WGU D080 Managing in a Global Business
Environment Exam 250 Questions with Verified
Answers
Cultural training - CORRECT ANSWER 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
They increase - CORRECT ANSWER What happens to consumer surplus when
tariffs and quotas are discontinued?
Protective - CORRECT ANSWER Which type of tariff is put in place to specifically
ensure that domestic industries are given an advantage?
Reduced tariffs would result in lower costs of imported raw materials. - CORRECT
ANSWER What is a benefit of implementing a system of free trade?
,Treaties must be approved by the Senate, whereas a free trade agreement must
pass both houses of Congress. - CORRECT ANSWER How are free trade
agreements handled differently than treaties in the United States?
Tariffs - CORRECT ANSWER Treaties must be approved by the Senate, whereas a
free trade agreement must pass both houses of Congress.
Value chain - CORRECT ANSWER 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.
Trade surplus - CORRECT ANSWER 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?
Government subsidies - CORRECT ANSWER 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?
Opportunity - CORRECT ANSWER 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?
,Absolute - CORRECT ANSWER A country produces goods more efficiently than all
other countries in the same industry.
Which type of advantage does this country have?
Skill specialization - CORRECT ANSWER 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?
Economies of scale - CORRECT ANSWER 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?
To restrict international economic trade - CORRECT ANSWER A country with a new
economy implemented trade protectionism in relation to countries with more
developed economies.
Why did the country take this action?
They prevent foreign companies from selling goods and services at or below cost.
- CORRECT ANSWER How do anti dumping laws protect a domestic market?
, To increase domestic prices to specific levels to make products profitable -
CORRECT ANSWER How do Congress and the Department of Agriculture use
quotas to their advantage?
Subsidies - CORRECT ANSWER Which strategy should a government use to offset
the cost of manufacturing domestically?
Economic - CORRECT ANSWER Which type of globalization refers to the
international movement of goods, capital, and services?
Profitability - CORRECT ANSWER 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?
Direct investment - CORRECT ANSWER 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?
Cost - CORRECT ANSWER 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?
Infrastructure - CORRECT ANSWER A CEO is discussing an expansion of production
of a company's highly perishable dairy line in a country that can offer low labor
Environment Exam 250 Questions with Verified
Answers
Cultural training - CORRECT ANSWER 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
They increase - CORRECT ANSWER What happens to consumer surplus when
tariffs and quotas are discontinued?
Protective - CORRECT ANSWER Which type of tariff is put in place to specifically
ensure that domestic industries are given an advantage?
Reduced tariffs would result in lower costs of imported raw materials. - CORRECT
ANSWER What is a benefit of implementing a system of free trade?
,Treaties must be approved by the Senate, whereas a free trade agreement must
pass both houses of Congress. - CORRECT ANSWER How are free trade
agreements handled differently than treaties in the United States?
Tariffs - CORRECT ANSWER Treaties must be approved by the Senate, whereas a
free trade agreement must pass both houses of Congress.
Value chain - CORRECT ANSWER 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.
Trade surplus - CORRECT ANSWER 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?
Government subsidies - CORRECT ANSWER 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?
Opportunity - CORRECT ANSWER 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?
,Absolute - CORRECT ANSWER A country produces goods more efficiently than all
other countries in the same industry.
Which type of advantage does this country have?
Skill specialization - CORRECT ANSWER 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?
Economies of scale - CORRECT ANSWER 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?
To restrict international economic trade - CORRECT ANSWER A country with a new
economy implemented trade protectionism in relation to countries with more
developed economies.
Why did the country take this action?
They prevent foreign companies from selling goods and services at or below cost.
- CORRECT ANSWER How do anti dumping laws protect a domestic market?
, To increase domestic prices to specific levels to make products profitable -
CORRECT ANSWER How do Congress and the Department of Agriculture use
quotas to their advantage?
Subsidies - CORRECT ANSWER Which strategy should a government use to offset
the cost of manufacturing domestically?
Economic - CORRECT ANSWER Which type of globalization refers to the
international movement of goods, capital, and services?
Profitability - CORRECT ANSWER 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?
Direct investment - CORRECT ANSWER 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?
Cost - CORRECT ANSWER 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?
Infrastructure - CORRECT ANSWER A CEO is discussing an expansion of production
of a company's highly perishable dairy line in a country that can offer low labor
