WGU D080: Managing in a Global Business Environment Questions and Answers (Graded A)

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 - ANSWER Cultural training What happens to consumer surplus when tariffs and quotas are discontinued? - ANSWER They increase Which type of tariff is put in place to specifically ensure that domestic industries are given an advantage? - ANSWER Protective What is a benefit of implementing a system of free trade? - ANSWER Reduced tariffs would result in lower costs of imported raw materials. How are free trade agreements handled differently than treaties in the United States? - ANSWER 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. - ANSWER 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. - ANSWER 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? - ANSWER 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? - ANSWER 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? - ANSWER Opportunity A country produces goods more efficiently than all other countries in the same industry. Which type of advantage does this country have? - ANSWER Absolute