WGU D080 2023/2024 Update with complete
solution Questions
Sure Start is starting a new division for rechargeable batteries in different parts of the world.
What was the globalization driver of this decision?
Competition drivers are about entering new markets to beat competitors. Sure Start has identified a
market that does not have a lot of competition since it is a fairly new market.
Which type of globalization is represented by Sure Start expanding into South America, Europe, and
Asia?
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?
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?
Imposing tariffs on batteries made in Vietnam will make them more expensive.
Which economic system facilitates the global expansion of Sure Start?
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?
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?
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?
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?
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?
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?
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
The absolute advantage theory states that a country that can produce a product cheaper or faster
than another country should focus on that advantage. Moving production of the batteries used in
electric cars from the United States to Vietnam where labor is less expensive applies the absolute
advantage theory.
Which benefit will Sure Start gain from opening the factory in Vietnam?
They will achieve economies of scale in the production of rechargeable batteries.
It will allow them to move to the production of electric cars in the near future.
The U.S. government will give them subsidies for producing in Vietnam.
The move will allow them to be fully integrated in production of rechargeable batteries.
Because the factory in Vietnam will only produce rechargeable batteries, the company will be able to
benefit from minimized production costs associated with lower labor and dedicated manufacturing
operations as they scale up to mass production.
Which action of Sure Start represents the application of the global strategic rivalry theory?
Launching a new research division to focus on a rechargeable battery for use in electric cars
Adding an office in the South American market to help manage the business throughout the continent
Maintaining production with no investment in batteries for use in traditional vehicles
Expanding into Europe and Asia to supply batteries to electric car manufacturers in those markets
Global strategic rivalry theory is about how multinational companies need to gain a competitive
advantage against other multinational companies in their industry through activities such as research
and development.
What will be the effect of the German trade policy on Sure Start's rechargeable batteries in the first
year?
Sales to German automakers will increase.
Sure Start's profit for rechargeable batteries sold in Germany would increase.
If the German automakers meet the requirement, there will be no impact.
Sure Start will increase prices to German automakers.
As long as German automakers meet the requirement that 75% of parts are produced domestically,
there would be no impact to Sure Start's rechargeable battery imports. If the German automakers are
unable to meet the requirement, the automakers will pay tariffs.
What impact will the German Transportation Agency's decision to halt imports of rechargeable
batteries have on Sure Start in that country?
It could decrease the cost of sales in Germany.
It could decrease competitive intensity.
It could prevent future sales and operations.
It could restrict U.S. automobile imports.
solution Questions
Sure Start is starting a new division for rechargeable batteries in different parts of the world.
What was the globalization driver of this decision?
Competition drivers are about entering new markets to beat competitors. Sure Start has identified a
market that does not have a lot of competition since it is a fairly new market.
Which type of globalization is represented by Sure Start expanding into South America, Europe, and
Asia?
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?
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?
Imposing tariffs on batteries made in Vietnam will make them more expensive.
Which economic system facilitates the global expansion of Sure Start?
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?
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?
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?
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?
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?
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?
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
The absolute advantage theory states that a country that can produce a product cheaper or faster
than another country should focus on that advantage. Moving production of the batteries used in
electric cars from the United States to Vietnam where labor is less expensive applies the absolute
advantage theory.
Which benefit will Sure Start gain from opening the factory in Vietnam?
They will achieve economies of scale in the production of rechargeable batteries.
It will allow them to move to the production of electric cars in the near future.
The U.S. government will give them subsidies for producing in Vietnam.
The move will allow them to be fully integrated in production of rechargeable batteries.
Because the factory in Vietnam will only produce rechargeable batteries, the company will be able to
benefit from minimized production costs associated with lower labor and dedicated manufacturing
operations as they scale up to mass production.
Which action of Sure Start represents the application of the global strategic rivalry theory?
Launching a new research division to focus on a rechargeable battery for use in electric cars
Adding an office in the South American market to help manage the business throughout the continent
Maintaining production with no investment in batteries for use in traditional vehicles
Expanding into Europe and Asia to supply batteries to electric car manufacturers in those markets
Global strategic rivalry theory is about how multinational companies need to gain a competitive
advantage against other multinational companies in their industry through activities such as research
and development.
What will be the effect of the German trade policy on Sure Start's rechargeable batteries in the first
year?
Sales to German automakers will increase.
Sure Start's profit for rechargeable batteries sold in Germany would increase.
If the German automakers meet the requirement, there will be no impact.
Sure Start will increase prices to German automakers.
As long as German automakers meet the requirement that 75% of parts are produced domestically,
there would be no impact to Sure Start's rechargeable battery imports. If the German automakers are
unable to meet the requirement, the automakers will pay tariffs.
What impact will the German Transportation Agency's decision to halt imports of rechargeable
batteries have on Sure Start in that country?
It could decrease the cost of sales in Germany.
It could decrease competitive intensity.
It could prevent future sales and operations.
It could restrict U.S. automobile imports.
