Answers (Verified Answers)
In which career area is the outlook for humans better than that of robots?
Creative arts
Manufacturing
Tax accounting
Retail merchandising
Creative arts
Correct! Jobs in the creative arts are not expected to be replaced by robots.
The marketing manager of a major global financial transactions processing company
remarked in the company meeting that 5G will be very critical for the continued
success of the company.
Which component must be monitored by this company?
Desktop publishing
Wireless broadband technology
Spreadsheet program
Enterprise resource planning
Wireless broadband technology
Correct! Wireless broadband technology transitions away from hard wired communication
technology. The marketing manager is sharing in the company meeting that 5G broadband
will be critical for the continued success of the company.
A company based in the Philippines is attempting to develop world-class digital
infrastructure to facilitate business and commerce in its country.
Which country in the Southeast Asia region should the company use to benchmark its
progress?
Singapore
Malaysia
,Vietnam
Indonesia
Singapore
Correct! As per a recent study, Singapore was categorized as having the stand-out digital
evolution in the region. This allows all other countries in the region, including the Philippines,
to benchmark their progress to Singapore.
A survey revealed that farmers in a particular region of a country have extensive
access to information and communication technologies.
What is the biggest advantage of digital technology access for this population?
Can review promotions for farming equipment
Can obtain fair market prices for their produce
Can discuss seed alternatives with other farmers
Can gain better representation by the government
Can obtain fair market prices for their produce
Correct! With extensive access to information and communication technologies, farmers
have updated market information about crop prices. This reduces the likelihood that they will
be taken advantage of by an intermediate and provides them with timely information.
Which advantage is represented by the group that signed the contract?
Lower levels of risk and longer time to maturity
Personal network for funding and support
Advising for a company initial public offering
Significant investment and industry expertise
Significant investment and industry expertise
Correct! Significant investment and industry expertise is an advantage represented by the
venture capital group. The venture capital group specializes in highly speculative
biotechnology venture capital investments in return for having significant ownership and
control over decisions.
Which financial accounting consideration does the multinational company face in its
operations?
Conducting business with the International Financial Reporting Standards (IFRS) in all
nations
,Adherence to the Generally Accepted Accounting Principles (GAAP) in its European
operations
Financial reporting for tax haven purposes
Recording transactions in GAAP and IFRS
Recording transactions in GAAP and IFRS
Correct! The multinational company operates in the U.S. and Europe, which means that the
company will need to record and report financial accounting information in both GAAP and
IFRS.
What type of risk is described during the evaluation of feasibility for Market X?
Legal
Cultural
Political
Economic
Cultural
Correct! Cultural risk deals with factors that can affect a business due to specific cultural
traditions, religions, and ideologies. Cultural risk is present in the country known for
believing biotechnology interferes with the sanctity of human life (referred to as Market X).
Which advantage to hedging risk occurs in preparation for the purchase of equipment
for France?
Creating an intercompany loan program between different divisions
Eliminating exchange rate fluctuations with currency swap contracts
Completing transactions prior to delivery
Securing a forward contract agreement
Eliminating exchange rate fluctuations with currency swap contracts
Correct! Currency swap contracts allow a company to guarantee the currency rates for a
buy-and-sell transaction on two separate dates, which locks in the currency exchange rates
for both transactions. Currency swap contracts eliminate costly interest rate fluctuations.
Which challenge will the company face with the new business model?
Product design and prototype issues
Manufacturing operations control
Cultural marketing and advertising
Determining selling prices for each market
, Determining selling prices for each market
Correct! Transfer pricing occurs when multinational companies transfer products between
subsidiaries in different countries. Each time a product travels from one subsidiary to
another, the product is sold and taxed in the country where the product is leaving. The issue
is that companies must determine the appropriate value or selling price of the product
leaving each country, according to the laws in that country, to maximize company
profitability.
An employee feels empowered to make decisions to solve customer problems
independent of seeking manager approval and uses flexibility to meet customer
needs.
Which decision-making structure is being used by this employee?
Centralized
Decentralized
Matrix
Functional
Decentralized
Correct! Decentralized decision-making structure is when lower-level employees, like the
one mentioned, make decisions. This type of decision-making may be inconsistent.
Members of a work team are from many different countries. They share their
thoughts on developing a strategy to market a product in several different countries.
What is the term for the international integration of the team members' exchange of
worldviews and ideas to develop the strategy?
Globalization
Job availability
Wealth inequality
Outsourcing
Globalization
The ability to collectively develop a better product strategy will occur by having a cross-
cultural exchange of ideas to market the product globally. Globalization is when international
integration arises from the interchange of worldviews, products, ideas, and other aspects of
culture.