WGU D080 Managing in a Global Business
Environment Questions with Verified 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
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
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
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?
Environment Questions with Verified 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
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
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
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?
