WGU D080 MANAGING IN A GLOBAL
BUSINESS ENVIRONMENT EXAM
QUESTIONS & VERIFIED CORRECT
SOLUTIONS ALL PASSED 100%
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 - CORRECT ANSWER Cultural training
What happens to consumer surplus when tariffs and quotas are discontinued? -
CORRECT ANSWER They increase
Which type of tariff is put in place to specifically ensure that domestic industries are
given an advantage? - CORRECT ANSWER Protective
What is a benefit of implementing a system of free trade? - CORRECT ANSWER
Reduced tariffs would result in lower costs of imported raw materials.
How are free trade agreements handled differently than treaties in the United States? -
CORRECT ANSWER Treaties must be approved by the Senate, whereas a free trade
agreement must pass both houses of Congress.
Treaties must be approved by the Senate, whereas a free trade agreement must pass
both houses of Congress. - CORRECT ANSWER Tariffs
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.
- CORRECT ANSWER Value chain
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? - CORRECT ANSWER Trade
surplus
,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? - CORRECT ANSWER
Government subsidies
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, 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? - CORRECT
ANSWER Opportunity
A country produces goods more efficiently than all other countries in the same industry.
Which type of advantage does this country have? - CORRECT ANSWER Absolute
Country A exports farming equipment to Country B, while Country B exports 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? - CORRECT
ANSWER Skill specialization
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? - CORRECT ANSWER
Economies of scale
A country with a new economy implemented trade protectionism in relation to countries
with more developed economies.
Why did the country take this action? - CORRECT ANSWER To restrict international
economic trade
How do anti dumping laws protect a domestic market? - CORRECT ANSWER They
prevent foreign companies from selling goods and services at or below cost.
How do Congress and the Department of Agriculture use quotas to their advantage? -
CORRECT ANSWER To increase domestic prices to specific levels to make products
profitable
Which strategy should a government use to offset the cost of manufacturing
domestically? - CORRECT ANSWER Subsidies
Which type of globalization refers to the international movement of goods, capital, and
services? - CORRECT ANSWER Economic
,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? -
CORRECT ANSWER Profitability
A CEO decides to expand the company's business internationally by purchasing
production capability in another country, including the foreign country's buildings and
equipment.
Which type of market entry is the CEO using? - CORRECT ANSWER Direct
investment
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? - CORRECT ANSWER
Cost
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? -
CORRECT ANSWER Infrastructure
Which argument is used by critics who wish to discourage movement towards
globalization? - CORRECT ANSWER It increases the wealth of the rich rather than the
poor
Anarchism - CORRECT ANSWER Individuals control political activities, and the
government has no control over these activities
Totalitarianism - CORRECT ANSWER A centralized government creates oppressive
policies based on ideas from powerful leadership.
Direct democracy - CORRECT ANSWER The government provides a method of voting
for the people of a country, not for elected officials.
What is a free trade zone? - CORRECT ANSWER A geographic region in which a
county will reduce restrictions that might prevent or reduce trade
Which term describes a government giving a tax break to a producer to increase their
global competitiveness? - CORRECT ANSWER Subsidies
Industrialized - CORRECT ANSWER Prevalent formation of new markets with
possibility of saturation
, Less-developed - CORRECT ANSWER Focus on agriculture and raw materials with
limited imports
Developing country - CORRECT ANSWER Growing population which leads to long-
term growth potential.
Which type of economy is decentralized and allows firms and households to participate
in global trade with minimum governmental interference? - CORRECT ANSWER
Market
What type of economy is centered on families or tribes where little to no global trade is
practiced? - CORRECT ANSWER Traditional
Socialism - CORRECT ANSWER a system in which the government owns and
operates a country's means of production
Capitalism - CORRECT ANSWER A system in which the means of production is
controlled by private owners who can choose to participate in global trade.
Communism - CORRECT ANSWER A system in which all property is publicly owned
and the government controls global trade.
Which type of law system is based on a code and focuses on how the law is applied to
the facts? - CORRECT ANSWER Civil
Which law is based on tradition and precedent given that judicial rulings can stand as
precedents for future cases? - CORRECT ANSWER Common
Which law system can vary from community to community and is found in countries
without strong formal justice systems? - CORRECT ANSWER Customary
In which law system does a judge decide the applicable law for the case as a jury
determines the facts? - CORRECT ANSWER Common
Which activity of the International Monetary Fund (IMF) impacts policy making? -
CORRECT ANSWER Being owned and directed by the governments of the member
nations
What is a characteristic of the International Monetary Fund (IMF)? - CORRECT
ANSWER The IMF is a cooperative institution and provides more effective currency
exchange.
What was the initial purpose of the International Monetary Fund (IMF) in phase one,
prior to 1973? - CORRECT ANSWER Regulated currency exchange between nations
BUSINESS ENVIRONMENT EXAM
QUESTIONS & VERIFIED CORRECT
SOLUTIONS ALL PASSED 100%
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 - CORRECT ANSWER Cultural training
What happens to consumer surplus when tariffs and quotas are discontinued? -
CORRECT ANSWER They increase
Which type of tariff is put in place to specifically ensure that domestic industries are
given an advantage? - CORRECT ANSWER Protective
What is a benefit of implementing a system of free trade? - CORRECT ANSWER
Reduced tariffs would result in lower costs of imported raw materials.
How are free trade agreements handled differently than treaties in the United States? -
CORRECT ANSWER Treaties must be approved by the Senate, whereas a free trade
agreement must pass both houses of Congress.
Treaties must be approved by the Senate, whereas a free trade agreement must pass
both houses of Congress. - CORRECT ANSWER Tariffs
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.
- CORRECT ANSWER Value chain
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? - CORRECT ANSWER Trade
surplus
,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? - CORRECT ANSWER
Government subsidies
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, 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? - CORRECT
ANSWER Opportunity
A country produces goods more efficiently than all other countries in the same industry.
Which type of advantage does this country have? - CORRECT ANSWER Absolute
Country A exports farming equipment to Country B, while Country B exports 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? - CORRECT
ANSWER Skill specialization
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? - CORRECT ANSWER
Economies of scale
A country with a new economy implemented trade protectionism in relation to countries
with more developed economies.
Why did the country take this action? - CORRECT ANSWER To restrict international
economic trade
How do anti dumping laws protect a domestic market? - CORRECT ANSWER They
prevent foreign companies from selling goods and services at or below cost.
How do Congress and the Department of Agriculture use quotas to their advantage? -
CORRECT ANSWER To increase domestic prices to specific levels to make products
profitable
Which strategy should a government use to offset the cost of manufacturing
domestically? - CORRECT ANSWER Subsidies
Which type of globalization refers to the international movement of goods, capital, and
services? - CORRECT ANSWER Economic
,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? -
CORRECT ANSWER Profitability
A CEO decides to expand the company's business internationally by purchasing
production capability in another country, including the foreign country's buildings and
equipment.
Which type of market entry is the CEO using? - CORRECT ANSWER Direct
investment
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? - CORRECT ANSWER
Cost
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? -
CORRECT ANSWER Infrastructure
Which argument is used by critics who wish to discourage movement towards
globalization? - CORRECT ANSWER It increases the wealth of the rich rather than the
poor
Anarchism - CORRECT ANSWER Individuals control political activities, and the
government has no control over these activities
Totalitarianism - CORRECT ANSWER A centralized government creates oppressive
policies based on ideas from powerful leadership.
Direct democracy - CORRECT ANSWER The government provides a method of voting
for the people of a country, not for elected officials.
What is a free trade zone? - CORRECT ANSWER A geographic region in which a
county will reduce restrictions that might prevent or reduce trade
Which term describes a government giving a tax break to a producer to increase their
global competitiveness? - CORRECT ANSWER Subsidies
Industrialized - CORRECT ANSWER Prevalent formation of new markets with
possibility of saturation
, Less-developed - CORRECT ANSWER Focus on agriculture and raw materials with
limited imports
Developing country - CORRECT ANSWER Growing population which leads to long-
term growth potential.
Which type of economy is decentralized and allows firms and households to participate
in global trade with minimum governmental interference? - CORRECT ANSWER
Market
What type of economy is centered on families or tribes where little to no global trade is
practiced? - CORRECT ANSWER Traditional
Socialism - CORRECT ANSWER a system in which the government owns and
operates a country's means of production
Capitalism - CORRECT ANSWER A system in which the means of production is
controlled by private owners who can choose to participate in global trade.
Communism - CORRECT ANSWER A system in which all property is publicly owned
and the government controls global trade.
Which type of law system is based on a code and focuses on how the law is applied to
the facts? - CORRECT ANSWER Civil
Which law is based on tradition and precedent given that judicial rulings can stand as
precedents for future cases? - CORRECT ANSWER Common
Which law system can vary from community to community and is found in countries
without strong formal justice systems? - CORRECT ANSWER Customary
In which law system does a judge decide the applicable law for the case as a jury
determines the facts? - CORRECT ANSWER Common
Which activity of the International Monetary Fund (IMF) impacts policy making? -
CORRECT ANSWER Being owned and directed by the governments of the member
nations
What is a characteristic of the International Monetary Fund (IMF)? - CORRECT
ANSWER The IMF is a cooperative institution and provides more effective currency
exchange.
What was the initial purpose of the International Monetary Fund (IMF) in phase one,
prior to 1973? - CORRECT ANSWER Regulated currency exchange between nations
