WGU D080 STUDY GUIDE Questions with verified
answers
A business has decided to engage in foreign direct investment (FDI).
Which reason should influence the business to take this step? Ans✓✓✓ To take
advantage of lower costs in the host country
A car manufacturing company manufacturers tires in Countries A, B, and C.
Country A has significant political turmoil that has resulted in a lengthy labor
strike. Countries B and C have ramped up production resulting in sustained tire
production for the company.
Which practice has the company used to optimize its production efficiency?
Ans✓✓✓ Multinational production
A chief executive officer (CEO) wants to grow the company by investing in foreign
countries. The CEO is considering multiple entry strategies to accomplish this
objective but has concerns about growth in foreign markets, especially the costs,
risks, and entry time. The CEO would like to eliminate any entry strategies that
take a long time, as well as any that contain high cost and risk. Which strategy
should this CEO eliminate? Ans✓✓✓ Greenfield venture
A community has the skills and ability to access computers and the internet but
does not value that form of technology. A company is trying to change the
situation in order to facilitate increased online transactions. Which stage of the
digital divide is the company hoping to correct? Ans✓✓✓ Empowerment
A company desires to scale its international business by taking over established
organizations in the intended markets.
, Which strategy will allow this process to occur quickly? Ans✓✓✓ Acquisition
A company has achieved a monetary advantage by using a fronting loan with a
subsidiary in a country with a low corporate income tax rate. Which type of tax
situation in this country allows the company to achieve this monetary advantage?
Ans✓✓✓ A company has achieved a monetary advantage by using a fronting loan
with a subsidiary in a country with a low corporate income tax rate. Which type of
tax situation in this country allows the company to achieve this monetary
advantage?
A company in the United States is considering a joint venture with a French
supplier and needs to learn about the accounting standards used in France. How
should the U.S. company approach this situation? Ans✓✓✓ Study the
International Financial Reporting Standards (IFRS) online
A company is conducting a legal risk analysis for a country that has a civil law
system. Which statement accurately characterizes this legal system? Ans✓✓✓ It
is based on a detailed set of laws that form a code.
A company is considering using a direct distribution strategy.
What is a disadvantage of this distribution strategy? Ans✓✓✓ Required to
arrange for transportation
A company is considering using a direct distribution strategy.
What is a disadvantage of this distribution strategy? Ans✓✓✓ Required to
arrange for transportation
answers
A business has decided to engage in foreign direct investment (FDI).
Which reason should influence the business to take this step? Ans✓✓✓ To take
advantage of lower costs in the host country
A car manufacturing company manufacturers tires in Countries A, B, and C.
Country A has significant political turmoil that has resulted in a lengthy labor
strike. Countries B and C have ramped up production resulting in sustained tire
production for the company.
Which practice has the company used to optimize its production efficiency?
Ans✓✓✓ Multinational production
A chief executive officer (CEO) wants to grow the company by investing in foreign
countries. The CEO is considering multiple entry strategies to accomplish this
objective but has concerns about growth in foreign markets, especially the costs,
risks, and entry time. The CEO would like to eliminate any entry strategies that
take a long time, as well as any that contain high cost and risk. Which strategy
should this CEO eliminate? Ans✓✓✓ Greenfield venture
A community has the skills and ability to access computers and the internet but
does not value that form of technology. A company is trying to change the
situation in order to facilitate increased online transactions. Which stage of the
digital divide is the company hoping to correct? Ans✓✓✓ Empowerment
A company desires to scale its international business by taking over established
organizations in the intended markets.
, Which strategy will allow this process to occur quickly? Ans✓✓✓ Acquisition
A company has achieved a monetary advantage by using a fronting loan with a
subsidiary in a country with a low corporate income tax rate. Which type of tax
situation in this country allows the company to achieve this monetary advantage?
Ans✓✓✓ A company has achieved a monetary advantage by using a fronting loan
with a subsidiary in a country with a low corporate income tax rate. Which type of
tax situation in this country allows the company to achieve this monetary
advantage?
A company in the United States is considering a joint venture with a French
supplier and needs to learn about the accounting standards used in France. How
should the U.S. company approach this situation? Ans✓✓✓ Study the
International Financial Reporting Standards (IFRS) online
A company is conducting a legal risk analysis for a country that has a civil law
system. Which statement accurately characterizes this legal system? Ans✓✓✓ It
is based on a detailed set of laws that form a code.
A company is considering using a direct distribution strategy.
What is a disadvantage of this distribution strategy? Ans✓✓✓ Required to
arrange for transportation
A company is considering using a direct distribution strategy.
What is a disadvantage of this distribution strategy? Ans✓✓✓ Required to
arrange for transportation
