WGU D080

A company uses technology that physically re-creates human organs and tissues for medical professionals to use for study and training purposes. Which form of technology is this company using? Cloud computing Artificial intelligence 3D printing Augmented reality

3D printing Correct! 3D printing technology allows medical professionals to re-create working organs and tissues.

Which economic actor benefits as the U.S. dollar weakens? A foreign investor in the U.S. A U.S. tourist abroad A foreign firm exporting to the U.S. A U.S. investor abroad

A U.S. investor abroad Correct! A U.S. investor abroad invests money in another country by first converting U.S. dollars to a foreign currency, making the investment, then later converting+ it back to U.S. dollars. As the U.S. dollar becomes weaker, the rate of return on the investment is larger as the investor gets more U.S. dollars from converting back from the foreign currency.

Which condition is part of a contract between international companies that are based in different nations? A structure that is vertical in nature A choice of law clause A clause against unfair contract terms A provision against arbitration clause

A choice of law clause Correct! A choice of law clause specifies the laws and the jurisdiction under which international disputes will be settled. International businesses operating in different countries include such clauses in their contractual agreements to clarify ahead of time how disputes will be settled.

A company pays a social influencer to post short videos about its products. The social influencer has been asked to comply with the FTC recommendations while communicating with the audience using this format. Which piece of information has this person been asked to provide to the audience? Information about competing brands that provide the same type of product Specifics about how much money is earned from each posting Ways the audience can purchase the product in their region A disclosure of the financial relationship with the company

A disclosure of the financial relationship with the company Correct! Due to recent FTC legislation, influencers are strongly recommended to disclose any financial relationship they have with sponsors.

Which economic actor benefits as the U.S. dollar strengthens? A foreign firm exporting to the U.S. A U.S. investor abroad A U.S. exporting firm A foreign tourist in the U.S.

A foreign firm exporting to the U.S. Correct! The firm earns U.S. dollars through export sales, then converts it back into their home currency. A stronger U.S. dollar would mean they can buy more of the home currency.

What would a mercantilist value the most? Factors of production Comparative advantage Absolute advantage A trade surplus

A trade surplus Correct! Mercantilists wanted to help a nation gain trade surplus by encouraging exports and limiting imports.

While traveling, a salesperson decides to stop at a restaurant in order to send an important email and grab a quick bite to eat. After selecting the restaurant's Wi-Fi signal, the salesperson is prompted to agree to the restaurant's terms for using its Wi-Fi. Which agreement is this restaurant using to access its Wi-Fi? Fair Use Policy Acceptable User Policy Cookie Consent Policy Agreement End-User License Agreement

Acceptable User Policy Correct! Acceptable User Policy is an agreement that customers have to agree on before using a particular service. To use the Wi-Fi service, the salesperson must agree to the terms for using the restaurant's Wi-Fi.

A company desires to scale its international business by taking over established organizations in the intended markets. Which strategy will allow this process to occur quickly? Franchising Acquisition Licensing International joint venture

Acquisition Correct! Acquisitions are appealing to companies due to the ability to have quick access to take over foreign assets for new market entry.

A multinational corporation has manufacturing facilities in many Asian countries due to cheaper labor. Which strategy is the corporation using? Realignment of capital expenditures Centralized portfolio management Acquisition of resources Market expansion

Acquisition of resources

When expanding internationally to a country with a lower average income, a company made efforts to reduce the price of its product, even though it eliminated some of the benefits the product has in other markets. This allowed for greater sales in the new market. Which strategy is being used by this company? Global Standardization Adaptation Multibrand

Adaptation Correct! Product adaptation is when a product is changed to be more appealing in a specific market.

What is considered the most vital area needing information and communication technology (ICT) intervention? Remote areas Finance Education Agriculture

Agriculture Correct! Agriculture is the most vital area needing ICT intervention. ICT helps farmers learn about crop pricing and informs farmers about the status of their crops as well as information about irrigation of their crops.

During a training session, the employees are asked to identify irregularities. Which activity should be identified? An employee taking home office supplies for personal use A data entry technician unintentionally entering incorrect data A grocery store employee forgetting to report rotting produce An employee siphoning funds from the office account

An employee siphoning funds from the office account Correct! An irregularity occurs when an employee intentionally defrauds a company.

Which technology is instrumental in the development of self-driving cars? Biotechnology 3-D Printing Artificial intelligence Nanotechnology

Artificial intelligence Correct! Self-driving cars are being operated by artificial intelligence.

How should Hughes maintain internal controls in Vietnam? Allow the accounts payable team to manage and record accounts receivables as well Allow the sales team to enter orders and invoice all sales Assign one employee to set up new vendors in the accounting system and assign another to pay the vendors and confirm Have the inventory coordinator make and record all purchases, distributions, and physical counts of all raw materials

Assign one employee to set up new vendors in the accounting system and assign another to pay the vendors and confirm Correct! This is an example of assigning specific duties to employees.

Why should the newly-elected leader of Country A be careful when working with the World Bank? Because the World Bank avoids poverty-related issues in the poorer countries Because of the voting power highly-developed countries have on World Bank policies Because middle-income countries are not eligible for funding from the World Bank Because the World Bank avoids addressing global issues

Because of the voting power highly-developed countries have on World Bank policies Correct! Five highly developed countries combine to have 38% of the voting power for the World Bank.

Which activity of the International Monetary Fund (IMF) impacts policymaking? Offering investment services to countries Being owned and directed by the governments of the member nations Engaging over 10,000 staff in cultural affairs training and development Supporting loans to developing countries

Being owned and directed by the governments of the member nations The IMF is owned and directed by the governments of the member nations.

Which advantage is an outcome of exporting products to a developed country? Better established infrastructure Smaller retail shops Fewer available distributors Higher percentage of rural residents

Better established infrastructure Correct! Developed countries have better established infrastructures that make it easier to distribute products.

An international company acquires technology that allows facial recognition software to be used for security purposes. Which form of technology is the company using? Cloud-based file share Biometrics Augmented reality Blockchain

Biometrics Correct! Biometrics uses body parts such as the eyes, fingerprints, or facial recognition to identify individuals for security purposes.

Which technique allows customers to store personal information such as credit card data in one list of records and maintain total ownership and control over such information? Artificial intelligence Biometrics Open source software Blockchain

Blockchain Correct! Blockchain technology allows customers to save information in a continuous block or record for security purposes.

A global food delivery company released a new ordering app, but the number of downloads falls short of expectations. The marketing manager decides to initiate a company, online-only journal discussing the benefits of the app to entice users. Which approach is the marketing manager using to provide information on this new ordering system? Podcast Blog Newspaper Email marketing

Blog Correct! A blog is an online journal that many companies use to communicate to their customers. The marketing manager decides to initiate an online-only journal (blog) discussing the benefits of the app.

What is a benefit of the rapid fall in prices of digital IT equipment and services? Reduces the importance of IT in the global economy Spells the end of the digital era Reduces the availability of bandwidth in developed economies Bridges the global digital divide

Bridges the global digital divide Correct! Cheaper digital IT equipment is more affordable to citizens of developing countries and can bridge the global digital divide.

Which advantage do intermediaries offer when a manufacturer uses an indirect marketing channel to distribute its products? Stronger connection to customer base Faster distribution times to consumers Broader knowledge about the existing markets Increased control of product distribution

Broader knowledge about the existing markets Correct! One of the main reasons to use an indirect channel is that the marketing intermediaries to which the producer sells may know more about the markets.

Which distribution system should be used by a company wanting to maximize its control over the distribution of its products when entering a new country? Acquiring a local partner Product licensing Joint venture Building its own

Building its own Correct! A company that wants to control the distribution process should create its own system.

How does globalization support tolerance for different people and ideas? By strengthening protectionist tendencies By increasing the access to information By enhancing global morality By improving global wages

By increasing the access to information Correct! Globalization increases access to others, which in turn, increases access to a variety of information.

How does the Export-Import Bank of the United States (Ex-Im Bank) help exporters? By offering financing support for a portion of the export value By securing a profitable trade partner for an export company By providing political risk insurance for companies selling abroad By creating transportation contracts for exporting and importing

By offering financing support for a portion of the export value Correct! The Ex-Im Bank helps exporters by offering financing support for up to 85% of the export value if the export company has a buyer for product but is unable to secure financing in its home country.

How should a company ensure that internal controls are effectively implemented? By creating systems that are new to the company By simplifying procedures in accounting By performing due diligence with procedures By providing financial data to shareholders

By performing due diligence with procedures Correct! A company ensures that internal controls are effectively implemented by ensuring that procedures are clearly articulated and by consistently auditing employees to ensure compliance.

A company sells products that many have reported on social media to be culturally insensitive, and sales have decreased significantly since the negative publicity began. How are consumers responding to the publicity? By focusing on supply chain By voting with their purchases By notifying government agencies By considering sustainability

By voting with their purchases Correct! Consumers who do not believe the product is made in alignment with their values may not buy the product. Not buying the product is considered voting with one's wallet.

A survey revealed that farmers in a particular region of a country have extensive access to information and communication technologies. What is the biggest advantage of digital technology access for this population? Can review promotions for farming equipment Can obtain fair market prices for their produce Can discuss seed alternatives with other farmers Can gain better representation by the government

Can obtain fair market prices for their produce Correct! With extensive access to information and communication technologies, farmers have updated market information about crop prices. This reduces the likelihood that they will be taken advantage of by an intermediate and provides them with timely information.

Which legal system will Sure Start be following when they begin operating in Germany? Religious law Common law Civil law Cannon law

Civil law Civil law is applied in continental Europe. Germany uses a civil law system.

Which level of economic integration permits the free movement of capital, labor and technology from member countries? Political union Free trade area Customs union Common market

Common market Correct! The common market permits the formation of economically integrated markets between member countries, removing trade barriers and any restrictions on the movement of labor, technology, and capital.

A company is thinking about including online shopping to improve its ability to reach global markets. It is closely examining the challenges associated with using these web strategies before adopting the new process. Which challenge is associated with this change? More competitors in other industries Entry barriers to the global market Loss of inventory Communication barriers with global audiences

Communication barriers with global audiences Correct! Reaching more people in global markets will cause challenges in communication with diverse global audiences, especially if the local language and images must change with each country.

A company is reviewing how ethical consumerism is being addressed in the organization. It is hoping to improve its awareness of this factor and how it will influence future business decisions. How does this factor affect business decisions? Companies must remember that their consumers may care about more than just the final product. Companies that make good financial decisions will be perceived well by the public. Companies must consider the age of the intended audience for a product. Companies that hide their production methods can avoid negative impacts of ethical consumerism

Companies must remember that their consumers may care about more than just the final product. Correct! Nearly half of North American consumers report punishing a company by not purchasing a product if they disagree with its manufacturing or other business practices.

Sure Start is starting a new division for rechargeable batteries in different parts of the world. What was the globalization driver of this decision? Competition Government Market Cost

Competition drivers are about entering new markets to beat competitors. Sure Start has identified a market that does not have a lot of competition since it is a fairly new market.

A company in the United States has encountered a financial reporting situation that is not currently addressed by the accounting standards of the country. How should the U.S. company proceed? Consult with the FASB Proceed without GAAP Contact the IASB Move to using IFRS

Consult with the FASB Correct! The Financial Accounting Standards Board (FASB) is an independent group that developed and oversees revisions to the generally accepted and standardized methods of recording and reporting financial accounting information used exclusively in the United States.

What is a benefit to Hughes Inc. that stems from providing proof of ethical behavior? Consumers will be more likely to purchase products made with its fabrics. The wool industry in New Zealand will be able to sustain the necessary growth. Employees in Vietnam will reduce labor costs to offset costs of being ethical. Management will receive bonuses based on how well the company rates for its ethics.

Consumers will be more likely to purchase products made with its fabrics. Correct! Today's consumers use their purchasing power to cast their votes for companies that they feel are being ethical.

Which component serves as the foundation underlying Hughes's decision to use reusable containers to ship wool socks? Corporate Social Responsibility Global Reporting Initiative Sarbanes-Oxley Act Trans-Pacific Partnership

Corporate Social Responsibility Correct! Corporate social responsibility is the ethical role a company plays in society. Shipping wool socks in reusable shipping containers would have a positive effect on the environment.

Which economic integration stage offers economic collaboration by removing trade barriers between member countries and establishing a mutual trading policy with nonmembers? Customs union Common market Free trade area Political union

Correct! A customs union offers economic collaboration by removing trade barriers between member countries and establishing a mutual trading policy with nonmembers.

Which level of economic integration presents an alliance of all policies by a common organization? Political union Customs union Common market Free trade area

Correct! A political union is defined as when a single nation is formed and a mutual organization confederates all policies.

Which agreement was formalized in 1993 to create a political and economic union to help a large group of countries cooperate and coordinate key aspects of their economic policy? EU CAFTA-DR ASEAN Mercosur

Correct! EU fits the description and has the goals described.

What is the purpose of the IASB? Creating international standards of accounting Enforcing compliance to IFRS Enforcing compliance to GAAP Creating standards of accounting for the United States

Correct! The IASB is responsible for creating international standards of accounting.

Which level of economic integration is formed when trade barriers are removed between member countries but there is no mutual policy on trading with nonmember countries? Customs union Common market Free trade area Political union

Correct! The free trade area allows basic economic cooperation so member countries remove barriers to trade among themselves.

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? Competition Market Government Cost

Cost Companies seek to put production in low labor-cost countries to lower labor costs and increase the contribution margin. Economies of scale and scope and the exploitation of differences in costs for product development, manufacturing, and sourcing in different parts of the world will assume greater importance as determinants of global strategy.

Countries A, B, and C have a trade agreement. Country C imposes high tariffs on all raw materials imported from Country A, and Country B imposes a lower tariff on the same raw materials imported from country A. What is the effect of this set of actions on these countries? Country A will do more business with Country B. Country A will do more business with Country C. Country A will cease doing business with Countries B and C. Country A will do the same amount of business with Country B and Country C.

Country A will do more business with Country B. Correct! Country A will do more business with Country B, due to the lower tax rate.

What is one option for the Chinese company to make a foreign direct investment (FDI)? Merge with an even larger China-based multinational company Invest 5% in a furniture company in the US. Create a joint venture with a furniture company in Indonesia Sell unfinished furniture to a company in Italy that will complete it

Create a joint venture with a furniture company in Indonesia Correct! A joint venture with a foreign company is an option for making a foreign direct investment.

Which strategy is used by governments to limit the foreign direct investment in a country? Creating domestic ownership restrictions in the country Creating foreign ownership restrictions in the country Decreasing the value of the country's currency Increasing the value of the country's currency

Creating foreign ownership restrictions in the country Correct! Many countries restrict the percentage of ownership by foreign investors.

In which career area is the outlook for humans better than that of robots? Creative arts Manufacturing Tax accounting Retail merchandising

Creative arts Correct! Jobs in the creative arts are not expected to be replaced by robots.

Which source of funding uses technology platforms to invite consumers to invest small amounts in support of a business idea or venture? Angel investment Crowdsourcing Venture capital Bank loan

Crowdsourcing

Which source permits a high number of funders to each participate with a small amount of capital and cumulatively contribute to a new venture? Crowdsourcing Personal contacts Angel investors Venture capitalists

Crowdsourcing Correct! Crowdsourcing is a model in which finances are gathered from a large group of funders. It divides investments between participants to achieve a cumulative result.

What type of risk is described during the evaluation of feasibility for Market X? Legal Cultural Political Economic

Cultural Correct! Cultural risk deals with factors that can affect a business due to specific cultural traditions, religions, and ideologies. Cultural risk is present in the country known for believing biotechnology interferes with the sanctity of human life (referred to as Market X).

Which globalization risk involves the societal expectations and standards of an organization operating in a foreign environment? Political Legal Economic Cultural

Cultural Correct! Cultural risk is related to companies' operating in a different sociocultural environment.

A company wants its expatriates to receive the best training to adapt to the local environment in the host country. What is the goal of this training? Obeying local law Cultural agility Making a profit Cultural homogeneity

Cultural agility Correct! The goal of choosing the correct training is to provide the expatriate with cultural agility to best integrate into the host nation's culture.

Which term describes the normative beliefs and practices passed from generation to generation that help define a group of people? Office norms Cultural norms Graft norms Legal norms

Cultural norms Correct! Shared and integrated systems of beliefs and practices that are passed down through generations and characterize a cultural group are cultural norms.

What type of in-depth training will Carl Spith and Kim Arkle most quickly benefit from before leaving the United States to their new host countries? Cultural simulation Field training Documentary Self-guided learning

Cultural simulation Correct! Cultural simulation training is able to closely replicate scenarios that the two could encounter so they can practice appropriate responses before going to their host countries.

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? Cultural training Repatriation Operational training Negotiation

Cultural training Correct! This will help prepare the company and its employees for integrating with new ethnic groups in a new culture.

Which component of training by the human resource department will help Carl Spith and Kim Arkle understand the norms of Vietnam and Germany? Goal setting Language Repatriation Culture

Culture Correct! Culture training will provide the employees with training that will help them understand the norms of the countries they have been assigned to work in.

Which type of risk refers to the impact of random change in the value of one currency with respect to other currencies? Legal risk Political risk Cultural risk Currency risk

Currency risk Correct! The fluctuation in currency value that causes potential risk is referred to as currency risk.

An international company is exploring the use of data mining. The company is hoping that better use of the practice will help it gain market share and increase profits. Which process is this company putting into place? A set of computer programs that identify when people are using their credit cards infrequently Database applications that search for hidden patterns in a group of data A group of people that search websites looking for suspicious activity The act of sending social media promotions out through automation

Database applications that search for hidden patterns in a group of data Correct! Data mining is described as database applications that look for patterns in a group of data.

A company needs an electronic filing system that collects and organizes information for analysis. Which solution should be used for this purpose? Word processing Groupware Desktop publishing software Database management system

Database management system Correct! A database management system (DBMS) allows businesses to store and analyze large amounts of data to identify trends, produce reports, and other analysis.

A global company wants to collect data and customer profiles to improve online shopping and buyer engagement. The company plans to collect and organize millions of pieces of data, including names, addresses, payment methods, products ordered, and price and order history. Which approach should the company use to achieve this goal? Database management system Voice over internet protocol Desktop publishing program Spreadsheet program

Database management system Correct! A database management system (DBMS) is a combination of software and data that organizes and analyzes consumer information. DBMS organizes customer information such as names, addresses, payment methods, products ordered, and price and order history.

An employee feels empowered to make decisions to solve customer problems independent of seeking manager approval and uses flexibility to meet customer needs. Which decision-making structure is being used by this employee? Centralized Decentralized Matrix Functional

Decentralized Correct! Decentralized decision-making structure is when lower-level employees, like the one mentioned, make decisions. This type of decision-making may be inconsistent.

What is an advantage of using the decision-making method proposed for a facility in Germany? Business would be flexible to meet local needs. Decision-making processes would be consistent. Employees would feel empowered. Operations would be customer-centered.

Decision-making processes would be consistent. Correct! An advantage of a centralized decision-making method is consistency across different international divisions.

What was one of the results of the Uruguay Round of the World Trade Organization negotiations? Increase in world-wide money supply Decrease in world-wide money supply Increase in tariffs Decrease in tariffs

Decrease in tariffs The major accomplishment of the Uruguay Round of the World Trade Organization negotiations was a reduction in the number and size of tariffs.

A multinational corporation (MNC) in a country with a strong labor union is seeking to move its production facility overseas. Which factor is a benefit of this action? Moving away from regulatory issues related to operations Identifying new markets overseas for new customers Decreasing labor costs Overcoming competitive intensity in the industry

Decreasing labor costs Correct! Multinational corporations tend to save a lot in labor costs by moving operations overseas. As they seek to lower costs by taking advantage of lower wages overseas, they have better negotiation power with the unions in their home country.

Managers in an international company are arranging jobs so similar tasks are coordinated. Which activity is being completed by this company? Segmentation Departmentalization Delegation Aggregation

Departmentalization Correct! When a company divides its work based on specific tasks or jobs, it is referred to as departmentalization.

A new employee has recently transferred from the U.S. headquarters to a foreign office, and a coworker has been assigned to help the employee become acclimated to the new location. The coworker decides that the best place to start is with a description of the culture of the region since it is significantly different from the United States. Which piece of information is this coworker providing to this employee? Business practices required of global companies Details about universal ethical conduct Business practices codified by current legislation Details about how the community functions

Details about how the community functions Correct! Culture describes a collective way of life and provides details on how the community functions in terms of their actions and beliefs.

Which challenge will the company face with the new business model? Product design and prototype issues Manufacturing operations control Cultural marketing and advertising Determining selling prices for each market

Determining selling prices for each market Correct! Transfer pricing occurs when multinational companies transfer products between subsidiaries in different countries. Each time a product travels from one subsidiary to another, the product is sold and taxed in the country where the product is leaving. The issue is that companies must determine the appropriate value or selling price of the product leaving each country, according to the laws in that country, to maximize company profitability.

Which action is used by companies wishing to avoid working with vendors who use sweatshops? Sending a whistleblower to the job sites to ensure the vendor practices safe working conditions Allowing vendor practices to be flagged by nongovernmental organizations such as the National Labor Committee Establishing national child labor laws and requiring vendors to comply with them Developing and imposing a company internal code of conduct for vendor labor practices

Developing and imposing a company internal code of conduct for vendor labor practices Correct! A code of conduct for vendors is contractually imposed, and often publicly posted, to ensure the reputation of the company is protected.

Which distribution strategy has grown rapidly due to the increase in e-commerce? Wholesaler-to-consumer Business-to-business Direct channel distribution Indirect channel distribution

Direct channel distribution Correct! Direct channel distribution has grown rapidly as a result of the popularity of e-commerce.

An employee has assumed an expatriate role and is studying textbooks to learn about cultural differences in order to function smoothly in the new setting. Which helpful secondary source training is the expatriate using? Cultural simulation Foreign language Field simulation Documentary

Documentary Correct! Documentary training uses traditional methods such as textbooks and the classroom environment to focus on educating expatriates about cultures. The expatriate is studying textbooks to learn about cultural differences in order to function smoothly in the new setting.

Which globalization risk refers to the level of financial stability in a country? Cultural Political Legal Economic

Economic Correct! Economic risk involves the level of financial stability in a country.

Which type of globalization refers to the international movement of goods, capital, and services? Anti Cultural Economic Social

Economic The movement of goods and services internationally through trade and trade agreements is economic globalization. As the world becomes smaller, increased movement of goods across borders occurs along with trade agreements.

Which type of globalization is represented by Sure Start expanding into South America, Europe, and Asia? Economic Cultural Legal Political

Economic globalization is the globalization of production, sales, and finance activities in international markets around the world.

What is the result of the existence of multinational businesses? Economic separation of countries Economic integration among countries Political integration among countries Political separation of countries

Economic integration among countries Correct! One of the results of the existence of multinational businesses is economic integration among countries. This works to promote economic development and trade between home and host countries of multinational businesses.

What is enhanced when creating regional trade agreements? National cultural identity Labor restrictions Global trade integration Economic opportunity

Economic opportunity Correct! Regional trade agreements create more opportunity for countries to trade with one another by removing barriers to trade.

Which factor of CAGE addresses differences in country size that affect barriers to globalization? Economics Culture Geography Administration

Economics Economics in the CAGE analysis refers to demographic and economic differences between countries. When a country size is larger based on gross domestic product, it produces more products and services, which can be available for international trade.

Which factor is an element of a CAGE analysis when assessing barriers to cross-border activity? Census Economics Armament Gross domestic product

Economics When looking at economics in a CAGE analysis, the economic distance or socioeconomic differences between countries is evaluated, which includes country size, income, and access to capital.

Which industry is least likely to be replaced by artificial intelligence (AI)? Manufacturing industries Education Automobile industry Finance

Education Correct! AI is least likely to affect industries that require human creative ability.

Which advantage to hedging risk occurs in preparation for the purchase of equipment for France? Creating an intercompany loan program between different divisions Eliminating exchange rate fluctuations with currency swap contracts Completing transactions prior to delivery Securing a forward contract agreement

Eliminating exchange rate fluctuations with currency swap contracts Correct! Currency swap contracts allow a company to guarantee the currency rates for a buy-and-sell transaction on two separate dates, which locks in the currency exchange rates for both transactions. Currency swap contracts eliminate costly interest rate fluctuations.

Which economic benefit will result in the company's decision to move operations to the U.S. or Mexico? Eliminating tariffs and duties Protecting intellectual property Implementing a country of origin rule Increasing access to natural resources

Eliminating tariffs and duties Correct! If the Chinese company moved its operations to the U.S. or Mexico, it would result in the elimination of tariffs and duties due to the NAFTA regional integration and trading agreement that reduces trade barriers between those nations.

Which company relationship is negatively affected if the company uses outsourcing to reduce costs? Auditor Stockholder Supplier Employee

Employee Correct! Outsourcing will cause some employees to lose their jobs. Fear can grip the company if outsourcing of production or another major element of the company is outsourced or moved offshore.

What does business ethics implicitly regulate? External stakeholders Employee behavior Consumer action Consumer preference

Employee behavior Correct! Employers want employees to self-regulate so that when a stimulus appears they will take proper action in the interest of everyone involved, either directly or indirectly.

A company would like to obtain the benefits of outsourcing and focus solely on marketing activities and research and development. Which advantage is this company hoping to achieve? Enhanced core business activities Increased quality control Decreased production costs Improved production expertise

Enhanced core business activities

A company is beginning to operate on a more complex global scale and needs a seamless integration of all the data the business uses. This integration must include data from human resources (HR), employee data, sales information, and development figures. Which type of software solution should be used for this purpose? Desktop publishing Spreadsheet program Material requirements planning Enterprise resource planning

Enterprise resource planning Correct! Enterprise resource planning (ERP) is a type of software solution design to integrate all a company's data. ERP would integrate data from human resources (HR), employee data, sales information, and development figures.

Which type of law is applicable if Garbus contracted with another company to handle the disposal of its waste from its production plant and the waste accidentally leaked into a local water source? Labor Contract Environmental Antitrust

Environmental Correct! The impact of the waste getting into the local water source is handled with environmental laws.

Which governmental entity was created to provide regulatory authority regarding pollution by industry? Department of Agriculture Environmental Protection Agency Federal Bureau of Investigation Department of Commerce

Environmental Protection Agency Correct! The agency was created in 1970 to monitor industry and industry's environmental practices. The agency is not under any cabinet-level department.

A company has decided that a foreign direct investment should be made during the next quarter to strengthen the organization. Which method should be used for this purpose? Exporting Licensing Establishing a joint venture with another company Establishing a greenfield venture

Establishing a greenfield venture Correct! In a greenfield venture, a company creates a subsidiary in another nation from the beginning. International markets are commonly entered through this means, and subsidiaries are considered foreign direct investment strategies.

What is the term for the concept that people should purchase goods and services from organizations that match their own values and beliefs? Ethical consumerism Organizational ethics Consumer ethics Ethical purchasing

Ethical consumerism Correct! There is an industry that exists to provide information about the ethical behaviors of organizations to allow consumers to support organizations that align with their own personal values and beliefs.

A company operating in a foreign country hires and conducts business according to the cultural practices in its home country. Which approach to human resource management is used by this company? Geocentric Monocentric Ethnocentric Polycentric

Ethnocentric Correct! When a company uses the same human resource policies and practices in the host country as it uses in the home country, it is using an ethnocentric approach.

A company's chief executive officer (CEO) emphasizes to other executives in the foreign country's joint venture that the CEO's culture should take precedence over other cultural systems since it is superior. Which type of viewpoint is the CEO demonstrating regarding culture? Power distance Individualism Uncertainty avoidance Ethnocentrism

Ethnocentrism Correct! Ethnocentrism is the viewpoint that one's culture is superior to others and should be used as a measure. The CEO is demonstrating this viewpoint in the scenario.

A company wants to gain market share but does not want to establish operations in other countries nor tailor its products to the other countries. Which entry strategy should the company use to meet this goal under these conditions? Export Joint venture Transnational Multidomestic

Export Correct! The scenario describes a company that is strictly domestic but wants to earn additional revenue by sending the product overseas. Normally, a company in the other country must import the product for sale.

Which self-governing group is supported by the U.S. government, various accounting establishments, and privately owned companies to establish accounting standards? FASB GAAP IASB IFRS

FASB Correct! The Financial Accounting Standards Board (FASB) is self-governing and supported by the U.S. government, various accounting establishments, and privately owned companies.

Which antiglobalization argument could lead to Sure Start continuing to maintain its current factories instead of moving them to Asia? Moving manufacturing to Vietnam will result in lower profits for the company. Labor laws in Germany will ensure the company maintains ethical labor practices. Factory workers fear their jobs will be moved to another country. Tariffs for batteries made in Vietnam will make them less expensive.

Factory workers fear their jobs will be moved to another country. Labor in Asia can be cheaper than in NC, and critics argue that outsourcing manufacturing could lead to job loss in the home country.

An employee who is scheduled to become an expatriate has successfully passed the survival training stage. What type of training is used by the company after passing this stage? Field simulation Workshop Cultural simulation Documentary

Field simulation Correct! When an employee has been through the other stages of training, field simulation training is next.

Which structure is Stanley & Sons using to control the structural hierarchy at a low level? Tall structure Flat structure Matrix structure Functional structure

Flat structure Correct! The flat structure controls the hierarchy at a low level with only a few layers between frontline employees and the top level.

What is an advantage of regional economic integration? Mergers and acquisitions encourage start-ups of small businesses. Employment shifts preserve member countries' resources. Continued discussions help nations gain additional political rights. Flexibility on labor movement develops job opportunities.

Flexibility on labor movement develops job opportunities. Correct! Economic integration often removes labor movement restrictions, which help increase job opportunities.

Which exchange rate regime allows a currency's value to fluctuate according to the foreign exchange market? Crawling pegs Fixed Floating Pegged

Floating Correct! This regime automatically adjusts to economic circumstances.

Which advantage does outsourcing the design represent for the company? Greater flexibility Enhanced technical expertise Focus on core activities Lower costs

Focus on core activities

A business operating globally wants to increase its overall production efficiency. Which strategy should the business use? Focus on specialization Enhance international relationships Improve trade regulations Maximize labor force

Focus on specialization Correct! When a business adds technology to its process, it allows the business to maximize economies of scale.

Company A is located outside the home country of Company B. Company B has acquired Company A with the intent of controlling and managing Company A's assets. Which practice is being used by Company B? Partnership Foreign direct investment Merger Portfolio investment

Foreign direct investment Investments made by international companies with the intention of controlling those assets in a foreign market represents foreign direct investment.

Which economic actors are suppliers of U.S. dollars? Foreign companies purchasing a U.S. firm Foreign tourists visiting the U.S. Foreign firms exporting to the U.S. Foreign investors buying bonds issued by the U.S.

Foreign firms exporting to the U.S. Correct! These firms will earn U.S. dollars but will need their own currency to pay the workers based in their country; thus they are suppliers of U.S. dollars and demanders of their home currency.

Which currency contract establishes a specific rate at the beginning of the contract for delivery at a future date? Forward Option Futures Swap

Forward Correct! In the forward contract, a firm agrees to pay a specific rate at the beginning of the contract for delivery at a future date.

Which approach will save costs through a quick entry by Azamar? Franchising Greenfield Acquisition Partnering

Franchising Correct! Franchising means Azamar can get a fast entry into the Italian market without spending too much money to execute the strategy. That is why this strategy will save cost through a quick entry.

Which term describes the practice in which a parent firm is obligated to provide its brand name, specialized equipment or services, and sometimes startup costs to another firm in return for an annual fee? Export strategy Licensing Joint venture Franchising

Franchising Correct! This is the definition of franchising.

Which stage of regional economic integration is represented by the North American Free Trade Agreement (NAFTA) that benefits the U.S. furniture company's production of covers in Mexico? Common market Customs union Free trade area Trade union

Free trade area the first stage of integration in which member countries try to remove trade barriers in that specific bloc. NAFTA is in the free trade area stage

What is true regarding free trade? Free trade is weakened when countries join regional economic integrations. Free trade generates manufacturing jobs in developed countries. Free trade leads to specialization of each country and increases production efficiency. Free trade generates more losses than gains for participating countries

Free trade leads to specialization of each country and increases production efficiency. Correct! Free trade encourages countries to specialize in their comparative advantage area of production and gain economies of scale to improve production efficiency.

Which currency contract requires a specific exchange rate and quantity of money on a subsequent date? Future Forward Option Swap

Future Correct! Futures contracts oblige an exchange of a certain amount of currency on a defined date and rate.

Which U.S.-based set of accounting principles was created to establish rules and regulations for financial accounting? FASB IFRS GAAP IASB

GAAP Correct! Generally Accepted Accounting Principles (GAAP) were created in the United States to deliver financial accounting direction and regulation.

Why does the European Union (EU) have a concern about the acquisitions of the Garbus company? Garbus will be more efficient in production than other companies in Europe. The acquisitions would create a trade deficit with the United States. The jobs in EU countries would be eliminated. Garbus will be able to unfairly raise prices.

Garbus will be able to unfairly raise prices.

A company would like to use a human resource approach that leads to more fluid movement among employees and creates diversity in the workforce. Assignment decisions are made jointly by the headquarters and the field offices. Which human resource approach should be used by this company? Ethnocentric Polycentric Multicentric Geocentric

Geocentric Correct! A geocentric approach coordinates the best employees worldwide, leading to diversity and employee movement.

Members of a work team are from many different countries. They share their thoughts on developing a strategy to market a product in several different countries. What is the term for the international integration of the team members' exchange of worldviews and ideas to develop the strategy? Globalization Job availability Wealth inequality Outsourcing

Globalization The ability to collectively develop a better product strategy will occur by having a cross-cultural exchange of ideas to market the product globally. Globalization is when international integration arises from the interchange of worldviews, products, ideas, and other aspects of culture.

Country A has been criticized by other countries for giving generous tax credits to its corn farmers, which enables the country's farmers to sell corn on the international markets for cheaper than all other countries. Which term is used by other countries to describe this practice? Mercantilism Government subsidies Free trade Trade surplus

Government subsidies The farmers are getting payment in the form of tax credits. This creates an unfair advantage to the farmers of Country A.

A global company has warned managers that the country involved in their current business venture typically expects small payments to be made to government officials to expedite decisions and transactions. The company has encouraged managers to avoid this type of unethical practice. Which form of activity is the company concerned about? Grease payments Unfair competition Oil payments Trade policies

Grease payments Correct! When a business engages in making small payments to government officials to expedite activities, it is a grease payment.

A coffee company received international criticism for an employee negatively responding towards a customer. The response was said to be racially motivated. The company needs to take swift action to improve how all employees in the organization are viewed by ethical consumers. Which course of action should the company take to meet this goal? Give the person affected company gift cards Have employees attend sensitivity training Show instances of employees helping that population Fire the worker's supervising manager

Have employees attend sensitivity training Correct! This is a solution that addresses the entire company and does not cause harm to any employees for any mistakes.

Which term defines using currency derivatives to reduce potential currency risks due to currency exchange rate movement that could lead to losses for a firm? Speculation Long position Hedging Short position

Hedging Correct! This is the definition of hedging.

What is the effect on global integration and local responsiveness if Stanley & Sons chooses to use an international standardization business strategy? Low global integration and high local responsiveness Low global integration and low local responsiveness High global integration and high local responsiveness High global integration and low local responsiveness

High global integration and low local responsiveness Correct! This combination of the two would represent a standardized strategy.

The Martin Corporation is considering manufacturing the cabinets from beginning to end in the U.S. and then exporting them to Italy and France. What is a downside of this decision? The risk of not being able to compete is high because they will have to invest in new facilities Quality will be lower because they will not be able to control the manufacturing process Lower design capability to build standardized cabinets for the new markets Higher shipping costs to send the cabinets to the new markets

Higher shipping costs to send the cabinets to the new markets Correct! Shipping fully completed cabinets will be a higher cost than shipping just raw materials or subassemblies.

A company that released a new vehicle marketed as being environmentally friendly is found to have cheated when testing the vehicle's total emissions. The company would like to repair damage from the negative publicity by changing its image and catering more to ethical consumers. Which action should the company take to reach this goal? Market the original product strongly so ethical consumers receive the information Hire a new leader to send the message that practices have changed Retest the vehicles using its own test environment and protocols Ask political supporters to modify the environmental emission regulations

Hire a new leader to send the message that practices have changed Correct! Establishing a new image and leader can help consumers trust the company again after practices have changed.

How is contract law structured as it applies to global business among nations? Tribunal Arbitral Vertical Horizontal

Horizontal Correct! A horizontal business structure means that no nation is in a legally dominant position over another.

An international company wants to establish links between the people at the same level of the organization to form committees. What is the name for this type of link in a company? Horizontal Vertical Contractual Cooperative

Horizontal Correct! Horizontal links are links between people at the same level in an organization to accomplish tasks, such as forming committees.

Which set of standards establish international accounting regulations and reporting expectations? IASB GAAP IFRS FASB

IFRS Correct! International Financial Reporting Standards (IFRS) is a set of standards by the International Accounting Standards Board (IASB) that establishes international accounting standards and reporting expectations.

What will be the effect of the German trade policy on Sure Start's rechargeable batteries in its first year? Sure Start will increase prices to German automakers. If the German automakers meet the domestic content requirement, there will be little impact. Sure Start's profit for rechargeable batteries sold in Germany would increase. Sales to German automakers will increase.

If the German automakers meet the domestic content requirement, there will be little impact. As long as German automakers meet the requirement that 75% of parts are produced domestically, there would be little impact to Sure Start's rechargeable battery imports. If the German automakers are unable to meet the requirement, the automakers will pay tariffs.

Which action should the U.S. government take to encourage Sure Start to keep electric battery production in the country? Impose tariffs on batteries made in Vietnam Allow dumping of batteries made in Vietnam Levy a value-added tax on manufacturing activity in the United States Enact more strict environmental regulations of U.S.-produced batteries

Impose tariffs on batteries made in Vietnam Imposing tariffs on batteries made in Vietnam will make them more expensive.

What is a benefit of creating a regional economic integration agreement? Less import potential Decreased competition Improved financial growth Increased national cultural identity

Improved financial growth Correct! Trade agreements create more growth opportunities for countries to trade among themselves as barriers to trade and investment are removed.

What is a potential influence of the existence of multinational corporations (MNCs) on international relations? Improves relations between countries where the MNC operates Eliminates international trade barriers Creates international trade barriers Worsens relations between countries where the MNC operates

Improves relations between countries where the MNC operates Correct! An MNC improves relations between countries since they need to cooperate to trade.

Which type of economy is decentralized and allows firms and households to participate in global trade with minimum governmental interference? Command Traditional Mixed Market

In a market economy, goods and services are owned by individuals or companies that can buy, sell, or lease them to make a profit with minimum interference by the government.

tanley & Sons is based in the United States and produces performance fabrics that are used in the construction industry. Its products have been revolutionary for enabling construction companies to build highways in mountainous areas, mostly in the U.S. and Canada. The company was started 15 years ago in North Carolina by Jack Stanley and his two sons. For the past two years, the growth of their company has encouraged them to think about restructuring in order to meet increasing demand for their products. Currently, the company produces 10 types of fabrics that help with soil erosion, which is a by-product of highway construction. The processes used to manufacture the different types of fabric are mostly the same, and Jack and his sons handle most of the business decisions. The company employs 50 workers on the production floor that is overseen by Jack and his sons. Because everything funnels through Jack and his sons

In addition to figuring out the best organizational structure, Stanley & Sons is contemplating which steps to take to grow the company outside of the U.S. and Canada. Stanley & Sons is thinking about starting up a new manufacturing facility in Germany and is considering using a centralized decision-making method at that location. They are not sure if they should incur large amounts of debt in order to open a facility in Germany or if they should go in a different direction. They believe that providing their products to construction companies in Germany will lead to further international growth. Stanley & Sons is considering using an international standardization business strategy.

Which law is based on tradition and precedent given that judicial rulings can stand as precedents for future cases? Religious Civil Theocratic Common

In common law systems, judges hear arguments from both parties and make a judgment. This judgment stands as precedent for future cases.

In which legal system does a judge decide the applicable law for the case as a jury determines the facts? Customary Civil Canon Common

In common law systems, while a jury may determine the facts, a judge decides which law will be applied to the case.

Which action is considered a grease payment by Hughes in Vietnam? Incentivizing the local telephone company to expedite the installation of telephone lines for the company's operation in Vietnam Charging foreign customers double what it would charge a customer in New Zealand Buying raw fibers from the nephew of the plant manager Hiring the sales manager's spouse as a salesperson

Incentivizing the local telephone company to expedite the installation of telephone lines for the company's operation in Vietnam Correct! Grease payments are small amounts of payments that expedite decisions and transactions.

A firm based in Country A exports products to Country B. The currency in Country A is stronger than the currency in Country B. Which strategy should the firm use to maximize profits? Reduce domestic sales and increase its exports to Country B Reduce the selling price of foreign sales Increase the selling price of domestic sales Increase domestic sales and reduce its exports to Country B

Increase domestic sales and reduce its exports to Country B

An international company with improved technology tools seeks to increase its remote workforce. Which benefit is a result for remote workers? Decreased group communication Decreased workspace options Increased productivity Increased time constraints

Increased productivity Correct! Remote workers consistently cite increased productivity through remote working options.

Countries A and B participate in trade agreements that allow free trade among participant countries. However, Country A imposed quotas on several imported products to protect its domestic products. What is the effect, if any, on the domestic prices of these products? Decreases Increases Stays the same Cannot be determined

Increases Correct! Restriction can serve to increase the domestic prices of the same products.

A U.S. employee believes that each individual is responsible for one's own success and finds it challenging to work in cultures that emphasize collaborative approaches to decision-making. Which aspect of Hofstede's cultural dimensions is exemplified by this employee? Individualism Long-term orientation Uncertainty avoidance Power distance

Individualism Correct! Individualism describes the extent to which individuals take responsibility for their own destinies and choose their own goals over a company's goals. The U.S. employee believes that each individual is responsible for personal success, which represents individualism.

Which of Hofstede's cultural dimensions refers to the extent that people think of themselves as members of a group or collective rather than as discrete individuals? Power distance Masculinity versus femininity Individualism versus collectivism Uncertainty avoidance

Individualism versus collectivism Correct! In collectivist societies, group goals take precedence over individuals' goals.

Employees in the Vietnam office that are hired locally seek to achieve common goals and are loyal to each other. Which of Hofstede's cultural dimensions is this office low in? Individualistic Indulgence Power distance Long-term orientation

Individualistic Correct! The employees in Vietnam are an example of a culture that is low in the individualistic dimension.

Which cultural dimension in global business refers to the degree of freedom that societal standards give to people in satisfying their needs? Masculinity Long-term orientation Uncertainty avoidance Indulgence

Indulgence Correct! Indulgence refers to the degree of freedom that societal standards give to people in satisfying their needs.

A country that values spontaneity and freedom to satisfy human desires provides its citizens business opportunities to prosper in these areas. Which of Hofstede's cultural dimensions is the country exhibiting? Power distance Indulgence Long-term orientation Masculinity

Indulgence Correct! This dimension seeks to emphasize pleasure and spontaneity. Because the culture focuses on self-enjoyment, people become entrepreneurial in how to achieve pleasure. The United States rates high on this dimension.

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? Ethical Infrastructure Legal Relational

Infrastructure Since the product is perishable, having a good road system is critical to bringing a product to market before it goes bad. Infrastructure includes the basic physical and organizational structures needed for a society to operate and for an economy to function. These include the roads and highways.

Which factor of relocation is represented by the new equipment from the Italian company? Innovation Government incentives Growth Reducing costs

Innovation Correct! The new equipment represents innovation that helps with the production of cabinets.

A company is concerned about source code theft of digital property. The company is reviewing a law that governs this behavior. Which law is being reviewed by this company? Intellectual property Anti-trust Contract Labor

Intellectual property Correct. Intellectual property law applies to digital property.

Which business component does the TRIPS agreement help protect for member nations? Intellectual property protection for all member nations Agreements between member nations to protect manufacturing patents Standard transportation agreements between member nations Policies that member nations use to conduct business in other member nations

Intellectual property protection for all member nations

Which criticism is made about the World Bank? It funds too many projects in developed countries. It does not consider how funding projects will affect the environment. It supports government ownership of property. It makes too many loans to countries with strong governments.

It does not consider how funding projects will affect the environment. One of the criticisms of the World Bank is it does not consider how funding projects will affect the environment.

Which argument is used by critics who wish to discourage movement towards globalization? It increases the wealth of the rich rather than the poor. It increases consumer prices across the world. It decreases the pace of new product development. It decreases awareness of the international community.

It increases the wealth of the rich rather than the poor. Critics make the argument that globalization only serves to assist the rich in becoming richer at the expense of the poor.

How is global business positively affected by intercultural exchange? It increases worldwide connections that support commodity trading. It decreases the rate of change associated with industrial colonization. It decreases complexity to improve commercial identities. It increases the uniqueness of the national community.

It increases worldwide connections that support commodity trading. Correct! The spreading of ideas, meanings, and values around the world enables and enhances the commodity exchange process.

A company is conducting a legal risk analysis for a country that has a civil law system. Which statement accurately characterizes this legal system? It is based on a detailed set of laws that form a code. It is a moral, not a commercial, system. It relies on the opinions of those well-trained in law. It permits judges to interpret the law.

It is based on a detailed set of laws that form a code. Correct! The civil legal system is based on a set of laws that form a code and it is based on how the law is applied to the facts.

An American salesperson is attempting to do business in a Middle Eastern country. What is one of the major cultural issues the salesperson needs to understand about this part of the world? It is more relationship-based than the United States. Secular culture is stronger in the Middle East than in the United States. It is more rules-based than the United States. Individualistic culture is stronger in the Middle East than in the United States.

It is more relationship-based than the United States. Correct! Compared to United States and other Western cultures, relationships, including those in business, are more important.

Which statement is true about the General Data Protection Regulation (GDPR)? It can fine a company up to 20% of annual global turnover if it violates the law. It is a privacy law used in the United States. It is only applied to European companies. It is used to protect personal data such as name, identification number, location data,etc.

It is used to protect personal data such as name, identification number, location data,etc.

A company owner is considering manufacturing using a global standardization strategy to achieve economies of scale. Why is this strategy effective? It improves manufacturing processes. It decreases shipping costs. It manufactures the same product for all markets. It ensures product safety is maintained.

It manufactures the same product for all markets. Correct! Standardizing products globally means that regardless of the place of manufacture, the product can be sold in any market.

Why is the World Intellectual Property Organization (WIPO) used to help protect intellectual property? It encourages the trade of intellectual property in the global market. It can direct the local governments to resolve the dispute. It offers alternative dispute resolution to mediate disputes over intellectual property. It can solve any international business dispute.

It offers alternative dispute resolution to mediate disputes over intellectual property. Correct! WIPO helps mediate disputes over intellectual property at the global level.

The German government has imposed a specific tariff on T-shirts imported from Cambodia. How does this specific tariff affect the T-shirt producers in Germany? It does not have any impact on German T-shirt producers. It will decrease German T-shirt producers' sales quantity. It decreases German T-shirt producers' profit. It protects German T-shirt producers.

It protects German T-shirt producers. Correct! The German T-shirt producers will benefit from the higher selling price of the imported T-shirts caused by the tariff and will get more profit.

Which criticism is made about the World Trade Organization (WTO)? It protects developing countries more than developed countries. It decreases the quantity of money in the worldwide economy. It increases the quantity of money in the worldwide economy. It protects developed countries more than developing countries.

It protects developed countries more than developing countries. Correct! One of the criticisms of the WTO protects developed countries more than developing countries.

How does the International Monetary Fund (IMF) impact international organizations and governments? It complicates the process for nations to borrow and loan. It over-represents the global south. It provides limited financial assistance to the wealthy populations. It reduces funding for social programs.

It reduces funding for social programs. The conditions put on the IMF loan require the recipient country to have a policy of austerity. This policy usually results in a cut in funding for social programs.

Why does Garbus want to include a choice of law clause in the contract? The Uniform Commercial Code requires that the clause is included in contracts. It specifies which law applies to any disputes that could arise under the contract. Garbus is not familiar with the contract laws of Costa Rica. Garbus would be able to breach the contract easier.

It specifies which law applies to any disputes that could arise under the contract. Correct! A choice of law clause is a provision that determines which laws would be applied in a dispute.

Which advantage will the company gain over other Chinese furniture companies if it becomes a multinational business through foreign direct investment? It will be harder for them to exit the host country's market if sales begin to decrease. It will be able to avoid the tariffs that host countries have placed on furniture imports. The company will be more competitive in the home country's furniture market. There will be more risk of incurring higher costs in another country.

It will be able to avoid the tariffs that host countries have placed on furniture imports. Correct! Because the U.S. has placed tariffs on furniture produced in China, moving production to another country that has lower tariffs or that is tariff free will benefit the company.

A business has recently started selling in a new global marketplace. Shortly after the company made this global expansion, the new country opted to implement ad valorem tariffs. How will this change affect the company? It will provide increased corporate tax breaks. It will levy a fixed tax on the goods imported. It will levy a tax based on the value of goods imported, causing this company to export less. It will impose a value-added tax on corporate profits.

It will levy a tax based on the value of goods imported, causing this company to export less. Correct! Ad valorem tariffs are taxes calculated as a percentage of the value of the goods imported and are used to regulate imports and raise revenues for the government.

The Martin Corporation manufacturers cabinets for kitchens and bathrooms in the United States. The company is looking to expand its offerings and is researching how to grow its supply chain. They already import some exotic woods from Malaysia and other parts of Asia. Part of the ongoing decision of expanding the supply chain is deciding to continue to import lumber or to begin importing semi-assembled components and completing the assembly in the United States. In addition, the company also wants to be able to sell custom cabinets in Italy and France. They have to decide whether or not to invest in new facilities. As the company has met with the different governments to see what incentives they have to offer, an Italian equipment company offers them a new machine that is capable of producing customized cabinets with 20% less labor if they build a new facility in Italy.

Josh, the vice president of marketing, has presented to the leadership team the idea of outsourcing the design of cabinets in France and Italy to interior design firms in both countries. The reason to outsource the design of cabinets for the new markets is because the company is better at production than they are at design, especially in two markets that they have no expertise in. The leadership team likes the idea of outsourcing the design but is steadfast that if a new facility is built in Italy, production is to be insourced. In the U.S. market, the company has used both direct and indirect distribution strategies. They have sold directly to consumers by selling online. They also use authorized dealers to sell cabinets to consumers.

Which action of Sure Start represents the application of the global strategic rivalry theory? Launching a new research division to focus on a rechargeable battery for use in electric cars Maintaining production with no investment in batteries for use in traditional vehicles Adding an office in the South American market to help manage the business throughout the continent Expanding into Europe and Asia to supply batteries to electric car manufacturers in those markets

Launching a new research division to focus on a rechargeable battery for use in electric cars

Which globalization risk refers to the adherence to laws of countries in which an organization may operate? Cultural Legal Economic Political

Legal Correct! Legal risk involves adherence to the laws of countries in which an organization may operate.

Azamar discovers that there are import restrictions on area rugs in Italy. Which low-risk strategy should Azamar use to enter this foreign market? Licensing Integration Joint ventures Acquisitions

Licensing Correct! Licensing is an agreement that Azamar can have with another company in Italy to manufacture area rugs to their specifications but under the name of the Italian company. This is an example of a low-risk entry strategy to a foreign market.

A fast food company seeks to expand internationally and changes its menu to appeal to the new country's food tastes. Which action is being sought by the company by making this change? Local responsiveness Global integration Economy of scale Economy of scope

Local responsiveness Correct! The company is responsive to its local environment when it adapts it products and services to local consumer tastes.

A German company is considering outsourcing the manufacturing process to Japan. Some of the executive board directors are concerned that the Japanese company may not follow the exact production processes the German company normally uses. Which risk represents this concern? Higher than expected transaction cost Loss of innovation Loss of control Loss of organization trust

Loss of control Correct! The German company is concerned that the Japanese company will not follow its normal production process and might cause quality issues. This concern is related to loss of control of the production process due to outsourcing.

The chief executive officer (CEO) of a company wants to expand into the global market and has considered the costs and benefits of a variety of business strategies that would enable this goal, including direct foreign investment. After careful analysis, the CEO recommends licensing local distributors as the best option for the company to achieve this expansion. What is an advantage of using this approach? Lower financial risk Shared costs Gain economies of scale Control by local distributors

Lower financial risk Correct! Licensing as a strategy for entering foreign markets lowers financial risks.

Which agreement was established in 1988 and now has both political and economic goals to keep peace and stimulates economic growth in South American countries? USMCA MERCOSUR NAFTA CAFTA-DR

MERCOSUR Correct! This is also named the Common Market of the South, or Mercado Común del Sur, and fits the agreement described.

An individual is considering entering the global market via a franchise. Which outcome should be expected by the individual if this approach is used? Majority of financial risk Limited name recognition Low access to advertising and product training Limited access to the franchiser's brand and trademarks

Majority of financial risk Correct! In opening a new location, the franchisee typically takes most of the financial risk.

A company decides to focus on economies of scale to decrease production costs and increase revenues. Why is this strategy effective? Ordering in large quantities takes advantage of bulk pricing. Manufacturing in large quantities keeps costs low. Ordering in small quantities ensures that shipping costs stay low. Manufacturing in small quantities minimizes operational costs.

Manufacturing in large quantities keeps costs low. Correct! Manufacturing in large quantities means more work can be done efficiently and at a savings. This reduces productions costs and increasing revenues.

Which convention protects decent working hours for a cruise ship director who travels in international waters? Maritime Labor Convention, 2006 Forced Labor Convention Domestic Workers Convention, 2011 Equal Remuneration Convention

Maritime Labor Convention, 2006 Correct! The Maritime Labour Convention, sometimes called the "Seafarer's Bill of Rights," protects the rights of seafaring workers and is law for multiple countries. This convention protects decent working hours for a cruise ship director that travels in international waters.

Which economic system facilitates the global expansion of Sure Start? Market Mixed Traditional Command

Market The law of supply and demand applies to the market economy, and the goods are privately owned. Government interference is minimum.

Which national cultural dimension in global business refers to how a culture ranks on values of assertiveness and materialism? Long-term orientation Power distance Masculinity Uncertainty avoidance

Masculinity Correct! Masculinity refers to how a culture ranks on values of assertiveness and materialism.

A global company that makes promotional products, like those for corporate gifts, allows customers to engrave their corporate name and logo onto finished products. The company then ships these products to the customers. Which production process is the company using? Mass customization Make-to-order Make-to-stock Mass production

Mass customization Correct! Mass customization combines the advantages of customized products with those of mass production, where the already finished products are customized at the very end of the production process.

Which drawback is involved when regional agreements are created? Countries move production to more expensive labor markets in member countries. Member countries will trade less with nonmember countries. Companies experience higher overall costs. Regions with higher economic development increase their gap over lower developed regions.

Member countries will trade less with nonmember countries. When a regional agreement is made between countries, those members will trade more with each other and trade less with nonmember countries.

A firm in Country A exports products to Country B. The currency in Country B is strong relative to the currency in Country A. What does this mean for the firm? Less valuable export sales Decreased foreign sales More valuable export sales Increased domestic sales

More valuable export sales Correct! When the currency from the point of sale in Country B is converted into the currency of Country A, it will buy more of that currency.

Which core principle of the World Trade Organization supports equality among member nations and helps fight discrimination among them? Most-favored-nation (MFN) status Multilateral trade agreements Free trade Controlled tariffs

Most-favored-nation (MFN) status Correct! This principle states that countries must trade without discrimination for other countries.

Which action illustrates how Sure Start is capitalizing on the comparative advantage of a country? Establishing a European headquarters in Germany and moving key leaders to that country Expanding into Europe and Asia to supply batteries to electric car manufacturers in those markets Adding an office in the South American market to help manage the business throughout the continent Moving production of the batteries used in electric cars to Vietnam where labor is less expensive

Moving production of the batteries used in electric cars to Vietnam where labor is less expensive Correct! Comparative advantage occurs when a country can produce a product cheaper or faster than another country. Moving production of the batteries used in electric cars from the United States to Vietnam where labor is less expensive applies comparative advantage.

An aircraft manufacturer uses a supply chain management system in which parts of the aircraft are made in different countries and assembled at the company's headquarters. Which type of supply chain is the company using? Multinational Push Pull Distribution

Multinational Correct! Multinational supply chains seek to use production strengths and low costs of different suppliers around the world. Using a multinational supply chain reduces the risk of a catastrophic event, reducing a company's ability to produce a product.

A computer company produces parts in different countries so that if one factory experiences disruption, the supply chain could still work as other factories could continue production. This is the advantage of using _________. Multinational production Centralized manufacturing Market entry Push model

Multinational production Correct! Multinational production offers company flexibility in the production by having multiple production facilities located in different countries.

A car manufacturing company manufacturers tires in Countries A, B, and C. Country A has significant political turmoil that has resulted in a lengthy labor strike. Countries B and C have ramped up production resulting in sustained tire production for the company. Which practice has the company used to optimize its production efficiency? Lean manufacturing Just-in-time Multinational production Linear and sequential

Multinational production Correct! There are three countries producing the same tires. If something like a strike occurs in one, the others can ramp up their production.

Which agreement was implemented in 1994 and helped form a free-trade zone between Canada, the United States, and Mexico by decreasing tariffs and trade barriers? NAFTA MERCOSUR USMCA CAFTA-DR

NAFTA Correct! This trade agreement was implemented in 1994 and had the described trading goals.

Which benefit to the newly-elected leader in Country A stems from using the World Bank to meet a campaign promise? Receiving guidance on how to enact better financial controls Stabilizing the country's currency valuation Obtaining the funds needed to improve the country's infrastructure Paying off the trade deficit that the country has with its neighbor

Obtaining the funds needed to improve the country's infrastructure Correct! The World Bank provides funds through low interest or interest-free loans, grants, and credits to help the country develop its infrastructure.

Which currency contract allows for a trade of specific amount of money and exchange rate on a defined date to hedge risk in the global environment? Options Futures Forward Swap

Options Correct! Option contracts offer the owner the right to a specified exchange rate for a particular quantity of money on a particular date but do not oblige the owner.

An international company has created a diagram to show the division of labor between departments. What is the name of this diagram? Flowchart Horizontal linkages Vertical linkages Organizational chart

Organizational chart Correct! Companies use an organizational chart to depict the division of labor in the organization.

A business has experienced significant internal and external events, and the owner decides to respond effectively while maintaining the rules of behavior the company has always vocalized as being appropriate. Which component has guided this owner's response? Ethical conundrum Organizational ethics Ethical standardization Personal ethics

Organizational ethics Correct! Organizational ethics is how a business responds to stimuli in an ethical manner.

A small clothing company based in California decided that it needed to have an application (app) and an updated website. Because this is a small company, it did not have the technological expertise to handle this improvement. The company hired a company based in Pakistan to handle its technology needs. Which common practice among companies is this an example of? Acquisition Merger Outsourcing Dumping

Outsourcing Correct! Outsourcing is an option that can result in cheaper labor in other regions.

Which of these agreements or treaties was to combat increased temperatures of global climate change? Antarctic Maastricht Versailles Paris

Paris Correct! This agreement was completed in 2016 to stop or at least slow global warming. Not all countries agreed to these goals.

Which intellectual property right describes a chemical company's filing on their innovative industrial process invention? Patent Service mark Trademark Copyright

Patent Correct! A patent is filed to protect the right to an innovative invention, which must be a manufactured product, an apparatus, chemical composition, or a manufacturing process.

Which action is considered an unethical practice by Hughes? Paying a government official to obtain approval for doing business in Vietnam Employing the son of the janitor to work on the production floor Using a packaging supplier that also produces nonrecycled products Hiring employees in Vietnam at wages lower than in New Zealand

Paying a government official to obtain approval for doing business in Vietnam Correct! This is an example of bribery.

A farmers market has many vendors and consumers who all sell and buy the same produce at the same price. Which type of market is represented? Monopoly Monopolistic competition Oligopoly Perfect competition

Perfect competition Correct! Since vendors can enter and exit the market freely with no barriers and the products are homogenous, it is a pure competition

Which financing source provides funding for capital through private connections with help limited to monetary contributions? Personal contacts Angel investors Crowdsourcing Venture capitalists

Personal contacts Correct! Personal contacts can provide funding, which is usually only for capital, and do not include help beyond monetary contribution.

What can Charlie expect to encounter among the employee dynamics in the various international locations? Offering flexible work schedules shows a lack of respect. Individuals believe that using time efficiently is equal to increased profits. Personal values are based on one's home country cultural norms. Individuals expect business meetings to begin on time.

Personal values are based on one's home country cultural norms. Correct! Charlie can expect to encounter that employees' personal values are based on their home countries' cultural norms, which will differ among employees in various international locations.

Which of the following will cause shrinkage in accounting? Perishable goods going recorded Management of inventory Customer trust decreased Petty theft

Petty theft Correct! Discrepancies are unintentional accounting errors due to reasons such as incorrectly entered data and shrinkage. Petty theft, mismanaged inventory, and perishable goods going unrecorded can cause accounting shrinkage.

Which globalization risk involves governments and the relationships between countries? Legal Economic Political Cultural

Political Correct! Political risk involves governments and the relationships between countries.

A multinational company produces a product in a country where the leaders are known for occasional asset seizure. Which risk does the company need to mitigate? Legal risks Cultural risks Political risks Currency risks

Political risks Correct! Asset seizures are a type of political risk.

Which country characteristic is most important to foreign direct investors according to a study by the World Bank? Access to land or real estate Macroeconomic stability and favorable exchange rate Low tax rates Political stability and security

Political stability and security Correct! A recent World Bank study showed political stability and security to be the most important country characteristic when choosing a country to invest in.

All hiring decisions will be made in the international markets using policies and procedures applicable to those locations without home office oversight. Which approach to human resource management aligns with this decision? Regiocentric Ethnocentric Polycentric Geocentric

Polycentric Correct! The polycentric approach allows each market to use hiring policies and procedures that are applicable to that location. All hiring decisions will be made in the international locations using policies and procedures applicable to those markets without home office oversight.

A country's corporate culture requires that most of the decisions be made by senior management, and entry-level positions are viewed as having much less status and respect. Which of Hofstede's cultural dimensions is being used by this country? Power distance Long-term orientation Restraint Uncertainty avoidance

Power distance Correct! Power distance is high in the country described above, in which most of the authority and respect are at the upper ranks.

Which term refers to the price paid by the buyer to the seller in a currency option contract? Put option Call option Currency swap Premium

Premium

Which organization formed in 1970 supplements the funding available from commercial banks and other lenders to support U.S. exports? Overseas Private Investment Corporation (OPIC) Private Export Funding Corporation (PEFCO) Export-Import Bank of the United States (Ex-Im Bank) Japan External Trade Organization (JETRO)

Private Export Funding Corporation (PEFCO) Correct! This is a private-sector organization formed in 1970. It aims to support the funding of U.S. exports by supplementing the funding available from commercial banks and other lenders.

Managers at an international business are deciding the method by which it will be organized. The business is highly diversified, manufacturing a number of different components and parts for its industrialized customers. Which departmentalization structure should be used by this company? Functional Geographic Market Product

Product Correct! When an organization is built around the products or services it sells, it is using a product departmentalization structure.

Which marketing strategy is being used when Azamar decides to offer smaller sizes in the new country? Product adaptation Standardization Brand recognition Glocalization

Product adaptation Correct! Product adaptation refers to making products better align with local needs.

A company wishes to expand internationally in countries that have high tariffs on the product the company makes. The company decides to use foreign direct investment because the labor costs are low and the country is politically stable. Which type of production is the company using? Production in the host country then local retailing Manufacture in the host country then export to the home country Global sourcing then using the home country for assembly Manufacture in the home country then export abroad

Production in the host country then local retailing Correct! In countries with high tariffs on a product, for example an automobile, a company will produce the vehicle in the host country and sell that automobile in the host country thus avoiding the tariffs.

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? Exporting Cultural exchange Stakeholder satisfaction Profitability

Profitability Ultimately, a company is engaged in commerce to achieve a profit. Business profit is gauged in financial and economic terms. However, some level of sustained financial and economic profits is needed for a business to achieve other outcomes that are measured as social or environmental performance.

Which model of supply chain management focuses on the product and its production? Pull Distribution Value Push

Push Correct! In this model of supply chain management, all parts of the production process focus on how to produce the product and then move it through the distribution channel to the customer. The marketing process focuses on pushing the product on the consumer.

Which financial accounting consideration does the multinational company face in its operations? Conducting business with the International Financial Reporting Standards (IFRS) in all nations Adherence to the Generally Accepted Accounting Principles (GAAP) in its European operations Financial reporting for tax haven purposes Recording transactions in GAAP and IFRS

Recording transactions in GAAP and IFRS Correct! The multinational company operates in the U.S. and Europe, which means that the company will need to record and report financial accounting information in both GAAP and IFRS.

A sole, national telephone company was found violating antitrust laws and was forced to separate into regional companies. What caused the violation of the antitrust laws? Increased profits Service disruptions Reduced competition Technological innovation

Reduced competition Correct! Antitrust laws are enacted to protect consumer's rights to competition in the marketplace. The sole, national company was a monopoly, and no competition occurred.

What is a benefit of implementing a system of free trade? Increased export quotas would result in more international sales of domestic goods. Reduced import quotas would result in more domestic sales due to scarcity. Increased tariffs would result in more revenue generated for the government. Reduced tariffs would result in lower costs of imported raw materials.

Reduced tariffs would result in lower costs of imported raw materials. Correct! In a free trade system, tariffs are reduced or eliminated to increase the ease and efficiency with which trade can be accomplished.

What was the initial purpose of the International Monetary Fund (IMF) in phase one, prior to 1973? Regulated currency exchange between nations Supervised economic policies Provided a means for nations to easily exchange currency Offered loans to member organizations

Regulated currency exchange between nations The initial purpose of the IMF was to regulate currency exchange between nations.

Which action should a company take to change consumer perceptions of the company's ethical standards due to a recent scandal? Defend the organization's actions Remedy negative events immediately with change Provide free products to everyone Hold a town hall meeting to discuss events

Remedy negative events immediately with change Correct! When the actions of employees become the center point of an organization, it is critical to respond with change to address and remedy the error in order to recover from a negative and unfortunate event.

A manager at a software firm is preparing to interview a potential new candidate. The candidate was born into Generation Z. Which benefit should be attractive to this candidate? Remote work opportunity Fixed work schedules Office space in cubicles Onsite traditional training approaches

Remote work opportunity Correct! Generation Z workers are adept at technology and most prefer to utilize it in order to have flexibility in their careers.

What is the term for the services a company provides when it helps an employee who has worked in a host country make the transition back to the home country? Field training Repatriation Documentary training Orientation

Repatriation Correct! Repatriation is the process of helping employees who have worked in a host country make the transition back into their home country.

An American employee is working in a Chinese firm in China and notices an ethical violation. The employee tells a colleague, who is Chinese, and the colleague advises the American employee to save face. What does the Chinese colleague mean by this advice? Ensure that the supervisor is aware of the situation to avoid being personally accused Make sure that everyone knows the person who discovered the ethical violation Report only if directly asked if a violation occurred Confront the people who are responsible since they could retaliate

Report only if directly asked if a violation occurred Correct! For Chinese, saving face means that the employee should not reveal information that may harm another unless directly asked a specific question.

A major footwear brand company is contracting the manufacturing of its products to a contractor's manufacturing plant overseas. The footwear company has been accused of turning a blind eye to sweatshop practices at other overseas contract locations before. How should the footwear company ensure that the contractor will comply with the standards set forth in the code of conduct that explicitly prohibit this practice? Restrict authorization to daytime shifts Require that the factories be available for inspections Require the contractor to self-report compliance on a monthly basis Prohibit the use of worker overtime

Require that the factories be available for inspections Correct! Making the factories available for inspections and audits, sometimes unannounced, is a best practice to ensure compliance with the code of conduct.

A company is considering using a direct distribution strategy. What is a disadvantage of this distribution strategy? Decreased product control Required to arrange for transportation Longer distribution channel Increased costs of the logistic chain

Required to arrange for transportation Correct! Arranging for transportation adds complexity to the company operations and is therefore a disadvantage of a direct distribution channel.

A company is considering using a direct distribution strategy. What is a disadvantage of this distribution strategy? Increased costs of the logistic chain Longer distribution channel Required to arrange for transportation Decreased product control

Required to arrange for transportation Correct! Arranging for transportation adds complexity to the company operations and is therefore a disadvantage of a direct distribution channel.

John is the president of a company that is based in Atlanta. This company, which manufactures office items that stick to walls, furniture, and other items, has been very successful in its first five years, so John decides that he would like to expand the business globally and has chosen to start in the Philippines. What is one of the first things he should do? Conduct a market survey in the Philippines Research the history and politics of the Philippines Talk to the local people in the Philippines Email the local government in the Philippines

Research the history and politics of the Philippines Correct! It is critical to understand the culture, history, and politics of the Philippines before opening a business there.

Which accommodation should an American multinational company make to conduct business in China? Restrictions concerning oil production Restrictions on freedom of speech Regulations for child safety Regulations for waste disposal

Restrictions on freedom of speech Since China has more restrictions concerning speech, a company has to accommodate these differences and be willing to conduct business differently than in the United States.

Which areas traditionally suffer from the digital divide? European cities Rural areas Metropolitan areas American cities

Rural areas Correct! Rural areas are less likely to have high speed internet causing them to be unable to access information on the internet.

Which legislation is aimed at increasing ethical financial transparency in corporate America and affects foreign businesses that want to be listed on a U.S. stock exchange? NAFTA SOX FCPA FTCA

SOX Correct. The Sarbanes-Oxley Act (SOX) is legislation aimed at increasing ethical transparency in corporate America and applies to foreign businesses that want to be listed on a U.S. stock exchange.

An employee at the U.S. Patent and Trademark Office was casually talking to a friend who worked at Company XYZ. The patent office employee mentioned that a pending patent application for Company XYZ was about to be denied, and the decision would become public in a few days. The public release of the report was likely to result in a severe reduction in the stock price of the company. The friend who worked at Company XYZ then placed an online trade transaction to sell all shares of stock they owned in Company XYZ the next day. Which specific law passed by the U.S. Congress did the Company XYZ employee violate? North American Free Trade Agreement (NAFTA) Foreign Corrupt Practices Act (FCPA) Sarbanes-Oxley Act (SOX) Freedom of Information Act (FOIA)

Sarbanes-Oxley Act (SOX) Correct! The Sarbanes-Oxley Act (SOX), legislation passed by the U.S. Congress, is designed to address a lack of trust in corporate America by the investing public. SOX specifically prevents an employee from selling stock based on information not known by the public.

A company requires one employee to be responsible for maintaining a machine. Another employee is responsible for maintaining accounting records for that machine. Which internal control has the company implemented? Managing inventory Reviewing cash flows Segregating duties Accounting for shrinkage

Segregating duties Correct! Irregularities are intentional accounting errors with the purpose to defraud, and this action is used as an internal control to prevent irregularities.

Which activity is considered a foreign direct investment (FDI) by a multinational corporation? Setting up manufacturing plants in the host country Providing guidance for franchises in the home country Setting up manufacturing plants in the home country Providing guidance for franchises in the host country

Setting up manufacturing plants in the host country Correct! FDI is when a company invests in manufacturing or some other major asset in another (host) country.

Which type of duty is required to take care of the collective environment across the nation? Individual Customs Assigned Shared

Shared Correct! Nation states and industry have a shared responsibility to take care of the collective environment of the nation. Collectively, both can accomplish more.

A global company has decided to adopt a pull business model when expanding to new markets around the globe. What is a distinguishing characteristic of this business model? More focus on being supplier-centric Shift in the balance of power from customers to suppliers Shift in the balance of power from suppliers to customers More focus on being product-centric

Shift in the balance of power from suppliers to customers

Which advantage is represented by the group that signed the contract? Lower levels of risk and longer time to maturity Personal network for funding and support Advising for a company initial public offering Significant investment and industry expertise

Significant investment and industry expertise Correct! Significant investment and industry expertise is an advantage represented by the venture capital group. The venture capital group specializes in highly speculative biotechnology venture capital investments in return for having significant ownership and control over decisions.

A company based in the Philippines is attempting to develop world-class digital infrastructure to facilitate business and commerce in its country. Which country in the Southeast Asia region should the company use to benchmark its progress? Singapore Malaysia Vietnam Indonesia

Singapore Correct! As per a recent study, Singapore was categorized as having the stand-out digital evolution in the region. This allows all other countries in the region, including the Philippines, to benchmark their progress to Singapore.

What makes the enforcement of United Nations Environmental Program regulations difficult? Sovereign rights of nations World Food Program distributions Pure competitive markets Peacekeeping missions of nations

Sovereign rights of nations Correct! The sovereign rights of nations preclude the United Nations from enforcing the regulations. United Nations compliance is normally voluntary and agreements tend to be nonbinding.

A multinational corporation (MNC) headquartered in Belgium makes and sells dark chocolate truffles in its own branded retail stores in Paris, Geneva, and London. What is the global strategy used by this international business? Export strategy Transnational strategy Standardization strategy Multidomestic strategy

Standardization strategy Correct! The MNC headquartered in Belgium makes and sells one product, dark chocolate truffles, in its own branded retail stores in Paris, Geneva, and London. The MNC is using the standardization strategy.

Which advantage stems from the company selling online? No up-front costs if using an existing channel Easier to manage on a large scale Strong connections to the customer base Reduced issues with shipping

Strong connections to the customer base Correct! Selling online is a direct distribution strategy and creates a stronger connection to the customer base.

A company in the United States is considering a joint venture with a French supplier and needs to learn about the accounting standards used in France. How should the U.S. company approach this situation? Participate in a Financial Accounting Standards Board (FASB) meeting Become a member of the International Accounting Standards Board (IASB) Study the International Financial Reporting Standards (IFRS) online Review generally accepted accounting principles (GAAP) reporting data

Study the International Financial Reporting Standards (IFRS) online Correct! The International Financial Reporting Standards (IFRS) provide globally accepted, authoritative, and standardized methods of recording and reporting financial accounting information used in over 110 countries. France uses IFRS for accounting.

How do governments help companies offset the cost of manufacturing domestically? Tariffs Subsidies Anti-dumping laws Anti-trust laws

Subsidies Correct! Subsidies are monies given to industry to keep prices competitive on a global level.

Which currency contracts are two-way agreements to trade currency on different dates? Forward Swap Option Future

Swap Correct! Swap contracts are two-way agreements to exchange currency on different dates.

A global company collects vast amounts of data from user activity and would like to use that data effectively to increase future sales. How should this goal be accomplished? Target advertising toward customer interests Determine which customers to unsubscribe Identify multifactor authentication strategies Sell the data to smaller competitors

Target advertising toward customer interests Correct! Companies utilize tools like user activity monitoring (UAM) as a form of surveillance that provides visibility and insight into how customers shop. This will allow the company to target advertising to specific customer needs.

A company has achieved a monetary advantage by using a fronting loan with a subsidiary in a country with a low corporate income tax rate. Which type of tax situation in this country allows the company to achieve this monetary advantage? Tax haven Consumption tax Flat tax rate Graduated tax rate

Tax haven Correct! A tax haven, a country with a low tax rate, would keep the subsidiary from paying taxes on the interest earned from the loan. This reduces the amount of taxes in comparison to a regular corporate tax situation.

Why is the EPA assisting Garbus with ensuring its waste is disposed of properly? The EPA provides a free resource to companies to help them save money. The EPA's assistance is mandated by the U.S. Department of Labor. The EPA ensures that global trade is not affected by environmental laws. The EPA's mission is to help businesses in stopping environmental deterioration.

The EPA's mission is to help businesses in stopping environmental deterioration. Correct! One of the charges of the EPA is to assist businesses in stopping environmental deterioration.

Which term refers to the indistinguishable combination of what is human and what is technology? The Agricultural Revolution The Fourth Industrial Revolution The Market Revolution The American Revolution

The Fourth Industrial Revolution Correct! The Fourth Industrial Revolution refers to the indistinguishable combination of what is human and what is technology such that it is difficult to tell where human ends and technology begins.

What is a characteristic of the International Monetary Fund (IMF)? The IMF is a developmental institution and supports developing countries. The IMF loans to all nations and helps increase their resources. The IMF is a cooperative institution and provides more effective currency exchange. The IMF provides financial assistance to all nations and improves their investment capability.

The IMF is a cooperative institution and provides more effective currency exchange. The IMF is cooperative institution and is similar to a credit union for all member nations.

Which aspect of the International Monetary Fund (IMF) will assist the newly elected leader in paying the deficit, if agreed upon by both countries? The IMF focuses on development projects that support trade between countries. The IMF loans money to member countries to solve trade deficit issues. The IMF establishes well-defined borrowing requirements for all its members. The IMF functions like a bank for developing countries.

The IMF loans money to member countries to solve trade deficit issues. The IMF's function is to help member nations solve debt issues by issuing short-term loans.

A cruise ship employs over 200 workers over the course of 18 years. One worker describes terrible living conditions and the limited amount of food that employees are given to eat. Which labor convention is being violated by the employer? Geneva Worst Forms of Child Labour Domestic Workers The Maritime Labour

The Maritime Labour Correct! This convention sets out seafarers' rights to decent working conditions.

What is a drawback of the U.S. furniture company having its cut and sew operation in Mexico? The number of U.S. furniture companies in Mexico are lower because of NAFTA. There are fewer opportunities to do business with multiple furniture companies in Mexico. There are three member countries in NAFTA, so it is more difficult for U.S. furniture companies to decide on policies. The U.S. company may forgo trade with another company producing covers for less because they are not part of NAFTA.

The U.S. company may forgo trade with another company producing covers for less because they are not part of NAFTA. Correct! This drawback can lead to doing business with more expensive producers.

Which critical distinction should Country A make when choosing between the World Bank and the International Monetary Fund (IMF) to improve the country's highways? The World Bank focuses on development projects. The IMF has a commitment to international economic cooperation. The IMF uses a quota system. The World Bank provides effective currency exchange between countries.

The World Bank focuses on development projects.

What did the Worst Forms of Child Labor Convention, 1999 define? The age at which a person becomes an adult Rights for domestic workers Hourly wage rates Rules of workplace of safety

The age at which a person becomes an adult Correct! The Worst Forms of Child Labor Convention defines a child as an individual younger than 18 years old.

A global buyer reviews a company's ethical profile and the social responsibility section of its annual report. Understanding that the company's values match the buyer's principles, the buyer purchases the company's products. Which action did the buyer perform regarding the purchase of the company's products? The buyer practiced ethical consumerism. The buyer used personal ethics. The buyer practiced shareholder activism. The buyer used organizational ethics.

The buyer practiced ethical consumerism. Correct! When a person evaluates a company's values and then makes purchases from the company based on the person and company's matched values, this is ethical consumerism.

Which type of legal system is based on a code and focuses on how the law is applied to the facts? Theocratic Religious Common Civil

The civil law system is an inquisitorial system where the judge investigates the facts of the case.

Which two primary sources of law govern contracts in the United States? The common law and U.S. Supreme Court The UN Convention on Contracts for the International Sale of Goods and a horizontal structure The UN Convention on Contracts for the International Sale of Goods and a vertical structure The common law and the Uniform Commercial Code

The common law and the Uniform Commercial Code Correct! Common law comes from custom and from precedents set by other court decisions. The Uniform Commercial Code provides some a standardized laws and regulations for commercial transactions such as sales. They are the two primary sources of law that govern contracts in the United States.

Why does a company engage in foreign direct investment? The company wants to find a foreign source of financing for its foreign operations. The company wants to identify another company with which it can partner. The company wants to find a domestic source of financing for its foreign operations. The company wants to control organizational assets in another country.

The company wants to control organizational assets in another country. Correct! Foreign direct investment is when a company acquires a foreign firm or asset with the intent to control and manage it to strengthen its economic and financial market position.

What is a benefit for making a foreign direct investment (FDI)? Profits will decrease for the Chinese company because it will avoid tariffs. An inflow of capital into the country chosen by the Chinese company will benefit the company. The investment will increase the Chinese company's risk of doing business internationally. The country chosen by the Chinese company will increase jobs for local people.

The country chosen by the Chinese company will increase jobs for local people. Correct! A benefit of foreign direct investment is an increase in jobs for the country where the investment is made.

What is true of expatriates? Expatriates bring inconsistencies of a company's HR policy to international divisions. There is no risk of expatriate failure when companies assign expatriates to work in an overseas office. Hiring expatriates is relatively cheaper than hiring from the local labor force. The culture shock that employees face upon repatriation could cause the company to lose expatriates if not handled properly.

The culture shock that employees face upon repatriation could cause the company to lose expatriates if not handled properly. Correct! This is a true statement of expatriates.

Which criticism is associated with the World Bank? It does not offer large enough loans to developing countries. The developed countries such as the U.S. and Europe have too much control over its decisions. The developing countries of Asia and Africa have too much control over its decisions. It makes loans that are too large and cannot be repaid

The developed countries such as the U.S. and Europe have too much control over its decisions. This is one of major criticisms of the World Bank.

Which factor is a risk for Azamar if it decides to export its area rugs to Italy through a distributor? The manufacturer and distributor will have to share profits with other Italian companies. The manufacturer would take too long to develop the operation processes to be successful. The manufacturer will lose control over the quality of the area rugs being exported to Italy. The distributor could switch to cheaper supplier of area rugs to get better prices.

The distributor could switch to cheaper supplier of area rugs to get better prices. Correct! Distributors can switch or even threaten to switch to get lower prices.

How will the Chinese company recognize that it is more profitable to operate business in the United States from a foreign currency exchange perspective? The regional trade bloc adopts one currency. The dollar is weaker than the Chinese currency. The foreign direct investment in Chinese currency is restricted. The dollar is stronger than Chinese currency.

The dollar is stronger than Chinese currency. Correct! A stronger U.S. dollar would mean that the Chinese company would receive more of its own currency in the exchange market, which would indicate that the market for the Chinese furniture in the U.S. would be more profitable and more favorable.

What is a disadvantage of regional economic integration? Integrated agreements among a small number of countries create conflicts. The exclusion of external countries reduces global free trade. Labor movement restrictions narrow job opportunities. A higher number of trades lowers growth rates in less-developed countries.

The exclusion of external countries reduces global free trade. Correct! Regional agreements may create trade barriers with nonmember countries, which lowers global free trade.

Which effect does a command economy have on the process of globalization? The economy is self-sufficient, so the globalization process remains unaffected. The economy is competitive, so the globalization process will be slowed. The government is less flexible, so the globalization process is challenged. The government encourages a free market, so the globalization process is accelerated.

The government is less flexible, so the globalization process is challenged. Correct! A command economy results in a less flexible economy, so globalization is challenged as the government regulates economic production.

What is a benefit of foreign direct investment? The inflow of capital benefits the local but not global economies The outflow of capital benefits global and local economies The outflow of capital benefits the local but not global economies The inflow of capital benefits global and local economies

The inflow of capital benefits global and local economies Correct! The inflow of capital to a country helps both the global and the local economies.

Which result occurs when a legally enforceable contract between two businesses from different countries is broken? The party who broke the contract cannot sell goods. The party who has been affected can seek damages. Resolution of the contract must be secured in 90 days. The broken contract impacts political policy making.

The party who has been affected can seek damages. Correct! When a legally enforceable contract is broken, the party who has been affected can seek damages so the business can be made whole as if the breach of contract did not occur.

The Garbus company is a producer of microprocessors made with precious metals mined in Central America and is headquartered in the southwest United States. It is one of a few producers of the microprocessors that are used in the onboard computers of luxury automobiles. In the past year, it has outgrown its competitors and is looking at acquiring the next three largest competitors, who are in Europe. One of the companies that Garbus would like to acquire in the Czech Republic is under investigation for operating a sweatshop. It is suspected of having employees younger than 17 who work long hours each day. If it can complete the acquisitions, it will be able to dominate the global market for these microprocessors.

The precious metals used in the microprocessors produce waste that can be toxic to the environment. Garbus wants to be an environmentally friendly company. It works closely with the Environmental Protection Agency (EPA) to ensure that all waste is disposed of properly. However, some managers in the company are concerned that if they adhere to the guidelines of the EPA, they could be limiting their productivity. The mining company in Costa Rica that provides some of the precious metals to Garbus has decided to renegotiate its contract with Garbus because it has heard of Garbus' desire to acquire its competitors. It wants to include a provision that will require Garbus to continue to purchase precious metals for the next three years. Garbus agrees, but adds a choice of law clause that requires any contract disputes to be handled in the United States. In addition to the production of the microprocessor, Garbus has intellectual property associated with the design of the microprocessor. It regularly has its legal team search for infringements of the patents that it holds for the design. If the legal team finds something in another country that infringes on the patents, it works with the World Intellectual Property Organization (WIPO) to settle any disputes.

What is an accurate characterization of the relationships between multinational corporations (MNCs) and the host country governments in which they operate? The relationships are negative because MNCs take resources from the host country. The relationships are positive because MNCs provide jobs and capital to the host country. The relationships are mixed because MNCs can cause, but also solve, problems for the host country. The relationships are mixed because MNCs cause economic strife in the host country.

The relationships are mixed because MNCs can cause, but also solve, problems for the host country. Correct! The relationships between an MNC and the host country can be both good and bad depending on a number of factors including economic development, resource distribution, and employment.

What does Article 2 of the Uniform Commercial Code (UCC) govern? The required conduct of both parties in accordance with the contract The standards for the countries from which the two businesses originate The standards for the performance of business activities The required conduct of the initiator of a contract

The required conduct of both parties in accordance with the contract Correct! Article 2 of the UCC governs the obligations of the two parties, specifically with respect to the offer.

A chief executive officer (CEO) of a Scandinavian company sought to expand operations in Japan through a joint venture. When the CEO asked the Japanese business owner whether she was committed to the venture, the business owner responded with a flat-toned "yes." The outcome the CEO expected did not happen, and the joint venture failed. What was the CEO's misinterpretation in this communication? The response indicated agreement. The response indicated possibility. The response indicated excitement. The response indicated misunderstanding.

The response indicated agreement. Correct! In Japan, the word "yes" can mean things other than agreement, including "maybe" or "I understand you."

Which fact should a company note when it opens its operations in the state of Louisiana? The state follows a Talmudic law system. The state follows the canon law system. The state has a mixed law system. The state follows a customary law system.

The state has a mixed law system. Correct! The state of Louisiana follows a mix of both the civil and common law system, whereas the U.S. on the whole follows a common law system.

Why are bots on customer-facing websites and apps valuable for global companies? They can eliminate hold times. They can redesign the website or app on the fly. They are accessible 24 hours per day. They can be deployed to perform services for customers.

They are accessible 24 hours per day. Correct! Bots can perform simple data collection from customers and can even handle simple customer needs. The capabilities of bots is expanding all of the time, and their functionality can vary from business to business.

How do antidumping laws protect a domestic market? They restrict international companies from selling domestically. They prevent international companies from foreign direct investment. They prevent foreign companies from selling goods and services at or below cost. They restrict domestic companies from selling goods at prices above the price of production.

They prevent foreign companies from selling goods and services at or below cost. Correct! Antidumping laws prevent foreign companies from selling goods at or below production cost to ensure domestic companies can stay competitive.

Which benefit will Sure Start gain from opening the factory in Vietnam? The U.S. government will give them subsidies for producing in Vietnam. The move will allow them to be fully integrated in production of rechargeable batteries. They will achieve economies of scale in the production of rechargeable batteries. It will allow them to move to the production of electric cars in the near future.

They will achieve economies of scale in the production of rechargeable batteries. Correct! Because the factory in Vietnam will only produce rechargeable batteries, the company will be able to benefit from minimized production costs associated with lower labor and dedicated manufacturing operations as they scale up to mass production.

Which legal system can vary from community to community and is found in countries without strong formal justice systems? Common Canon Civil Customary

This is generally found at the tribal or local level, is based on longstanding local customs, and is often transmitted orally.

Which Latin American phrase (translated into English) typifies how time is viewed, which can make conducting business frustrating to Northern European companies seeking to expand in Latin America? Time is circular. Time is money. Time is a social construct. Time is space.

Time is space. Correct! Latin America views time as being subordinate to relationships and situations. Individuals in Latin America will be late to a meeting if an earlier meeting requires time for relationship development or connections need to be made.

What was the first loan that the World Bank made after the end of World War II? To Germany to rebuild its military To France to rebuild its infrastructure To Switzerland for being neutral in the war To the U.S. to rebuild Europe's infrastructure

To France to rebuild its infrastructure The first loan made by the World Bank after World War II was used to rebuild the infrastructure of France.

What is the purpose of internal controls? To ensure the accuracy of a system's performance To ensure irregularities of a system's performance To create processes for credentialing accounting staff To establish procedures for manufacturing operations

To ensure the accuracy of a system's performance Correct! Internal controls are built into a system to help guarantee the accuracy and reliability of the financial and accounting information. Internal controls should ensure systems run efficiently, effectively, and accurately and that they reduce accounting misstatements.

Why is the company insourcing production in the new facility? To bring innovation to the design of cabinets To create higher than expected transaction costs To enhance organizational trust To maintain control of the quality of the cabinets

To maintain control of the quality of the cabinets Correct! Insourcing allows the company to maintain control of the quality of the cabinets.

Why should the newly-elected leader of Country A use the World Trade Organization (WTO) to form favorable trade agreements? To obtain funds to build the highway infrastructure To obtain funds needed to payoff their trade deficit with their neighbor To receive help building international trade capacity To receive guidance on how to stabilize the country's currency

To receive help building international trade capacity Correct! One of the functions of the WTO is to help developing countries build trade and international exchange capacity so they can have a presence in the international markets.

A high-end global computer company concludes that it needs to concentrate on gaining production efficiencies with its manufacturing processes. The company decides to outsource the manufacturing of key strategic parts of its products to Vietnam. Why does this company decide to utilize outsourcing? For tighter process control To reduce costs To increase quality For higher skilled labor

To reduce costs Correct! Cost savings is an advantage of outsourcing and may result from outsourcing the manufacturing process to Vietnam.

The German Transportation Agency (GTA) halts imports of rechargeable batteries from Sure Start. Why would the GTA do this? To respond to a national security issue To protect the infant industry in Germany To punish dumping behavior of Sure Start To respond to a product safety issue

To respond to a product safety issue The scenario mentioned that electric cars caught on fire. These cars had Sure Start's battery installed so this is about product safety to halt the import.

Why would Azamar want to expand business outside of the United States and into Italy? To support market growth To increase operating expenses To reduce diversification of operation To diversify transportation costs

To support market growth Correct! Market growth is a reason why businesses seek to expand abroad as it leads to increased sales and profits for Azamar.

What is a reason for companies to engage in foreign direct investments? To take advantage of tax exemptions offered by the host country To take advantage of tax exemptions offered by the home country To decrease imports to the host country To increase imports to the home country

To take advantage of tax exemptions offered by the host country Correct! Often countries offer tax exemptions to companies that invest in their economies.

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? Mercantilism Trade surplus Neo-mercantilism Protectionism

Trade surplus Trade surplus is when a country exports more than it imports from another country. For example, China normally exports more manufactured goods to the United States than it imports from the United States. China has a trade surplus.

What is the agreement that the World Trade Organization has between its member nations that governs all intellectual property laws? Alternative Dispute Resolution (ADR) United States Trade Representative (USTR) World Intellectual Property Organization (WIPO) Trade-Related Aspects of Intellectual Property Rights (TRIPS)

Trade-Related Aspects of Intellectual Property Rights (TRIPS) Correct! This agreement by the WTO governs all IP laws

A multinational company moves key production assets to a country with lower tax rates to avoid paying more taxes in the home country. Which type of pricing should be used to reduce taxes during production? Skimming Premium Penetration Transfer

Transfer Correct! Transfer price is the price charge between the transfer of completed or uncompleted goods between subsidiaries of the same company. When subsidiaries are in different countries, goods are often produced in the lowest tax rate country.

A multinational corporation would like to maximize profits by moving products to international subsidiaries to gain tax advantages. Which pricing strategy should this corporation use for this purpose? Promotional Optional Bundle Transfer

Transfer Correct! Transfer pricing involves conducting business among cross-border subsidiaries, often producing the product in the country with the lowest costs and tax rates.

A car company wants to expand internationally but encounters much international competition to reduce cost while responding to local needs. Which strategy should the company use to meet this goal under these conditions? Transnational Web Export Communication

Transnational Correct! This strategy is one in which a company must be nimble to respond to cost pressures while customizing products to local markets. Transnational strategies have to deal with the problems of standardization (cost) and multidomestic strategies (local responsiveness).

How are free trade agreements handled differently than treaties in the United States? Treaties must be approved by the House of Representatives, while a free trade agreement only needs to be approved by the Senate. Treaties must be approved by both houses of Congress, whereas a free trade agreement only needs to be approved by the Senate. Treaties must be approved by the Senate, whereas free trade agreements must be approved by the House of Representatives. 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. Correct! Since a free trade agreement involves revenue from trade, it must be approved by both houses of Congress, whereas a treaty only needs to be approved by the Senate.

A company is in a geographic area with low literacy levels, and the surrounding population does not understand the benefits of a computer and the internet. Due to this lack of information, the individuals are not able to use the digital technology to its full potential, and this is negatively impacting the company's business plan. Which type of divide must this company manage? Usability Accessibility Empowerment Economic

Usability Correct! If an individual does not know how to fully access the internet and the economic benefits it can bring, then a usability divide occurs.

How does General Data Protection Regulation (GDPR) help protect people's personal data? Users must be notified of data breach within 24 hours of awareness. Users are required to opt in explicitly to grant permission for sensitive data. The regulation applies to all European companies processing data of worldwide citizens. Companies that breach the policies of the GDPR can be fined up to 25% of their annual global turnover.

Users are required to opt in explicitly to grant permission for sensitive data. Correct! Users are required to opt in explicitly to grant permission for sensitive personal data.

A group of communities lack internet access due to their remote location. The lack of transportation infrastructure to this remote part of the country means that it is almost impossible to move equipment there to build the digital infrastructure. Which approach is being used by major technology companies to address this challenge? Creating networks of cloud-based servers to provide improved internet access Providing communication technology to leverage military servers in those locations Building cellular towers to provide 5G broadband wireless services Using helium-filled balloons to offer cheaper cell coverage from the stratosphere

Using helium-filled balloons to offer cheaper cell coverage from the stratosphere Correct! Loon develops balloons to carry communications equipment, solar panels, and batteries in order to offer cheaper cell coverage from the stratosphere.

Which type of investor secures funding from a number of speculative financiers and pursues strong global business opportunities still in the start-up phase? Strategic partnerships Personal contacts Venture capitalists Crowdsourcing

Venture capitalists Correct! Venture capitalists provide high amount of capital to early-stage, emerging firms that are deemed to have high growth potential.

Which organization aims to develop a global intellectual property infrastructure? WIPO WTO TRIPS WRC

WIPO Correct! This stands for World Intellectual Property Organization. Its goal is to develop a global IP infrastructure, build international respect for IP, and implement global policy related to IP.

The marketing manager of a major global financial transactions processing company remarked in the company meeting that 5G will be very critical for the continued success of the company. Which component must be monitored by this company? Desktop publishing Wireless broadband technology Spreadsheet program Enterprise resource planning

Wireless broadband technology Correct! Wireless broadband technology transitions away from hard wired communication technology. The marketing manager is sharing in the company meeting that 5G broadband will be critical for the continued success of the company.

Hughes Inc. is a leading producer of wool socks in New Zealand and specializes in making fabrics for furniture, mattress, and clothing manufacturers throughout the world. Recently, the company has begun to diversify by acquiring a midsize textile company in Vietnam. Because of increasing pressures from consumers throughout the world, the company must provide proof that it is operating in an ethical manner. Hughes has made it a mission to use packaging made from 85% recyclable material for all its products and to use reusable containers for shipping its wool socks. The company believes that using these items will help it minimize the impact that it has on the global environment.

With the acquisition of the company in Vietnam, Hughes has begun to realize how the differences in culture between New Zealand and Vietnam affect its decisions on how to be socially responsible. New Zealand ranks as one of the lowest countries for corruption, so some of accepted business practices in Vietnam have caused some executives of Hughes to feel anxious. They feel that all business transactions should follow established rules in order to avoid corruption, but the practice of grease payments to individuals in Vietnam is widely used and has become an area of concern for Hughes.

What is a common name for the International Bank for Reconstruction and Development? International Monetary Fund Federal Reserve Bank World Bank European Central Bank

World Bank World Bank is the common name for the International Bank for Reconstruction and Development.

Many countries from several geographic regions are accused of dumping steel into the U.S. market at unfairly low prices. Which entity can the United States appeal to in order to correct this apparent market manipulation? World Bank European Union International Monetary Fund World Trade Organization

World Trade Organization Correct! The World Trade Organization is designed to judge potential market manipulations of its members. The United States has accused several countries around the world of dumping steel.

Which organization was formed after World War II to encourage international commerce? International Monetary Fund European Central Bank World Trade Organization Federal Reserve

World Trade Organization The World Trade Organization was formed after World War II to encourage international trade by creating a mechanism to negotiate trade agreements.

Which strategic network was established to work towards decreasing tariff rates and protecting commerce and intellectual property globally? North American Free Trade Agreement (NAFTA) World Trade Organization (WTO) European Union (EU) International Monetary Fund (IMF)

World Trade Organization (WTO) The WTO was established to work towards decreasing tariff rates and protecting the trade of goods, services, and intellectual property.

Which convention addresses the issue regarding the company that Garbus would like to acquire but is under investigation for operating a sweatshop? Domestic Workers United Nations Framework Worst Forms of Child Labor Maritime Labor

Worst Forms of Child Labor Correct! This convention states that a person younger than 18 is considered a child and aims to eliminate practices of slavery, debt bondage, etc.

A company's chief executive officer (CEO) wants to expand the company into China and is reviewing the Chinese word guanxi, the basis of all business in that country. Which English meaning must the CEO understand in regards to this Chinese concept? If God is willing. You owe me one. All is well that ends well. The die is cast.

You owe me one. Correct! Guanxi is based on relationship building, which can be good or bad. The Western equivalent is "You owe me one."

A farmer sells sweet corn to customers at a local farmers market. Which marketing channel is being used by the farmer? Direct Indirect Push Pull

direct Correct! When a producer sells to customers, it is a direct marketing channel.

Which business strategy should Stanley & Sons use to meet goals if leaders choose not to create an international division in Germany but they would still like to serve German customers? Multidomestic Export Transnational Standardization

export Correct! This strategy would be used by Stanley & Sons if leaders decided to focus on their production facility in North Carolina.

Which organizational structure is appropriate for forming the departments for Stanley & Sons? Functional Divisional Matrix Teams

functional Correct! Based on the fact that manufacturing processes are the same and they want to departmentalize employees into functions, a functional structure would be the best fit.

A company wishes to make a foreign direct investment in a new country where it can make and test products more easily. While local suppliers would not normally meet the requirements for its products, this new plant will accept them. Which factor affected the company's production location? Cost Innovation Growth Incentive

innovation Correct! The company is using the foreign direct investment to use local suppliers to make and test the new products. The company is using the location to promote innovation.

A company wants to move production offshore to a low-skilled labor company because the company's machines will make the product and it only needs these low-skilled operators to work the machines. Which advantage of outsourcing does the company seek to take? Lower costs Greater discipline Focus on core activities Enhanced expertise

lower cost Correct! In this advantage, the company seeks another to produce the products in a place of lower labor cost. The company in the scenario is seeking these low-skilled operators to reduce costs.

Which organizational structure simultaneously uses functions and divisional structure so that functional employees can be placed on different projects to maximize creativity? Matrix Divisional Teams Departmental

matrix Correct! This structure simultaneously uses functional and divisional structures.