D270 Midterm Exam Questions and Correct
Answers, Latest Updated 2026/2027 Graded
A+ | WGU.
The .same .automobile .company .produces .Fiats .and .Ferraris. .The .company .builds .an
.engine .plant .in .China .with .low .production .costs .for .Fiats .but .not .for .Ferraris. .The
.probable .reason .is .that .______
A) .Fiat .competes .mainly .on .a .focus .strategy, .whereas .Ferrari .competes .mainly .on .a
.mass-market .strategyB) .Fiat .competes .mainly .on .a .mass-market .strategy, .whereas
.Ferrari .competes .mainly .on .a .focus .strategyC) .Ferrari .faces .global .competitors .in
.China, .whereas .Fiat .competes .in .China .mainly .against .Chinese .competitorsD) .although
.Ferrari .did .not .build .an .engine .plant, .it .will .use .the .same .Fiat .engines .in .its .models .-
.ANS✓✓-B
Assume .a .U.S. .firm .plans .to .expand .into .Mexico, .Germany, .or .Japan. .Its .executives
.travel .to .each .country .to .meet .with .local .businesspeople .in .decision-making. .Which .of
.the .following .would .be .LEAST .beneficial .when .the .executives .make .a .presentation?
A) .requesting .a .translator .with .technical .vocabulary .knowledge
B) .simplifying .vocabulary .and .terminology .for .the .audience
C) .conducting .back .translations .for .written .work
D) .avoiding .repetition .to .prevent .boredom .- .ANS✓✓-D
lthough .globalization .may .bring .economic .growth, .critics .nevertheless .contend .that
.________.A) .the .growth .is .too .fastB) .the .inequality .of .gains .puts .some .people .in .a
.relatively .worse .economic .situationC) .this .growth .is .mainly .for .the .future, .thus .ignoring
.present .economic .growth .needsD) .the .cultural .foundations .of .sovereignty .are .supported
.by .globalization .- .ANS✓✓-B
Which .of .the .following .BEST .explains .how .a .firm .reduces .risk .by .operating
.internationally?A) .taking .advantage .of .business-cycle .differences .among .countriesB)
.buying .competitive .risk .insurance .unavailable .domesticallyC) .preventing .competitors
.from .operating .in .the .countries .it .has .enteredD) .operating .in .less .competitive
.environments .than .those .at .home .- .ANS✓✓-A
Which .term .refers .to .two .or .more .companies .that .share .ownership .of .an .FDI?
A) .turnkey .operationB) .transnational .firmC) .joint .ventureD) .franchise .- .ANS✓✓-C
A .computer .firm .has .high .foreign .sales .in .Asia .and .wants .to .expand .sales .into .Europe.
.Which .of .the .following .statements .provides .the .most .appropriate .advice .for .Elway
.executives?A) .Although .countries' .market .sizes .differ, .companies .usually .face .about .the
.same .number .of .competitors .in .each .national .market.B) .In .most .industries, .companies
.face .the .same .competitors .in .each .country .where .they .operate.C) .It .takes .about .the
,.same .amount .of .resources .to .gain .national .distribution .in .one .country .versus .another.D)
.Being .a .leader .in .one .country .does .not .guarantee .market .leadership .in .another .country.
.- .ANS✓✓-D
Critics .of .the .view .that .regionalization .will .prevail .over .globalization .most .likely .base
.their .argument .on .the .belief .that .________.A) .regionalization .is .a .transition .stage
.toward .globalizationB) .neighboring .countries .are .more .apt .to .disagree .politically .than
.distant .countriesC) .neighboring .countries .are .too .geographically .similar .to .benefit .from
.tradeD) .business .in .non-territorial .areas .is .not .regional .- .ANS✓✓-A
Garnet .Footwear .suffered .significant .financial .losses .and .had .to .close .its .foreign
.operations. .The .dissolution .process .took .six .months .and .cost .four .percent .of .the .firm's
.estate. .Where .were .Garnet's .foreign .operations .most .likely .located?
A) .Ecuador
B) .France
C) .Japan
D) .China .- .ANS✓✓-C
Businesspeople .seeking .to .understand .more .about .another .culture .in .order .to
.successfully .conduct .business .within .that .culture .would .be .best .advised .to .do .which .of
.the .following?A) .observing .the .behavior .of .people .who .have .gained .respect .within .that
.cultural .environmentB) .relying .on .stereotypes, .which .are .based .on .averages, .to .gain .an
.understanding .of .the .cultureC) .avoiding .cultural .research .studies .because .they
.perpetuate .unjustified .stereotypes .and .behaviorsD) .memorizing .the .cultural .variations
.that .are .typically .encountered .in .a .specific .cultural .environment .- .ANS✓✓-A
All .of .the .following .are .international .business .translation .problems .EXCEPT .which .of
.the .following?A) .All .written .work .requires .back .translation .in .order .to .be .understood .in
.a .second .language.B) .Because .languages .and .the .common .meaning .of .words .are
.constantly .evolving, .the .intended .meaning .of .a .word .may .be .different .from .what .the
.listener .or .reader .understands.C) .Some .words .in .one .language .simply .don't .have .a
.direct .translation .into .another .language.D) .Words .mean .different .things .in .different
.contexts, .thus .the .wrong .context .may .be .translated. .- .ANS✓✓-A
U.S. .companies .monopolize .much .of .the .international .entertainment .media, .which
.largely .portrays .U.S. .products .and .lifestyles .as .glamorous .and .appealing. .This .situation
.would .most .likely .be .used .as .an .example .of .________.
A) .the .stronger .work .ethic .typical .of .developed .countries
B) .the .spread .of .high-context .cultures
C) .cultural .fragmentation .
D) .cultural .imperialism .- .ANS✓✓-D
Which .of .the .following .ideas .holds .that .a .government .should .NOT .interfere .in .business
.affairs?A) .collectivismB) .laissez-faireC) .the .rule .of .manD) .pluralism .- .ANS✓✓-B
, Which .of .the .following .was .a .notable .trend .in .political .systems .during .the .second .half .of
.the .20th .century .and .beginning .of .the .21st .century?A) .A .wave .of .democratic
.transformations .occurred .as .countries .around .the .world .moved .away .from .totalitarian
.systems.B) .A .wave .of .theocratic .revolutions .occurred .as .people .around .the .world .looked
.to .spirituality .to .guide .them.C) .Socialistic .revolutions .swept .the .world .as .countries
.aspired .toward .greater .social .justice.D) .A .totalitarian .revolution .swept .the .world .as
.people .looked .to .strong .state .leadership .in .uncertain .times. .- .ANS✓✓-A
Recently, .the .Economist .Intelligence .Unit .investigated .the .status .of .democracies .around
.the .globe. .Relying .on .60 .indicators .that .focus .on .the .performance .of .free .elections, .civil
.liberties, .government .functioning, .political .participation, .and .political .culture .in .a
.country, .the .study .found .that .________.A) .almost .all .of .the .world's .democracies .are .full
.democraciesB) .nearly .half .of .the .world's .democracies .qualify .as ."full" .or ."flawed"
.democraciesC) .less .than .a .quarter .of .the .countries .studied .are .outright .authoritarian
.regimesD) .most .democracies .are .hybrid .political .systems .that .share .theocratic .and
.totalitarian .characteristics .- .ANS✓✓-B
Ian, .a .financial .manager, .is .preparing .to .transfer .to .Germany .where .he .will .serve .as .an
.expatriate .manager .of .his .employer's .European .office. .With .which .type .of .legal .system
.will .Ian .most .likely .have .to .deal .with .in .Germany?A) .mixedB) .commonC) .civilD)
.theocratic .- .ANS✓✓-C
All .of .the .following .are .reasons .piracy .has .occurred .EXCEPT .________.A) .technology
.allows .copyrighted .material .to .be .reproduced .cheaply .without .much .loss .of .qualityB)
.some .countries .offer .little .protection .for .certain .productsC) .in .some .cultures, .people .see
.little .morally .wrong .in .buying .counterfeit .goodsD) .the .protection .of .intellectual .property
.rights .varies .little .from .country .to .country .- .ANS✓✓-A
When .a .company .does .business .in .another .country .whose .official .language .is .the .same
.as .its .home .country's, .the .company .should .most .likely .________.A) .assume .that
.communications .will .go .smoothlyB) .use .back-translation .on .all .written .documentsC)
.realize .that .words .may .have .different .meaningsD) .assume .that .word .meanings .are .the
.same .despite .spelling .differences .- .ANS✓✓-C
Wharton .Enterprises, .a .U.S. .firm, .manufactures .small .kitchen .appliances. .The .firm .has
.recently .developed .an .innovative .blender .design .that .Wharton .executives .anticipate
.being .very .profitable. .Currently, .Wharton .has .production .facilities .in .the .U.S. .and
.China. .Wharton .executives .are .trying .to .determine .where .the .new .product .should .be
.manufactured. .Which .of .the .following .best .supports .a .decision .to .manufacture .the .new
.product .in .the .U.S. .instead .of .China?A) .Intellectual .property .rights .are .strongly
.protected .by .U.S. .patent .laws.B) .A .strategic .marketing .plan .can .be .quickly .developed .in
.the .U.S.C) .Contract .enforcement .is .a .simple .process .in .the .U.S.D) .The .U.S. .is
.experiencing .an .economic .recession. .- .ANS✓✓-A
The .broadening .set .of .interdependent .relationships .among .people .from .different .parts .of
.the .world .is .known .as .________.A) .globalizationB) .offshoringC) .franchisingD)
.outsourcing .- .ANS✓✓-A
Answers, Latest Updated 2026/2027 Graded
A+ | WGU.
The .same .automobile .company .produces .Fiats .and .Ferraris. .The .company .builds .an
.engine .plant .in .China .with .low .production .costs .for .Fiats .but .not .for .Ferraris. .The
.probable .reason .is .that .______
A) .Fiat .competes .mainly .on .a .focus .strategy, .whereas .Ferrari .competes .mainly .on .a
.mass-market .strategyB) .Fiat .competes .mainly .on .a .mass-market .strategy, .whereas
.Ferrari .competes .mainly .on .a .focus .strategyC) .Ferrari .faces .global .competitors .in
.China, .whereas .Fiat .competes .in .China .mainly .against .Chinese .competitorsD) .although
.Ferrari .did .not .build .an .engine .plant, .it .will .use .the .same .Fiat .engines .in .its .models .-
.ANS✓✓-B
Assume .a .U.S. .firm .plans .to .expand .into .Mexico, .Germany, .or .Japan. .Its .executives
.travel .to .each .country .to .meet .with .local .businesspeople .in .decision-making. .Which .of
.the .following .would .be .LEAST .beneficial .when .the .executives .make .a .presentation?
A) .requesting .a .translator .with .technical .vocabulary .knowledge
B) .simplifying .vocabulary .and .terminology .for .the .audience
C) .conducting .back .translations .for .written .work
D) .avoiding .repetition .to .prevent .boredom .- .ANS✓✓-D
lthough .globalization .may .bring .economic .growth, .critics .nevertheless .contend .that
.________.A) .the .growth .is .too .fastB) .the .inequality .of .gains .puts .some .people .in .a
.relatively .worse .economic .situationC) .this .growth .is .mainly .for .the .future, .thus .ignoring
.present .economic .growth .needsD) .the .cultural .foundations .of .sovereignty .are .supported
.by .globalization .- .ANS✓✓-B
Which .of .the .following .BEST .explains .how .a .firm .reduces .risk .by .operating
.internationally?A) .taking .advantage .of .business-cycle .differences .among .countriesB)
.buying .competitive .risk .insurance .unavailable .domesticallyC) .preventing .competitors
.from .operating .in .the .countries .it .has .enteredD) .operating .in .less .competitive
.environments .than .those .at .home .- .ANS✓✓-A
Which .term .refers .to .two .or .more .companies .that .share .ownership .of .an .FDI?
A) .turnkey .operationB) .transnational .firmC) .joint .ventureD) .franchise .- .ANS✓✓-C
A .computer .firm .has .high .foreign .sales .in .Asia .and .wants .to .expand .sales .into .Europe.
.Which .of .the .following .statements .provides .the .most .appropriate .advice .for .Elway
.executives?A) .Although .countries' .market .sizes .differ, .companies .usually .face .about .the
.same .number .of .competitors .in .each .national .market.B) .In .most .industries, .companies
.face .the .same .competitors .in .each .country .where .they .operate.C) .It .takes .about .the
,.same .amount .of .resources .to .gain .national .distribution .in .one .country .versus .another.D)
.Being .a .leader .in .one .country .does .not .guarantee .market .leadership .in .another .country.
.- .ANS✓✓-D
Critics .of .the .view .that .regionalization .will .prevail .over .globalization .most .likely .base
.their .argument .on .the .belief .that .________.A) .regionalization .is .a .transition .stage
.toward .globalizationB) .neighboring .countries .are .more .apt .to .disagree .politically .than
.distant .countriesC) .neighboring .countries .are .too .geographically .similar .to .benefit .from
.tradeD) .business .in .non-territorial .areas .is .not .regional .- .ANS✓✓-A
Garnet .Footwear .suffered .significant .financial .losses .and .had .to .close .its .foreign
.operations. .The .dissolution .process .took .six .months .and .cost .four .percent .of .the .firm's
.estate. .Where .were .Garnet's .foreign .operations .most .likely .located?
A) .Ecuador
B) .France
C) .Japan
D) .China .- .ANS✓✓-C
Businesspeople .seeking .to .understand .more .about .another .culture .in .order .to
.successfully .conduct .business .within .that .culture .would .be .best .advised .to .do .which .of
.the .following?A) .observing .the .behavior .of .people .who .have .gained .respect .within .that
.cultural .environmentB) .relying .on .stereotypes, .which .are .based .on .averages, .to .gain .an
.understanding .of .the .cultureC) .avoiding .cultural .research .studies .because .they
.perpetuate .unjustified .stereotypes .and .behaviorsD) .memorizing .the .cultural .variations
.that .are .typically .encountered .in .a .specific .cultural .environment .- .ANS✓✓-A
All .of .the .following .are .international .business .translation .problems .EXCEPT .which .of
.the .following?A) .All .written .work .requires .back .translation .in .order .to .be .understood .in
.a .second .language.B) .Because .languages .and .the .common .meaning .of .words .are
.constantly .evolving, .the .intended .meaning .of .a .word .may .be .different .from .what .the
.listener .or .reader .understands.C) .Some .words .in .one .language .simply .don't .have .a
.direct .translation .into .another .language.D) .Words .mean .different .things .in .different
.contexts, .thus .the .wrong .context .may .be .translated. .- .ANS✓✓-A
U.S. .companies .monopolize .much .of .the .international .entertainment .media, .which
.largely .portrays .U.S. .products .and .lifestyles .as .glamorous .and .appealing. .This .situation
.would .most .likely .be .used .as .an .example .of .________.
A) .the .stronger .work .ethic .typical .of .developed .countries
B) .the .spread .of .high-context .cultures
C) .cultural .fragmentation .
D) .cultural .imperialism .- .ANS✓✓-D
Which .of .the .following .ideas .holds .that .a .government .should .NOT .interfere .in .business
.affairs?A) .collectivismB) .laissez-faireC) .the .rule .of .manD) .pluralism .- .ANS✓✓-B
, Which .of .the .following .was .a .notable .trend .in .political .systems .during .the .second .half .of
.the .20th .century .and .beginning .of .the .21st .century?A) .A .wave .of .democratic
.transformations .occurred .as .countries .around .the .world .moved .away .from .totalitarian
.systems.B) .A .wave .of .theocratic .revolutions .occurred .as .people .around .the .world .looked
.to .spirituality .to .guide .them.C) .Socialistic .revolutions .swept .the .world .as .countries
.aspired .toward .greater .social .justice.D) .A .totalitarian .revolution .swept .the .world .as
.people .looked .to .strong .state .leadership .in .uncertain .times. .- .ANS✓✓-A
Recently, .the .Economist .Intelligence .Unit .investigated .the .status .of .democracies .around
.the .globe. .Relying .on .60 .indicators .that .focus .on .the .performance .of .free .elections, .civil
.liberties, .government .functioning, .political .participation, .and .political .culture .in .a
.country, .the .study .found .that .________.A) .almost .all .of .the .world's .democracies .are .full
.democraciesB) .nearly .half .of .the .world's .democracies .qualify .as ."full" .or ."flawed"
.democraciesC) .less .than .a .quarter .of .the .countries .studied .are .outright .authoritarian
.regimesD) .most .democracies .are .hybrid .political .systems .that .share .theocratic .and
.totalitarian .characteristics .- .ANS✓✓-B
Ian, .a .financial .manager, .is .preparing .to .transfer .to .Germany .where .he .will .serve .as .an
.expatriate .manager .of .his .employer's .European .office. .With .which .type .of .legal .system
.will .Ian .most .likely .have .to .deal .with .in .Germany?A) .mixedB) .commonC) .civilD)
.theocratic .- .ANS✓✓-C
All .of .the .following .are .reasons .piracy .has .occurred .EXCEPT .________.A) .technology
.allows .copyrighted .material .to .be .reproduced .cheaply .without .much .loss .of .qualityB)
.some .countries .offer .little .protection .for .certain .productsC) .in .some .cultures, .people .see
.little .morally .wrong .in .buying .counterfeit .goodsD) .the .protection .of .intellectual .property
.rights .varies .little .from .country .to .country .- .ANS✓✓-A
When .a .company .does .business .in .another .country .whose .official .language .is .the .same
.as .its .home .country's, .the .company .should .most .likely .________.A) .assume .that
.communications .will .go .smoothlyB) .use .back-translation .on .all .written .documentsC)
.realize .that .words .may .have .different .meaningsD) .assume .that .word .meanings .are .the
.same .despite .spelling .differences .- .ANS✓✓-C
Wharton .Enterprises, .a .U.S. .firm, .manufactures .small .kitchen .appliances. .The .firm .has
.recently .developed .an .innovative .blender .design .that .Wharton .executives .anticipate
.being .very .profitable. .Currently, .Wharton .has .production .facilities .in .the .U.S. .and
.China. .Wharton .executives .are .trying .to .determine .where .the .new .product .should .be
.manufactured. .Which .of .the .following .best .supports .a .decision .to .manufacture .the .new
.product .in .the .U.S. .instead .of .China?A) .Intellectual .property .rights .are .strongly
.protected .by .U.S. .patent .laws.B) .A .strategic .marketing .plan .can .be .quickly .developed .in
.the .U.S.C) .Contract .enforcement .is .a .simple .process .in .the .U.S.D) .The .U.S. .is
.experiencing .an .economic .recession. .- .ANS✓✓-A
The .broadening .set .of .interdependent .relationships .among .people .from .different .parts .of
.the .world .is .known .as .________.A) .globalizationB) .offshoringC) .franchisingD)
.outsourcing .- .ANS✓✓-A
