WGU D080 Managing in a Global Business Environment
Questions and Answers (Verified Answers)
1. A company is considering establishing a subsidiary in a new host
countryand wishes to prepare its expatriates to adapt to the local
environment.
How should this company prepare its expatriates?
Negotiation
Operational
training
Repatriation
Cultural Training ANS : Cultural training
2. What happens to consumer surplus when tariffs and quotas are
discontin-ued ANS : They increase
3. Which type of tariff is put in place to specifically ensure that
domesticindustries are given an advantage ANS : Protective
4. What is a benefit of implementing a system of free trade ANS :
Reduced tariffswould result in lower costs of imported raw materials.
5. How are free trade agreements handled differently than treaties in the
United States ANS : Treaties must be approved by the Senate, whereas a free
trade agreementmust pass both houses of Congress.
6. Treaties must be approved by the Senate, whereas a free trade
agreementmust pass both houses of Congress.: Tariffs
,7. An airplane manufacturer outsources the manufacture of some its
parts andsub-assemblies. They are then returned to the
manufacturer's main plant forfinal assembly.: Value chain
8. 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 ANS :
Trade surplus
9. 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 sellcorn on the international markets cheaper than all other
countries.
Which term is used by other countries to describe this practice ANS :
Governmentsubsidies
10. A farmer knows that it takes 100 hours of labor to produce 100
bushels ofcorn. 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
ANS : Oppor-tunity
11. A country produces goods more efficiently than all other countries
in thesame industry.
Which type of advantage does this country have ANS : Absolute
,12. Country A exports farming equipment to Country B, while Country
B exports car manufacturing equipment to Country A. Both countries
are highlydeveloped 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
ANS : Skillspecialization
13. A company produces the same product over and over, and it has
causedthe manufacturing cost of the product to become cheaper and
more compet-itive in international markets than similar products in
the industry.
Which approach is this company using to achieve this ability ANS :
Economies ofscale
14. A country with a new economy implemented trade protectionism in
relationto countries with more developed economies.
Why did the country take this action ANS : To restrict international
economic trade
15. How do anti dumping laws protect a domestic market ANS : They
prevent foreigncompanies from selling goods and services at or below cost.
16. How do Congress and the Department of Agriculture use quotas to
their advantage ANS : To increase domestic prices to specific levels to make
products prof-itable
17. Which strategy should a government use to offset the cost of
manufactur-ing domestically ANS : Subsidies
18. Which type of globalization refers to the international movement of
, goods,capital, and services ANS : Economic
19. The CEO of an international company reminds the executive vice
presi- dents that while the company may do good while performing
corporate socialresponsibilities, 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
20. A CEO decides to expand the company's business internationally
by purchasing production capability in another country, including
the foreigncountry's buildings and equipment.
Which type of market entry is the CEO using ANS : Direct investment
21. A CEO seeks to better use the economies of scale and scope of
productionto increase the international company's profits.
Which type of globalization driver is the CEO seeking to use ANS : Cost
22. A CEO is discussing an expansion of production of a company's
highlyperishable dairy line in a country that can offer low labor costs
and good internet connections. The country has no highways, and
roads are poorly
Questions and Answers (Verified Answers)
1. A company is considering establishing a subsidiary in a new host
countryand wishes to prepare its expatriates to adapt to the local
environment.
How should this company prepare its expatriates?
Negotiation
Operational
training
Repatriation
Cultural Training ANS : Cultural training
2. What happens to consumer surplus when tariffs and quotas are
discontin-ued ANS : They increase
3. Which type of tariff is put in place to specifically ensure that
domesticindustries are given an advantage ANS : Protective
4. What is a benefit of implementing a system of free trade ANS :
Reduced tariffswould result in lower costs of imported raw materials.
5. How are free trade agreements handled differently than treaties in the
United States ANS : Treaties must be approved by the Senate, whereas a free
trade agreementmust pass both houses of Congress.
6. Treaties must be approved by the Senate, whereas a free trade
agreementmust pass both houses of Congress.: Tariffs
,7. An airplane manufacturer outsources the manufacture of some its
parts andsub-assemblies. They are then returned to the
manufacturer's main plant forfinal assembly.: Value chain
8. 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 ANS :
Trade surplus
9. 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 sellcorn on the international markets cheaper than all other
countries.
Which term is used by other countries to describe this practice ANS :
Governmentsubsidies
10. A farmer knows that it takes 100 hours of labor to produce 100
bushels ofcorn. 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
ANS : Oppor-tunity
11. A country produces goods more efficiently than all other countries
in thesame industry.
Which type of advantage does this country have ANS : Absolute
,12. Country A exports farming equipment to Country B, while Country
B exports car manufacturing equipment to Country A. Both countries
are highlydeveloped 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
ANS : Skillspecialization
13. A company produces the same product over and over, and it has
causedthe manufacturing cost of the product to become cheaper and
more compet-itive in international markets than similar products in
the industry.
Which approach is this company using to achieve this ability ANS :
Economies ofscale
14. A country with a new economy implemented trade protectionism in
relationto countries with more developed economies.
Why did the country take this action ANS : To restrict international
economic trade
15. How do anti dumping laws protect a domestic market ANS : They
prevent foreigncompanies from selling goods and services at or below cost.
16. How do Congress and the Department of Agriculture use quotas to
their advantage ANS : To increase domestic prices to specific levels to make
products prof-itable
17. Which strategy should a government use to offset the cost of
manufactur-ing domestically ANS : Subsidies
18. Which type of globalization refers to the international movement of
, goods,capital, and services ANS : Economic
19. The CEO of an international company reminds the executive vice
presi- dents that while the company may do good while performing
corporate socialresponsibilities, 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
20. A CEO decides to expand the company's business internationally
by purchasing production capability in another country, including
the foreigncountry's buildings and equipment.
Which type of market entry is the CEO using ANS : Direct investment
21. A CEO seeks to better use the economies of scale and scope of
productionto increase the international company's profits.
Which type of globalization driver is the CEO seeking to use ANS : Cost
22. A CEO is discussing an expansion of production of a company's
highlyperishable dairy line in a country that can offer low labor costs
and good internet connections. The country has no highways, and
roads are poorly
