WGU D080 Exam Test with Verified Answers Graded A+

WGU D080 Exam Test with Verified Answers Graded A+ 1. Globalization: Worldwide interconnections in virtually every sphere of activity including the spread of products, technology, information, and job opportunities. Globalization can result in blurred boundaries between nations, organizations, and investors 2. trade: The action of buying and selling goods and services 3. capital: Financial assets such as funds but also equipment, facilities, and other means of production 4. outsource: To obtain goods or services from an outside or foreign supplier 5. nongovernmental organizations (NGOs): Not for profit organizations that are independent of the government and are active in humanitarian causes 6. Which type of globalization refers to the international movement of goods, capital, and services?: Economic 7. patents: Protects inventions and improvements to existing inventions for a limited period of time in exchange for detailed public disclosure of those inventions 8. copyrights: A government authority or license giving the owner of an invention the right to exclude others from making or selling the invention for a set period of time 9. trademarks: Protection for any word, name, symbol, device, or any combination used in commerce to identify and distinguish the goods of one manufacturer or seller from goods manufactured or sold by others 10. assets: A useful or valuable thing; something you own such as building, inven- tory, or cash 11. liabilities: Being responsible for a debt or financial obligation, something you owe 12. financial instrument: A monetary contract between parties 13. multinational firms: A large corporation incorporated in one country which produces or sells goods or services in various countries 14. The 5 Stages of going Global: Stage 1 ~ Market Entry Stage 2 ~ Product Specialization Stage 3 ~ Value Chain Disaggregation Stage 4 ~ Value Chain Reengineering Stage 5 ~ Creation of New Markets 15. Economies of scale: A proportionate savings in costs gained by an increased level of production 16. Economies of scope: To develop efficiencies in terms of variety not volume 17. 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?: Cost 2 / 20 WGU D080 Exam Test with Verified Answers Graded A+ 18. 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?: Infrastructure 19. Six Sigma: A method that provides tools for organizations to increase perfor- mance and decrease process variation 20. Which factor of CAGE addresses differences in country size that affect barriers to globalization?: Economics 21. Gini coefficient: Measures the inequality among values of a frequency distrib- ution such as levels of income 22. Happy Planet Index: Measures how well nations are doing at achieving long, happy, sustainable lives 23. Which argument is used by critics who wish to discourage movement towards globalization?: It increases the wealth of the rich rather than the poor. 24. gross domestic product (GDP): The total value of goods and services provided in a country in a one-year period 25. gross national product (GNP): The total value of goods and services provided by a country, both inside and outside of its borders, in a one-year period 26. Which type of economy is decentralized and allows firms and households to participate in global trade with minimum governmental interference?: Mar- ket 27. Which type of legal system is based on a code and focuses on how the law is applied to the facts?: Civil 28. Which law is based on tradition and precedent given that judicial rulings can stand as precedents for future cases?: Common 29. Which legal system can vary from community to community and is found in countries without strong formal justice systems?: Customary 30. In which legal system does a judge decide the applicable law for the case as a jury determines the facts?: Common 31. Common law: Based on precedence. Any activity that is not clearly illegal may be acceptable. The role of the judge is to hear arguments from both parties and make a judgment. This judgment stands as precedent for future cases. 32. Religious law: based on religious beliefs. One example is a requirement in Sharia that people following Sharia may not borrow money. To compensate for the inability to take on debt, an asset-based system has been established. 33. balance of payments: The difference in total value between payments into and out of the country over a period of time 3 / 20 WGU D080 Exam Test with Verified Answers Graded A+ 34. fixed-rate currency exchange system: When a country's currency value is fixed or pegged by a monetary authority against the value of another currency, a basket of currencies, or another measure of value 35. World Bank: ~ Encourages developing countries to borrow for development projects ~ Developmental institution ~ Financed reconstruction after wars in the 1940s. It is now focused on supporting developing countries ~ Large: 40 offices, over 10,000 staff ~ Investment bank owned by the governments of the 180 member nations ~ Borrows and loans ~ Borrowers must meet requirements to qualify for loans 36. International Monetary Fund: ~ Oversees the international monetary system ~ Cooperative institution ~ In phase one, prior to 1973, regulated international exchange rates In phase two, post-1973, provides a means for effective international currency exchange, supervises economic policies, and provides financial assistance to mem- bers ~ Small: 2,300 staff members ~ Resources come from quota subscriptions or membership fees ~ Acts more like a credit union ~ Loans to all member nations 37. Which activity of the International Monetary Fund (IMF) impacts policymak- ing?: Being owned and directed by the governments of the member nations 38. What is a characteristic of the International Monetary Fund (IMF)?: The IMF is a cooperative institution and provides more effective currency exchange. 4 / 20 WGU D080 Exam Test with Verified Answers Graded A+ 39. What was the initial purpose of the International Monetary Fund (IMF) in phase one, prior to 1973?: Regulated currency exchange between nations 40. privatization: Selling government holdings to private companies 41. deregulation: The removal of regulations or restrictions in a particular industry 42. How does the International Monetary Fund (IMF) impact international or- ganizations and governments?: It reduces funding for social programs. 43. AAA ratings: The highest possible rating that may be assigned by a credit rating agency for a bond 44. debt instruments: A tool used by a company or any other entity to raise money or capital 45. What is a common name for the International Bank for Reconstruction and Development?: World Bank 46. What was the first loan that the World Bank made after the end of World War II?: To France to rebuild its infrastructure 47. Which criticism is associated with the World Bank?: The developed coun- tries such as the U.S. and Europe have too much control over its decisions. 48. Which criticism is made about the World Bank?: It does not consider how funding projects will affect the environment. 49. The World Bank provides: low-interest loans, interest-free credits, and condi- tional grants to developing countries in which a government (or sovereign) guaran- tees repayment. 50. The World Bank Group is comprised of: private lending banks as well as the World Bank. 51. Some criticisms of the World Bank include:: an imbalance of leadership power, enforced conditionality, and environmental impacts. 52. The Functions of the WTO: ~ Oversee Agreements ~ Transparency of Trade Policy ~ Assist Developing Nations ~ Provide Outreach ~ Settle Disputes ~ Ensure Non-discrimination 53. TRIPS (Trade-Related Aspects of Intellectual Property Rights): A WTO agreement that governs all IP laws and protects intellectual property rights for global businesses. 54. commodities: A raw material or primary agricultural product that can be bought or sold 55. What was one of the results of the Uruguay Round of the World Trade Organization negotiations?: Decrease in tariffs 5 / 20 WGU D080 Exam Test with Verified Answers Graded A+ 56. Which strategic network was established to work towards decreasing tariff rates and protecting commerce and intellectual property globally?: World Trade Organization (WTO) 57. Which organization was formed after World War II to encourage interna- tional commerce?: World Trade Organization 58. Which criticism is made about the World Trade Organization (WTO)?: It protects developed countries more than developing countries. 59. WTO supports developing nations by: providing both training and support. 60. The WTO reviews the trade policies of: all nations to ensure that each country is treated fairly and equally under the most favored nation requirement. 61. Criticisms of the WTO Include: a lack of equal trade, ensuring adoption of labor standards and rights, and ignoring environmental concerns. 62. embargos: An order of a government prohibiting the departure of commercial ships from its ports 63. mercantilism: One of the earliest economic theories, which stated that a coun- try's wealth was determined by the amount of gold and silver they had in their possession 64. trade surplus: When the value of a country's exports is greater than the value of goods being imported 65. government subsidies: Money paid by the government to help an organization or industry reduce its costs 66. Free trade: International trade left to its natural course without tariffs, quotas, or other restrictions 67. 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?: Trade surplus 68. Country A has been criticized by other countries for giving generous tax credits to its corn farmers, which enables the country's farmers to sell corn on the international markets for cheaper than all other countries. Which term is used by other countries to describe this practice?: Government subsidies 69. barriers to entry: The obstacles that make it difficult for a new company to enter a given market. These barriers may include technology challenges, high start-up costs, or government regulations 70. Comparative advantage states that: a country should specialize in the pro- duction of goods it can produce relatively more efficient than another country. This allows countries to focus on the products for which they have the lowest opportunity costs. However, many assumptions are made in this theory. 6 / 20 WGU D080 Exam Test with Verified Answers Graded A+ 71. Protective tariffs: Tariffs that protect a domestic industry by making imported goods more expensive than equivalent goods produced domestically 72. Revenue tariffs: Tariffs levied to raise revenue for the government 73. Specific tariffs: Import taxes expressed in an amount of money per unit import- ed 74. Ad valorem tariffs: Import taxes based on a fixed percentage of the assessed commercial value of imported goods 75. Compound tariffs: Taxes on imported goods that are a combination of a fixed amount and an amount based on the value of the goods 76. absolute quota: A quota that strictly limits the quantity of goods that may enter a country. 77. tariff-rate quota: A quota that permits a specified quantity of imported goods to enter a country at a reduced rate during the quota period. 78. Voluntary export restrictions: A trade restriction on the quantity of a good that an exporting country is allowed to export to another country 79. Government procurement programs: The process of buying goods and ser- vices by a government agency through a specific process of issuing bid proposals and seeking responses from companies. 80. What is a benefit of implementing a system of free trade?: Reduced tariffs would result in lower costs of imported raw materials. 81. How are free trade agreements handled differently than treaties in the United States?: Treaties must be approved by the Senate, whereas a free trade agreement must pass both houses of Congress. 82. Dumping: the practice of charging a lower price for a product (perhaps below cost) in foreign markets than in the firm's home market. 83. How do antidumping laws protect a domestic market?: They prevent foreign companies from selling goods and services at or below cost. 84. A small clothing company based in California decided that it needed to have an application (app) and an updated website. Because this is a small company, it did not have the technological expertise to handle this improve- ment. The company hired a company based in Pakistan to handle its tech- nology needs. Which common practice among companies is this an example of?: Outsourcing 85. Which strategy is used by governments to limit the foreign direct invest- ment in a country?: Creating foreign ownership restrictions in the country 86. Which activity is considered a foreign direct investment (FDI) by a multi- national corporation?: Setting up manufacturing plants in the host country 87. market capitalization: The total dollar value of a company's outstanding shares of stock 7 / 20 WGU D080 Exam Test with Verified Answers Graded A+ 88. Two forms of FDI: horizontal and vertical 89. different kinds of FDI: ~ greenfield ~ brownfield 90. What is a reason for companies to engage in foreign direct investments?- : To take advantage of tax exemptions offered by the host country 91. Which country characteristic is most important to foreign direct investors according to a study by the World Bank?: ~ Political stability ~ security 92. What is a benefit of foreign direct investment?: The inflow of capital benefits global and local economies 93. What is the result of the existence of multinational businesses?: Economic integration among countries 94. What is a potential influence of the existence of multinational corporations (MNCs) on international relations?: Improves relations between countries where the MNC operates 95. What is an accurate characterization of the relationships between multina- tional 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. 96. Which level of economic integration presents an alliance of all policies by a common organization?: Political union 97. 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 98. Which level of economic integration permits the free movement of capital, labor and technology from member countries?: Common market 99. Which economic integration stage offers economic collaboration by re- moving trade barriers between member countries and establishing a mutual trading policy with nonmembers?: Customs union 100. Which drawback is involved when regional agreements are created?: - Member countries will trade less with nonmember countries. 101. What is a benefit of creating a regional economic integration agreement?- : Improved financial growth 102. What is an advantage of regional economic integration?: Flexibility on labor movement develops job opportunities. 103. What is a disadvantage of regional economic integration?: The exclusion of external countries reduces global free trade. 104. Central America Free Trade Agreement (CAFTA-DR): United States Costa Rica, 8 / 20 WGU D080 Exam Test with Verified Answers Graded A+ the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua. 105. 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 106. 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 107. ASEAN includes: Malaysia, Thailand, Indonesia, Singapore, the Philippines, Myanmar (Burma), Vietnam, Cambodia, Laos, and Brunei. 108. Which economic actors are suppliers of U.S. dollars?: Foreign firms export- ing to the U.S. 109. exchange rate regime: The way in which an authority manages its currency in relation to other currencies and the foreign exchange market 110. floating exchange rate: A system where the value of currency in relation to others is allowed to freely fluctuate subject to market forces 111. fixed exchange rate system: A system where a currency's value is tied to the value of another single currency, to a basket of other currencies, or to another measure of value, such as gold 112. pegged exchange rate: A currency system that fixes an exchange rate around a certain value, but still allows fluctuations, usually within certain values, to occur 113. Which economic actor benefits as the U.S. dollar weakens?: A U.S. in- vestor abroad 114. Which economic actor benefits as the U.S. dollar strengthens?: A foreign firm exporting to the U.S. 115. Which exchange rate regime allows a currency's value to fluctuate ac- cording to the foreign exchange market?: Floating 116. antitrust laws: Consumer protection policy used to limit unfair business prac- tices related to competition and control of prices 117. perfectly competitive market: A market in which no individual economic actor can affect the price of a good 118. Sherman Antitrust Act: The first American antitrust policy. Established in 1890, it dealt with limiting the power of price-controlling cartels 119. competition laws: See antitrust laws. 120. antimonopoly laws: See antitrust laws. 9 / 20 WGU D080 Exam Test with Verified Answers Graded A+ 121. 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?: Perfect competition 122. A sole, national telephone company was found violating antitrust laws and was forced to separate into regional companies. What caused the violation of the antitrust laws?: Reduced competition 123. Many countries from several geographic regions are accused of dumping steel into the U.S. market at unfairly low prices. Which entity can the United States appeal to in order to correct this apparent market manipulation?: World Trade Organization 124. Paris Agreement: Universal global climate deal aimed at keeping long-term global temperature increase at below 2°C 125. National Environmental Policy Act (NEPA): American environmental act from the 1970s that requires federal agencies to prepare environmental impact statements for every recommendation or report 126. The Environmental Protection Agency (EPA): American agency established in the 1970s with the goal of monitoring the environmental practices of industry 127. Deepwater Horizon oil spill: A 2010 industrial accident that is considered the largest oil spill in history 128. Oil Pollution Act of 1990: U.S. law that strengthened the Environmental Pro- tection Agency's ability to prevent and respond to oil spills 129. The Clean Water Act: A US federal law governing water pollution 130. Which of these agreements or treaties was to combat increased temper- atures of global climate change?: Paris 131. Which governmental entity was created to provide regulatory authority regarding pollution by industry?: Environmental Protection Agency 132. Which type of duty is required to take care of the collective environment across the nation?: Shared 133. What makes the enforcement of United Nations Environmental Program regulations difficult?: Sovereign rights of nations 134. Worst Forms of Child Labour Convention, 1999: Convention (1999) that aimed to eliminate all practices of child slavery or those similar to slavery 135. The Maritime Labour Convention (MLC), 2006: Convention (2006) that set out a bill of rights for all seafarers 136. Domestic Workers Convention, 2011: Convention (2011) aimed at protecting domestic workers from abuse and exploitation 137. Which action is used by companies wishing to avoid working with ven- dors who use sweatshops?: Developing and imposing a company internal code of conduct for vendor labor practices 10 / 20 WGU D080 Exam Test with Verified Answers Graded A+ 138. A major footwear brand company is contracting the manufacturing of its products to a contractor's manufacturing plant overseas. The footwear company has been accused of turning a blind eye to sweatshop practices at other overseas contract locations before. How should the footwear company ensure that the contractor will comply with the standards set forth in the code of conduct that explicitly prohibit this practice?: Require that the factories be available for inspections 139. What did the Worst Forms of Child Labor Convention, 1999 define?: The age at which a person becomes an adult 140. Which convention protects decent working hours for a cruise ship direc- tor who travels in international waters?: Maritime Labor Convention, 2006 141. vertical structure of law: A structure of law where those at the top govern those at the bottom 142. Uniform Commercial Code (UCC): Source of contract law in the United States 143. horizontal structure: Structure of law where neither party is in a legally dominant position over the other 144. horizontal laws: Laws that govern disputes in a horizontal structure 145. UN Convention on Contracts for the International Sale of Goods (CISG)- : United Nations treaty that applies to the international sales of commercial goods 146. Which result occurs when a legally enforceable contract between two businesses from different countries is broken?: The party who has been affect- ed can seek damages. 147. Which two primary sources of law govern contracts in the United States?- : The common law and the Uniform Commercial Code 148. How is contract law structured as it applies to global business among nations?: Horizontal 149. Which condition is part of a contract between international companies that are based in different nations?: A choice of law clause 150. Which intellectual property right describes a chemical company's filing on their innovative industrial process invention?: Patent 151. Which organization aims to develop a global intellectual property infra- structure?: WIPO 152. What is the agreement that the World Trade Organization has between its member nations that governs all intellectual property laws?: Trade-Related Aspects of Intellectual Property Rights (TRIPS) 153. stakeholders: All parties who have a stake in the performance and output of the corporation 154. Sarbanes-Oxley Act of 2002: Law aimed at increasing the level of ethical transparency within corporate America 11 / 20 WGU D080 Exam Test with Verified Answers Graded A+ 155. open government information regulations: Chinese regulation (2008) that establishes limited rules for government information disclosure and public participa- tion 156. Power distance: One of Hofstede's six dimensions of national culture. It de- scribes how formal and authority-focused a society is. 157. A company is reviewing how ethical consumerism is being addressed in the organization. It is hoping to improve its awareness of this factor and how it will influence future business decisions. How does this factor affect business decisions?: Companies must remember that their consumers may care about more than just the final product. 158. A company that released a new vehicle marketed as being environmental- ly friendly is found to have cheated when testing the vehicle's total emissions. The company would like to repair damage from the negative publicity by changing its image and catering more to ethical consumers. Which action should the company take to reach this goal?: Hire a new leader to send the message that practices have changed 159. A coffee company received international criticism for an employee neg- atively responding towards a customer. The response was said to be racially motivated. The company needs to take swift action to improve how all employ- ees in the organization are viewed by ethical consumers. Which course of action should the company take to meet this goal?: Have employees attend sensitivity training 160. Cultural norms: Shared, sanctioned, and integrated systems of beliefs and practices that are passed down through generations and characterize a cultural group 161. Which term describes the normative beliefs and practices passed from generation to generation that help define a group of people?: Cultural norms 162. An American salesperson is attempting to do business in a Middle East- ern country. What is one of the major cultural issues the salesperson needs to understand about this part of the world?: It is more relationship-based than the United States. 163. A global company has warned managers that the country involved in their current business venture typically expects small payments to be made to government officials to expedite decisions and transactions. The company has encouraged managers to avoid this type of unethical practice. Which form of activity is the company concerned about?: Grease payments 164. internal controls: The redundancies that are build into a system to make certain that it accurately maintains material statements 165. Discrepancies: Accounting errors that occur unintentionally 12 / 20 WGU D080 Exam Test with Verified Answers Graded A+ ple, tasks, and n, and sales 166. irregularities: Misrepresentations of accounting data with the intention to de- fraud 167. Internal auditing: A control in which the company investigates and evaluates employees' compliance with company policies and procedures 168. whistleblower: A person who exposes any kind of information or activity that is deemed illegal, unethical, or not correct within an organization 169. What is the purpose of internal controls?: To ensure the accuracy of a system's performance 170. How should a company ensure that internal controls are effectively im- plemented?: By performing due diligence with procedures 171. Which of the following will cause shrinkage in accounting?: Petty theft 172. A company requires one employee to be responsible for maintaining a machine. Another employee is responsible for maintaining accounting records for that machine. Which internal control has the company implemented?: Segregating duties 173. An international company has created a diagram to show the division of labor between departments. What is the name of this diagram?: Organizational chart 174. An international company wants to establish links between the people at the same level of the organization to form committees. What is the name for this type of link in a company?: Horizontal 175. departmentalization: Grouping a business's people, tasks, and resources into units 176. Functional departmentalization: Organizing a company's peo resources based on business functions such as marketing, productio 177. Product departmentalization: Organizing a company's people, tasks, and resources based on goods or services 178. Market departmentalization: Organizing a company's people, tasks, and re- sources based on the type of customer served 179. Geographic departmentalization: Organizing a company's people, tasks, and resources based on a geographic region 180. Matrix Structure: a combination of different types of structures. Firms that engage in projects of limited duration often use a matrix structure where employees can be put on different teams to maximize creativity and idea flow. 181. Teams Structure: A team structure is made up of people with complementary skills working together for a common purpose. This structure is less hierarchical, with shared leadership and objectives. 13 / 20 WGU D080 Exam Test with Verified Answers Graded A+ 182. Managers in an international company are arranging jobs so similar tasks are coordinated. Which activity is being completed by this company?: Departmentalization 183. Managers at an international business are deciding the method by which it will be organized. The business is highly diversified, manufacturing a num- ber of different components and parts for its industrialized customers. Which departmentalization structure should be used by this company?: Prod- uct 184. value chain: The process by which a company adds value to product, such as production, marketing, and service 185. specific strategic business unit (SBU): An independent division within a large company with responsibility for specific products or activities 186. centralization: The degree to which decision-making authority is concentrated at higher levels in an organization and business functions controlled in a central location 187. centralized companies: Companies with structures that limit decision-making to higher levels in the organizational hierarchy 188. decentralized companies: Companies with structures that distribute the au- thority to make decisions to lower levels of employees who are closer to the problem 189. An employee feels empowered to make decisions to solve customer problems independent of seeking manager approval and uses flexibility to meet customer needs. Which decision-making structure is being used by this employee?: Decentral- ized 190. Global integration: The degree to which a company is able to use the same products and methods in multiple countries 191. Local responsiveness: The degree to which a company must customize its products and methods to meet the conditions in other countries 192. export strategy: An international commerce strategy that focuses on shipping domestic products to other countries 193. standardization strategy: A strategy for international commerce that does not customize products for local markets 194. multidomestic strategy: A strategy of international commerce that cus- tomizes products to each country 195. transnational strategy: An international commerce strategy that combines the aspects of standardization and multidomestic strategies 196. A fast food company seeks to expand internationally and changes its menu to appeal to the new country's food tastes. 14 / 20 WGU D080 Exam Test with Verified Answers Graded A+ Which action is being sought by the company by making this change?: Local responsiveness 197. A company wants to gain market share but does not want to establish operations in other countries nor tailor its products to the other countries. Which entry strategy should the company use to meet this goal under these conditions?: Export 198. A car company wants to expand internationally but encounters much international competition to reduce cost while responding to local needs. Which strategy should the company use to meet this goal under these condi- tions?: Transnational 199. A company decides to focus on economies of scale to decrease produc- tion costs and increase revenues. Why is this strategy effective?: Manufacturing in large quantities keeps costs low. 200. product adaptation: The process of changing a product in some way so it is more acceptable or desirable in a particular market 201. glocalization: The process of adapting to local markets while maintaining a global identity 202. When expanding internationally to a country with a lower average income, a company made efforts to reduce the price of its product, even though it eliminated some of the benefits the product has in other markets. This allowed for greater sales in the new market. Which strategy is being used by this company?: Adaptation 203. A company owner is considering manufacturing using a global standard- ization strategy to achieve economies of scale. Why is this strategy effective?: It manufactures the same product for all markets. 204. exporting: Sending goods to another country to sell 205. licensing: A type of contract that allows one party to use another's property as their own without paying royalties for a designated length of time 206. franchising: A system where a business grants an entrepreneur the right to use their products, names, and processes in exchange for a percentage of the profits 207. strategic alliances: An agreement between two companies to cooperate on the mutually beneficial project 208. greenfield: A new business built where no prior business existed, either phys- ically or metaphorically or both 209. distributor: Someone who supplies goods to businesses 210. due diligence: The reasonable steps or research necessary before making an informed decision or evaluation 211. strategic plan: A formal agreement on priorities, focus, and goals 15 / 20 WGU D080 Exam Test with Verified Answers Graded A+ 212. A company has decided that a foreign direct investment should be made during the next quarter to strengthen the organization. Which method should be used for this purpose?: Establishing a greenfield venture 213. An individual is considering entering the global market via a franchise. Which outcome should be expected by the individual if this approach is used?: Majority of financial risk 214. cultural dimensions: A framework for cross-cultural communication, devel- oped by Geert Hofstede that shows the effects of a society's culture on the values of its members, and how these values relate to behavior. 215. Individualistic: One of Hofstede's six dimensions of national culture. It mea- sures how focused people are on their immediate circle at the expense of the greater group. 216. Masculinity versus femininity: One of Hofstede's six dimensions of national culture. It measures how the society views traits that it considers masculine or feminine. 217. Uncertainty avoidance: One of Hofstede's six dimensions of national culture. It measures how comfortable a society is with uncertainty. 218. Long-term orientation: One of Hofstede's six dimensions of national culture. It measures how focused a society is on traits such as perseverance and shame. 219. Indulgence versus restraint: One of Hofstede's six dimensions of national culture. It measures the degree of freedom and spontaneity that is valued. 220. John is the president of a company that is based in Atlanta. This company, which manufactures office items that stick to walls, furniture, and other items, has been very successful in its first five years, so John decides that he would like to expand the business globally and has chosen to start in the Philippines. What is one of the first things he should do?: Research the history and politics of the Philippines 221. A company's chief executive officer (CEO) wants to expand the company into China and is reviewing the Chinese word guanxi, the basis of all business in that country. Which English meaning must the CEO understand in regards to this Chinese concept?: You owe me one. 222. Which Latin American phrase (translated into English) typifies how time is viewed, which can make conducting business frustrating to Northern Euro- pean companies seeking to expand in Latin America?: Time is space. 223. A chief executive officer (CEO) of a Scandinavian company sought to expand operations in Japan through a joint venture. When the CEO asked the Japanese business owner whether she was committed to the venture, 16 / 20 WGU D080 Exam Test with Verified Answers Graded A+ the business owner responded with a flat-toned "yes." The outcome the CEO expected did not happen, and the joint venture failed. What was the CEO's misinterpretation in this communication?: The response indicated agreement. 224. A company's chief executive officer (CEO) emphasizes to other execu- tives in the foreign country's joint venture that the CEO's culture should take precedence over other cultural systems since it is superior. Which type of viewpoint is the CEO demonstrating regarding culture?: Ethno- centrism 225. A company wants its expatriates to receive the best training to adapt to the local environment in the host country. What is the goal of this training?: Cultural agility 226. 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?: Cultural training 227. An employee has assumed an expatriate role and is studying textbooks to learn about cultural differences in order to function smoothly in the new setting. Which helpful secondary source training is the expatriate using?: Documen- tary 228. An employee who is scheduled to become an expatriate has successfully passed the survival training stage. What type of training is used by the company after passing this stage?: Field simulation 229. Three Approaches to HRM: 1. Ethnocentric 2. Polycentric 3. Geocentric 230. A company operating in a foreign country hires and conducts business according to the cultural practices in its home country. Which approach to human resource management is used by this company?- : Ethnocentric 231. A company would like to use a human resource approach that leads to more fluid movement among employees and creates diversity in the work- force. Assignment decisions are made jointly by the headquarters and the field offices. Which human resource approach should be used by this company?: Geocen- tric 17 / 20 WGU D080 Exam Test with Verified Answers Graded A+ 232. What is the term for the services a company provides when it helps an employee who has worked in a host country make the transition back to the home country?: Repatriation 233. supply chain: The sequence of processes involved in the production and distribution of a commodity 234. Which model of supply chain management focuses on the product and its production?: Push 235. An aircraft manufacturer uses a supply chain management system in which parts of the aircraft are made in different countries and assembled at the company's headquarters. Which type of supply chain is the company using?: Multinational 236. A company wishes to expand internationally in countries that have high tariffs on the product the company makes. The company decides to use foreign direct investment because the labor costs are low and the country is politically stable. Which type of production is the company using?: Production in the host country then local retailing 237. A company wishes to make a foreign direct investment in a new country where it can make and test products more easily. While local suppliers would not normally meet the requirements for its products, this new plant will accept them. Which factor affected the company's production location?: Innovation 238. Which company relationship is negatively affected if the company uses outsourcing to reduce costs?: Employee 239. A farmer sells sweet corn to customers at a local farmers market. Which marketing channel is being used by the farmer?: Direct 240. Which advantage do intermediaries offer when a manufacturer uses an in- direct marketing channel to distribute its products?: Broader knowledge about the existing markets 241. Which advantage is an outcome of exporting products to a developed country?: Better established infrastructure 242. Which type of investor secures funding from a number of speculative fi- nanciers and pursues strong global business opportunities still in the start-up phase?: Venture capitalists 243. Which source permits a high number of funders to each participate with a small amount of capital and cumulatively contribute to a new venture?: Crowd- sourcing 244. Which financing source provides funding for capital through private con- nections with help limited to monetary contributions?: Personal contacts 18 / 20 WGU D080 Exam Test with Verified Answers Graded A+ 245. Which organization formed in 1970 supplements the funding available from commercial banks and other lenders to support U.S. exports?: Private Export Funding Corporation (PEFCO) 246. Financial Accounting Standards Board (FASB): An independent group that oversees the development and revision of the GAAP 247. Which U.S.-based set of accounting principles was created to establish rules and regulations for financial accounting?: GAAP 248. Which self-governing group is supported by the U.S. government, various accounting establishments, and privately owned companies to establish ac- counting standards?: FASB 249. Which set of standards establish international accounting regulations and reporting expectations?: IFRS 250. What is the purpose of the IASB?: Creating international standards of ac- counting 251. Political risk: Possible political changes or instability in a country that could hurt a company's financial return on a foreign investment. 252. Macro risk: A type of political risk in which political factors impact the overall stability of a country and can impact any industry regardless of industry type. 253. micro risk: A type of political risk that applies to a specific foreign company or a group of foreign companies in a country. 254. Which globalization risk involves governments and the relationships be- tween countries?: Political 255. Which globalization risk refers to the adherence to laws of countries in which an organization may operate?: Legal 256. Which globalization risk involves the societal expectations and standards of an organization operating in a foreign environment?: Cultural 257. Which globalization risk refers to the level of financial stability in a country?: Economic 258. hedging: Using financial instruments to reduce adverse price movements 259. derivatives: Special types of financial instruments, the prices of which are ultimately derived from the price or performance of some underlying assets. 260. return volatility: A measure of the variation in returns on an investment 261. forward contract: A contract in which the firm agrees to pay a set rate at the beginning of a contract. 262. Currency futures contracts: Contracts that require the exchange of a specific amount of currency at a specific future date and at a specific exchange rate 263. Currency swap contracts: A contract where 2 firms agree to swap currencies in the future at a previously agreed exchange rate. 19 / 20 WGU D080 Exam Test with Verified Answers Graded A+ 264. Currency option contracts: The option or the right to exchange a specific amount of currency on a specific future date and at a specific agreed-on rate 265. Which currency contract establishes a specific rate at the beginning of the contract for delivery at a future date?: Forward 266. Which currency contracts are two-way agreements to trade currency on different dates?: Swap 267. Which currency contract requires a specific exchange rate and quantity of money on a subsequent date?: Future 268. Which currency contract allows for a trade of specific amount of money and exchange rate on a defined date to hedge risk in the global environment?- : Options 269. A government is managing a difficult economy that appears to be at a stand-still and a direct-tax rate that is rapidly decreasing. The government decides to use an indirect tax to improve the situation. Which tax did this government use?: Goods and services 270. Why should a company identify corporate tax rates in various countries to make a strategic business decision, such as expanding the company glob- ally?: To determine most profitable location of plants and headquarters 271. A multinational corporation would like to maximize profits by moving products to international subsidiaries to gain tax advantages. Which pricing strategy should this corporation use for this purpose?: Transfer 272. digital divide: The inequality between groups to access knowledge and use of information in communication technologies 273. International Telecommunication Union: A specialized agency of the United Nations responsible for communication and information issues 274. Which areas traditionally suffer from the digital divide?: Rural areas 275. A company is in a geographic area with low literacy levels, and the surrounding population does not understand the benefits of a computer and the internet. Due to this lack of information, the individuals are not able to use the digital technology to its full potential, and this is negatively impacting the company's business plan. Which type of divide must this company manage?: Usability 276. What is considered the most vital area needing information and commu- nication technology (ICT) intervention?: Agriculture 277. artificial intelligence (AI): Any type of computer that engages in humanlike activities 278. exascale: Computing system capable of at least one exaflop or a billion billion (i.e., a quintillion) calculations per second 20 / 20 WGU D080 Exam Test with Verified Answers Graded A+ 279. Why are bots on customer-facing websites and apps valuable for global companies?: They are accessible 24 hours per day. 280. management information systems: The methods and equipment that pro- vide information about all aspects of a firm's operations 281. Chief Information Officers (CIOs): An executive with responsibility for man- aging all information resources in an organization 282. A company is beginning to operate on a more complex global scale and needs a seamless integration of all the data the business uses. This integration must include data from human resources (HR), employee data, sales information, and development figures. Which type of software solution should be used for this purpose?: Enterprise resource planning 283. A company needs an electronic filing system that collects and organizes information for analysis. Which solution should be used for this purpose?: Database management sys- tem 284. Fourth Industrial Revolution: first use of big data, predictive analytics and artificial intelligence 285. Which term refers to the indistinguishable combination of what is human and what is technology?: The Fourth Industrial Revolution 286. Which technology is instrumental in the development of self-driving cars?: Artificial intelligence 287. Which technique allows customers to store personal information such as credit card data in one list of records and maintain total ownership and control over such information?: Blockchain 288. How does General Data Protection Regulation (GDPR) help protect peo- ple's personal data?: Users are required to opt in explicitly to grant permission for sensitive data.