WGU D080 Managing in a Global Business Environment Test with
Verified Answers
A company is considering establishing a subsidiary in Which relationship does Country A have with Country
a new host country and wishes to prepare its B? - ANSWER -Trade surplus
expatriates to adapt to the local environment.
How should this company prepare its expatriates?
Country A has been criticized by other countries for
Negotiation giving generous tax credits to its corn farmers, which
Operational training in turn, enables the country's farmers to sell corn on
Repatriation the international markets cheaper than all other
Cultural Training - ANSWER -Cultural training countries.
Which term is used by other countries to describe this
practice? - ANSWER -Government subsidies
What happens to consumer surplus when tariffs and
quotas are discontinued? - ANSWER -They
increase 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
Which type of tariff is put in place to specifically bushel of corn is selling at three times a bushel of
ensure that domestic industries are given an soy.
advantage? - ANSWER -Protective Which type of cost should the farmer use to
determine what to plant? - ANSWER -
Opportunity
What is a benefit of implementing a system of free
trade? - ANSWER -Reduced tariffs would result
in lower costs of imported raw materials. A country produces goods more efficiently than all
other countries in the same industry.
Which type of advantage does this country have? -
How are free trade agreements handled differently ANSWER -Absolute
than treaties in the United States? - ANSWER -
Treaties must be approved by the Senate, whereas a
free trade agreement must pass both houses of Country A exports farming equipment to Country B,
Congress. while Country B exports car manufacturing equipment
to Country A. Both countries are highly developed
and could develop these industries separately but
Treaties must be approved by the Senate, whereas a instead made the decision to export and import these
free trade agreement must pass both houses of products from each other.
Congress. - ANSWER -Tariffs Which unique condition caused this practice between
the two countries? - ANSWER -Skill
specialization
An airplane manufacturer outsources the
manufacture of some its parts and sub-assemblies.
They are then returned to the manufacturer's main A company produces the same product over and
plant for final assembly. - ANSWER -Value over, and it has caused the manufacturing cost of the
chain product to become cheaper and more competitive in
international markets than similar products in the
industry.
Country A exports more goods to Country B than it Which approach is this company using to achieve this
imports from Country B. Country A receives more ability? - ANSWER -Economies of scale
monetary gain by using this practice.
,WGU D080 Managing in a Global Business Environment Test with
Verified Answers
A country with a new economy implemented trade
protectionism in relation to countries with more A CEO seeks to better use the economies of scale
developed economies. and scope of production to increase the international
Why did the country take this action? - company's profits.
ANSWER -To restrict international economic Which type of globalization driver is the CEO seeking
trade to use? - ANSWER -Cost
How do anti dumping laws protect a domestic A CEO is discussing an expansion of production of a
market? - ANSWER -They prevent foreign company's highly perishable dairy line in a country
companies from selling goods and services at or that can offer low labor costs and good internet
below cost. connections. The country has no highways, and
roads are poorly maintained.
Which challenge to international business expansion
How do Congress and the Department of Agriculture do the road conditions present? - ANSWER -
use quotas to their advantage? - ANSWER -To Infrastructure
increase domestic prices to specific levels to make
products profitable
Which argument is used by critics who wish to
discourage movement towards globalization? -
Which strategy should a government use to offset the ANSWER -It increases the wealth of the rich
cost of manufacturing domestically? - rather than the poor
ANSWER -Subsidies
Anarchism - ANSWER -Individuals control
Which type of globalization refers to the international political activities, and the government has no control
movement of goods, capital, and services? - over these activities
ANSWER -Economic
Totalitarianism - ANSWER -A centralized
The CEO of an international company reminds the government creates oppressive policies based on
executive vice presidents that while the company ideas from powerful leadership.
may do good while performing corporate social
responsibilities, the business has one ultimate goal
since it is engaged in commercial activities with Direct democracy - ANSWER -The government
corporate shareholders. provides a method of voting for the people of a
Which ultimate goal is the CEO emphasizing to the country, not for elected officials.
executive vice presidents? - ANSWER -
Profitability
What is a free trade zone? - ANSWER -A
geographic region in which a county will reduce
A CEO decides to expand the company's business restrictions that might prevent or reduce trade
internationally by purchasing production capability in
another country, including the foreign country's
buildings and equipment. Which term describes a government giving a tax
Which type of market entry is the CEO using? - break to a producer to increase their global
ANSWER -Direct investment competitiveness? - ANSWER -Subsidies
, WGU D080 Managing in a Global Business Environment Test with
Verified Answers
Industrialized - ANSWER -Prevalent formation Which law system can vary from community to
of new markets with possibility of saturation community and is found in countries without strong
formal justice systems? - ANSWER -Customary
Less-developed - ANSWER -Focus on
agriculture and raw materials with limited imports In which law system does a judge decide the
applicable law for the case as a jury determines the
facts? - ANSWER -Common
Developing country - ANSWER -Growing
population which leads to long-term growth potential.
Which activity of the International Monetary Fund
(IMF) impacts policy making? - ANSWER -
Which type of economy is decentralized and allows Being owned and directed by the governments of the
firms and households to participate in global trade member nations
with minimum governmental interference? -
ANSWER -Market
What is a characteristic of the International Monetary
Fund (IMF)? - ANSWER -The IMF is a
What type of economy is centered on families or cooperative institution and provides more effective
tribes where little to no global trade is practiced? - currency exchange.
ANSWER -Traditional
What was the initial purpose of the International
Socialism - ANSWER -a system in which the Monetary Fund (IMF) in phase one, prior to 1973? -
government owns and operates a country's means of ANSWER -Regulated currency exchange
production between nations
Capitalism - ANSWER -A system in which the How does the International Monetary Fund (IMF)
means of production is controlled by private owners impact international organizations and governments?
who can choose to participate in global trade. - ANSWER -It reduces funding for social
programs.
Communism - ANSWER -A system in which all
property is publicly owned and the government What is a common name for the International Bank
controls global trade. for Reconstruction and Development? -
ANSWER -World Bank
Which type of law system is based on a code and
focuses on how the law is applied to the facts? - What was the first loan that the World Bank made
ANSWER -Civil after the end of World War II? - ANSWER -To
France to rebuild its infrastructure
Which law is based on tradition and precedent given
that judicial rulings can stand as precedents for Which criticism is associated with the World Bank? -
future cases? - ANSWER -Common ANSWER -The developed countries of U.S. and
Verified Answers
A company is considering establishing a subsidiary in Which relationship does Country A have with Country
a new host country and wishes to prepare its B? - ANSWER -Trade surplus
expatriates to adapt to the local environment.
How should this company prepare its expatriates?
Country A has been criticized by other countries for
Negotiation giving generous tax credits to its corn farmers, which
Operational training in turn, enables the country's farmers to sell corn on
Repatriation the international markets cheaper than all other
Cultural Training - ANSWER -Cultural training countries.
Which term is used by other countries to describe this
practice? - ANSWER -Government subsidies
What happens to consumer surplus when tariffs and
quotas are discontinued? - ANSWER -They
increase 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
Which type of tariff is put in place to specifically bushel of corn is selling at three times a bushel of
ensure that domestic industries are given an soy.
advantage? - ANSWER -Protective Which type of cost should the farmer use to
determine what to plant? - ANSWER -
Opportunity
What is a benefit of implementing a system of free
trade? - ANSWER -Reduced tariffs would result
in lower costs of imported raw materials. A country produces goods more efficiently than all
other countries in the same industry.
Which type of advantage does this country have? -
How are free trade agreements handled differently ANSWER -Absolute
than treaties in the United States? - ANSWER -
Treaties must be approved by the Senate, whereas a
free trade agreement must pass both houses of Country A exports farming equipment to Country B,
Congress. while Country B exports car manufacturing equipment
to Country A. Both countries are highly developed
and could develop these industries separately but
Treaties must be approved by the Senate, whereas a instead made the decision to export and import these
free trade agreement must pass both houses of products from each other.
Congress. - ANSWER -Tariffs Which unique condition caused this practice between
the two countries? - ANSWER -Skill
specialization
An airplane manufacturer outsources the
manufacture of some its parts and sub-assemblies.
They are then returned to the manufacturer's main A company produces the same product over and
plant for final assembly. - ANSWER -Value over, and it has caused the manufacturing cost of the
chain product to become cheaper and more competitive in
international markets than similar products in the
industry.
Country A exports more goods to Country B than it Which approach is this company using to achieve this
imports from Country B. Country A receives more ability? - ANSWER -Economies of scale
monetary gain by using this practice.
,WGU D080 Managing in a Global Business Environment Test with
Verified Answers
A country with a new economy implemented trade
protectionism in relation to countries with more A CEO seeks to better use the economies of scale
developed economies. and scope of production to increase the international
Why did the country take this action? - company's profits.
ANSWER -To restrict international economic Which type of globalization driver is the CEO seeking
trade to use? - ANSWER -Cost
How do anti dumping laws protect a domestic A CEO is discussing an expansion of production of a
market? - ANSWER -They prevent foreign company's highly perishable dairy line in a country
companies from selling goods and services at or that can offer low labor costs and good internet
below cost. connections. The country has no highways, and
roads are poorly maintained.
Which challenge to international business expansion
How do Congress and the Department of Agriculture do the road conditions present? - ANSWER -
use quotas to their advantage? - ANSWER -To Infrastructure
increase domestic prices to specific levels to make
products profitable
Which argument is used by critics who wish to
discourage movement towards globalization? -
Which strategy should a government use to offset the ANSWER -It increases the wealth of the rich
cost of manufacturing domestically? - rather than the poor
ANSWER -Subsidies
Anarchism - ANSWER -Individuals control
Which type of globalization refers to the international political activities, and the government has no control
movement of goods, capital, and services? - over these activities
ANSWER -Economic
Totalitarianism - ANSWER -A centralized
The CEO of an international company reminds the government creates oppressive policies based on
executive vice presidents that while the company ideas from powerful leadership.
may do good while performing corporate social
responsibilities, the business has one ultimate goal
since it is engaged in commercial activities with Direct democracy - ANSWER -The government
corporate shareholders. provides a method of voting for the people of a
Which ultimate goal is the CEO emphasizing to the country, not for elected officials.
executive vice presidents? - ANSWER -
Profitability
What is a free trade zone? - ANSWER -A
geographic region in which a county will reduce
A CEO decides to expand the company's business restrictions that might prevent or reduce trade
internationally by purchasing production capability in
another country, including the foreign country's
buildings and equipment. Which term describes a government giving a tax
Which type of market entry is the CEO using? - break to a producer to increase their global
ANSWER -Direct investment competitiveness? - ANSWER -Subsidies
, WGU D080 Managing in a Global Business Environment Test with
Verified Answers
Industrialized - ANSWER -Prevalent formation Which law system can vary from community to
of new markets with possibility of saturation community and is found in countries without strong
formal justice systems? - ANSWER -Customary
Less-developed - ANSWER -Focus on
agriculture and raw materials with limited imports In which law system does a judge decide the
applicable law for the case as a jury determines the
facts? - ANSWER -Common
Developing country - ANSWER -Growing
population which leads to long-term growth potential.
Which activity of the International Monetary Fund
(IMF) impacts policy making? - ANSWER -
Which type of economy is decentralized and allows Being owned and directed by the governments of the
firms and households to participate in global trade member nations
with minimum governmental interference? -
ANSWER -Market
What is a characteristic of the International Monetary
Fund (IMF)? - ANSWER -The IMF is a
What type of economy is centered on families or cooperative institution and provides more effective
tribes where little to no global trade is practiced? - currency exchange.
ANSWER -Traditional
What was the initial purpose of the International
Socialism - ANSWER -a system in which the Monetary Fund (IMF) in phase one, prior to 1973? -
government owns and operates a country's means of ANSWER -Regulated currency exchange
production between nations
Capitalism - ANSWER -A system in which the How does the International Monetary Fund (IMF)
means of production is controlled by private owners impact international organizations and governments?
who can choose to participate in global trade. - ANSWER -It reduces funding for social
programs.
Communism - ANSWER -A system in which all
property is publicly owned and the government What is a common name for the International Bank
controls global trade. for Reconstruction and Development? -
ANSWER -World Bank
Which type of law system is based on a code and
focuses on how the law is applied to the facts? - What was the first loan that the World Bank made
ANSWER -Civil after the end of World War II? - ANSWER -To
France to rebuild its infrastructure
Which law is based on tradition and precedent given
that judicial rulings can stand as precedents for Which criticism is associated with the World Bank? -
future cases? - ANSWER -Common ANSWER -The developed countries of U.S. and
