WGU D080 MANAGING IN A
GLOBAL BUSINESS
ENVIRONMENT
What is a potential influence of the existence of multinational
corporation (MNC) on international relations?
An MNC improves relations between countries, as they need to
cooperate to trade.
How are MNCs and TNCs different?
A multinational corporation (MNC) differs slightly from a
transnational corporation (TNC) because while MNCs are
traditionally national companies with foreign subsidiaries, a TNC
does not identify itself with one national home.
How does the existence of a multinational corporation (MNC)
affect a country's engagement in political conflict?
Countries do not like to go to war with a country in which they are
doing business. The existence of an MNC could influence the country
to not go to war with the home country of the MNC.
What is an accurate characterization of the relationships between
multinational corporations (MNCs) and the host country
governments in which they operate?
The relationships are mixed because MNCs can cause, but also solve,
problems for the host country.
Which level of economic integration presents an alliance of all
policies by a common organization?
,A political union is defined as when a single nation is formed and a
mutual organization confederates all policies.
Which level of economic integration is formed when trade
barriers are removed between member countries but there is no
mutual policy on trading with nonmember countries?
The free trade area allows basic economic cooperation so member
countries remove barriers to trade among themselves.
Which level of economic integration permits the formation of
economically integrated exchanges of goods and services between
parties from member countries?
The common market permits the formation of economically
integrated markets between member countries, removing trade
barriers and any restrictions on the movement of labor, technology,
and capital.
Which economic integration stage offers economic collaboration
by removing trade barriers between member countries and
establishing a mutual trading policy with nonmembers?
A customs union offers economic collaboration by removing trade
barriers between member countries and establishing a mutual trading
policy with nonmembers.
Describe the four derivative currency instruments used to hedge
against currency risk.
- Currency swap contracts are coordinated transactions with a
simultaneous buy and sell of a currency for two different dates.
- Currency option contracts are the option or the right—but not the
obligation—to exchange a specific amount of currency on a specific
future date and at a specific agreed-on rate.
- Currency futures contracts are contracts that require the exchange of
a specific amount of currency at a specific future date and at a specific
,exchange rate.
- internal forward rate is a company-generated forecast of future spot
exchange rates.
- Companies use additional strategies to make money in the exchange
markets by taking either a long position or a short position on an
asset. Essentially, taking a long position is purchasing an asset and
forecasting that the value is going to increase. Taking a short position
is looking for the value of an asset to go down.
List the costs of regional economic integration.
- The other side to trade creation is trade diversion.
- Countries may move production to cheaper labor markets in member
countries.
- With each new round of discussions and agreements within a
regional bloc, nations may find that they have to give up more of their
political and economic rights.
- An economic bloc may impose greater external trade blocs to keep
all trading internal to the bloc.
- Countries may see a dilution of their national cultural identity.
- Regional integration may encourage mergers and acquisitions within
the block to create large rivals.
What is the purpose of OPIC?
It helps U.S. businesses invest overseas, particularly in developing
countries. It provides debt financing, political risk insurance, and
support for private equity funds
How did NAFTA make trade easier among the US, Canada, and
Mexico?
The pact removed a web of Mexican licensing requirements, quotas,
and tariffs that limited transactions in U.S. goods and services
What was the result of NAFTA?
, When the treaty went into effect, tariffs on about half the items traded
across the Rio Grande disappeared. Since NAFTA came into effect,
U.S.-Mexican trade has increased from $80 billion to $515 billion
annually. As international trade increases, it contributes to shift jobs
away from industries where that economy does not have a
comparative advantage and toward industries where it does have a
comparative advantage.
Which countries have cultures where people have stronger bonds
to their groups and group membership forms a person's self-
identity, according to Hofstede?
Guatemala
Ecuador
Indonesia
Pakistan
China
What was the purpose of China's Belt and Road Initiative?
Six proposed corridors will connect 152 countries and international
organizations in Asia, Europe, the Middle East, and the Americas.
President Xi said that China's Belt and Road Initiative will serve as a
platform for international cooperation but will require that all
"involved parties embrace the principle of extensive consultation,
joint contribution, and shared benefits."
Attached is my OA score so you can tell in what areas my quizlet
might be lacking
Note for users
Because people asked: time to completion from starting class to
OA was 4 days. I only watched a couple of the embedded videos if
they looked interesting or helpful. I didn't read any of the
external linked documents. I filled out the study guide as I went
along and did all the embedded/unit quizzes. Then spent a few
GLOBAL BUSINESS
ENVIRONMENT
What is a potential influence of the existence of multinational
corporation (MNC) on international relations?
An MNC improves relations between countries, as they need to
cooperate to trade.
How are MNCs and TNCs different?
A multinational corporation (MNC) differs slightly from a
transnational corporation (TNC) because while MNCs are
traditionally national companies with foreign subsidiaries, a TNC
does not identify itself with one national home.
How does the existence of a multinational corporation (MNC)
affect a country's engagement in political conflict?
Countries do not like to go to war with a country in which they are
doing business. The existence of an MNC could influence the country
to not go to war with the home country of the MNC.
What is an accurate characterization of the relationships between
multinational corporations (MNCs) and the host country
governments in which they operate?
The relationships are mixed because MNCs can cause, but also solve,
problems for the host country.
Which level of economic integration presents an alliance of all
policies by a common organization?
,A political union is defined as when a single nation is formed and a
mutual organization confederates all policies.
Which level of economic integration is formed when trade
barriers are removed between member countries but there is no
mutual policy on trading with nonmember countries?
The free trade area allows basic economic cooperation so member
countries remove barriers to trade among themselves.
Which level of economic integration permits the formation of
economically integrated exchanges of goods and services between
parties from member countries?
The common market permits the formation of economically
integrated markets between member countries, removing trade
barriers and any restrictions on the movement of labor, technology,
and capital.
Which economic integration stage offers economic collaboration
by removing trade barriers between member countries and
establishing a mutual trading policy with nonmembers?
A customs union offers economic collaboration by removing trade
barriers between member countries and establishing a mutual trading
policy with nonmembers.
Describe the four derivative currency instruments used to hedge
against currency risk.
- Currency swap contracts are coordinated transactions with a
simultaneous buy and sell of a currency for two different dates.
- Currency option contracts are the option or the right—but not the
obligation—to exchange a specific amount of currency on a specific
future date and at a specific agreed-on rate.
- Currency futures contracts are contracts that require the exchange of
a specific amount of currency at a specific future date and at a specific
,exchange rate.
- internal forward rate is a company-generated forecast of future spot
exchange rates.
- Companies use additional strategies to make money in the exchange
markets by taking either a long position or a short position on an
asset. Essentially, taking a long position is purchasing an asset and
forecasting that the value is going to increase. Taking a short position
is looking for the value of an asset to go down.
List the costs of regional economic integration.
- The other side to trade creation is trade diversion.
- Countries may move production to cheaper labor markets in member
countries.
- With each new round of discussions and agreements within a
regional bloc, nations may find that they have to give up more of their
political and economic rights.
- An economic bloc may impose greater external trade blocs to keep
all trading internal to the bloc.
- Countries may see a dilution of their national cultural identity.
- Regional integration may encourage mergers and acquisitions within
the block to create large rivals.
What is the purpose of OPIC?
It helps U.S. businesses invest overseas, particularly in developing
countries. It provides debt financing, political risk insurance, and
support for private equity funds
How did NAFTA make trade easier among the US, Canada, and
Mexico?
The pact removed a web of Mexican licensing requirements, quotas,
and tariffs that limited transactions in U.S. goods and services
What was the result of NAFTA?
, When the treaty went into effect, tariffs on about half the items traded
across the Rio Grande disappeared. Since NAFTA came into effect,
U.S.-Mexican trade has increased from $80 billion to $515 billion
annually. As international trade increases, it contributes to shift jobs
away from industries where that economy does not have a
comparative advantage and toward industries where it does have a
comparative advantage.
Which countries have cultures where people have stronger bonds
to their groups and group membership forms a person's self-
identity, according to Hofstede?
Guatemala
Ecuador
Indonesia
Pakistan
China
What was the purpose of China's Belt and Road Initiative?
Six proposed corridors will connect 152 countries and international
organizations in Asia, Europe, the Middle East, and the Americas.
President Xi said that China's Belt and Road Initiative will serve as a
platform for international cooperation but will require that all
"involved parties embrace the principle of extensive consultation,
joint contribution, and shared benefits."
Attached is my OA score so you can tell in what areas my quizlet
might be lacking
Note for users
Because people asked: time to completion from starting class to
OA was 4 days. I only watched a couple of the embedded videos if
they looked interesting or helpful. I didn't read any of the
external linked documents. I filled out the study guide as I went
along and did all the embedded/unit quizzes. Then spent a few
