wgu d080 mANAGING IN A gLOBAL bUSINESS eNVIRONMENT |oa|
oBJECTIVE aSSESSMENT | 214 aCTUAL qUESTIONS AND aNSWERS
lATEST uPDATED 2025/2026 (gRADED a+)
Signed treaty of Lisbon - CORRECT ANSWERS-- makes EU more democratic, efficient, and
transparent
floating exchange rates - CORRECT ANSWERS--freely fluctuates
-based on supply/demand
- US(NAFTA), EU countries
Pegged Exchange rate - CORRECT ANSWERS-fixed exchange rate
Pegged float exchange rate (fixed float) - CORRECT ANSWERS-set of range or bang within the
currency's value may freely float
Perfect competition - CORRECT ANSWERS--lots of buyers & sellers
- no barriers to entry or exit
- perfect competition (information)
- firms and consumers are price takers
- no market power
Disadvantages of Political globalization - CORRECT ANSWERS-reduce the importance of
nation-states, loss of sovereignty and power of local government
Advantages of Cultural globalization - CORRECT ANSWERS-awareness of international
community
Disadvantages of Cultural globalization - CORRECT ANSWERS-loss of uniqueness of a
country's culture
,What is international business? - CORRECT ANSWERS-any situation where the production or
distribution of goods or services crosses country borders
What are opportunities for international business? - CORRECT ANSWERS-New and large
international markets offers possible more revenues, lower costs, and access to advanced technology
What are challenges for international business? - CORRECT ANSWERS-Ethical business
practice concerns, organizational structure (create new division), public relations (build customer
loyalty), leaderships, and legal and regulatory structure
What are the 5 stages of going global? - CORRECT ANSWERS-1. Market entry
2. product specialization
3. value chain disaggregation
4. value chain reengineering
5. creation of new markets
Market Entry - CORRECT ANSWERS-Companies enter new countries using business models
similar to the ones deployed in their home markets
Product specialization - CORRECT ANSWERS-Companies transfer the full production process
of a particular product line to a single, low-cost location and export the goods to various consumer
markets
Value chain disaggregation - CORRECT ANSWERS-Companies disaggregate the production
process and focus on completing each activity in the most advantageous location
Value chain reengineering - CORRECT ANSWERS-Companies seek to further increase their
cost savings by reengineering their processes to suit local market conditions by substituting lower cost
labor for capital
, Creation of new markets - CORRECT ANSWERS-creates new demand due to the reduction of
ticket price
What are the 4 drivers of Globalization? - CORRECT ANSWERS-1. Market
2. Cost
3. Competition
4. Government
Market - CORRECT ANSWERS-Opportunity for scale and convergence of needs (foreign
consumers have the same demand as domestic consumer, no need to redesign)
Cost - CORRECT ANSWERS-- Economies of scale & scope: use same production facility for
multiple procedures.
- Exploiting cost of factors of production: labor cost reductions, natural resources cost reduction
Competition - CORRECT ANSWERS-New markets & increased levels of trade
Government - CORRECT ANSWERS-Favorable policies, support for the industry ((can use tax
bracket to attract FDI and subsidies (free money) can help domestic business reduce cost and charge
lower price))
What did Thomas Friedman propose? - CORRECT ANSWERS-The world is flat view - the use of
technology and internet has made it easier for businesses to conduct global operation
What did Ghemawat propose? - CORRECT ANSWERS-The world is a multi-domestic world
What is CAGE analysis? - CORRECT ANSWERS-Culture, Administration, Geography, and
Economics
Culture (CAGE) - CORRECT ANSWERS-Cultural difference could reduce country's trade volume
oBJECTIVE aSSESSMENT | 214 aCTUAL qUESTIONS AND aNSWERS
lATEST uPDATED 2025/2026 (gRADED a+)
Signed treaty of Lisbon - CORRECT ANSWERS-- makes EU more democratic, efficient, and
transparent
floating exchange rates - CORRECT ANSWERS--freely fluctuates
-based on supply/demand
- US(NAFTA), EU countries
Pegged Exchange rate - CORRECT ANSWERS-fixed exchange rate
Pegged float exchange rate (fixed float) - CORRECT ANSWERS-set of range or bang within the
currency's value may freely float
Perfect competition - CORRECT ANSWERS--lots of buyers & sellers
- no barriers to entry or exit
- perfect competition (information)
- firms and consumers are price takers
- no market power
Disadvantages of Political globalization - CORRECT ANSWERS-reduce the importance of
nation-states, loss of sovereignty and power of local government
Advantages of Cultural globalization - CORRECT ANSWERS-awareness of international
community
Disadvantages of Cultural globalization - CORRECT ANSWERS-loss of uniqueness of a
country's culture
,What is international business? - CORRECT ANSWERS-any situation where the production or
distribution of goods or services crosses country borders
What are opportunities for international business? - CORRECT ANSWERS-New and large
international markets offers possible more revenues, lower costs, and access to advanced technology
What are challenges for international business? - CORRECT ANSWERS-Ethical business
practice concerns, organizational structure (create new division), public relations (build customer
loyalty), leaderships, and legal and regulatory structure
What are the 5 stages of going global? - CORRECT ANSWERS-1. Market entry
2. product specialization
3. value chain disaggregation
4. value chain reengineering
5. creation of new markets
Market Entry - CORRECT ANSWERS-Companies enter new countries using business models
similar to the ones deployed in their home markets
Product specialization - CORRECT ANSWERS-Companies transfer the full production process
of a particular product line to a single, low-cost location and export the goods to various consumer
markets
Value chain disaggregation - CORRECT ANSWERS-Companies disaggregate the production
process and focus on completing each activity in the most advantageous location
Value chain reengineering - CORRECT ANSWERS-Companies seek to further increase their
cost savings by reengineering their processes to suit local market conditions by substituting lower cost
labor for capital
, Creation of new markets - CORRECT ANSWERS-creates new demand due to the reduction of
ticket price
What are the 4 drivers of Globalization? - CORRECT ANSWERS-1. Market
2. Cost
3. Competition
4. Government
Market - CORRECT ANSWERS-Opportunity for scale and convergence of needs (foreign
consumers have the same demand as domestic consumer, no need to redesign)
Cost - CORRECT ANSWERS-- Economies of scale & scope: use same production facility for
multiple procedures.
- Exploiting cost of factors of production: labor cost reductions, natural resources cost reduction
Competition - CORRECT ANSWERS-New markets & increased levels of trade
Government - CORRECT ANSWERS-Favorable policies, support for the industry ((can use tax
bracket to attract FDI and subsidies (free money) can help domestic business reduce cost and charge
lower price))
What did Thomas Friedman propose? - CORRECT ANSWERS-The world is flat view - the use of
technology and internet has made it easier for businesses to conduct global operation
What did Ghemawat propose? - CORRECT ANSWERS-The world is a multi-domestic world
What is CAGE analysis? - CORRECT ANSWERS-Culture, Administration, Geography, and
Economics
Culture (CAGE) - CORRECT ANSWERS-Cultural difference could reduce country's trade volume
