WGU D080 END OF COURSE EXAM QUESTIONS AND
ANSWERS RATED A+
✔✔The price for ethanol consumers in the United States is higher than world free-
market price because of the $0.54 per gallon tariff imposed by the U.S. government on
ethanol imports. This is an example of a(n)______tariff. - ✔✔specific
✔✔The U.S. Department of Agriculture has been using quota on sugar imported from
foreign countries. The direct result of such quota in the U.S. market is__________. -
✔✔Decreased competition among producers in the U.S. sugar market
✔✔The Greek government has decided to impose a tariff on cigars imported from Cuba.
What is the direct impact of such trade policy? - ✔✔Increased market price of cigars in
Greece
✔✔A Japanese company has purchased a German company with the intent of
controlling and managing the German company's assets and decision making process.
Which practice is used by this Japanese company? - ✔✔Foreign direct investment
✔✔Which of the following is a strategy used by governments to encourage the foreign
direct investment in this country? - ✔✔Provide more education opportunities and job
trainings to the workforce.
✔✔A Chinese company would like to operate in Indonesia but is required to purchase
75% of the ingredients directly from Indonesian suppliers. This is_____________ used
by the Indonesian government to restrict FDI. * - ✔✔Specific product content
requirement strategy
✔✔Amazon is a U.S. based company. In recently years, Amazon has gradually
established Amazon Japan, Amazon China, Amazon UK, etc. This is an example
of_________. - ✔✔Horizontal FDI
✔✔Netflix used to only provide movie rental service to customers. In recent years,
Netflix has started to collaborate with foreign TV show producers and started to make
Netflix original shows. This represents Netflix's effort in making a___________. -
✔✔Backward vertical FDI
✔✔Which of the following is a reason for a government to promote FDI? - ✔✔The inflow
of capital benefits the host country's economic development
✔✔Mercosur is an example of ______stage of economic integration that removes all
trade barriers and allow member nations to use same external trade policies -
✔✔Custom union
, ✔✔A German engineer plans to move to France and start working there for 2 months.
He only needs to hold a valid identity card or passport to move to France. This is due
to_____________. - ✔✔EU has the feature of common market stage of economic
integration
✔✔Which drawback is involved when regional agreements are created? - ✔✔Member
countries will trade less with nonmember countries.
✔✔What is a benefit of creating a regional economic integration agreement? -
✔✔Accelerated economic growth
✔✔Which agreement was signed in 1994 and aims at removing trade barriers between
Canada, the United States, and Mexico? - ✔✔NAFTA
✔✔Which agreement was formalized in 1993 to create an economic union to help
member countries form unified economic policies? - ✔✔EU
✔✔A French tourist expects to have a 5 day vacation in Florida. Which of the following
would he prefer before going to Florida? - ✔✔The U.S. dollar is weak relative to Euro
✔✔A country's government allows its currency value to fluctuate within a certain range
but would manage the currency value once the fluctuation exceeds the range. This
country has been practicing___________. - ✔✔A pegged floating exchange rate system
✔✔Which of the following is not a supplier of US dollars? - ✔✔European investors who
want to purchase bonds in the US bond market
✔✔A production facility employs over 200 workers who are under the age of 18. One
worker describes unsafe working conditions and abusive supervisors. Which labor
convention is being violated by the employer? - ✔✔Worst Forms of Child Labour
✔✔What is the reason to include a choice of law clause in the contract? - ✔✔It specifies
which law applies to any disputes that could arise under the contract.
✔✔A US company and a Canadian company engage in a contract and decide to use
US contract law. What does Article 2 of the Uniform Commercial Code (UCC) govern? -
✔✔The performance of sales contracts.
✔✔Which factor contributes to the creation of a monopoly? - ✔✔Control of exclusive
right.
ANSWERS RATED A+
✔✔The price for ethanol consumers in the United States is higher than world free-
market price because of the $0.54 per gallon tariff imposed by the U.S. government on
ethanol imports. This is an example of a(n)______tariff. - ✔✔specific
✔✔The U.S. Department of Agriculture has been using quota on sugar imported from
foreign countries. The direct result of such quota in the U.S. market is__________. -
✔✔Decreased competition among producers in the U.S. sugar market
✔✔The Greek government has decided to impose a tariff on cigars imported from Cuba.
What is the direct impact of such trade policy? - ✔✔Increased market price of cigars in
Greece
✔✔A Japanese company has purchased a German company with the intent of
controlling and managing the German company's assets and decision making process.
Which practice is used by this Japanese company? - ✔✔Foreign direct investment
✔✔Which of the following is a strategy used by governments to encourage the foreign
direct investment in this country? - ✔✔Provide more education opportunities and job
trainings to the workforce.
✔✔A Chinese company would like to operate in Indonesia but is required to purchase
75% of the ingredients directly from Indonesian suppliers. This is_____________ used
by the Indonesian government to restrict FDI. * - ✔✔Specific product content
requirement strategy
✔✔Amazon is a U.S. based company. In recently years, Amazon has gradually
established Amazon Japan, Amazon China, Amazon UK, etc. This is an example
of_________. - ✔✔Horizontal FDI
✔✔Netflix used to only provide movie rental service to customers. In recent years,
Netflix has started to collaborate with foreign TV show producers and started to make
Netflix original shows. This represents Netflix's effort in making a___________. -
✔✔Backward vertical FDI
✔✔Which of the following is a reason for a government to promote FDI? - ✔✔The inflow
of capital benefits the host country's economic development
✔✔Mercosur is an example of ______stage of economic integration that removes all
trade barriers and allow member nations to use same external trade policies -
✔✔Custom union
, ✔✔A German engineer plans to move to France and start working there for 2 months.
He only needs to hold a valid identity card or passport to move to France. This is due
to_____________. - ✔✔EU has the feature of common market stage of economic
integration
✔✔Which drawback is involved when regional agreements are created? - ✔✔Member
countries will trade less with nonmember countries.
✔✔What is a benefit of creating a regional economic integration agreement? -
✔✔Accelerated economic growth
✔✔Which agreement was signed in 1994 and aims at removing trade barriers between
Canada, the United States, and Mexico? - ✔✔NAFTA
✔✔Which agreement was formalized in 1993 to create an economic union to help
member countries form unified economic policies? - ✔✔EU
✔✔A French tourist expects to have a 5 day vacation in Florida. Which of the following
would he prefer before going to Florida? - ✔✔The U.S. dollar is weak relative to Euro
✔✔A country's government allows its currency value to fluctuate within a certain range
but would manage the currency value once the fluctuation exceeds the range. This
country has been practicing___________. - ✔✔A pegged floating exchange rate system
✔✔Which of the following is not a supplier of US dollars? - ✔✔European investors who
want to purchase bonds in the US bond market
✔✔A production facility employs over 200 workers who are under the age of 18. One
worker describes unsafe working conditions and abusive supervisors. Which labor
convention is being violated by the employer? - ✔✔Worst Forms of Child Labour
✔✔What is the reason to include a choice of law clause in the contract? - ✔✔It specifies
which law applies to any disputes that could arise under the contract.
✔✔A US company and a Canadian company engage in a contract and decide to use
US contract law. What does Article 2 of the Uniform Commercial Code (UCC) govern? -
✔✔The performance of sales contracts.
✔✔Which factor contributes to the creation of a monopoly? - ✔✔Control of exclusive
right.
