WGU D080 Managing in a Global Business Environment
1. What type of economy is centered on families or tribes where little to noglobal trade is
practiced?: Traditional
2. Socialism: a system in which the government owns and operates a country'smeans of
production
3. Capitalism: A system in which the means of production is controlled by privateowners
who can choose to participate in global trade.
4. Communism: A system in which all property is publicly owned and the govern-ment
controls global trade.
5. Which type of law system is based on a code and focuses on how the lawis applied to the
facts?: Civil
6. Which law is based on tradition and precedent given that judicial rulingscan stand as
precedents for future cases?: Common
7. Which law system can vary from community to community and is found incountries
without strong formal justice systems?: Customary
8. In which law system does a judge decide the applicable law for the caseas a jury
determines the facts?: Common
9. Which activity of the International Monetary Fund (IMF) impacts policy making?: Being
owned and directed by the governments of the member nations
10. What is a characteristic of the International Monetary Fund (IMF)?: The IMFis a
cooperative institution and provides more effective currency exchange.
11. What was the initial purpose of the International Monetary Fund (IMF) inphase one, prior
to 1973?: Regulated currency exchange between nations
12. How does the International Monetary Fund (IMF) impact international or-ganizations and
governments?: It reduces funding for social programs.
13. What is a common name for the International Bank for Reconstruction andDevelopment?:
World Bank
14. What was the first loan that the World Bank made after the end of World WarII?: To France
to rebuild its infrastructure
15. Which criticism is associated with the World Bank?: The developed coun-tries of U.S. and
Europe have too much control over its decisions.
16. Which criticism is made about the World Bank?: It does not consider howfunding projects
will affect the environment.
17. What was one of the results of the Uruguay Round of the World TradeOrganization
negotiations?: Decrease in tariffs
18. Which organization was formed after World War II to encourage interna-tional
,commerce?: World Trade Organization
19. Which criticism is made about the World Trade Organization (WTO)?: Itprotects
developed countries more than developing countries.
20. Which strategic network was established to work towards decreasing tariff rates and
protecting commerce and intellectual property globally?: WorldTrade Organization (WTO)
21. 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 bothcountries?: The IMF provides a
means for effective currency exchange between countries.
22. Which strategy is used by governments to limit the foreign direct invest-ment in a
country?: Creating foreign ownership restrictions in the country
23. Which activity is considered a foreign direct investment (FDI) by a multi-national
corporation?: Setting up manufacturing plants in the host country
24. Company A is located outside the home country of Company B. CompanyB has acquired
Company A with the intent of controlling and managing Company A's assets.
Which practice is being used by Company B?: Foreign direct investment
25. Why does a company engage in foreign direct investment?: The companywants to control
organizational assets in another country.
26. What is a benefit of foreign direct investment?: The inflow of capital benefits global and
local economies
27. What is a potential disadvantage of foreign direct investment from a host government's
perspective?: The host country's natural resources may be deplet-ed.
28. What is a reason for companies to engage in foreign direct investments?-
: To take advantage of tax exemptions offered by the host country
29. Which country characteristic is most important to foreign direct investorsaccording to a
study by the World Bank?: Political stability and security
30. How does the existence of a multinational corporation (MNC) affect a country's
engagement in political conflict?: It would make countries less likelyto go to war.
31. What is an accurate characterization of the relationships between multina-tional
corporations (MNCs) and the host country governments in which theyoperate?: The
relationships are mixed because MNCs can cause, but also solve, problems for the host
country.
32. What is a potential influence of the existence of multinational corporation(MNC) on
international relations?: Improves relations between countries where the MNC operates
33. What is the result of the existence of multinational businesses?: Economicintegration
among countries
34. Which level of economic integration presents an alliance of all policies bya common
,organization?: Political union
35. Which level of economic integration is formed when trade barriers are removed between
member countries but there is no mutual policy on tradingwith nonmember countries?: Free
trade area
36. Which level of economic integration permits the formation of economicallyintegrated
exchanges of goods and services between parties from member countries?: Common market
37. Which economic integration stage offers economic collaboration by re- moving trade
barriers between member countries and establishing a mutualtrading policy with
nonmembers?: Customs union
38. A company is considering establishing a subsidiary in a new host countryand wishes to
prepare its expatriates to adapt to the local environment.
How should this company prepare its expatriates?
Negotiation
Operational training
Repatriation
Cultural Training: Cultural training
39. What happens to consumer surplus when tariffs and quotas are discontin-ued?: They
increase
40. Which type of tariff is put in place to specifically ensure that domesticindustries are
given an advantage?: Protective
41. What is a benefit of implementing a system of free trade?: Reduced tariffswould result in
lower costs of imported raw materials.
42. How are free trade agreements handled differently than treaties in the United States?:
Treaties must be approved by the Senate, whereas a free trade agreement must pass both houses
of Congress.
43. Treaties must be approved by the Senate, whereas a free trade agreement must pass both
houses of Congress.: Tariffs
44. An airplane manufacturer outsources the manufacture of some its parts andsub-assemblies.
They are then returned to the manufacturer's main plant forfinal assembly.: Value chain
45. Country A exports more goods to Country B than it imports from Country
B. Country A receives more monetary gain by using this practice. Which relationship does
Country A have with Country B?: Trade surplus
46. Country A has been criticized by other countries for giving generous tax credits to its
corn farmers, which in turn, enables the country's farmers to sellcorn on the international
markets cheaper than all other countries.
, Which term is used by other countries to describe this practice?: Governmentsubsidies
47. 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?: Oppor-tunity
48. A country produces goods more efficiently than all other countries in thesame industry.
Which type of advantage does this country have?: Absolute
1. What type of economy is centered on families or tribes where little to noglobal trade is
practiced?: Traditional
2. Socialism: a system in which the government owns and operates a country'smeans of
production
3. Capitalism: A system in which the means of production is controlled by privateowners
who can choose to participate in global trade.
4. Communism: A system in which all property is publicly owned and the govern-ment
controls global trade.
5. Which type of law system is based on a code and focuses on how the lawis applied to the
facts?: Civil
6. Which law is based on tradition and precedent given that judicial rulingscan stand as
precedents for future cases?: Common
7. Which law system can vary from community to community and is found incountries
without strong formal justice systems?: Customary
8. In which law system does a judge decide the applicable law for the caseas a jury
determines the facts?: Common
9. Which activity of the International Monetary Fund (IMF) impacts policy making?: Being
owned and directed by the governments of the member nations
10. What is a characteristic of the International Monetary Fund (IMF)?: The IMFis a
cooperative institution and provides more effective currency exchange.
11. What was the initial purpose of the International Monetary Fund (IMF) inphase one, prior
to 1973?: Regulated currency exchange between nations
12. How does the International Monetary Fund (IMF) impact international or-ganizations and
governments?: It reduces funding for social programs.
13. What is a common name for the International Bank for Reconstruction andDevelopment?:
World Bank
14. What was the first loan that the World Bank made after the end of World WarII?: To France
to rebuild its infrastructure
15. Which criticism is associated with the World Bank?: The developed coun-tries of U.S. and
Europe have too much control over its decisions.
16. Which criticism is made about the World Bank?: It does not consider howfunding projects
will affect the environment.
17. What was one of the results of the Uruguay Round of the World TradeOrganization
negotiations?: Decrease in tariffs
18. Which organization was formed after World War II to encourage interna-tional
,commerce?: World Trade Organization
19. Which criticism is made about the World Trade Organization (WTO)?: Itprotects
developed countries more than developing countries.
20. Which strategic network was established to work towards decreasing tariff rates and
protecting commerce and intellectual property globally?: WorldTrade Organization (WTO)
21. 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 bothcountries?: The IMF provides a
means for effective currency exchange between countries.
22. Which strategy is used by governments to limit the foreign direct invest-ment in a
country?: Creating foreign ownership restrictions in the country
23. Which activity is considered a foreign direct investment (FDI) by a multi-national
corporation?: Setting up manufacturing plants in the host country
24. Company A is located outside the home country of Company B. CompanyB has acquired
Company A with the intent of controlling and managing Company A's assets.
Which practice is being used by Company B?: Foreign direct investment
25. Why does a company engage in foreign direct investment?: The companywants to control
organizational assets in another country.
26. What is a benefit of foreign direct investment?: The inflow of capital benefits global and
local economies
27. What is a potential disadvantage of foreign direct investment from a host government's
perspective?: The host country's natural resources may be deplet-ed.
28. What is a reason for companies to engage in foreign direct investments?-
: To take advantage of tax exemptions offered by the host country
29. Which country characteristic is most important to foreign direct investorsaccording to a
study by the World Bank?: Political stability and security
30. How does the existence of a multinational corporation (MNC) affect a country's
engagement in political conflict?: It would make countries less likelyto go to war.
31. What is an accurate characterization of the relationships between multina-tional
corporations (MNCs) and the host country governments in which theyoperate?: The
relationships are mixed because MNCs can cause, but also solve, problems for the host
country.
32. What is a potential influence of the existence of multinational corporation(MNC) on
international relations?: Improves relations between countries where the MNC operates
33. What is the result of the existence of multinational businesses?: Economicintegration
among countries
34. Which level of economic integration presents an alliance of all policies bya common
,organization?: Political union
35. Which level of economic integration is formed when trade barriers are removed between
member countries but there is no mutual policy on tradingwith nonmember countries?: Free
trade area
36. Which level of economic integration permits the formation of economicallyintegrated
exchanges of goods and services between parties from member countries?: Common market
37. Which economic integration stage offers economic collaboration by re- moving trade
barriers between member countries and establishing a mutualtrading policy with
nonmembers?: Customs union
38. A company is considering establishing a subsidiary in a new host countryand wishes to
prepare its expatriates to adapt to the local environment.
How should this company prepare its expatriates?
Negotiation
Operational training
Repatriation
Cultural Training: Cultural training
39. What happens to consumer surplus when tariffs and quotas are discontin-ued?: They
increase
40. Which type of tariff is put in place to specifically ensure that domesticindustries are
given an advantage?: Protective
41. What is a benefit of implementing a system of free trade?: Reduced tariffswould result in
lower costs of imported raw materials.
42. How are free trade agreements handled differently than treaties in the United States?:
Treaties must be approved by the Senate, whereas a free trade agreement must pass both houses
of Congress.
43. Treaties must be approved by the Senate, whereas a free trade agreement must pass both
houses of Congress.: Tariffs
44. An airplane manufacturer outsources the manufacture of some its parts andsub-assemblies.
They are then returned to the manufacturer's main plant forfinal assembly.: Value chain
45. Country A exports more goods to Country B than it imports from Country
B. Country A receives more monetary gain by using this practice. Which relationship does
Country A have with Country B?: Trade surplus
46. Country A has been criticized by other countries for giving generous tax credits to its
corn farmers, which in turn, enables the country's farmers to sellcorn on the international
markets cheaper than all other countries.
, Which term is used by other countries to describe this practice?: Governmentsubsidies
47. 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?: Oppor-tunity
48. A country produces goods more efficiently than all other countries in thesame industry.
Which type of advantage does this country have?: Absolute
