WGU D080 Managing in a Global Business
Environment 2023/2024 with complete solution
Questions
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
Cultural training
What happens to consumer surplus when tariffs and quotas are discontinued?
They increase
Which type of tariff is put in place to specifically ensure that domestic industries are given an
advantage?
Protective
What is a benefit of implementing a system of free trade?
Reduced tariffs would result in lower costs of imported raw materials.
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.
Treaties must be approved by the Senate, whereas a free trade agreement must pass both houses of
Congress.
Tariffs
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.
Value chain
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
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?
Government subsidies
,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?
Opportunity
A country produces goods more efficiently than all other countries in the same industry.
Which type of advantage does this country have?
Absolute
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?
Skill specialization
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?
Economies of scale
A country with a new economy implemented trade protectionism in relation to countries with more
developed economies.
Why did the country take this action?
To restrict international economic trade
How do anti dumping laws protect a domestic market?
They prevent foreign companies from selling goods and services at or below cost.
How do Congress and the Department of Agriculture use quotas to their advantage?
To increase domestic prices to specific levels to make products profitable
Which strategy should a government use to offset the cost of manufacturing domestically?
Subsidies
Which type of globalization refers to the international movement of goods, capital, and services?
Economic
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?
Profitability
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?
Direct investment
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
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
Which argument is used by critics who wish to discourage movement towards globalization?
It increases the wealth of the rich rather than the poor
Anarchism
Individuals control political activities, and the government has no control over these activities
Totalitarianism
A centralized government creates oppressive policies based on ideas from powerful leadership.
Direct democracy
The government provides a method of voting for the people of a country, not for elected officials.
What is a free trade zone?
A geographic region in which a county will reduce restrictions that might prevent or reduce trade
Which term describes a government giving a tax break to a producer to increase their global
competitiveness?
Subsidies
Industrialized
Prevalent formation of new markets with possibility of saturation
Less-developed
Focus on agriculture and raw materials with limited imports
Developing country
Growing population which leads to long-term growth potential.
Which type of economy is decentralized and allows firms and households to participate in global trade
with minimum governmental interference?
Market
, What type of economy is centered on families or tribes where little to no global trade is practiced?
Traditional
Socialism
a system in which the government owns and operates a country's means of production
Capitalism
A system in which the means of production is controlled by private owners who can choose to
participate in global trade.
Communism
A system in which all property is publicly owned and the government controls global trade.
Which type of law system is based on a code and focuses on how the law is applied to the facts?
Civil
Which law is based on tradition and precedent given that judicial rulings can stand as precedents for
future cases?
Common
Which law system can vary from community to community and is found in countries without strong
formal justice systems?
Customary
In which law system does a judge decide the applicable law for the case as a jury determines the
facts?
Common
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
Environment 2023/2024 with complete solution
Questions
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
Cultural training
What happens to consumer surplus when tariffs and quotas are discontinued?
They increase
Which type of tariff is put in place to specifically ensure that domestic industries are given an
advantage?
Protective
What is a benefit of implementing a system of free trade?
Reduced tariffs would result in lower costs of imported raw materials.
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.
Treaties must be approved by the Senate, whereas a free trade agreement must pass both houses of
Congress.
Tariffs
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.
Value chain
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
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?
Government subsidies
,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?
Opportunity
A country produces goods more efficiently than all other countries in the same industry.
Which type of advantage does this country have?
Absolute
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?
Skill specialization
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?
Economies of scale
A country with a new economy implemented trade protectionism in relation to countries with more
developed economies.
Why did the country take this action?
To restrict international economic trade
How do anti dumping laws protect a domestic market?
They prevent foreign companies from selling goods and services at or below cost.
How do Congress and the Department of Agriculture use quotas to their advantage?
To increase domestic prices to specific levels to make products profitable
Which strategy should a government use to offset the cost of manufacturing domestically?
Subsidies
Which type of globalization refers to the international movement of goods, capital, and services?
Economic
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?
Profitability
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?
Direct investment
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
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
Which argument is used by critics who wish to discourage movement towards globalization?
It increases the wealth of the rich rather than the poor
Anarchism
Individuals control political activities, and the government has no control over these activities
Totalitarianism
A centralized government creates oppressive policies based on ideas from powerful leadership.
Direct democracy
The government provides a method of voting for the people of a country, not for elected officials.
What is a free trade zone?
A geographic region in which a county will reduce restrictions that might prevent or reduce trade
Which term describes a government giving a tax break to a producer to increase their global
competitiveness?
Subsidies
Industrialized
Prevalent formation of new markets with possibility of saturation
Less-developed
Focus on agriculture and raw materials with limited imports
Developing country
Growing population which leads to long-term growth potential.
Which type of economy is decentralized and allows firms and households to participate in global trade
with minimum governmental interference?
Market
, What type of economy is centered on families or tribes where little to no global trade is practiced?
Traditional
Socialism
a system in which the government owns and operates a country's means of production
Capitalism
A system in which the means of production is controlled by private owners who can choose to
participate in global trade.
Communism
A system in which all property is publicly owned and the government controls global trade.
Which type of law system is based on a code and focuses on how the law is applied to the facts?
Civil
Which law is based on tradition and precedent given that judicial rulings can stand as precedents for
future cases?
Common
Which law system can vary from community to community and is found in countries without strong
formal justice systems?
Customary
In which law system does a judge decide the applicable law for the case as a jury determines the
facts?
Common
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
