D080 TEST QUESTIONS WITH 100%
COMPLETE SOLUTIONS
Sure Start is starting a new division for rechargeable batteries in different parts of the
world.
What was the globalization driver of this decision? - ANSWER Competition drivers are
about entering new markets to beat competitors. Sure Start has identified a market that
does not have a lot of competition since it is a fairly new market.
Which type of globalization is represented by Sure Start expanding into South America,
Europe, and Asia? - ANSWER Economic globalization is the globalization of production,
sales, and finance activities in international markets around the world.
Which antiglobalization argument could lead to Sure Start continuing to maintain its
current factories instead of moving them to Asia? - ANSWER Labor in Asia can be
cheaper than in NC, and critics argue that outsourcing manufacturing could lead to job
loss in the home country.
Which action should the U.S. government take to encourage Sure Start to keep electric
battery production in the country? - ANSWER Imposing tariffs on batteries made in
Vietnam will make them more expensive.
Which economic system facilitates the global expansion of Sure Start? - ANSWER The
law of supply and demand applies to the market economy, and the goods are privately
owned. Government interference is minimum.
Which type of risk will a company reduce if they offer a warranty to the purchasers of
the battery in case of failure? - ANSWER Offering a warranty protects the company from
the legal risk of a product not performing to standard.
Which aspect of the International Monetary Fund (IMF) will assist the newly elected
leader in paying the deficit in U.S. dollars, if agreed on by both countries? - ANSWER
The IMF's purpose is to provide a way for countries to easily exchange money, provide
financial help to its members, and supervise international economic policies.
Which critical distinction should Country A make when choosing between the World
Bank and the International Monetary Fund (IMF) to improve the country's highways? -
ANSWER The World Bank is directly associated with this type of development project.
Which benefit to the newly-elected leader in Country A stems from using the World Bank
to meet a campaign promise? - ANSWER The World Bank provides funds through low
interest or interest-free loans, grants, and credits to help the country develop its
infrastructure.
, Why should the newly-elected leader of Country A be careful when working with the
World Bank to eliminate the nation's trade deficit? - ANSWER Because of the voting
power highly-developed countries have on World Bank policies
Why should the newly-elected leader of Country A use the World Trade Organization
(WTO) to form favorable trade agreements? - ANSWER To receive help building
international exchange capacity. One of the functions of the WTO is to help developing
countries build trade and international exchange capacity so they can have a presence
in the international markets.
Which situation describes how Sure Start is applying the absolute advantage theory?
Adding an office in the South American market to help manage the business throughout
the continent
Expanding into Europe and Asia to supply batteries to electric car manufacturers in
those markets
Moving production of the batteries used in electric cars to Vietnam where labor is less
expensive
Establishing a European headquarters in Germany and moving key leaders to that
country - ANSWER The absolute advantage theory states that a country that can
produce a product cheaper or faster than another country should focus on that
advantage. Moving production of the batteries used in electric cars from the United
States to Vietnam where labor is less expensive applies the absolute advantage theory.
Which benefit will Sure Start gain from opening the factory in Vietnam?
They will achieve economies of scale in the production of rechargeable batteries.
It will allow them to move to the production of electric cars in the near future.
The U.S. government will give them subsidies for producing in Vietnam.
The move will allow them to be fully integrated in production of rechargeable batteries. -
ANSWER Because the factory in Vietnam will only produce rechargeable batteries, the
company will be able to benefit from minimized production costs associated with lower
labor and dedicated manufacturing operations as they scale up to mass production.
Which action of Sure Start represents the application of the global strategic rivalry
theory?
Launching a new research division to focus on a rechargeable battery for use in electric
cars
Adding an office in the South American market to help manage the business throughout
the continent
Maintaining production with no investment in batteries for use in traditional vehicles
COMPLETE SOLUTIONS
Sure Start is starting a new division for rechargeable batteries in different parts of the
world.
What was the globalization driver of this decision? - ANSWER Competition drivers are
about entering new markets to beat competitors. Sure Start has identified a market that
does not have a lot of competition since it is a fairly new market.
Which type of globalization is represented by Sure Start expanding into South America,
Europe, and Asia? - ANSWER Economic globalization is the globalization of production,
sales, and finance activities in international markets around the world.
Which antiglobalization argument could lead to Sure Start continuing to maintain its
current factories instead of moving them to Asia? - ANSWER Labor in Asia can be
cheaper than in NC, and critics argue that outsourcing manufacturing could lead to job
loss in the home country.
Which action should the U.S. government take to encourage Sure Start to keep electric
battery production in the country? - ANSWER Imposing tariffs on batteries made in
Vietnam will make them more expensive.
Which economic system facilitates the global expansion of Sure Start? - ANSWER The
law of supply and demand applies to the market economy, and the goods are privately
owned. Government interference is minimum.
Which type of risk will a company reduce if they offer a warranty to the purchasers of
the battery in case of failure? - ANSWER Offering a warranty protects the company from
the legal risk of a product not performing to standard.
Which aspect of the International Monetary Fund (IMF) will assist the newly elected
leader in paying the deficit in U.S. dollars, if agreed on by both countries? - ANSWER
The IMF's purpose is to provide a way for countries to easily exchange money, provide
financial help to its members, and supervise international economic policies.
Which critical distinction should Country A make when choosing between the World
Bank and the International Monetary Fund (IMF) to improve the country's highways? -
ANSWER The World Bank is directly associated with this type of development project.
Which benefit to the newly-elected leader in Country A stems from using the World Bank
to meet a campaign promise? - ANSWER The World Bank provides funds through low
interest or interest-free loans, grants, and credits to help the country develop its
infrastructure.
, Why should the newly-elected leader of Country A be careful when working with the
World Bank to eliminate the nation's trade deficit? - ANSWER Because of the voting
power highly-developed countries have on World Bank policies
Why should the newly-elected leader of Country A use the World Trade Organization
(WTO) to form favorable trade agreements? - ANSWER To receive help building
international exchange capacity. One of the functions of the WTO is to help developing
countries build trade and international exchange capacity so they can have a presence
in the international markets.
Which situation describes how Sure Start is applying the absolute advantage theory?
Adding an office in the South American market to help manage the business throughout
the continent
Expanding into Europe and Asia to supply batteries to electric car manufacturers in
those markets
Moving production of the batteries used in electric cars to Vietnam where labor is less
expensive
Establishing a European headquarters in Germany and moving key leaders to that
country - ANSWER The absolute advantage theory states that a country that can
produce a product cheaper or faster than another country should focus on that
advantage. Moving production of the batteries used in electric cars from the United
States to Vietnam where labor is less expensive applies the absolute advantage theory.
Which benefit will Sure Start gain from opening the factory in Vietnam?
They will achieve economies of scale in the production of rechargeable batteries.
It will allow them to move to the production of electric cars in the near future.
The U.S. government will give them subsidies for producing in Vietnam.
The move will allow them to be fully integrated in production of rechargeable batteries. -
ANSWER Because the factory in Vietnam will only produce rechargeable batteries, the
company will be able to benefit from minimized production costs associated with lower
labor and dedicated manufacturing operations as they scale up to mass production.
Which action of Sure Start represents the application of the global strategic rivalry
theory?
Launching a new research division to focus on a rechargeable battery for use in electric
cars
Adding an office in the South American market to help manage the business throughout
the continent
Maintaining production with no investment in batteries for use in traditional vehicles
