WGU D080 Unit 5 Test Questions with Verified
answers
A multinational company that is considering making a foreign direct investment is
concerned that the new country has an indirect tax in addition to corporate taxes.
This would reduce the company's profit.
Which type of tax is of concern to this company? Ans✓✓✓ Value-added
U5_1_1 A global company has decided to adopt a pull business model when
expanding to new markets around the globe.
What is a distinguishing characteristic of this business model?
More focus on being supplier-centric
Shift in the balance of power from suppliers to customers
More focus on being product-centric
Shift in the balance of power from customers to suppliers Ans✓✓✓ Shift in the
balance of power from suppliers to customers
A customer-driven pull business model is more directly focused on the individual
consumer. As a result, there is a shift in the balance of power from suppliers to
customers.
U5_1_10 A computer company produces parts in different countries so that if one
factory experiences disruption, the supply chain could still work as other factories
could continue production. This is the advantage of using _________.
Market entry
, Multinational production
Push model
Centralized manufacturing Ans✓✓✓ Multinational production
Multinational production offers company flexibility in the production by having
multiple production facilities located in different countries.
U5_1_2 A company would like to obtain the benefits of outsourcing and focus
solely on marketing activities and research and development.
Which advantage is this company hoping to achieve?
Increased quality control
Enhanced core business activities
Improved production expertise
Decreased production costs Ans✓✓✓ Enhanced core business activities
The ability to focus on core business activities is one advantage of outsourcing by
minimizing distraction created by performing activities that are not core business
activities.
U5_1_3 A multinational company produces a product in a country where the
leaders are known for occasional asset seizure. Which risk does the company
need to mitigate?
Currency risks
Political risks
answers
A multinational company that is considering making a foreign direct investment is
concerned that the new country has an indirect tax in addition to corporate taxes.
This would reduce the company's profit.
Which type of tax is of concern to this company? Ans✓✓✓ Value-added
U5_1_1 A global company has decided to adopt a pull business model when
expanding to new markets around the globe.
What is a distinguishing characteristic of this business model?
More focus on being supplier-centric
Shift in the balance of power from suppliers to customers
More focus on being product-centric
Shift in the balance of power from customers to suppliers Ans✓✓✓ Shift in the
balance of power from suppliers to customers
A customer-driven pull business model is more directly focused on the individual
consumer. As a result, there is a shift in the balance of power from suppliers to
customers.
U5_1_10 A computer company produces parts in different countries so that if one
factory experiences disruption, the supply chain could still work as other factories
could continue production. This is the advantage of using _________.
Market entry
, Multinational production
Push model
Centralized manufacturing Ans✓✓✓ Multinational production
Multinational production offers company flexibility in the production by having
multiple production facilities located in different countries.
U5_1_2 A company would like to obtain the benefits of outsourcing and focus
solely on marketing activities and research and development.
Which advantage is this company hoping to achieve?
Increased quality control
Enhanced core business activities
Improved production expertise
Decreased production costs Ans✓✓✓ Enhanced core business activities
The ability to focus on core business activities is one advantage of outsourcing by
minimizing distraction created by performing activities that are not core business
activities.
U5_1_3 A multinational company produces a product in a country where the
leaders are known for occasional asset seizure. Which risk does the company
need to mitigate?
Currency risks
Political risks
