2
WGU D080 Managing in a Global Business Environment
|| || || || || || ||
Exam with precise detailed 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 - ✔✔Cultural training || || || ||
What happens to consumer surplus when tariffs and quotas are discontinued? - ✔✔They
|| || || || || || || || || || || || ||
increase
Which type of tariff is put in place to specifically ensure that domestic industries are given
|| || || || || || || || || || || || || || || ||
an advantage? - ✔✔Protective
|| || ||
What is a benefit of implementing a system of free trade? - ✔✔Reduced tariffs would result
|| || || || || || || || || || || || || || || ||
in lower costs of imported raw materials.
|| || || || || ||
How are free trade agreements handled differently than treaties in the United States? -
|| || || || || || || || || || || || || ||
✔✔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. - ✔✔Tariffs || || || ||
,2
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. -
|| || || || || || || || || || || || || ||
✔✔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? - ✔✔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? - ✔✔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? - ✔✔Opportunity
|| || || || || || || || || || || || || ||
A country produces goods more efficiently than all other countries in the same industry.
|| || || || || || || || || || || || ||
Which type of advantage does this country have? - ✔✔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? - ✔✔Skill
|| || || || || || || || || || || ||
specialization
,2
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? - ✔✔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? - ✔✔To restrict international economic trade
|| || || || || || || || || || || ||
How do anti dumping laws protect a domestic market? - ✔✔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? -
|| || || || || || || || || || || || || ||
✔✔To increase domestic prices to specific levels to make products profitable
|| || || || || || || || || ||
Which strategy should a government use to offset the cost of manufacturing domestically? -
|| || || || || || || || || || || || || ||
✔✔Subsidies
Which type of globalization refers to the international movement of goods, capital, and
|| || || || || || || || || || || || ||
services? - ✔✔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? -
|| || || || || || || || || || || || ||
✔✔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.
|| || || || || || || || || ||
, 2
Which type of market entry is the CEO using? - ✔✔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? - ✔✔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? -
|| || || || || || || || || || || ||
✔✔Infrastructure
Which argument is used by critics who wish to discourage movement towards
|| || || || || || || || || || || ||
globalization? - ✔✔It increases the wealth of the rich rather than the poor || || || || || || || || || || || ||
Anarchism - ✔✔Individuals control political activities, and the government has no control
|| || || || || || || || || || || ||
over these activities|| ||
Totalitarianism - ✔✔A centralized government creates oppressive policies based on ideas || || || || || || || || || || ||
from powerful leadership. || ||
Direct democracy - ✔✔The government provides a method of voting for the people of a
|| || || || || || || || || || || || || || ||
country, not for elected officials. || || || ||
What is a free trade zone? - ✔✔A geographic region in which a county will reduce
|| || || || || || || || || || || || || || || ||
restrictions that might prevent or reduce trade || || || || || ||
Which term describes a government giving a tax break to a producer to increase their global
|| || || || || || || || || || || || || || || ||
competitiveness? - ✔✔Subsidies || ||
WGU D080 Managing in a Global Business Environment
|| || || || || || ||
Exam with precise detailed 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 - ✔✔Cultural training || || || ||
What happens to consumer surplus when tariffs and quotas are discontinued? - ✔✔They
|| || || || || || || || || || || || ||
increase
Which type of tariff is put in place to specifically ensure that domestic industries are given
|| || || || || || || || || || || || || || || ||
an advantage? - ✔✔Protective
|| || ||
What is a benefit of implementing a system of free trade? - ✔✔Reduced tariffs would result
|| || || || || || || || || || || || || || || ||
in lower costs of imported raw materials.
|| || || || || ||
How are free trade agreements handled differently than treaties in the United States? -
|| || || || || || || || || || || || || ||
✔✔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. - ✔✔Tariffs || || || ||
,2
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. -
|| || || || || || || || || || || || || ||
✔✔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? - ✔✔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? - ✔✔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? - ✔✔Opportunity
|| || || || || || || || || || || || || ||
A country produces goods more efficiently than all other countries in the same industry.
|| || || || || || || || || || || || ||
Which type of advantage does this country have? - ✔✔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? - ✔✔Skill
|| || || || || || || || || || || ||
specialization
,2
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? - ✔✔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? - ✔✔To restrict international economic trade
|| || || || || || || || || || || ||
How do anti dumping laws protect a domestic market? - ✔✔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? -
|| || || || || || || || || || || || || ||
✔✔To increase domestic prices to specific levels to make products profitable
|| || || || || || || || || ||
Which strategy should a government use to offset the cost of manufacturing domestically? -
|| || || || || || || || || || || || || ||
✔✔Subsidies
Which type of globalization refers to the international movement of goods, capital, and
|| || || || || || || || || || || || ||
services? - ✔✔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? -
|| || || || || || || || || || || || ||
✔✔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.
|| || || || || || || || || ||
, 2
Which type of market entry is the CEO using? - ✔✔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? - ✔✔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? -
|| || || || || || || || || || || ||
✔✔Infrastructure
Which argument is used by critics who wish to discourage movement towards
|| || || || || || || || || || || ||
globalization? - ✔✔It increases the wealth of the rich rather than the poor || || || || || || || || || || || ||
Anarchism - ✔✔Individuals control political activities, and the government has no control
|| || || || || || || || || || || ||
over these activities|| ||
Totalitarianism - ✔✔A centralized government creates oppressive policies based on ideas || || || || || || || || || || ||
from powerful leadership. || ||
Direct democracy - ✔✔The government provides a method of voting for the people of a
|| || || || || || || || || || || || || || ||
country, not for elected officials. || || || ||
What is a free trade zone? - ✔✔A geographic region in which a county will reduce
|| || || || || || || || || || || || || || || ||
restrictions that might prevent or reduce trade || || || || || ||
Which term describes a government giving a tax break to a producer to increase their global
|| || || || || || || || || || || || || || || ||
competitiveness? - ✔✔Subsidies || ||
