with minimum governmental interference? - CORRECT ANSWER Market
Which type of legal system is based on a code and focuses on how the law is applied to the facts? -
CORRECT ANSWER Civil
Which law is based on tradition and precedent given that judicial rulings can stand as precedents for
future cases? - CORRECT ANSWER Common
, Which legal system can vary from community to community and is found in countries without strong
formal justice systems? - CORRECT ANSWER Customary
In which legal system does a judge decide the applicable law for the case as a jury determines the
facts? - CORRECT ANSWER Common
Common law - CORRECT ANSWER Based on precedence. Any activity that is not clearly
illegal may be acceptable. The role of the judge is to hear arguments from both parties and make a
judgment. This judgment stands as precedent for future cases.
Religious law - CORRECT ANSWER based on religious beliefs. One example is a
requirement in Sharia that people following Sharia may not borrow money. To compensate for the
inability to take on debt, an asset-based system has been established.
balance of payments - CORRECT ANSWER The difference in total value between payments
into and out of the country over a period of time
fixed-rate currency exchange system - CORRECT ANSWER When a country's currency value
is fixed or pegged by a monetary authority against the value of another currency, a basket of
currencies, or another measure of value
World Bank - CORRECT ANSWER ~ Encourages developing countries to borrow for
development projects
~ Developmental institution
~ Financed reconstruction after wars in the 1940s. It is now focused on supporting developing
countries
~ Large: 40 offices, over 10,000 staff
~ Investment bank owned by the governments of the 180 member nations
~ Borrows and loans
QUESTIONS AND CORRECT ANSWERS
Globalization - CORRECT ANSWER Worldwide interconnections in virtually every sphere of
activity including the spread of products, technology, information, and job opportunities.
Globalization can result in blurred boundaries between nations, organizations, and investors
trade - CORRECT ANSWER The action of buying and selling goods and services
capital - CORRECT ANSWER Financial assets such as funds but also equipment, facilities,
and other means of production
outsource - CORRECT ANSWER To obtain goods or services from an outside or foreign
supplier
nongovernmental organizations (NGOs) - CORRECT ANSWER Not for profit organizations
that are independent of the government and are active in humanitarian causes
Which type of globalization refers to the international movement of goods, capital, and services? -
CORRECT ANSWER Economic
patents - CORRECT ANSWER Protects inventions and improvements to existing inventions
for a limited period of time in exchange for detailed public disclosure of those inventions
copyrights - CORRECT ANSWER A government authority or license giving the owner of an
invention the right to exclude others from making or selling the invention for a set period of time
trademarks - CORRECT ANSWER Protection for any word, name, symbol, device, or any
combination used in commerce to identify and distinguish the goods of one manufacturer or seller
from goods manufactured or sold by others
assets - CORRECT ANSWER A useful or valuable thing; something you own such as building,
inventory, or cash
,liabilities - CORRECT ANSWER Being responsible for a debt or financial obligation,
something you owe
financial instrument - CORRECT ANSWER A monetary contract between parties
multinational firms - CORRECT ANSWER A large corporation incorporated in one country
which produces or sells goods or services in various countries
The 5 Stages of going Global - CORRECT ANSWER Stage 1 ~ Market Entry
Stage 2 ~ Product Specialization
Stage 3 ~ Value Chain Disaggregation
Stage 4 ~ Value Chain Reengineering
Stage 5 ~ Creation of New Markets
Economies of scale - CORRECT ANSWER A proportionate savings in costs gained by an
increased level of production
Economies of scope - CORRECT ANSWER To develop efficiencies in terms of variety not
volume
A CEO seeks to better use the economies of scale and scope of production to increase the international
company's profits.
Which type of globalization driver is the CEO seeking to use? - CORRECT ANSWER Cost
A CEO seeks to better use the economies of scale and scope of production to increase the international
company's profits.
Which type of globalization driver is the CEO seeking to use? - CORRECT ANSWER Cost
A CEO is discussing an expansion of production of a company's highly perishable dairy line in a
country that can offer low labor costs and good internet connections. The country has no highways,
and roads are poorly maintained.
,Which challenge to international business expansion do the road conditions present? - CORRECT
ANSWER Infrastructure
Six Sigma - CORRECT ANSWER A method that provides tools for organizations to increase
performance and decrease process variation
Which factor of CAGE addresses differences in country size that affect barriers to globalization? -
CORRECT ANSWER Economics
Gini coefficient - CORRECT ANSWER Measures the inequality among values of a frequency
distribution such as levels of income
Happy Planet Index - CORRECT ANSWER Measures how well nations are doing at achieving
long, happy, sustainable lives
Which argument is used by critics who wish to discourage movement towards globalization? -
CORRECT ANSWER It increases the wealth of the rich rather than the poor.
gross domestic product (GDP) - CORRECT ANSWER The total value of goods and services
provided in a country in a one-year period
gross national product (GNP) - CORRECT ANSWER The total value of goods and services
provided by a country, both inside and outside of its borders, in a one-year period
Which type of economy is decentralized and allows firms and households to participate in global trade
with minimum governmental interference? - CORRECT ANSWER Market
Which type of legal system is based on a code and focuses on how the law is applied to the facts? -
CORRECT ANSWER Civil
Which law is based on tradition and precedent given that judicial rulings can stand as precedents for
future cases? - CORRECT ANSWER Common
, Which legal system can vary from community to community and is found in countries without strong
formal justice systems? - CORRECT ANSWER Customary
In which legal system does a judge decide the applicable law for the case as a jury determines the
facts? - CORRECT ANSWER Common
Common law - CORRECT ANSWER Based on precedence. Any activity that is not clearly
illegal may be acceptable. The role of the judge is to hear arguments from both parties and make a
judgment. This judgment stands as precedent for future cases.
Religious law - CORRECT ANSWER based on religious beliefs. One example is a
requirement in Sharia that people following Sharia may not borrow money. To compensate for the
inability to take on debt, an asset-based system has been established.
balance of payments - CORRECT ANSWER The difference in total value between payments
into and out of the country over a period of time
fixed-rate currency exchange system - CORRECT ANSWER When a country's currency value
is fixed or pegged by a monetary authority against the value of another currency, a basket of
currencies, or another measure of value
World Bank - CORRECT ANSWER ~ Encourages developing countries to borrow for
development projects
~ Developmental institution
~ Financed reconstruction after wars in the 1940s. It is now focused on supporting developing
countries
~ Large: 40 offices, over 10,000 staff
~ Investment bank owned by the governments of the 180 member nations
~ Borrows and loans
