D080 MANAGING IN A GLOBAL BUSINESS ENVIRONMENT
UNIT TESTS
1. How is global business positively affected by intercultural exchange?- Answers - It
increases worldwide connections that support commodity trading.
2. How does globalization support tolerance for different people and ideas?- Answers -
By increasing the access to information
3. 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?- Answers - It will levy a tax
based on the value of goods imported, causing this company to export less.
4. Which business component does the TRIPS agreement help protect for mem- ber
nations?- Answers - Intellectual property protection for all member nations
5. A business operating globally wants to increase its overall production efficien- cy.
Which strategy should the business use?- Answers - Focus on Specialization
6. 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?-
Answers - It protects German T-shirt producers.
7. 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?- Answers - Country A will do more business with Country B.
8. 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?- Answers - Decreasing labor costs
9. What is enhanced when creating regional trade agreements?- Answers - Economic
, opportunity
10. 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?- Answers - Increase domestic sales and reduce its exports to Country B
11. Which effect does a command economy have on the process of globaliza- tion?-
Answers - The government is less flexible, so the globalization process is challenged.
12. A company is conducting a legal risk analysis for a country that has a civil law system.
Which statement accurately characterizes this legal system?- Answers - It is based on
a detailed set of laws that form a code.
, 13. Which fact should a company note when it opens its operations in the state of
Louisiana?- Answers - The state has a mixed law system.
14. Which core principle of the World Trade Organization supports equality among
member nations and helps fight discrimination among them?- Answers - Most-fa-
vored-nation (MFN) status
15. What is true regarding free trade?- Answers - Free trade leads to specialization of each country and
increases production eflciency.
16. Countries A and B participate in trade agreements that allow free trade among
participant countries. However, Country A imposed quotas on several imported
products to protect its domestic products.
What is the effect, if any, on the domestic prices of these products?- Answers - Increases
17. How do governments help companies offset the cost of manufacturing
domestically?- Answers - Subsidies
18. What would a mercantilist value the most?- Answers - A trade surplus
19. A multinational corporation has manufacturing facilities in many Asian coun- tries due
to cheaper labor. Which strategy is the corporation using?- Answers - Acquisition of
resources
20. A firm in Country A exports products to Country B. The currency in Country B is
strong relative to the currency in Country A. What does this mean for the firm?-
Answers - More valuable export sales
21. A cruise ship employs over 200 workers over the course of 18 years. One worker
describes terrible living conditions and the limited amount of food that employees are
given to eat. Which labor convention is being violated by the employer?- Answers - The
Maritime Labour
22. What does Article 2 of the Uniform Commercial Code (UCC) govern?- Answers - The
required
conduct of both parties in accordance with the contract
UNIT TESTS
1. How is global business positively affected by intercultural exchange?- Answers - It
increases worldwide connections that support commodity trading.
2. How does globalization support tolerance for different people and ideas?- Answers -
By increasing the access to information
3. 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?- Answers - It will levy a tax
based on the value of goods imported, causing this company to export less.
4. Which business component does the TRIPS agreement help protect for mem- ber
nations?- Answers - Intellectual property protection for all member nations
5. A business operating globally wants to increase its overall production efficien- cy.
Which strategy should the business use?- Answers - Focus on Specialization
6. 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?-
Answers - It protects German T-shirt producers.
7. 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?- Answers - Country A will do more business with Country B.
8. 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?- Answers - Decreasing labor costs
9. What is enhanced when creating regional trade agreements?- Answers - Economic
, opportunity
10. 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?- Answers - Increase domestic sales and reduce its exports to Country B
11. Which effect does a command economy have on the process of globaliza- tion?-
Answers - The government is less flexible, so the globalization process is challenged.
12. A company is conducting a legal risk analysis for a country that has a civil law system.
Which statement accurately characterizes this legal system?- Answers - It is based on
a detailed set of laws that form a code.
, 13. Which fact should a company note when it opens its operations in the state of
Louisiana?- Answers - The state has a mixed law system.
14. Which core principle of the World Trade Organization supports equality among
member nations and helps fight discrimination among them?- Answers - Most-fa-
vored-nation (MFN) status
15. What is true regarding free trade?- Answers - Free trade leads to specialization of each country and
increases production eflciency.
16. Countries A and B participate in trade agreements that allow free trade among
participant countries. However, Country A imposed quotas on several imported
products to protect its domestic products.
What is the effect, if any, on the domestic prices of these products?- Answers - Increases
17. How do governments help companies offset the cost of manufacturing
domestically?- Answers - Subsidies
18. What would a mercantilist value the most?- Answers - A trade surplus
19. A multinational corporation has manufacturing facilities in many Asian coun- tries due
to cheaper labor. Which strategy is the corporation using?- Answers - Acquisition of
resources
20. A firm in Country A exports products to Country B. The currency in Country B is
strong relative to the currency in Country A. What does this mean for the firm?-
Answers - More valuable export sales
21. A cruise ship employs over 200 workers over the course of 18 years. One worker
describes terrible living conditions and the limited amount of food that employees are
given to eat. Which labor convention is being violated by the employer?- Answers - The
Maritime Labour
22. What does Article 2 of the Uniform Commercial Code (UCC) govern?- Answers - The
required
conduct of both parties in accordance with the contract
