WGU D080 MANAGING IN A GLOBAL BUSINESS
ENVIRONMENT UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. 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
Answer:
Cultural training
Question:
2. What happens to consumer surplus when tariffs and quotas are discontinued?
Answer:
They increase
Question:
3. Which type of tariff is put in place to specifically ensure that domestic industries are given an
advantage?
Answer:
Protective
Question:
4. What is a benefit of implementing a system of free trade?
Answer:
Reduced tariffs would result in lower costs of imported raw materials.
Question:
5. How are free trade agreements handled differently than treaties in the United States?
Answer:
Treaties must be approved by the Senate, whereas a free trade agreement must pass both houses of
Congress.
Question:
6. Treaties must be approved by the Senate, whereas a free trade agreement must pass both houses of
Congress.
Answer:
Tariffs
Question:
7. 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.
Answer:
Value chain
,Question:
8. 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?
Answer:
Trade surplus
Question:
9. 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?
Answer:
Government subsidies
Question:
10. 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?
Answer:
Opportunity
Question:
11. A country produces goods more efficiently than all other countries in the same industry. Which type of
advantage does this country have?
Answer:
Absolute
Question:
12. 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?
Answer:
Skill specialization
Question:
13. 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?
Answer:
Economies of scale
Question:
14. A country with a new economy implemented trade protectionism in relation to countries with more
developed economies. Why did the country take this action?
Answer:
To restrict international economic trade
,Question:
15. How do anti dumping laws protect a domestic market?
Answer:
They prevent foreign companies from selling goods and services at or below cost.
Question:
16. How do Congress and the Department of Agriculture use quotas to their advantage?
Answer:
To increase domestic prices to specific levels to make products profitable
Question:
17. Which strategy should a government use to offset the cost of manufacturing domestically?
Answer:
Subsidies
Question:
18. Which type of globalization refers to the international movement of goods, capital, and services?
Answer:
Economic
Question:
19. 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?
Answer:
Profitability
Question:
20. 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?
Answer:
Direct investment
Question:
21. 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?
Answer:
Cost
Question:
22. 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?
, Answer:
Infrastructure
Question:
23. Which argument is used by critics who wish to discourage movement towards globalization?
Answer:
It increases the wealth of the rich rather than the poor
Question:
24. Anarchism
Answer:
Individuals control political activities, and the government has no control over these activities
Question:
25. Totalitarianism
Answer:
A centralized government creates oppressive policies based on ideas from powerful leadership.
Question:
26. Direct democracy
Answer:
The government provides a method of voting for the people of a country, not for elected officials.
Question:
27. What is a free trade zone?
Answer:
A geographic region in which a county will reduce restrictions that might prevent or reduce trade
Question:
28. Which term describes a government giving a tax break to a producer to increase their global
competitiveness?
Answer:
Subsidies
Question:
29. Industrialized
Answer:
Prevalent formation of new markets with possibility of saturation
Question:
30. Less-developed
Answer:
Focus on agriculture and raw materials with limited imports
Question:
31. Developing country
ENVIRONMENT UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. 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
Answer:
Cultural training
Question:
2. What happens to consumer surplus when tariffs and quotas are discontinued?
Answer:
They increase
Question:
3. Which type of tariff is put in place to specifically ensure that domestic industries are given an
advantage?
Answer:
Protective
Question:
4. What is a benefit of implementing a system of free trade?
Answer:
Reduced tariffs would result in lower costs of imported raw materials.
Question:
5. How are free trade agreements handled differently than treaties in the United States?
Answer:
Treaties must be approved by the Senate, whereas a free trade agreement must pass both houses of
Congress.
Question:
6. Treaties must be approved by the Senate, whereas a free trade agreement must pass both houses of
Congress.
Answer:
Tariffs
Question:
7. 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.
Answer:
Value chain
,Question:
8. 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?
Answer:
Trade surplus
Question:
9. 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?
Answer:
Government subsidies
Question:
10. 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?
Answer:
Opportunity
Question:
11. A country produces goods more efficiently than all other countries in the same industry. Which type of
advantage does this country have?
Answer:
Absolute
Question:
12. 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?
Answer:
Skill specialization
Question:
13. 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?
Answer:
Economies of scale
Question:
14. A country with a new economy implemented trade protectionism in relation to countries with more
developed economies. Why did the country take this action?
Answer:
To restrict international economic trade
,Question:
15. How do anti dumping laws protect a domestic market?
Answer:
They prevent foreign companies from selling goods and services at or below cost.
Question:
16. How do Congress and the Department of Agriculture use quotas to their advantage?
Answer:
To increase domestic prices to specific levels to make products profitable
Question:
17. Which strategy should a government use to offset the cost of manufacturing domestically?
Answer:
Subsidies
Question:
18. Which type of globalization refers to the international movement of goods, capital, and services?
Answer:
Economic
Question:
19. 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?
Answer:
Profitability
Question:
20. 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?
Answer:
Direct investment
Question:
21. 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?
Answer:
Cost
Question:
22. 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?
, Answer:
Infrastructure
Question:
23. Which argument is used by critics who wish to discourage movement towards globalization?
Answer:
It increases the wealth of the rich rather than the poor
Question:
24. Anarchism
Answer:
Individuals control political activities, and the government has no control over these activities
Question:
25. Totalitarianism
Answer:
A centralized government creates oppressive policies based on ideas from powerful leadership.
Question:
26. Direct democracy
Answer:
The government provides a method of voting for the people of a country, not for elected officials.
Question:
27. What is a free trade zone?
Answer:
A geographic region in which a county will reduce restrictions that might prevent or reduce trade
Question:
28. Which term describes a government giving a tax break to a producer to increase their global
competitiveness?
Answer:
Subsidies
Question:
29. Industrialized
Answer:
Prevalent formation of new markets with possibility of saturation
Question:
30. Less-developed
Answer:
Focus on agriculture and raw materials with limited imports
Question:
31. Developing country
