WGU D080 Managing in a Global Business
Environment study guide latest update
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 - ANS Cultural training
What happens to consumer surplus when tariffs and quotas are discontinued? - ANS They
increase
Which type of tariff is put in place to specifically ensure that domestic industries are given an
advantage? - ANS Protective
What is a benefit of implementing a system of free trade? - ANS Reduced tariffs would result
in lower costs of imported raw materials.
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 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. - ANS 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. - ANS 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? - ANS 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? - ANS 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? - ANS Opportunity
A country produces goods more efficiently than all other countries in the same industry.
Which type of advantage does this country have? - ANS 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? - ANS 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? - ANS 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? - ANS To restrict international economic trade
How do anti dumping laws protect a domestic market? - ANS 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? - ANS
To increase domestic prices to specific levels to make products profitable
Which strategy should a government use to offset the cost of manufacturing domestically? -
ANS Subsidies
Which type of globalization refers to the international movement of goods, capital, and services?
- ANS 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? - ANS
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? - ANS 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? - ANS 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? - ANS
Infrastructure
Which argument is used by critics who wish to discourage movement towards globalization? -
ANS It increases the wealth of the rich rather than the poor
Anarchism - ANS Individuals control political activities, and the government has no control
over these activities
Totalitarianism - ANS A centralized government creates oppressive policies based on ideas
from powerful leadership.
Direct democracy - ANS The government provides a method of voting for the people of a
country, not for elected officials.
What is a free trade zone? - ANS 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? - ANS Subsidies
Industrialized - ANS Prevalent formation of new markets with possibility of saturation
Less-developed - ANS Focus on agriculture and raw materials with limited imports
Developing country - ANS 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? - ANS Market
What type of economy is centered on families or tribes where little to no global trade is
practiced? - ANS Traditional
Socialism - ANS a system in which the government owns and operates a country's means of
production
, Capitalism - ANS A system in which the means of production is controlled by private owners
who can choose to participate in global trade.
Communism - ANS 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? - ANS Civil
Which law is based on tradition and precedent given that judicial rulings can stand as
precedents for future cases? - ANS Common
Which law system can vary from community to community and is found in countries without
strong formal justice systems? - ANS Customary
In which law system does a judge decide the applicable law for the case as a jury determines
the facts? - ANS Common
Which activity of the International Monetary Fund (IMF) impacts policy making? - ANS Being
owned and directed by the governments of the member nations
What is a characteristic of the International Monetary Fund (IMF)? - ANS 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? - ANS Regulated currency exchange between nations
How does the International Monetary Fund (IMF) impact international organizations and
governments? - ANS It reduces funding for social programs.
What is a common name for the International Bank for Reconstruction and Development? -
ANS World Bank
What was the first loan that the World Bank made after the end of World War II? - ANS To
France to rebuild its infrastructure
Which criticism is associated with the World Bank? - ANS The developed countries of U.S.
and Europe have too much control over its decisions.
Which criticism is made about the World Bank? - ANS It does not consider how funding
projects will affect the environment.
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