"WGU D080 Study Guide: Essential Lecture Notes for Managing in a Global Business Environment

"WGU D080 STUDY GUIDE: ESSENTIAL LECTURE NOTES
FOR MANAGING IN A GLOBAL BUSINESS
ENVIRONMENT




A_company_is_considering_establishing_a_subsidiary_in_a_new_host_country_and_wishes
_to_prepare_its_expatriates_to_adapt_to_the_local_environment.

How_should_this_company_prepare_its_expatriates?



Negotiation

Operational_training

Repatriation

Cultural_Training_-_Correct_answer~_Cultural_training



What_happens_to_consumer_surplus_when_tariffs_and_quotas_are_discontinued?_-
_Correct_answer~_They_increase



Which_type_of_tariff_is_put_in_place_to_specifically_ensure_that_domestic_industries_ar
e_given_an_advantage?_-_Correct_answer~_Protective



What_is_a_benefit_of_implementing_a_system_of_free_trade?_-
_Correct_answer~_Reduced_tariffs_would_result_in_lower_costs_of_imported_raw_materi
als.



How_are_free_trade_agreements_handled_differently_than_treaties_in_the_United_States
?_-
_Correct_answer~_Treaties_must_be_approved_by_the_Senate,_whereas_a_free_trade_ag
reement_must_pass_both_houses_of_Congress.

,Treaties_must_be_approved_by_the_Senate,_whereas_a_free_trade_agreement_must_pas
s_both_houses_of_Congress._-_Correct_answer~_Tariffs



An_airplane_manufacturer_outsources_the_manufacture_of_some_its_parts_and_sub-
assemblies._They_are_then_returned_to_the_manufacturer's_main_plant_for_final_assem
bly._-_Correct_answer~_Value_chain



Country_A_exports_more_goods_to_Country_B_than_it_imports_from_Country_B._Countr
y_A_receives_more_monetary_gain_by_using_this_practice.

Which_relationship_does_Country_A_have_with_Country_B?_-
_Correct_answer~_Trade_surplus



Country_A_has_been_criticized_by_other_countries_for_giving_generous_tax_credits_to_it
s_corn_farmers,_which_in_turn,_enables_the_country's_farmers_to_sell_corn_on_the_inte
rnational_markets_cheaper_than_all_other_countries.

Which_term_is_used_by_other_countries_to_describe_this_practice?_-
_Correct_answer~_Government_subsidies



A_farmer_knows_that_it_takes_100_hours_of_labor_to_produce_100_bushels_of_corn._It
_only_takes_50_hours_of_labor_to_produce_100_bushels_of_soy._Currently,_a_bushel_of
_corn_is_selling_at_three_times_a_bushel_of_soy.

Which_type_of_cost_should_the_farmer_use_to_determine_what_to_plant?_-
_Correct_answer~_Opportunity



A_country_produces_goods_more_efficiently_than_all_other_countries_in_the_same_indu
stry.

Which_type_of_advantage_does_this_country_have?_-_Correct_answer~_Absolute



Country_A_exports_farming_equipment_to_Country_B,_while_Country_B_exports_car_ma
nufacturing_equipment_to_Country_A._Both_countries_are_highly_developed_and_could_
develop_these_industries_separately_but_instead_made_the_decision_to_export_and_imp
ort_these_products_from_each_other.

,Which_unique_condition_caused_this_practice_between_the_two_countries?_-
_Correct_answer~_Skill_specialization



A_company_produces_the_same_product_over_and_over,_and_it_has_caused_the_manuf
acturing_cost_of_the_product_to_become_cheaper_and_more_competitive_in_internation
al_markets_than_similar_products_in_the_industry.

Which_approach_is_this_company_using_to_achieve_this_ability?_-
_Correct_answer~_Economies_of_scale



A_country_with_a_new_economy_implemented_trade_protectionism_in_relation_to_coun
tries_with_more_developed_economies.

Why_did_the_country_take_this_action?_-
_Correct_answer~_To_restrict_international_economic_trade



How_do_anti_dumping_laws_protect_a_domestic_market?_-
_Correct_answer~_They_prevent_foreign_companies_from_selling_goods_and_services_at
_or_below_cost.



How_do_Congress_and_the_Department_of_Agriculture_use_quotas_to_their_advantage?
_-
_Correct_answer~_To_increase_domestic_prices_to_specific_levels_to_make_products_pro
fitable



Which_strategy_should_a_government_use_to_offset_the_cost_of_manufacturing_domest
ically?_-_Correct_answer~_Subsidies



Which_type_of_globalization_refers_to_the_international_movement_of_goods,_capital,_a
nd_services?_-_Correct_answer~_Economic



The_CEO_of_an_international_company_reminds_the_executive_vice_presidents_that_whi
le_the_company_may_do_good_while_performing_corporate_social_responsibilities,_the_
business_has_one_ultimate_goal_since_it_is_engaged_in_commercial_activities_with_corp
orate_shareholders.

, Which_ultimate_goal_is_the_CEO_emphasizing_to_the_executive_vice_presidents?_-
_Correct_answer~_Profitability



A_CEO_decides_to_expand_the_company's_business_internationally_by_purchasing_produ
ction_capability_in_another_country,_including_the_foreign_country's_buildings_and_equi
pment.

Which_type_of_market_entry_is_the_CEO_using?_-_Correct_answer~_Direct_investment



A_CEO_seeks_to_better_use_the_economies_of_scale_and_scope_of_production_to_incre
ase_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_dai
ry_line_in_a_country_that_can_offer_low_labor_costs_and_good_internet_connections._T
he_country_has_no_highways,_and_roads_are_poorly_maintained.

Which_challenge_to_international_business_expansion_do_the_road_conditions_present?
_-_Correct_answer~_Infrastructure



Which_argument_is_used_by_critics_who_wish_to_discourage_movement_towards_global
ization?_-_Correct_answer~_It_increases_the_wealth_of_the_rich_rather_than_the_poor



Anarchism_-
_Correct_answer~_Individuals_control_political_activities,_and_the_government_has_no_c
ontrol_over_these_activities



Totalitarianism_-
_Correct_answer~_A_centralized_government_creates_oppressive_policies_based_on_idea
s_from_powerful_leadership.



Direct_democracy_-
_Correct_answer~_The_government_provides_a_method_of_voting_for_the_people_of_a_
country,_not_for_elected_officials.