WGU D080 Module Quizes

A doctor plans to use a patient's own stem cells to build tiny organs which can be later implanted inside this patient to replace the failing organ. The technology the doctor uses is________.

3-D printing

Microsoft, a U.S. company, has a contract with KYE Systems Corp., a Chinese manufacturer, to assemble its products, the contract might include ___________ that would require any contract dispute to be settled in accordance with Washington State law.

A choice of law clause

A country's government allows its currency value to fluctuate within a certain range but would manage the currency value once the fluctuation exceeds the range. This country has been practicing___________.

A pegged floating exchange rate system

Which of the following would a mercantilist value the most?

A trade surplus

Brazil has better soil and climatic conditions and they can produce coffee beans cheaper than the United States. This reflects_________of Brazil

Absolute advantage

What is a benefit of creating a regional economic integration agreement?

Accelerated economic growth

A customer at Target tries to connect to the free Wi-Fi network. The network asks him to read the terms of an agreement and agree before joining the network. This is an example of __________.

Acceptable Use Policy

___________ occurs when one company purchases most or all of another existing company in a specific target market or country.

Acquisition

What of the following is not included in WIPO (World Intellectual Property Organization)'s strategic plan?

Approving the applications of patents

Which technology is used in the development of self-driving cars?

Artificial intelligence

Netflix used to only provide movie rental service to customers. In recent years, Netflix has started to collaborate with foreign TV show producers and started to make Netflix original shows. This represents Netflix's effort in making a___________.

Backward vertical FDI

Both being the member countries of the EU and the Euro zone, Germany and France have been each other's important trading partners. Why it's easy for them to trade with each other

Because France and Germany have administration similarity on free trade agreement

Which of the following technology allows customers to store their private information in one block and maintain total ownership and control over it?

Blockchain

Which of the following will enable the firms to share the resources?

Both strategic alliance and joint venture

What kind of system does the EU have for antitrust enforcement?

Centralized administrative system

Which type of law is applicable if Company X contracted with Company Z to handle the disposal of its waste from its production plant and the waste accidentally leaked into a local water source?

Clean Water Act

Local employees in a company's Vietnam subsidiary seek to achieve common goals and are loyal to each other. Which of Hofstede's cultural dimensions describes this subsidiary's employees?

Collectivistic

Which type of economy contains a low standard of living, no surplus, and usually is observed in under-developed areas of the world?

Common law system

Which factor contributes to the creation of a monopoly?

Control of exclusive right.

Free trade could result in__________________

Creation of sweat shops in countries with cheap labor

Which one of the following is NOT true for culture simulation training?

Cross-cultural trainers provide onsite lectures, videos, or workshops on cultural differences

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

______________ are the shared, sanctioned, and integrated systems of beliefs and practices that are passed down through generations and can characterize a cultural group.

Cultural norms

Mercosur is an example of ______stage of economic integration that removes all trade barriers and allow member nations to use same external trade policies

Custom union

Which of the following legal system usually is observed in an area without strong justice system?

Customary law

The U.S. Department of Agriculture has been using quota on sugar imported from foreign countries. The direct result of such quota in the U.S. market is__________.

Decreased competition among producers in the U.S. sugar market

The U.S. government plans to use a 25% tariff on tires imported from China. This will result in_________.

Decreased consumer benefits

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 get ready for 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?

Details about how the community functions

Accounting statement communicates a company's financial status to different stakeholders and can be used in different ways. What is the accounting statement used by the government for?

Determine if the company pays correct amount of tax.

Which action is used by companies wishing to avoid working with vendors who use sweatshops?

Developing and imposing a company internal code of conduct for vendor labor practices

Which agreement was formalized in 1993 to create an economic union to help member countries form unified economic policies?

EU

A German engineer plans to move to France and start working there for 2 months. He only needs to hold a valid identity card or passport to move to France. This is due to_____________.

EU has the feature of common market stage of economic integration

India has jumped to cellular broadband communication instead of wired because of the cost and difficulty in laying fiber-optic cable. The new advanced technology has helped cover which of the following divide?

Economic divide

General Motor in recent years have gradually moved its production facilities to Mexico and have lowered the production cost significantly. This is a benefit brought by_________.

Economic globalization

Venezuela has been experiencing sever inflation that has led to the currency depreciation. It's considered not a safe place to make FDI by foreign companies. This is an example of______.

Economic risk

Which factor of CAGE analysis addresses differences in country's GDP level that affect trade?

Economics

A company is planning on global supply chain meeting and needs to translate information stored in the system for the business uses. The system that can bring collective knowledge and data across departments is called______________.

Enterprise resource planning system

A company tries to raise capital for its investment project by selling shares of stocks in the stock market. This is considered as___________.

Equity

Which of the following financing sources is the most costly and risky?

Equity

Company X uses the same human resources policies and practices in its subsidiaries as in the parent company. Leadership roles and key positions in subsidiaries are filled by expatriates from the home country. What human resources management approach is being used by company X?

Ethnocentric

Which human resources management approach has the problem with lack of diversity and might discourage the employee's motivation?

Ethnocentric

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?

Ethnocentrism

Which of the following is not a supplier of US dollars?

European investors who want to purchase bonds in the US bond market

An international company uses a distributor to manage the distribution of products in a new market. Which entry strategy is the company using?

Exporting

Jack is running a small business and is looking for investment to finance his future company development plans. His uncle recently won a lottery jackpot and has decided to throw $200,000 on Jack's company and only asks for a certain percentage of financial return based on his investment amount. This financing source Jack's company got is called___________.

FFF

A Japanese company has purchased a German company with the intent of controlling and managing the German company's assets and decision making process. Which practice is used by this Japanese company?

Foreign direct investment

Under the COVID19 pandemic, a lot of individuals and small businesses are significantly impacted and have been struggling. The U.S. government has issued 2 rounds of stimulus checks and offered small business forgiveness loans to support this group. This reflects______.

Formation of international organizations

_______has the advantages of fast entry, low cost and low risk.

Franchising

An international company has employees divided into departments related to designated areas of the business, such as marketing, production, human resources, information technology, and customer service. What is the organizational structure of this company?

Functional

Company Y has a global perspective and tries to integrate people and divisions from around the world in order to work with the best talent. What human resources management approach is being used by company Y?

Geocentric

Over many years, the Ireland government has made a consistent policy to maintain a low corporate income tax rate for businesses. This has greatly attracted the foreign direct investment to Ireland and promoted globalization. Which of the following globalization driver is related to the scenario?

Government driver

The U.S. farmers can get low-interest large amount loans from the Export and Import Bank of the United States. This is_______source of funding for exporters.

Governmental or other organizational financing

As a company enters a foreign market, it provides assets, takes on all of the responsibility, and assumes the significant risk. What is this market entry strategy?

Greenfield Venture

A chief executive officer (CEO) wants to grow the company by investing in foreign countries. The CEO is considering several different entry strategies to accomplish this objective but has concerns about giving up control. Which strategy should the CEO strongly consider?

Greenfield venture

The French government recently found out that batteries imported from Vietnam has been causing fires on vehicles and has decided to halt the import. This is a reflection of_________.

Health and safety

What is a goal of the World Bank?

Help countries fight poverty and improve life quality

Which of the following is not true for matrix organizational structure?

High employee loyalties

Amazon is a U.S. based company. In recently years, Amazon has gradually established Amazon Japan, Amazon China, Amazon UK, etc. This is an example of_________.

Horizontal FDI

A U.S. company has recently expanded its operation to Europe. Now it's the end of the quarter. The company has to prepare the accounting statement for this oversea branch. Which of the following accounting standard should this company follow?

IFRS

The Greek government has decided to impose a tariff on cigars imported from Cuba. What is the direct impact of such trade policy?

Increased market price of cigars in Greece

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?

Indulgence

A large U.S. corporation is entering a foreign market but is having significant delays in acquiring the necessary permits to begin operations. A local official tells the project manager that a financial incentive should be paid to speed up the permit process. The official stresses that other companies engage in this practice and that it is acceptable in the local culture, so the project manager pays the incentive. How is this action characterized?

It is a violation of the U.S. Foreign Corrupt Practices Act.

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.

What is the reason to include a choice of law clause in the contract?

It specifies which law applies to any disputes that could arise under the contract.

Companies A and B sign a business agreement, they will work together to develop a project and share revenues, expenses, and all the assets. What strategy are they using?

Joint venture

Which market entry strategy can ensure the success of the smaller and costly projects that are just starting in the business world?

Joint venture

Which of the following will enable the firms to share the assets?

Joint venture

A company that has recently expanded business operation to a foreign country is concerned about losing control on its intellectual property rights in that country. This is considered as_______ risk.

Legal risk

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?

Local responsiveness

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

Matrix

Which drawback is involved when regional agreements are created?

Member countries will trade less with nonmember countries.

Which factor results in a faster development of globalization?

Mixed economy

C is a multinational bank, headquartered in New York City and in London, but it has offices around the world. The bank has operated in Saudi Arabia and India since the 1930s. Because regulations are unique to each country, what strategy has C chosen?

Multidomestic

Which agreement was signed in 1994 and aims at removing trade barriers between Canada, the United States, and Mexico?

NAFTA

Which of the following is true for divisional organizational structure?

Operationally flexible but inefficient

Which of the following contracts gives contract holder the non-obligation right to exchange currency at a previously determined rate on a future date?

Option contract

An international company has created a diagram to show the division of labor between departments. What is the name of this diagram?

Organizational chart

Which of the following is a technical barrier for trade?

Packaging requirement regulation

Nowadays, countries have joined different international organizations as well as regional organizations and have signed agreements to follow the organization's rules. This is due to______. *

Political globalization

Each subsidiary works an autonomous business. Leadership roles and key positions are staffed by local professionals who can be immediately effective without the adjustment period. Which human resources management approach is being used?

Polycentric

. Concerning human resources management approaches, which one of the following is correct?

Polycentric approach gives subsidiaries more flexibility to adjust to changing local conditions

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

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?

Product

Mobile-phone maker Nokia uses local designers to create mobile-phone handset models that are specifically appropriate for each country. The handsets designed in India are dust resistant and have a built-in flashlight. The models designed in China have a touchscreen, stylus, and Chinese character recognition. What marketing strategy is Nokia using?

Product Adaptation

McDonald holds the same core items across different countries but also has specially developed burgers for each different market, what strategy is McDonald using?

Product Glocalization

MakerBot manufactures 3D printers, which "print" objects by depositing layers of plastic or other materials until the object is complete. Makerbot actively sells its machines to every country in the world and its machines are the same everywhere. Makerbot global strategy is

Product standardization

Which of the following is a strategy used by governments to encourage the foreign direct investment in this country?

Provide more education opportunities and job trainings to the workforce.

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?

Require that the factories be available for inspections

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?

Research the history and politics of the Philippines

Which type of duty is required to take care of the collective environment across the nation?

Shared

What makes the enforcement of United Nations Environment Programme regulations difficult?

Sovereign rights of nations

A Chinese company would like to operate in Indonesia but is required to purchase 75% of the ingredients directly from Indonesian suppliers. This is_____________ used by the Indonesian government to restrict FDI. *

Specific product content requirement strategy

A company wants to hold a direct operating presence in a foreign country, so it buys a company in the target country and runs the operations. Which entry strategy is this company using?

Subsidiary

A multinational company's CEO is considering how to reduce the tax burden. He has decided to establish a subsidiary in a country where the corporate income tax is free. This type of country is called_______________.

Tax haven

Which organizational structure helps increase employee creativity, productivity, and mutual accountability?

Team

A U.S. company that operates in Europe is subject to __________to protect their customers' private information

The General Data Protection Regulation

What is a characteristic of the International Monetary Fund (IMF)?

The IMF provides financial assistance to member nations with trade deficit issues.

T & M Computers is conducting international business operation in world areas, which have recently undergone financial turmoil. Of the following, which organization is most likely to provide assistance in providing global financial stability?

The International Monetary Fund

Which one of the following is a legally binding international treaty on climate change and aim to limit global warming to well below 2 degrees Celsius?

The Paris Agreement

A French tourist expects to have a 5 day vacation in Florida. Which of the following would he prefer before going to Florida?

The U.S. dollar is weak relative to Euro

A newly elected leader has promised to improve the country's highways and airports so that it can attract more foreign businesses to invest there. Which of the following institution can help this country with the project?

The World Bank

Citizens in an African country complain that a requirement from an international institution to cut their government expenditure on the funded healthcare program due to the loans the nation gets from that institution has significantly reduced their social benefits. This is related to which of the following international institution?

The World Bank

A Japanese company has been selling a product at an unreasonable low price in the German market. The German government therefore uses a tariff on the import of this product. The reason for the German government to do this is because of______________.

The dumping behavior made by the Japanese company

Which of the following is a reason for a government to promote FDI?

The inflow of capital benefits the host country's economic development

A US company and a Canadian company engage in a contract and decide to use US contract law. What does Article 2 of the Uniform Commercial Code (UCC) govern?

The performance of sales contracts.

Which of the following is the WTO criticized for?

The transparency requirement has hurt member nations' sovereignty

Which Latin American phrase typifies how time is viewed, which can make conducting business frustrating to Northern European companies seeking to expand in Latin America?

Time is space

A company is reviewing intangible assets that are covered by intellectual property laws. Which asset is being reviewed?

Trademark

Which legal system is based on tradition and precedent given that judicial rulings can stand as precedents for future cases?

Traditional economy

The strategy used by multinational companies to manage assets between subsidiaries to gain tax benefit is called_______________

Transfer pricing

China has made a commitment to convert to electric cars and T, an electric car manufacturer, hopes to participate in this market. The company is negotiating to manufacture cars in Shanghai. Most of the car parts will be the same as those built in the US, but adaptation to local conditions and regulations is necessary to appeal to Chinese customers. Which strategy will T adopt in the future?

Transnational

When the company is exporting its products, what could be the challenge?

Transportation costs are high.

Which anti-globalization argument has been pushing Nike to improve its factory management on workers' rights in the factories located in Indonesia and Vietnam?

Unethical practices of labor such as sweatshops

Nowadays when people use electronic devices such as iPhone, many of them just accept the default setting and can't discover the full features of using these devices compared to others who can discover every feature of these electronic devices and use it to the full potential. This is an example of______________.

Usability divide

A start-up company in Silicon Valley, California is seeking a source of financial investment on its new product development. A large French mutual fund company discussed with the CEO about the investment plan and is willing to invest $20 million on the development of the new product. The mutual fund company also requires 15% stocks of this company as an exchange. Which of the following financial sources does the start-up company use to finance its new product development?

Venture capital

Which organization aims to develop a global intellectual property infrastructure?

WIPO

A production facility employs over 200 workers who are under the age of 18. One worker describes unsafe working conditions and abusive supervisors. Which labor convention is being violated by the employer?

Worst Forms of Child Labour

The price for ethanol consumers in the United States is higher than world free-market price because of the $0.54 per gallon tariff imposed by the U.S. government on ethanol imports. This is an example of a(n)______tariff.

specific