WGU D080 Managing in a Global Business
Environment Exam Questions With Correct
Answers
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 |are |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 |materials.
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 |
agreement |must |pass |both |houses |of |Congress.
,Treaties |must |be |approved |by |the |Senate, |whereas |a |free |trade |agreement |must |pass |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 |assembly. |- |CORRECT |
ANSWER✔✔-Value |chain
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? |- |CORRECT |ANSWER✔✔-Trade |
surplus
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 |sell |corn |on |the |international |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 |industry.
Which |type |of |advantage |does |this |country |have? |- |CORRECT |ANSWER✔✔-Absolute
Country |A |exports |farming |equipment |to |Country |B, |while |Country |B |exports |car |
manufacturing |equipment |to |Country |A. |Both |countries |are |highly |developed |and |could |
,develop |these |industries |separately |but |instead |made |the |decision |to |export |and |import |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 |manufacturing |
cost |of |the |product |to |become |cheaper |and |more |competitive |in |international |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 |countries |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 |
profitable
Which |strategy |should |a |government |use |to |offset |the |cost |of |manufacturing |domestically? |- |
CORRECT |ANSWER✔✔-Subsidies
Which |type |of |globalization |refers |to |the |international |movement |of |goods, |capital, |and |
services? |- |CORRECT |ANSWER✔✔-Economic
, The |CEO |of |an |international |company |reminds |the |executive |vice |presidents |that |while |the |
company |may |do |good |while |performing |corporate |social |responsibilities, |the |business |has |
one |ultimate |goal |since |it |is |engaged |in |commercial |activities |with |corporate |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 |production |
capability |in |another |country, |including |the |foreign |country's |buildings |and |equipment.
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 |increase |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 |dairy |line |in |
a |country |that |can |offer |low |labor |costs |and |good |internet |connections. |The |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 |globalization? |- |
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 |control |over |these |activities
Totalitarianism |- |CORRECT |ANSWER✔✔-A |centralized |government |creates |oppressive |policies |
based |on |ideas |from |powerful |leadership.
Environment Exam Questions With Correct
Answers
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 |are |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 |materials.
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 |
agreement |must |pass |both |houses |of |Congress.
,Treaties |must |be |approved |by |the |Senate, |whereas |a |free |trade |agreement |must |pass |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 |assembly. |- |CORRECT |
ANSWER✔✔-Value |chain
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? |- |CORRECT |ANSWER✔✔-Trade |
surplus
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 |sell |corn |on |the |international |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 |industry.
Which |type |of |advantage |does |this |country |have? |- |CORRECT |ANSWER✔✔-Absolute
Country |A |exports |farming |equipment |to |Country |B, |while |Country |B |exports |car |
manufacturing |equipment |to |Country |A. |Both |countries |are |highly |developed |and |could |
,develop |these |industries |separately |but |instead |made |the |decision |to |export |and |import |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 |manufacturing |
cost |of |the |product |to |become |cheaper |and |more |competitive |in |international |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 |countries |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 |
profitable
Which |strategy |should |a |government |use |to |offset |the |cost |of |manufacturing |domestically? |- |
CORRECT |ANSWER✔✔-Subsidies
Which |type |of |globalization |refers |to |the |international |movement |of |goods, |capital, |and |
services? |- |CORRECT |ANSWER✔✔-Economic
, The |CEO |of |an |international |company |reminds |the |executive |vice |presidents |that |while |the |
company |may |do |good |while |performing |corporate |social |responsibilities, |the |business |has |
one |ultimate |goal |since |it |is |engaged |in |commercial |activities |with |corporate |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 |production |
capability |in |another |country, |including |the |foreign |country's |buildings |and |equipment.
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 |increase |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 |dairy |line |in |
a |country |that |can |offer |low |labor |costs |and |good |internet |connections. |The |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 |globalization? |- |
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 |control |over |these |activities
Totalitarianism |- |CORRECT |ANSWER✔✔-A |centralized |government |creates |oppressive |policies |
based |on |ideas |from |powerful |leadership.
