WGU D080 MANAGING IN A GLOBAL BUSINESS EXAM
SCRIPT QUESTIONS AND ANSWERS RATED A+
✔✔Which activity of the International Monetary Fund (IMF) impacts policy making? -
✔✔Being owned and directed by the governments of the member nations
✔✔What is a characteristic of the International Monetary Fund (IMF)? - ✔✔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? - ✔✔Regulated currency exchange between nations
✔✔How does the International Monetary Fund (IMF) impact international organizations
and governments? - ✔✔It reduces funding for social programs.
✔✔What is a common name for the International Bank for Reconstruction and
Development? - ✔✔World Bank
✔✔What was the first loan that the World Bank made after the end of World War II? -
✔✔To France to rebuild its infrastructure
✔✔Which criticism is associated with the World Bank? - ✔✔The developed countries of
U.S. and Europe have too much control over its decisions.
✔✔Which criticism is made about the World Bank? - ✔✔It does not consider how
funding projects will affect the environment.
✔✔What was one of the results of the Uruguay Round of the World Trade Organization
negotiations? - ✔✔Decrease in tariffs
✔✔Which organization was formed after World War II to encourage international
commerce? - ✔✔World Trade Organization
✔✔Which criticism is made about the World Trade Organization (WTO)? - ✔✔It protects
developed countries more than developing countries.
✔✔Which strategic network was established to work towards decreasing tariff rates and
protecting commerce and intellectual property globally? - ✔✔World Trade Organization
(WTO)
✔✔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? - ✔✔The IMF
provides a means for effective currency exchange between countries.
,✔✔Which strategy is used by governments to limit the foreign direct investment in a
country? - ✔✔Creating foreign ownership restrictions in the country
✔✔Which activity is considered a foreign direct investment (FDI) by a multinational
corporation? - ✔✔Setting up manufacturing plants in the host country
✔✔Company A is located outside the home country of Company B. Company B has
acquired Company A with the intent of controlling and managing Company A's assets.
Which practice is being used by Company B? - ✔✔Foreign direct investment
✔✔Why does a company engage in foreign direct investment? - ✔✔The company
wants to control organizational assets in another country.
✔✔What is a benefit of foreign direct investment? - ✔✔The inflow of capital benefits
global and local economies
✔✔What is a potential disadvantage of foreign direct investment from a host
government's perspective? - ✔✔The host country's natural resources may be depleted.
✔✔What is a reason for companies to engage in foreign direct investments? - ✔✔To
take advantage of tax exemptions offered by the host country
✔✔Which country characteristic is most important to foreign direct investors according
to a study by the World Bank? - ✔✔Political stability and security
✔✔How does the existence of a multinational corporation (MNC) affect a country's
engagement in political conflict? - ✔✔It would make countries less likely to go to war.
✔✔What is an accurate characterization of the relationships between multinational
corporations (MNCs) and the host country governments in which they operate? -
✔✔The relationships are mixed because MNCs can cause, but also solve, problems for
the host country.
✔✔What is a potential influence of the existence of multinational corporation (MNC) on
international relations? - ✔✔Improves relations between countries where the MNC
operates
✔✔What is the result of the existence of multinational businesses? - ✔✔Economic
integration among countries
✔✔Which level of economic integration presents an alliance of all policies by a common
organization? - ✔✔Political union
,✔✔Which level of economic integration is formed when trade barriers are removed
between member countries but there is no mutual policy on trading with nonmember
countries? - ✔✔Free trade area
✔✔Which level of economic integration permits the formation of economically integrated
exchanges of goods and services between parties from member countries? -
✔✔Common market
✔✔Which economic integration stage offers economic collaboration by removing trade
barriers between member countries and establishing a mutual trading policy with
nonmembers? - ✔✔Customs union
✔✔Which drawback is involved when regional agreements are created? - ✔✔Member
countries will trade less with nonmember countries.
✔✔What is a benefit of creating a regional economic integration agreement? -
✔✔Improved financial growth
✔✔What is an advantage of regional economic integration? - ✔✔Flexibility on labor
movement develops job opportunities.
✔✔What is a disadvantage of regional economic integration? - ✔✔The exclusion of
external countries reduces global free trade.
✔✔Which agreement was created in 1981 among Arab states, to expand trade,
economic growth, and development and to promote social welfare, peace, and stability?
- ✔✔GCC
✔✔Which agreement was formalized in 1993 to create a political and economic union to
help a large group of countries cooperate and coordinate key aspects of their economic
policy? - ✔✔EU
✔✔Which agreement was implemented in 1994 and helped form a free-trade zone
between Canada, the United States, and Mexico by decreasing tariffs and trade
barriers? - ✔✔NAFTA
✔✔Which agreement was established in 1988 and now has both political and economic
goals to keep peace and stimulates economic growth in South American countries? -
✔✔MERCOSUR
✔✔Which economic actor benefits as the U.S. dollar weakens? - ✔✔A U.S. investor
abroad
, ✔✔Which economic actor benefits as the U.S. dollar strengthens? - ✔✔A foreign firm
exporting to the U.S.
✔✔Which exchange rate regime allows a currency's value to fluctuate according to the
foreign exchange market? - ✔✔Floating
✔✔Which economic actors are suppliers of U.S. dollars? - ✔✔Foreign firms exporting to
the U.S
✔✔How is global business positively affected by intercultural exchange? - ✔✔It
increases worldwide connections that support commodity trading.
✔✔How does globalization support tolerance for different people and ideas? - ✔✔By
increasing the access to information
✔✔A business has recently started selling in a new global marketplace. Shortly after the
company made this global expansion, the new country opted to implement ad valorem
tariffs. How will this change affect the company? - ✔✔It will levy a variable tax based on
the value of goods imported.
✔✔Which business component does the TRIPS agreement help protect for member
nations? - ✔✔Intellectual property protection for all member nations
✔✔A business, operating globally, wants to increase its overall productivity. Which
strategy should the business use? - ✔✔Increase process technology
✔✔Which international activity allows a nation, such as Singapore, to create a
sustainable economy without the abundance of natural resources? - ✔✔Foreign direct
investment
✔✔Countries A, B, and C have a trade agreement. Country C imposes high tariffs on all
raw materials imported from Country A, and Country B imposes a lower tax on the same
raw materials. These raw materials are unique to Countries B and C and essential to
Country A. What is the effect of this set of actions on these countries? - ✔✔Country A
will do more business with Country B.
✔✔What is enhanced when creating regional trade agreements? - ✔✔Economic
opportunity
✔✔A farmers market has many vendors and consumers who all sell and buy the same
produce at the same price.
Which type of market is represented? - ✔✔Pure competition
SCRIPT QUESTIONS AND ANSWERS RATED A+
✔✔Which activity of the International Monetary Fund (IMF) impacts policy making? -
✔✔Being owned and directed by the governments of the member nations
✔✔What is a characteristic of the International Monetary Fund (IMF)? - ✔✔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? - ✔✔Regulated currency exchange between nations
✔✔How does the International Monetary Fund (IMF) impact international organizations
and governments? - ✔✔It reduces funding for social programs.
✔✔What is a common name for the International Bank for Reconstruction and
Development? - ✔✔World Bank
✔✔What was the first loan that the World Bank made after the end of World War II? -
✔✔To France to rebuild its infrastructure
✔✔Which criticism is associated with the World Bank? - ✔✔The developed countries of
U.S. and Europe have too much control over its decisions.
✔✔Which criticism is made about the World Bank? - ✔✔It does not consider how
funding projects will affect the environment.
✔✔What was one of the results of the Uruguay Round of the World Trade Organization
negotiations? - ✔✔Decrease in tariffs
✔✔Which organization was formed after World War II to encourage international
commerce? - ✔✔World Trade Organization
✔✔Which criticism is made about the World Trade Organization (WTO)? - ✔✔It protects
developed countries more than developing countries.
✔✔Which strategic network was established to work towards decreasing tariff rates and
protecting commerce and intellectual property globally? - ✔✔World Trade Organization
(WTO)
✔✔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? - ✔✔The IMF
provides a means for effective currency exchange between countries.
,✔✔Which strategy is used by governments to limit the foreign direct investment in a
country? - ✔✔Creating foreign ownership restrictions in the country
✔✔Which activity is considered a foreign direct investment (FDI) by a multinational
corporation? - ✔✔Setting up manufacturing plants in the host country
✔✔Company A is located outside the home country of Company B. Company B has
acquired Company A with the intent of controlling and managing Company A's assets.
Which practice is being used by Company B? - ✔✔Foreign direct investment
✔✔Why does a company engage in foreign direct investment? - ✔✔The company
wants to control organizational assets in another country.
✔✔What is a benefit of foreign direct investment? - ✔✔The inflow of capital benefits
global and local economies
✔✔What is a potential disadvantage of foreign direct investment from a host
government's perspective? - ✔✔The host country's natural resources may be depleted.
✔✔What is a reason for companies to engage in foreign direct investments? - ✔✔To
take advantage of tax exemptions offered by the host country
✔✔Which country characteristic is most important to foreign direct investors according
to a study by the World Bank? - ✔✔Political stability and security
✔✔How does the existence of a multinational corporation (MNC) affect a country's
engagement in political conflict? - ✔✔It would make countries less likely to go to war.
✔✔What is an accurate characterization of the relationships between multinational
corporations (MNCs) and the host country governments in which they operate? -
✔✔The relationships are mixed because MNCs can cause, but also solve, problems for
the host country.
✔✔What is a potential influence of the existence of multinational corporation (MNC) on
international relations? - ✔✔Improves relations between countries where the MNC
operates
✔✔What is the result of the existence of multinational businesses? - ✔✔Economic
integration among countries
✔✔Which level of economic integration presents an alliance of all policies by a common
organization? - ✔✔Political union
,✔✔Which level of economic integration is formed when trade barriers are removed
between member countries but there is no mutual policy on trading with nonmember
countries? - ✔✔Free trade area
✔✔Which level of economic integration permits the formation of economically integrated
exchanges of goods and services between parties from member countries? -
✔✔Common market
✔✔Which economic integration stage offers economic collaboration by removing trade
barriers between member countries and establishing a mutual trading policy with
nonmembers? - ✔✔Customs union
✔✔Which drawback is involved when regional agreements are created? - ✔✔Member
countries will trade less with nonmember countries.
✔✔What is a benefit of creating a regional economic integration agreement? -
✔✔Improved financial growth
✔✔What is an advantage of regional economic integration? - ✔✔Flexibility on labor
movement develops job opportunities.
✔✔What is a disadvantage of regional economic integration? - ✔✔The exclusion of
external countries reduces global free trade.
✔✔Which agreement was created in 1981 among Arab states, to expand trade,
economic growth, and development and to promote social welfare, peace, and stability?
- ✔✔GCC
✔✔Which agreement was formalized in 1993 to create a political and economic union to
help a large group of countries cooperate and coordinate key aspects of their economic
policy? - ✔✔EU
✔✔Which agreement was implemented in 1994 and helped form a free-trade zone
between Canada, the United States, and Mexico by decreasing tariffs and trade
barriers? - ✔✔NAFTA
✔✔Which agreement was established in 1988 and now has both political and economic
goals to keep peace and stimulates economic growth in South American countries? -
✔✔MERCOSUR
✔✔Which economic actor benefits as the U.S. dollar weakens? - ✔✔A U.S. investor
abroad
, ✔✔Which economic actor benefits as the U.S. dollar strengthens? - ✔✔A foreign firm
exporting to the U.S.
✔✔Which exchange rate regime allows a currency's value to fluctuate according to the
foreign exchange market? - ✔✔Floating
✔✔Which economic actors are suppliers of U.S. dollars? - ✔✔Foreign firms exporting to
the U.S
✔✔How is global business positively affected by intercultural exchange? - ✔✔It
increases worldwide connections that support commodity trading.
✔✔How does globalization support tolerance for different people and ideas? - ✔✔By
increasing the access to information
✔✔A business has recently started selling in a new global marketplace. Shortly after the
company made this global expansion, the new country opted to implement ad valorem
tariffs. How will this change affect the company? - ✔✔It will levy a variable tax based on
the value of goods imported.
✔✔Which business component does the TRIPS agreement help protect for member
nations? - ✔✔Intellectual property protection for all member nations
✔✔A business, operating globally, wants to increase its overall productivity. Which
strategy should the business use? - ✔✔Increase process technology
✔✔Which international activity allows a nation, such as Singapore, to create a
sustainable economy without the abundance of natural resources? - ✔✔Foreign direct
investment
✔✔Countries A, B, and C have a trade agreement. Country C imposes high tariffs on all
raw materials imported from Country A, and Country B imposes a lower tax on the same
raw materials. These raw materials are unique to Countries B and C and essential to
Country A. What is the effect of this set of actions on these countries? - ✔✔Country A
will do more business with Country B.
✔✔What is enhanced when creating regional trade agreements? - ✔✔Economic
opportunity
✔✔A farmers market has many vendors and consumers who all sell and buy the same
produce at the same price.
Which type of market is represented? - ✔✔Pure competition
