Managing in a Global Business
Environment - D080 Exam-Graded A
Which type of globalization is represented by Sure Start expanding into South America,
Europe, and Asia? - ANSWER-economic
Sure Start is starting a new division for rechargeable batteries in different parts of the
world.
What was the globalization driver of this decision? - ANSWER-competition
Which action should the U.S. government take to encourage Sure Start to keep electric
battery production in the country? - ANSWER-Impose tariffs on batteries made in
Vietnam
Which critical distinction should Country A make when choosing between the World
Bank and the International Monetary Fund (IMF) to improve the country's highways? -
ANSWER-The World Bank focuses on development projects.
Which benefit to the newly-elected leader in Country A stems from using the World
Bank to meet a campaign promise? - ANSWER-Obtaining the funds needed to improve
the country's infrastructure
Which action illustrates how Sure Start is capitalizing on the comparative advantage of
a country? - ANSWER-Moving production of the batteries used in electric cars to
Vietnam where labor is less expensive
Which action of Sure Start represents the application of the global strategic rivalry
theory? - ANSWER-Launching a new research division to focus on a rechargeable
battery for use in electric cars
What will be the effect of the German trade policy on Sure Start's rechargeable batteries
in its first year? - ANSWER-If the German automakers meet the domestic content
requirement, there will be little impact.
What is one option for the Chinese company to make a foreign direct investment (FDI)?
- ANSWER-Create a joint venture with a furniture company in Indonesia
What is a benefit for making a foreign direct investment (FDI)? - ANSWER-The country
chosen by the Chinese company will increase jobs for local people.
, How will the Chinese company recognize that it is more profitable to operate business in
the United States from a foreign currency exchange perspective? - ANSWER-The dollar
is stronger than Chinese currency.
Two countries agree to open their borders to international business transactions with
one another without tariffs.
How does this affect global business? - ANSWER-It leads to developing free trade
policies with strategic partners.
What was the economic impact of the North American Free Trade Agreement
(NAFTA)? - ANSWER-The shift of jobs away from low comparative advantage
industries
Countries A and B participate in trade agreements that allow free trade among
participant countries. However, Country A imposed quotas on several imported products
to protect its domestic products.
What is the effect, if any, on the domestic prices of these products? - ANSWER-
increases
What is a purpose of a country implementing trade protectionism? - ANSWER-To
protect an infant industry
Which negative outcome on political systems comes from globalization? - ANSWER-
Creation of isolationist policies
What are the four factors in Ghemawat's CAGE analysis? - ANSWER-Culture,
administration, geography, economy
What is a characteristic of a market economy? - ANSWER-Firms seek to maximize
profits.
Which impact does Islamic law directly have on businesses? - ANSWER-It forbids
charging interest.
What is a drawback of creating regional trade agreements? - ANSWER-They shift
employment opportunities.
The United States-Mexico- Canada Agreement (USMCA), a modification of the North
American Free Trade Agreement (NAFTA), broadened the scope of free-trade between
member nations and tightened restrictions in the region. Which regulation was
established by this new agreement? - ANSWER-Almost half of all automobile parts
must be made by a labor force that earns a minimum of $16 per hour by 2023.
A U.S. capital investment firm is researching new markets to enter to diversify its
portfolio. The director of foreign investments presented a pitch to the board of directors
Environment - D080 Exam-Graded A
Which type of globalization is represented by Sure Start expanding into South America,
Europe, and Asia? - ANSWER-economic
Sure Start is starting a new division for rechargeable batteries in different parts of the
world.
What was the globalization driver of this decision? - ANSWER-competition
Which action should the U.S. government take to encourage Sure Start to keep electric
battery production in the country? - ANSWER-Impose tariffs on batteries made in
Vietnam
Which critical distinction should Country A make when choosing between the World
Bank and the International Monetary Fund (IMF) to improve the country's highways? -
ANSWER-The World Bank focuses on development projects.
Which benefit to the newly-elected leader in Country A stems from using the World
Bank to meet a campaign promise? - ANSWER-Obtaining the funds needed to improve
the country's infrastructure
Which action illustrates how Sure Start is capitalizing on the comparative advantage of
a country? - ANSWER-Moving production of the batteries used in electric cars to
Vietnam where labor is less expensive
Which action of Sure Start represents the application of the global strategic rivalry
theory? - ANSWER-Launching a new research division to focus on a rechargeable
battery for use in electric cars
What will be the effect of the German trade policy on Sure Start's rechargeable batteries
in its first year? - ANSWER-If the German automakers meet the domestic content
requirement, there will be little impact.
What is one option for the Chinese company to make a foreign direct investment (FDI)?
- ANSWER-Create a joint venture with a furniture company in Indonesia
What is a benefit for making a foreign direct investment (FDI)? - ANSWER-The country
chosen by the Chinese company will increase jobs for local people.
, How will the Chinese company recognize that it is more profitable to operate business in
the United States from a foreign currency exchange perspective? - ANSWER-The dollar
is stronger than Chinese currency.
Two countries agree to open their borders to international business transactions with
one another without tariffs.
How does this affect global business? - ANSWER-It leads to developing free trade
policies with strategic partners.
What was the economic impact of the North American Free Trade Agreement
(NAFTA)? - ANSWER-The shift of jobs away from low comparative advantage
industries
Countries A and B participate in trade agreements that allow free trade among
participant countries. However, Country A imposed quotas on several imported products
to protect its domestic products.
What is the effect, if any, on the domestic prices of these products? - ANSWER-
increases
What is a purpose of a country implementing trade protectionism? - ANSWER-To
protect an infant industry
Which negative outcome on political systems comes from globalization? - ANSWER-
Creation of isolationist policies
What are the four factors in Ghemawat's CAGE analysis? - ANSWER-Culture,
administration, geography, economy
What is a characteristic of a market economy? - ANSWER-Firms seek to maximize
profits.
Which impact does Islamic law directly have on businesses? - ANSWER-It forbids
charging interest.
What is a drawback of creating regional trade agreements? - ANSWER-They shift
employment opportunities.
The United States-Mexico- Canada Agreement (USMCA), a modification of the North
American Free Trade Agreement (NAFTA), broadened the scope of free-trade between
member nations and tightened restrictions in the region. Which regulation was
established by this new agreement? - ANSWER-Almost half of all automobile parts
must be made by a labor force that earns a minimum of $16 per hour by 2023.
A U.S. capital investment firm is researching new markets to enter to diversify its
portfolio. The director of foreign investments presented a pitch to the board of directors
