WGU D080 Managing in a Global Business Environment
Study online at https://quizlet.com/_8fbpmr
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: Cultural training
2. What happens to consumer surplus when tariffs and quotas are discontin-
ued?: They increase
3. Which type of tariff is put in place to specifically ensure that domestic
industries are given an advantage?: Protective
4. What is a benefit of implementing a system of free trade?: Reduced tariffs would
result in lower costs of imported raw materials.
5. 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.
6. Treaties must be approved by the Senate, whereas a free trade agreement
must pass both houses of Congress.: Tariffs
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.: Value chain
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?: Trade surplus
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?: Government
subsidies
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,
, WGU D080 Managing in a Global Business Environment
Study online at https://quizlet.com/_8fbpmr
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
11. A country produces goods more efficiently than all other countries in the
same industry.
Which type of advantage does this country have?: Absolute
12. Country A exports farming equipment to Country B, while Country B ex-
ports 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
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?: Economies of scale
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?: To restrict international economic trade
15. How do anti dumping laws protect a domestic market?: They prevent foreign
companies from selling goods and services at or below cost.
16. How do Congress and the Department of Agriculture use quotas to their
advantage?: To increase domestic prices to specific levels to make products profitable
17. Which strategy should a government use to offset the cost of manufactur-
ing domestically?: Subsidies
18. Which type of globalization refers to the international movement of goods,
capital, and services?: Economic
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?-
: Profitability
, WGU D080 Managing in a Global Business Environment
Study online at https://quizlet.com/_8fbpmr
20. A CEO decides to expand the company's business internationally by pur-
chasing production capability in another country, including the foreign coun-
try's buildings and equipment.
Which type of market entry is the CEO using?: Direct investment
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?: Cost
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?: Infrastructure
23. Which argument is used by critics who wish to discourage movement
towards globalization?: It increases the wealth of the rich rather than the poor
24. Anarchism: Individuals control political activities, and the government has no control over these activities
25. Totalitarianism: A centralized government creates oppressive policies based on ideas from powerful
leadership.
26. Direct democracy: The government provides a method of voting for the people of a country, not for
elected officials.
27. What is a free trade zone?: A geographic region in which a county will reduce restrictions that might
prevent or reduce trade
28. Which term describes a government giving a tax break to a producer to
increase their global competitiveness?: Subsidies
29. Industrialized: Prevalent formation of new markets with possibility of saturation
30. Less-developed: Focus on agriculture and raw materials with limited imports
31. Developing country: Growing population which leads to long-term growth potential.
32. Which type of economy is decentralized and allows firms and households to
participate in global trade with minimum governmental interference?: Market
33. What type of economy is centered on families or tribes where little to no
global trade is practiced?: Traditional
34. Socialism: a system in which the government owns and operates a country's means of production
, WGU D080 Managing in a Global Business Environment
Study online at https://quizlet.com/_8fbpmr
35. Capitalism: A system in which the means of production is controlled by private owners who can choose to
participate in global trade.
36. Communism: A system in which all property is publicly owned and the government controls global trade.
37. Which type of law system is based on a code and focuses on how the law is
applied to the facts?: Civil
38. Which law is based on tradition and precedent given that judicial rulings
can stand as precedents for future cases?: Common
39. Which law system can vary from community to community and is found in
countries without strong formal justice systems?: Customary
40. In which law system does a judge decide the applicable law for the case as
a jury determines the facts?: Common
41. Which activity of the International Monetary Fund (IMF) impacts policy
making?: Being owned and directed by the governments of the member nations
42. What is a characteristic of the International Monetary Fund (IMF)?: The IMF is
a cooperative institution and provides more effective currency exchange.
43. What was the initial purpose of the International Monetary Fund (IMF) in
phase one, prior to 1973?: Regulated currency exchange between nations
44. How does the International Monetary Fund (IMF) impact international or-
ganizations and governments?: It reduces funding for social programs.
45. What is a common name for the International Bank for Reconstruction and
Development?: World Bank
46. What was the first loan that the World Bank made after the end of World
War II?: To France to rebuild its infrastructure
47. Which criticism is associated with the World Bank?: The developed countries of U.S. and
Europe have too much control over its decisions.
48. Which criticism is made about the World Bank?: It does not consider how funding projects
will affect the environment.
49. What was one of the results of the Uruguay Round of the World Trade
Organization negotiations?: Decrease in tariffs
50. Which organization was formed after World War II to encourage interna-
tional commerce?: World Trade Organization
Study online at https://quizlet.com/_8fbpmr
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: Cultural training
2. What happens to consumer surplus when tariffs and quotas are discontin-
ued?: They increase
3. Which type of tariff is put in place to specifically ensure that domestic
industries are given an advantage?: Protective
4. What is a benefit of implementing a system of free trade?: Reduced tariffs would
result in lower costs of imported raw materials.
5. 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.
6. Treaties must be approved by the Senate, whereas a free trade agreement
must pass both houses of Congress.: Tariffs
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.: Value chain
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?: Trade surplus
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?: Government
subsidies
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,
, WGU D080 Managing in a Global Business Environment
Study online at https://quizlet.com/_8fbpmr
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
11. A country produces goods more efficiently than all other countries in the
same industry.
Which type of advantage does this country have?: Absolute
12. Country A exports farming equipment to Country B, while Country B ex-
ports 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
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?: Economies of scale
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?: To restrict international economic trade
15. How do anti dumping laws protect a domestic market?: They prevent foreign
companies from selling goods and services at or below cost.
16. How do Congress and the Department of Agriculture use quotas to their
advantage?: To increase domestic prices to specific levels to make products profitable
17. Which strategy should a government use to offset the cost of manufactur-
ing domestically?: Subsidies
18. Which type of globalization refers to the international movement of goods,
capital, and services?: Economic
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?-
: Profitability
, WGU D080 Managing in a Global Business Environment
Study online at https://quizlet.com/_8fbpmr
20. A CEO decides to expand the company's business internationally by pur-
chasing production capability in another country, including the foreign coun-
try's buildings and equipment.
Which type of market entry is the CEO using?: Direct investment
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?: Cost
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?: Infrastructure
23. Which argument is used by critics who wish to discourage movement
towards globalization?: It increases the wealth of the rich rather than the poor
24. Anarchism: Individuals control political activities, and the government has no control over these activities
25. Totalitarianism: A centralized government creates oppressive policies based on ideas from powerful
leadership.
26. Direct democracy: The government provides a method of voting for the people of a country, not for
elected officials.
27. What is a free trade zone?: A geographic region in which a county will reduce restrictions that might
prevent or reduce trade
28. Which term describes a government giving a tax break to a producer to
increase their global competitiveness?: Subsidies
29. Industrialized: Prevalent formation of new markets with possibility of saturation
30. Less-developed: Focus on agriculture and raw materials with limited imports
31. Developing country: Growing population which leads to long-term growth potential.
32. Which type of economy is decentralized and allows firms and households to
participate in global trade with minimum governmental interference?: Market
33. What type of economy is centered on families or tribes where little to no
global trade is practiced?: Traditional
34. Socialism: a system in which the government owns and operates a country's means of production
, WGU D080 Managing in a Global Business Environment
Study online at https://quizlet.com/_8fbpmr
35. Capitalism: A system in which the means of production is controlled by private owners who can choose to
participate in global trade.
36. Communism: A system in which all property is publicly owned and the government controls global trade.
37. Which type of law system is based on a code and focuses on how the law is
applied to the facts?: Civil
38. Which law is based on tradition and precedent given that judicial rulings
can stand as precedents for future cases?: Common
39. Which law system can vary from community to community and is found in
countries without strong formal justice systems?: Customary
40. In which law system does a judge decide the applicable law for the case as
a jury determines the facts?: Common
41. Which activity of the International Monetary Fund (IMF) impacts policy
making?: Being owned and directed by the governments of the member nations
42. What is a characteristic of the International Monetary Fund (IMF)?: The IMF is
a cooperative institution and provides more effective currency exchange.
43. What was the initial purpose of the International Monetary Fund (IMF) in
phase one, prior to 1973?: Regulated currency exchange between nations
44. How does the International Monetary Fund (IMF) impact international or-
ganizations and governments?: It reduces funding for social programs.
45. What is a common name for the International Bank for Reconstruction and
Development?: World Bank
46. What was the first loan that the World Bank made after the end of World
War II?: To France to rebuild its infrastructure
47. Which criticism is associated with the World Bank?: The developed countries of U.S. and
Europe have too much control over its decisions.
48. Which criticism is made about the World Bank?: It does not consider how funding projects
will affect the environment.
49. What was one of the results of the Uruguay Round of the World Trade
Organization negotiations?: Decrease in tariffs
50. Which organization was formed after World War II to encourage interna-
tional commerce?: World Trade Organization
