WGU FVC1 Global Business Summary Quizzes and Valid
Answers.
How is global business positively affected by intercultural exchange?
a. It decreases the rate of change associated with industrial colonization.
b. It decreases complexity to improve commercial identities.
c. It increases the uniqueness of the national community.
d. It increases worldwide connections that support commodity trading. correct answers d. It
increases worldwide connections that support commodity trading.
CORRECT: The spreading of ideas, meanings, and values around the world enables and
enhances the commodity exchange process.
How does globalization support tolerance for different people and ideas?
a. By increasing the access to information
b. By enhancing global morality
c. By improving global wages
d. By strengthening protectionist tendencies correct answers a. By increasing the access to
information
CORRECT: Globalization increases access to others, which in turn, increases access to a
variety of information.
A business has recently started selling in a new global marketplace. Shortly after the
company made this global expansion, the new country opted to implement ad valorem tariffs.
How will this change affect the company?
a. It will levy a tax based on the value of goods imported, causing this company to export
less.
b. It will provide increased corporate tax breaks.
c. It will levy a fixed tax on the goods imported.
d. It will impose a value-added tax on corporate profits. correct answers a. It will levy a tax
based on the value of goods imported, causing this company to export less.
CORRECT: Ad valorem tariffs are taxes calculated as a percentage of the value of the goods
imported and are used to regulate imports and raise revenues for the government.
Which business component does the TRIPS agreement help protect for member nations?
a. Intellectual property protection for all member nations
b. Agreements between member nations to protect manufacturing patents.
c. Policies that member nations use to conduct business in other member nations
d. Standard transportation agreements between member nations correct answers a. Intellectual
property protection for all member nations
CORRECT: The TRIPS agreement incorporated intellectual property rights into the World
Trade Organization.
A business operating globally wants to increase its overall production efficiency. Which
strategy should the business use?
a. Maximize labor force
,b. Improve trade regulations
c. Focus on specialization
d. Enhance international relationships correct answers c. Focus on specialization
CORRECT: When a business adds technology to its process, it allows the business to
maximize economies of scale.
The German government has imposed a specific tariff on T-shirts imported from Cambodia.
How does this specific tariff affect the T-shirt producers in Germany?
a. It protects German T-shirt producers.
b. It does not have any impact on German T-shirt producers.
c. It will decrease German T-shirt producers' sales quantity.
d. It decreases German T-shirt producers' profit. correct answers a. It protects German T-shirt
producers.
CORRECT: The German T-shirt producers will benefit from the higher selling price of the
imported T-shirts caused by the tariff and will get more profit.
Countries A, B, and C have a trade agreement. Country C imposes high tariffs on all raw
materials imported from Country A, and Country B imposes a lower tariff on the same raw
materials imported from country A. What is the effect of this set of actions on these
countries?
a. Country A will do more business with Country B.
b. Country A will cease doing business with Countries B and C.
c. Country A will do the same amount of business with Country B and Country C.
d. Country A will do more business with Country C. correct answers a. Country A will do
more business with Country B.
CORRECT: Country A will do more business with Country B, due to the lower tax rate.
A multinational corporation (MNC) in a country with a strong labor union is seeking to move
its production facility overseas.
Which factor is a benefit of this action?
a. Decreasing labor costs
b. Moving away from regulatory issues related to operations
c. Overcoming competitive intensity in the industry
d. Identifying new markets overseas for new customers correct answers a. Decreasing labor
costs
CORRECT: Multinational corporations tend to save a lot in labor costs by moving operations
overseas. As they seek to lower costs by taking advantage of lower wages overseas, they have
better negotiation power with the unions in their home country.
What is enhanced when creating regional trade agreements?
a. Global trade integration
b. Economic opportunity
c. Labor restrictions
d. National cultural identity correct answers b. Economic opportunity
, CORRECT: Regional trade agreements create more opportunity for countries to trade with
one another by removing barriers to trade.
A firm based in Country A exports products to Country B. The currency in Country A is
stronger than the currency in Country B. Which strategy should the firm use to maximize
profits?
a. Increase the selling price of domestic sales
b. Reduce the selling price of foreign sales
c. Reduce domestic sales and increase its exports to Country B
d. Increase domestic sales and reduce its exports to Country B correct answers d. Increase
domestic sales and reduce its exports to Country B
CORRECT: The currency the firm is receiving from foreign sales is worth less than the
currency it receives from domestic sales, making it more profitable to sell domestically.
Which effect does a command economy have on the process of globalization?
a. The economy is self-sufficient, so the globalization process remains unaffected.
b. The government is less flexible, so the globalization process is challenged.
c. The government encourages a free market, so the globalization process is accelerated.
d. The economy is competitive, so the globalization process will be slowed. correct answers
b. The government is less flexible, so the globalization process is challenged.
CORRECT: A command economy results in a less flexible economy, so globalization is
challenged as the government regulates economic production.
A company is conducting a legal risk analysis for a country that has a civil law system.
Which statement accurately characterizes this legal system?
a. It relies on the opinions of those well-trained in law.
b. It is based on a detailed set of laws that form a code.
c. It is a moral, not a commercial, system.
d. It permits judges to interpret the law. correct answers b. It is based on a detailed set of laws
that form a code.
CORRECT: The civil legal system is based on a set of laws that form a code and it is based
on how the law is applied to the facts.
Which fact should a company note when it opens its operations in the state of Louisiana?
a. The state follows the canon law system.
b. The state has a mixed law system.
c. The state follows a customary law system.
d. The state follows a Talmudic law system. correct answers b. The state has a mixed law
system.
CORRECT: The state of Louisiana follows a mix of both the civil and common law system,
whereas the U.S. on the whole follows a common law system.
Which core principle of the World Trade Organization supports equality among member
nations and helps fight discrimination among them?
a. Most-favored-nation (MFN) status
b. Controlled tariffs
Answers.
How is global business positively affected by intercultural exchange?
a. It decreases the rate of change associated with industrial colonization.
b. It decreases complexity to improve commercial identities.
c. It increases the uniqueness of the national community.
d. It increases worldwide connections that support commodity trading. correct answers d. It
increases worldwide connections that support commodity trading.
CORRECT: The spreading of ideas, meanings, and values around the world enables and
enhances the commodity exchange process.
How does globalization support tolerance for different people and ideas?
a. By increasing the access to information
b. By enhancing global morality
c. By improving global wages
d. By strengthening protectionist tendencies correct answers a. By increasing the access to
information
CORRECT: Globalization increases access to others, which in turn, increases access to a
variety of information.
A business has recently started selling in a new global marketplace. Shortly after the
company made this global expansion, the new country opted to implement ad valorem tariffs.
How will this change affect the company?
a. It will levy a tax based on the value of goods imported, causing this company to export
less.
b. It will provide increased corporate tax breaks.
c. It will levy a fixed tax on the goods imported.
d. It will impose a value-added tax on corporate profits. correct answers a. It will levy a tax
based on the value of goods imported, causing this company to export less.
CORRECT: Ad valorem tariffs are taxes calculated as a percentage of the value of the goods
imported and are used to regulate imports and raise revenues for the government.
Which business component does the TRIPS agreement help protect for member nations?
a. Intellectual property protection for all member nations
b. Agreements between member nations to protect manufacturing patents.
c. Policies that member nations use to conduct business in other member nations
d. Standard transportation agreements between member nations correct answers a. Intellectual
property protection for all member nations
CORRECT: The TRIPS agreement incorporated intellectual property rights into the World
Trade Organization.
A business operating globally wants to increase its overall production efficiency. Which
strategy should the business use?
a. Maximize labor force
,b. Improve trade regulations
c. Focus on specialization
d. Enhance international relationships correct answers c. Focus on specialization
CORRECT: When a business adds technology to its process, it allows the business to
maximize economies of scale.
The German government has imposed a specific tariff on T-shirts imported from Cambodia.
How does this specific tariff affect the T-shirt producers in Germany?
a. It protects German T-shirt producers.
b. It does not have any impact on German T-shirt producers.
c. It will decrease German T-shirt producers' sales quantity.
d. It decreases German T-shirt producers' profit. correct answers a. It protects German T-shirt
producers.
CORRECT: The German T-shirt producers will benefit from the higher selling price of the
imported T-shirts caused by the tariff and will get more profit.
Countries A, B, and C have a trade agreement. Country C imposes high tariffs on all raw
materials imported from Country A, and Country B imposes a lower tariff on the same raw
materials imported from country A. What is the effect of this set of actions on these
countries?
a. Country A will do more business with Country B.
b. Country A will cease doing business with Countries B and C.
c. Country A will do the same amount of business with Country B and Country C.
d. Country A will do more business with Country C. correct answers a. Country A will do
more business with Country B.
CORRECT: Country A will do more business with Country B, due to the lower tax rate.
A multinational corporation (MNC) in a country with a strong labor union is seeking to move
its production facility overseas.
Which factor is a benefit of this action?
a. Decreasing labor costs
b. Moving away from regulatory issues related to operations
c. Overcoming competitive intensity in the industry
d. Identifying new markets overseas for new customers correct answers a. Decreasing labor
costs
CORRECT: Multinational corporations tend to save a lot in labor costs by moving operations
overseas. As they seek to lower costs by taking advantage of lower wages overseas, they have
better negotiation power with the unions in their home country.
What is enhanced when creating regional trade agreements?
a. Global trade integration
b. Economic opportunity
c. Labor restrictions
d. National cultural identity correct answers b. Economic opportunity
, CORRECT: Regional trade agreements create more opportunity for countries to trade with
one another by removing barriers to trade.
A firm based in Country A exports products to Country B. The currency in Country A is
stronger than the currency in Country B. Which strategy should the firm use to maximize
profits?
a. Increase the selling price of domestic sales
b. Reduce the selling price of foreign sales
c. Reduce domestic sales and increase its exports to Country B
d. Increase domestic sales and reduce its exports to Country B correct answers d. Increase
domestic sales and reduce its exports to Country B
CORRECT: The currency the firm is receiving from foreign sales is worth less than the
currency it receives from domestic sales, making it more profitable to sell domestically.
Which effect does a command economy have on the process of globalization?
a. The economy is self-sufficient, so the globalization process remains unaffected.
b. The government is less flexible, so the globalization process is challenged.
c. The government encourages a free market, so the globalization process is accelerated.
d. The economy is competitive, so the globalization process will be slowed. correct answers
b. The government is less flexible, so the globalization process is challenged.
CORRECT: A command economy results in a less flexible economy, so globalization is
challenged as the government regulates economic production.
A company is conducting a legal risk analysis for a country that has a civil law system.
Which statement accurately characterizes this legal system?
a. It relies on the opinions of those well-trained in law.
b. It is based on a detailed set of laws that form a code.
c. It is a moral, not a commercial, system.
d. It permits judges to interpret the law. correct answers b. It is based on a detailed set of laws
that form a code.
CORRECT: The civil legal system is based on a set of laws that form a code and it is based
on how the law is applied to the facts.
Which fact should a company note when it opens its operations in the state of Louisiana?
a. The state follows the canon law system.
b. The state has a mixed law system.
c. The state follows a customary law system.
d. The state follows a Talmudic law system. correct answers b. The state has a mixed law
system.
CORRECT: The state of Louisiana follows a mix of both the civil and common law system,
whereas the U.S. on the whole follows a common law system.
Which core principle of the World Trade Organization supports equality among member
nations and helps fight discrimination among them?
a. Most-favored-nation (MFN) status
b. Controlled tariffs
