D080 PA EXAM QUESTIONS AND CORRECT
ANSWERS!!
Which cultural dimension in global business refers to the degree of freedom that societal
standards give to people in satisfying their needs?
Indulgence
A global company has decided to adopt a pull business model when expanding to new
markets around the globe.
What is a distinguishing characteristic of this business model?
Shift in the balance of power from suppliers to customers
A company would like to obtain the benefits of outsourcing and focus solely on marketing
activities and research and development. Which advantage is this company hoping to
achieve?
Enhanced core business activities
A multinational company moves key production assets to a country with lower tax rates to
avoid paying more taxes in the home country.
Which type of pricing should be used to reduce taxes during production?
Transfer
A multinational company that is considering making a foreign direct investment is
concerned that the new country has an indirect tax in addition to corporate taxes. This
, would reduce the company's profit.
Which type of tax is of concern to this company?
Value-added
A multinational company produces a product in a country where the leaders are known for
occasional asset seizure. Which risk does the company need to mitigate?
Legal risks
A company is considering using a direct distribution strategy.
What is a disadvantage of this distribution strategy?
Required to arrange for transportation
A company in the United States is considering a joint venture with a French supplier and
needs to learn about the accounting standards used in France. How should the U.S.
company approach this situation?
Study the International Financial Reporting Standards (IFRS) online
Which term refers to the price paid by the buyer to the seller in a currency option
contract?
Premium
A car manufacturing company manufacturers tires in Countries A, B, and C. Country A
has significant political turmoil that has resulted in a lengthy labor strike. Countries B and
C have ramped up production resulting in sustained tire production for the company.
ANSWERS!!
Which cultural dimension in global business refers to the degree of freedom that societal
standards give to people in satisfying their needs?
Indulgence
A global company has decided to adopt a pull business model when expanding to new
markets around the globe.
What is a distinguishing characteristic of this business model?
Shift in the balance of power from suppliers to customers
A company would like to obtain the benefits of outsourcing and focus solely on marketing
activities and research and development. Which advantage is this company hoping to
achieve?
Enhanced core business activities
A multinational company moves key production assets to a country with lower tax rates to
avoid paying more taxes in the home country.
Which type of pricing should be used to reduce taxes during production?
Transfer
A multinational company that is considering making a foreign direct investment is
concerned that the new country has an indirect tax in addition to corporate taxes. This
, would reduce the company's profit.
Which type of tax is of concern to this company?
Value-added
A multinational company produces a product in a country where the leaders are known for
occasional asset seizure. Which risk does the company need to mitigate?
Legal risks
A company is considering using a direct distribution strategy.
What is a disadvantage of this distribution strategy?
Required to arrange for transportation
A company in the United States is considering a joint venture with a French supplier and
needs to learn about the accounting standards used in France. How should the U.S.
company approach this situation?
Study the International Financial Reporting Standards (IFRS) online
Which term refers to the price paid by the buyer to the seller in a currency option
contract?
Premium
A car manufacturing company manufacturers tires in Countries A, B, and C. Country A
has significant political turmoil that has resulted in a lengthy labor strike. Countries B and
C have ramped up production resulting in sustained tire production for the company.
