Global Business - Module 4 Quiz

Managing in a Global Business Environment - D080 Leave the first rating Students also studied Terms in this set (52) Western Governors UniversityD 080 Save Global Business - Module 4 Quiz

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cebrew71Preview D080 Unit 4 Test 19 terms Eneely01Preview Manag 186 term mar economicWhich type of globalization is represented by Sure Start expanding into South America, Europe, and Asia?competitionSure Start is starting a new division for rechargeable batteries in different parts of the world.What was the globalization driver of this decision?Impose tariffs on batteries made in VietnamWhich action should the U.S. government take to encourage Sure Start to keep electric battery production in the country?The World Bank focuses on development projects. 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?Obtaining the funds needed to improve the country's infrastructure Which benefit to the newly-elected leader in Country A stems from using the World Bank to meet a campaign promise?Moving production of the batteries used in electric cars to Vietnam where labor is less expensive Which action illustrates how Sure Start is capitalizing on the comparative advantage of a country?Launching a new research division to focus on a rechargeable battery for use in electric cars Which action of Sure Start represents the application of the global strategic rivalry theory?If the German automakers meet the domestic content requirement, there will be little impact.What will be the effect of the German trade policy on Sure Start's rechargeable batteries in its first year?Create a joint venture with a furniture company in Indonesia What is one option for the Chinese company to make a foreign direct investment

(FDI)?

The country chosen by the Chinese company will increase jobs for local people.What is a benefit for making a foreign direct investment (FDI)?The dollar is stronger than Chinese currency.How will the Chinese company recognize that it is more profitable to operate business in the United States from a foreign currency exchange perspective?It leads to developing free trade policies with strategic partners.Two countries agree to open their borders to international business transactions with one another without tariffs.How does this affect global business?The shift of jobs away from low comparative advantage industries What was the economic impact of the North American Free Trade Agreement

(NAFTA)?

increasesCountries 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?To protect an infant industryWhat is a purpose of a country implementing trade protectionism?Creation of isolationist policiesWhich negative outcome on political systems comes from globalization?Culture, administration, geography, economyWhat are the four factors in Ghemawat's CAGE analysis?Firms seek to maximize profits.What is a characteristic of a market economy?It forbids charging interest.Which impact does Islamic law directly have on businesses?They shift employment opportunities.What is a drawback of creating regional trade agreements?Almost half of all automobile parts must be made by a labor force that earns a minimum of $16 per hour by 2023.The United States-Mexico- Canada Agreement (USMCA), a modification of the North American Free Trade Agreement (NAFTA), broadened the scope of free- trade between member nations and tightened restrictions in the region. Which regulation was established by this new agreement?Central America Free Trade AgreementA U.S. capital investment firm is researching new markets to enter to diversify its portfolio. The director of foreign investments presented a pitch to the board of directors encouraging entry into the Costa Rican telecommunications market by investing in local companies in the region through acquisition. Which alliance supports this director's suggestion?The currency in Country A is strong relative to the currency in Country B.A firm based in Country A manufactures its products in Country B and pays the manufacturing employees in the currency in which they are located. Which currency situation will result in the maximum profit for the firm?International Monetary FundWhich institution helps to maintain availability of global financing to solve trade deficit issues?Improving quality of lifeWhat is the current focus of the World Bank?

Increase shareholder trust via high ethical standards A business is entering a global market at the same time it has been trying to improve its level of corporate social responsibility (CSR). Which CSR goal should this company remember during this process?Contracts for the International Sale of GoodsWhich convention provides gap fillers for terms that may not be expressly stated in agreements between two companies?SubsidiaryA 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 type of business agreement is this company using?It is possible there are dual demands for shared resources.Human resources policies are determined by how a particular global company decides to oversee its diverse workforce. What is a disadvantage of using this polycentric approach?FunctionalAn 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?MatrixWhich organizational structure is common in international high-tech and engineering firms that have projects of limited lengths of time where employees can be put on different teams to maximize ingenuity?LoansWhich form of funding requires a low cost of capital and does not require time to mature?Use a forward contractA company wants to reduce the effects of currency fluctuations with its host country subsidiaries for the coming year. Which action should the company take?Lowered profitA multinational company uses transfer pricing to reduce its tax burden in the subsidiaries' countries. Which effect does this action have on subsidiaries?Government nationalization of assetsWhat is an example of a micro risk for multinational companies?EmpowermentA community has the skills and ability to access computers and the internet but does not value that form of technology. A company is trying to change the situation in order to facilitate increased online transactions. Which stage of the digital divide is the company hoping to correct?Fourth Industrial RevolutionAn international business experienced significant changes due to advances in global technology such as autonomous cars, 3D printing, biometrics, nanotechnology, and quantum computing. Which era caused this impact on the business?EducationAn international company works with many economic sectors and notices that one sector in particular is slower to adopt artificial intelligence, which limits their opportunities on a global scale. Which economic sector shows this slower pace?

Enterprise resource planning systemWorkers at a company are struggling to efficiently address daily problems because the company's current information systems do not communicate across departments. What type of system should the company implement to solve this problem?The government is less flexible, so the globalization process is challenged.Which effect does a command economy have on the process of globalization?It is based on a detailed set of laws that form a code. A company is conducting a legal risk analysis for a country that has a civil law system. Which statement accurately characterizes this legal system?The state has a mixed law system.Which fact should a company opening its operations in the U.S. state of Louisiana note?Most-favored-nation (MFN) statusWhich core principle of the World Trade Organization supports equality among member nations and helps fight discrimination among them?Free trade leads to specialization of each country and increases production efficiency.What is true regarding free trade?IncreasesCountries 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?A trade surplusWhat would a mercantilist value the most?Focus on specializationA business operating globally wants to increase its overall production efficiency.Which strategy should the business use?Increase domestic sales and reduce its exports to Country B 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?General Data ProtectionWhich regulation must the Lewis Foundation address when it expands its organization into the European Union?Acceptable User PolicyWhile 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?Target advertising toward customer interestsA 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?