WGU D080 V2
1. Which law is based on tradition and precedent given that judicial rulings can stand as
precedents for future cases?: Common
2. Which legal system can vary from community to community and is found in countries
without strong formal justice systems?: Customary
3. In which legal system does a judge decide the applicable law for the case as a jury
determines the facts?: Common
4. Common law: Based on precedence. Any activity that is not clearly illegal maybe
acceptable. The role of the judge is to hear arguments from both parties and make a judgment.
This judgment stands as precedent for future cases.
5. Religious law: based on religious beliefs. One example is a requirement in Sharia that
people following Sharia may not borrow money. To compensate for theinability to take on
debt, an asset-based system has been established.
6. balance of payments: The difference in total value between payments into andout of the
country over a period of time
7. fixed-rate currency exchange system: When a country's currency value is fixed or pegged
by a monetary authority against the value of another currency, a basket of currencies, or
another measure of value
8. World Bank: ~ Encourages developing countries to borrow for development projects, goal
to help poorer countries develop
~ Developmental institution
~ Financed reconstruction after wars in the 1940s. It is now focused on supportingdeveloping
countries
~ Large: 40 offices, over 10,000 staff
~ Investment bank owned by the governments of the 180 member nations
~ Borrows and loans
~ Borrowers must meet requirements to qualify for loans
,9. International Monetary Fund: ~ Oversees the international monetary system
~ Cooperative institution
~ In phase one, prior to 1973, regulated international exchange rates
In phase two, post-1973, provides a means for effective international currency exchange,
supervises economic policies, and provides financial assistance to mem-bers
~ Small: 2,300 staff members
~ Resources come from quota subscriptions or membership fees
~ Acts more like a credit union
~ Loans to all member nations
10. Which activity of the International Monetary Fund (IMF) impacts policymak-ing?: Being
owned and directed by the governments of the member nations
11. What is a characteristic of the International Monetary Fund (IMF)?: The IMFis a
cooperative institution and provides more effective currency exchange.
12. What was the initial purpose of the International Monetary Fund (IMF) inphase one, prior
to 1973?: Regulated currency exchange between nations
13. privatization: Selling government holdings to private companies
14. deregulation: The removal of regulations or restrictions in a particular industry
15. How does the International Monetary Fund (IMF) impact international or-ganizations and
governments?: It reduces funding for social programs.
16. AAA ratings: The highest possible rating that may be assigned by a credit ratingagency for a
bond
17. Globalization: Worldwide interconnections in virtually every sphere of activity
including the spread of products, technology, information, and job opportunities.
Globalization can result in blurred boundaries between nations, organizations, andinvestors
18. trade: The action of buying and selling goods and services
, 19. capital: Financial assets such as funds but also equipment, facilities, and othermeans of
production
20. outsource: To obtain goods or services from an outside or foreign supplier
21. nongovernmental organizations (NGOs): Not for profit organizations that areindependent
of the government and are active in humanitarian causes
22. Which type of globalization refers to the international movement of goods,capital, and
services?: Economic
23. patents: Protects inventions and improvements to existing inventions for a limitedperiod of
time in exchange for detailed public disclosure of those inventions
24. copyrights: A government authority or license giving the owner of an inventionthe right
to exclude others from making or selling the invention for a set period of time
25. trademarks: Protection for any word, name, symbol, device, or any combination used in
commerce to identify and distinguish the goods of one manufacturer or seller from goods
manufactured or sold by others
26. assets: A useful or valuable thing; something you own such as building, inven- tory, or
cash
27. liabilities: Being responsible for a debt or financial obligation, something youowe
28. financial instrument: A monetary contract between parties
29. multinational firms: A large corporation incorporated in one country whichproduces or
sells goods or services in various countries
30. The 5 Stages of going Global: Stage 1 ~ Market EntryStage 2 ~ Product Specialization
Stage 3 ~ Value Chain Disaggregation Stage 4 ~ Value Chain Reengineering Stage 5 ~ Creation
of New Markets
31. Economies of scale: A proportionate savings in costs gained by an increasedlevel of
production
32. Economies of scope: To develop efficiencies in terms of variety not volume
33. A CEO seeks to better use the economies of scale and scope of productionto increase the
international company's profits.
Which type of globalization driver is the CEO seeking to use?: Cost
34. A CEO is discussing an expansion of production of a company's highlyperishable 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 conditionspresent?:
Infrastructure
1. Which law is based on tradition and precedent given that judicial rulings can stand as
precedents for future cases?: Common
2. Which legal system can vary from community to community and is found in countries
without strong formal justice systems?: Customary
3. In which legal system does a judge decide the applicable law for the case as a jury
determines the facts?: Common
4. Common law: Based on precedence. Any activity that is not clearly illegal maybe
acceptable. The role of the judge is to hear arguments from both parties and make a judgment.
This judgment stands as precedent for future cases.
5. Religious law: based on religious beliefs. One example is a requirement in Sharia that
people following Sharia may not borrow money. To compensate for theinability to take on
debt, an asset-based system has been established.
6. balance of payments: The difference in total value between payments into andout of the
country over a period of time
7. fixed-rate currency exchange system: When a country's currency value is fixed or pegged
by a monetary authority against the value of another currency, a basket of currencies, or
another measure of value
8. World Bank: ~ Encourages developing countries to borrow for development projects, goal
to help poorer countries develop
~ Developmental institution
~ Financed reconstruction after wars in the 1940s. It is now focused on supportingdeveloping
countries
~ Large: 40 offices, over 10,000 staff
~ Investment bank owned by the governments of the 180 member nations
~ Borrows and loans
~ Borrowers must meet requirements to qualify for loans
,9. International Monetary Fund: ~ Oversees the international monetary system
~ Cooperative institution
~ In phase one, prior to 1973, regulated international exchange rates
In phase two, post-1973, provides a means for effective international currency exchange,
supervises economic policies, and provides financial assistance to mem-bers
~ Small: 2,300 staff members
~ Resources come from quota subscriptions or membership fees
~ Acts more like a credit union
~ Loans to all member nations
10. Which activity of the International Monetary Fund (IMF) impacts policymak-ing?: Being
owned and directed by the governments of the member nations
11. What is a characteristic of the International Monetary Fund (IMF)?: The IMFis a
cooperative institution and provides more effective currency exchange.
12. What was the initial purpose of the International Monetary Fund (IMF) inphase one, prior
to 1973?: Regulated currency exchange between nations
13. privatization: Selling government holdings to private companies
14. deregulation: The removal of regulations or restrictions in a particular industry
15. How does the International Monetary Fund (IMF) impact international or-ganizations and
governments?: It reduces funding for social programs.
16. AAA ratings: The highest possible rating that may be assigned by a credit ratingagency for a
bond
17. Globalization: Worldwide interconnections in virtually every sphere of activity
including the spread of products, technology, information, and job opportunities.
Globalization can result in blurred boundaries between nations, organizations, andinvestors
18. trade: The action of buying and selling goods and services
, 19. capital: Financial assets such as funds but also equipment, facilities, and othermeans of
production
20. outsource: To obtain goods or services from an outside or foreign supplier
21. nongovernmental organizations (NGOs): Not for profit organizations that areindependent
of the government and are active in humanitarian causes
22. Which type of globalization refers to the international movement of goods,capital, and
services?: Economic
23. patents: Protects inventions and improvements to existing inventions for a limitedperiod of
time in exchange for detailed public disclosure of those inventions
24. copyrights: A government authority or license giving the owner of an inventionthe right
to exclude others from making or selling the invention for a set period of time
25. trademarks: Protection for any word, name, symbol, device, or any combination used in
commerce to identify and distinguish the goods of one manufacturer or seller from goods
manufactured or sold by others
26. assets: A useful or valuable thing; something you own such as building, inven- tory, or
cash
27. liabilities: Being responsible for a debt or financial obligation, something youowe
28. financial instrument: A monetary contract between parties
29. multinational firms: A large corporation incorporated in one country whichproduces or
sells goods or services in various countries
30. The 5 Stages of going Global: Stage 1 ~ Market EntryStage 2 ~ Product Specialization
Stage 3 ~ Value Chain Disaggregation Stage 4 ~ Value Chain Reengineering Stage 5 ~ Creation
of New Markets
31. Economies of scale: A proportionate savings in costs gained by an increasedlevel of
production
32. Economies of scope: To develop efficiencies in terms of variety not volume
33. A CEO seeks to better use the economies of scale and scope of productionto increase the
international company's profits.
Which type of globalization driver is the CEO seeking to use?: Cost
34. A CEO is discussing an expansion of production of a company's highlyperishable 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 conditionspresent?:
Infrastructure
