WGU D080 MANAGING IN A GLOBAL
BUSINESS ENVIRONMENT ACTUAL TEST
PAPER COMPLETE QUESTIONS AND
ANSWERS FULL SOLUTION
●● Which type of globalization is represented by Sure Start expanding
into South America, Europe, and Asia?
Answer: Economic globalization is the globalization of production,
sales, and finance activities in international markets around the world.
●● Which antiglobalization argument could lead to Sure Start continuing
to maintain its current factories instead of moving them to Asia?
Answer: Labor in Asia can be cheaper than in NC, and critics argue that
outsourcing manufacturing could lead to job loss in the home country.
●● Which action should the U.S. government take to encourage Sure
Start to keep electric battery production in the country?
Answer: Imposing tariffs on batteries made in Vietnam will make them
more expensive.
●● Which economic system facilitates the global expansion of Sure
Start?
,Answer: The law of supply and demand applies to the market economy,
and the goods are privately owned. Government interference is
minimum.
●● Which type of risk will a company reduce if they offer a warranty to
the purchasers of the battery in case of failure?
Answer: Offering a warranty protects the company from the legal risk of
a product not performing to standard.
●● Which aspect of the International Monetary Fund (IMF) will assist
the newly elected leader in paying the deficit in U.S. dollars, if agreed
on by both countries?
Answer: The IMF's purpose is to provide a way for countries to easily
exchange money, provide financial help to its members, and supervise
international economic policies.
●● Which critical distinction should Country A make when choosing
between the World Bank and the International Monetary Fund (IMF) to
improve the country's highways?
Answer: The World Bank is directly associated with this type of
development project.
●● Which benefit to the newly-elected leader in Country A stems from
using the World Bank to meet a campaign promise?
, Answer: The World Bank provides funds through low interest or
interest-free loans, grants, and credits to help the country develop its
infrastructure.
●● Why should the newly-elected leader of Country A be careful when
working with the World Bank to eliminate the nation's trade deficit?
Answer: Because of the voting power highly-developed countries have
on World Bank policies
●● Why should the newly-elected leader of Country A use the World
Trade Organization (WTO) to form favorable trade agreements?
Answer: To receive help building international exchange capacity. One
of the functions of the WTO is to help developing countries build trade
and international exchange capacity so they can have a presence in the
international markets.
●● Which situation describes how Sure Start is applying the absolute
advantage theory?
Adding an office in the South American market to help manage the
business throughout the continent
Expanding into Europe and Asia to supply batteries to electric car
manufacturers in those markets
Moving production of the batteries used in electric cars to Vietnam
where labor is less expensive
Establishing a European headquarters in Germany and moving key
leaders to that country
BUSINESS ENVIRONMENT ACTUAL TEST
PAPER COMPLETE QUESTIONS AND
ANSWERS FULL SOLUTION
●● Which type of globalization is represented by Sure Start expanding
into South America, Europe, and Asia?
Answer: Economic globalization is the globalization of production,
sales, and finance activities in international markets around the world.
●● Which antiglobalization argument could lead to Sure Start continuing
to maintain its current factories instead of moving them to Asia?
Answer: Labor in Asia can be cheaper than in NC, and critics argue that
outsourcing manufacturing could lead to job loss in the home country.
●● Which action should the U.S. government take to encourage Sure
Start to keep electric battery production in the country?
Answer: Imposing tariffs on batteries made in Vietnam will make them
more expensive.
●● Which economic system facilitates the global expansion of Sure
Start?
,Answer: The law of supply and demand applies to the market economy,
and the goods are privately owned. Government interference is
minimum.
●● Which type of risk will a company reduce if they offer a warranty to
the purchasers of the battery in case of failure?
Answer: Offering a warranty protects the company from the legal risk of
a product not performing to standard.
●● Which aspect of the International Monetary Fund (IMF) will assist
the newly elected leader in paying the deficit in U.S. dollars, if agreed
on by both countries?
Answer: The IMF's purpose is to provide a way for countries to easily
exchange money, provide financial help to its members, and supervise
international economic policies.
●● Which critical distinction should Country A make when choosing
between the World Bank and the International Monetary Fund (IMF) to
improve the country's highways?
Answer: The World Bank is directly associated with this type of
development project.
●● Which benefit to the newly-elected leader in Country A stems from
using the World Bank to meet a campaign promise?
, Answer: The World Bank provides funds through low interest or
interest-free loans, grants, and credits to help the country develop its
infrastructure.
●● Why should the newly-elected leader of Country A be careful when
working with the World Bank to eliminate the nation's trade deficit?
Answer: Because of the voting power highly-developed countries have
on World Bank policies
●● Why should the newly-elected leader of Country A use the World
Trade Organization (WTO) to form favorable trade agreements?
Answer: To receive help building international exchange capacity. One
of the functions of the WTO is to help developing countries build trade
and international exchange capacity so they can have a presence in the
international markets.
●● Which situation describes how Sure Start is applying the absolute
advantage theory?
Adding an office in the South American market to help manage the
business throughout the continent
Expanding into Europe and Asia to supply batteries to electric car
manufacturers in those markets
Moving production of the batteries used in electric cars to Vietnam
where labor is less expensive
Establishing a European headquarters in Germany and moving key
leaders to that country
