Business > EXAM > PRE-ASSESSMENT: MANAGING IN A GLOBAL BUSINESS ENVIRONMENT (HSO1) PHSO,100% CORRECT (All)
PRE-ASSESSMENT: MANAGING IN A GLOBAL BUSINESS ENVIRONMENT (HSO1) PHSO Attempt #1 Status: Passed 1. Which negative outcome on political systems comes from globalization? YOUR ANSWER ... CORRECT ANSWER Increase in the number of laws Increase in the amount of taxes Creation of isolationist policies Creation of translation problems 2. Which factor results in a higher rate of globalization? YOUR ANSWER CORRECT ANSWER Reduced trade barriers Lower cross-border migration Higher costs of doing business Decreased direct foreign investment 3. What is a major drawback to the home country when companies outsource manufacturing jobs to countries with lower worker wages? Higher taxes Loss of manufacturing jobs Increased manufacturing costs Decreased focus on research and development 4. In which political system do individuals control all political activity, which eliminates the government creating any laws to help businesses with their globalization efforts? YOUR ANSWER CORRECT ANSWER Democracy Monarchy Oligarchy Anarchy 5. A country has a characteristic traditional economic system with poor infrastructure and limited economic opportunity. What is the impact of this system on the process of globalization? YOUR ANSWER CORRECT ANSWER The globalization process is unaffected as the system does not hinder the process. The globalization process has shortcomings as there are conflicts with other countries. The globalization process is at a disadvantage as the country has a lower standard of living. The globalization process is steady as the country is not vulnerable to the impact of globalization. 6. A company headquartered in the United States is considering expanding its activities into a different country that follows the same legal system as most states in the United States. Which country is suited for this expansion? YOUR ANSWER CORRECT ANSWER Chile France Australia United Arab Emirates 7. Which impact does Islamic law directly have on businesses? YOUR ANSWER CORRECT ANSWER It forbids charging interest. It commercializes the legal system. It prohibits sale-buyback of businesses. It limits the globalization of business. 8. Which institution helps to maintain liquidity of global funding? YOUR ANSWER CORRECT ANSWER The World Bank Federal Reserve International Monetary Fund International Finance Corporation 9. Which structural adjustment of the International Monetary Fund gives to citizen owners businesses that were previously owned by the state? YOUR ANSWER CORRECT ANSWER Regulation Privatization Capitalization Bureaucracy reduction 10. What is the current focus of the World Bank? YOUR ANSWER CORRECT ANSWER Maximizing proktability Improving quality of life Supporting structural development YOUR ANSWER CORRECT ANSWER Maintaining equity between developing economies 11. For which concern has the World Trade Organization been criticized? YOUR ANSWER CORRECT ANSWER Influence of free trade policies on labor rights Impact of tariffs set by developing nations Impact of high tariffs on agricultural products Influence of free trade policies on human trafkcking 12. Two countries agree to open their borders to international business transactions with one another without tariffs. How does this affect global business? YOUR ANSWER CORRECT ANSWER It imposes import restrictions on competing nations. It leads to developing free trade policies with strategic partners. It provides subsidies and protects a critical industry. It creates a trade surplus for the national economy. 13. Country A manufactures products less expensively than Country B. Due to changes in international agreements, Country B has decided to stop producing the products that Country A makes. Instead, Country B will purchase the same number of products from Country A that they would have normally produced on their own. How will this affect global trade? YOUR ANSWER CORRECT ANSWER Decreases supply and demand of products Adds new trade barriers for partner nations Increases economies of scale in Country A Develops trade partnerships with other nations 14. Why has the Doha Round of the General Agreement on Tariffs and Trade (GATT) been inconclusive? YOUR ANSWER CORRECT ANSWER Developing countries could not agree to a mechanism to settle trade disputes. Developed countries have not been satisked with the proposed reduction in export subsidies. Developing countries have not been satisked with the proposed reductions in agricultural tariffs. Developed countries could not agree to a common platform to settle international currency transactions. 15. A company that is located in Country A would like to sell products in Country B. The government of Country B is pushing for a tariff-based international trade agreement on the product. What is the reasoning behind Country B's decision? YOUR ANSWER CORRECT ANSWER Country B wants Country A to divert trade to another country to help Country A's economy. Country B seeks to protect its economy and give it the opportunity for long-term expansion. Country B prefers to divert trade to another country to enhance its product industry. Country B wants to expand its export to Country A in the product industry. 16. 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? YOUR ANSWER CORRECT ANSWER Increases Decreases Stays the same YOUR ANSWER CORRECT ANSWER Cannot be determined 17. What is the purpose of a country that has a new economy implementing trade protectionism in relation to countries with more developed economies? YOUR ANSWER CORRECT ANSWER To restrict domestic trade To restrict international trade To protect imported products from domestic laws To protect export businesses from foreign laws 18. How do Congress and the Department of Agriculture use quotas to their advantage? YOUR ANSWER CORRECT ANSWER They decrease domestic prices to specikc levels to make products more available. They encourage an excess of products which will be imported annually. They track the number of sales in a specikc year to predict the production of that item during future years. They reduce domestic competition by limiting foreign companies' sales volume. 19. A country wants to develop an international relationship with another country for future investments, allowing new foreign investors entitlement to a five-year tax holiday. Which benefit leads to foreign direct investment (FDI) in this situation? YOUR ANSWER CORRECT ANSWER Skilled labor Political stability Market capitalization Dividend repatriation 20. Country A and Country B are trying to mend their relationship. A company from Country A would like to invest in a company in Country B. Which action by Country B will help these two countries meet their goal? YOUR ANSWER CORRECT ANSWER Provide tax exemptions Increase trade tariffs Limit privatization policies Create protectionist policies 21. What is enhanced when creating regional trade agreements? YOUR ANSWER CORRECT ANSWER Labor restrictions Economic opportunity Global trade integration National cultural identity 22. 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? YOUR ANSWER CORRECT ANSWER Almost half of all automobile parts must be made by a labor force that earns a minimum of $16 per hour by 2023. 100% of all automobile parts must be manufactured within the regions of Mexico, Canada, and the United States. All dairy products produced in Canada, Mexico, or the United States must be traded with no tariffs. Member countries may negotiate with foreign exporters to lower tariffs on their imports. 23. A 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? Free Trade Area of the Americas Central America Free Trade Agreement Canada-Costa Rica Free Trade Agreement International Monetary Fund 24. What was the original reason for the creation of the European Union in 1950? YOUR ANSWER CORRECT ANSWER To promote free trade within the borders of the member countries To be able to ship goods to one another with low or no tariffs To end frequent wars between neighboring countries To develop a peacetime mission to support the growth of European commerce 25. 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? YOUR ANSWER CORRECT ANSWER The currency in Country A is weak relative to the currency of Country B. The currency in Country A is strong relative to the currency in Country B. The value of the currency in both countries decrease. The value of the currency in both countries stays the same. 26. Which factor contributes to the creation of a monopoly? YOUR ANSWER CORRECT ANSWER Control of natural resources Strong prime interest rates Highly educated employees Vertically integrated organizations 27. An environmental consultant is advising a large oil drilling business in the United States. The consultant reminds the business of its obligations to create and maintain conditions so a healthful environment can be ensured for all people. Which specific act of the United States government is being referenced by the consultant? YOUR ANSWER CORRECT ANSWER Kyoto Environmental Protocol Act National Environmental Policy Act Taft-Hartley Act Paris Environmental Agreement Act 28. Which laws are violated by practices such as price-fixing, price discrimination, restraints, and monopolization? Production Anti-trust Contract Intellectual property 29. A company paid millions of dollars to a government in reparation for an oil spill. Which law did the company breach? YOUR ANSWER CORRECT ANSWER National Environmental Policy Act Petroleum Sector Reknery Rule Clean Water Act Oil Pollution Act of 1990 30. An international company's consumers are demanding that the owners make socially ethical business decisions concerning their packaging, but the company is finding that the suggested green modifications are increasing the costs of producing the product. Which concern is this company facing by meeting these ethical demands? YOUR ANSWER CORRECT ANSWER Decreased proktability Diminished community reputation Damaged local environment Decreased stockholder satisfaction 31. 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? YOUR ANSWER CORRECT ANSWER Increase shareholder trust via high ethical standards Improve public trust in regions experiencing low prokts from global competition Enhance shareholder value of global corporations through social marketing Expand corporate charitable giving in underserved communities 32. A company would like to expand its corporate social responsibility (CSR) initiatives to a global level. Which strategy should the company use to meet this goal? YOUR ANSWER CORRECT ANSWER Improve manufacturing processes for local workers Engage stakeholders on the issue of air quality Provide city charities with the funds to continue community activities Invite high school students to the company headquarters to explore careers 33. An individual is encouraged to provide a small, quiet fee to local officials to get some critical work done overseas for a global office. The individual was told that this would greatly expedite the work. The individual took that advice, and the work was completed, but the manager in the United States was upset with the action and called the individual to discuss the matter. What is the most challenging aspect of this individual's ethical dilemma? YOUR ANSWER CORRECT ANSWER The manager is being influenced by personal perceptions of ethics. Ethical behaviors are not standardized across the world. Unethical practices are common outside the United States. The ethical actions observed in business are universal by human nature. 34. 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? YOUR ANSWER CORRECT ANSWER Teams Matrix Divisional Functional 35. Which 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? YOUR ANSWER CORRECT ANSWER Departmental Matrix Divisional Functional 36. Which organizational structure helps increase employee creativity, productivity, and mutual accountability? YOUR ANSWER CORRECT ANSWER Teams Matrix Divisional Departmental 37. A global furniture company has three departments: lumber cutting and treatment, furniture finishing, and shipping. Which type of departmentalization does this company use? YOUR ANSWER CORRECT ANSWER Process Customer Geographic Functional 38. A multinational corporation (MNC) that sells consumer products and is headquartered in the United States is planning to establish a new office in India. The MNC wants to ensure that final product plans for the market in India require approval by the U.S. executive leadership team. What is a result of using this structure in India? YOUR ANSWER CORRECT ANSWER Inefkcient decision-making Empowered employees in India Inconsistent processes in India Rapid employee decision-making 39. 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 type of business agreement is this company using? YOUR ANSWER CORRECT ANSWER Franchising Licensing Joint venture Subsidiary 40. A movie rental company has expanded its business by vertical integration. Which action has the company taken? YOUR ANSWER CORRECT ANSWER Started to produce its own shows to be telecast on its channel Merged with another movie rental business Allowed another company to use its intellectual property and products Permitted another company to use its brand name in exchange for a fee 41. A multinational beverage company decides to export products into a new market in order to grow its business. Exporting products was determined to be one of the cheapest methods of market entry for this company; however, the company realizes there are some disadvantages to exporting. Which challenge is this company likely facing by exporting its products? YOUR ANSWER CORRECT ANSWER Costs of transporting goods is high. Costs of advertising is too expensive. The company loses control over product quality. The company has to share intellectual property rights with the distributor. 42. A company located in the United States ships its products to a country overseas. Frequent bad weather causes significant delays, thus leading to reduced profits. As a result, the company wants to encourage leadership to consider adding a location in this overseas country. Which strategy solves this problem? YOUR ANSWER CORRECT ANSWER Market growth Flexible sourcing Economies of scale Decentralized manufacturing 43. Which entry strategy offers the least amount of risk for a company entering a foreign market? YOUR ANSWER CORRECT ANSWER Exporting Franchising Joint venture Greenkeld venture As a company enters a foreign market, it provides assets, takes on all of the responsibility, and assumes significant risk. What is this market entry strategy? YOUR ANSWER CORRECT ANSWER Exporting Franchising Greenkeld venture Joint venture 45. A company has entered several foreign markets and maintains the same branding in all of them. What is the term for this marketing strategy? YOUR ANSWER CORRECT ANSWER Adaptation Standardization Expansion Localization Which national cultural dimension refers to how agreeably a society accepts hierarchical differences between people in the global workplace? YOUR ANSWER CORRECT ANSWER Power distance Masculinity Uncertainty avoidance Long-term orientation 47. Which national cultural dimension in global business refers to the amount of ambiguity a society is willing to accept? YOUR ANSWER CORRECT ANSWER Uncertainty avoidance Long-term orientation Power distance Masculinity 48. Which national cultural dimension in global business refers to people's inclination to take care of themselves and their close circle of family and friends, often at the cost of the whole society? YOUR ANSWER CORRECT ANSWER Individualistic Uncertainty avoidance Long-term orientation Power distance 49. An employee has recently accepted an assignment in a company's foreign office. Human resources (HR) helps prepare this employee for the transfer by explaining the cultural business behaviors in the new location. Which area should HR focus on to accomplish this goal? YOUR ANSWER CORRECT ANSWER Detachment Operational safety Protocol Company policies 50. A senior manager from the head office of a company based in the United States is assigned to work in its overseas office in Indonesia where significant emphasis is placed on workplace harmony. The manager ensures that the local culture and language is understood and is often perceived as an insider who follows the normal traditions. How will the cultural dimensions of the local country influence the manager's evaluation? YOUR ANSWER CORRECT ANSWER The senior manager would be given a very favorable performance evaluation. The local employees would refuse to evaluate the performance of an expatriate manager. The senior manager would be given a very harsh performance evaluation. The local employees would have difkculty understanding the process and language of the evaluation. 51. An employee for a global technology company was assigned to its overseas office in Asia. Once the assignment was completed, the employee experienced disorientation after returning to the head office in the United States. What caused this disorientation? YOUR ANSWER CORRECT ANSWER Discomfort due to changes in customs and traditions Unfairness due to loss of pay and benekts Lack of consistency of family dynamics Changes in the time zone of work 52. A computer technology company has several factories in Countries A, B, and C. The headquarters introduces steps in the manufacturing process so that waste decreases dramatically, and this reduces production costs. Which supply chain practice is the company using to optimize production efficiency? YOUR ANSWER CORRECT ANSWER Lean manufacturing Multinational production Just-in-time Linear and sequential 53. A company is evaluating where it will locate its next facility to minimize its distribution shipping costs. Which factor must the company consider as part of this decision? YOUR ANSWER CORRECT ANSWER Value-to-weight ratio Minimum efkcient scale Fixed costs Financial incentives 54. What is the primary factor that a company considers when deciding to offshore some or all of its operations? YOUR ANSWER CORRECT ANSWER Reduced cost through lower wages Reduced product transportation costs Increased expertise in the host nation Increased quality controls of the manufacturing process 55. A multinational company forms a joint venture revealing some of its invented production processes to the host national company. What should this company use to mitigate theft of its production processes? YOUR ANSWER CORRECT ANSWER Patent Copyright Trade secret Nondisclosure agreement 56. What is an advantage of using intermediaries in an indirect distribution channel? YOUR ANSWER CORRECT ANSWER It d isplays a sense of ownership of the products. It r educes up-front costs with the use of an existing channel. It c ontrols the marketing efforts. It m aintains the company's interests at the forefront. 57. A new start-up company wants to connect directly with its consumers. How many layers of intermediaries should the company consider? 1 2 3 4 58. A manufacturing company in the United States acquired a small national supplier based in California. Which accounting method should the company use to record the acquisition? YOUR ANSWER CORRECT ANSWER GAAP FASB IFRS IASB 59. How do banks and investors use financial statements? YOUR ANSWER CORRECT ANSWER To decide whether to grant access to money To assess the marketing health of a company To recommend strategic partnerships To create plans for growth and expansion 60. A multinational firm decides to use the rates of exchange when purchases and liabilities occurred in the host countries when the company prepares its financial statements. Which method did the company use for their financial statements? YOUR ANSWER CORRECT ANSWER Accrual Current Cash Temporal 61. A company wants to reduce the effects of currency fluctuations with its host country subsidiaries for the coming year. Which type of action should the company take? YOUR ANSWER CORRECT ANSWER Set an internal forward rate Establish the price of a derivative Mitigate societal risks Accept hard policy risks 62. Which approach is used by countries to increase the attractiveness of foreign direct investment? YOUR ANSWER CORRECT ANSWER Reducing tax rates Relying on consumption taxes Using value-added taxes Increasing host country exchange rates 63. A multinational company uses transfer pricing to reduce its tax burden in the subsidiaries' countries. Which effect does this action have on subsidiaries? YOUR ANSWER CORRECT ANSWER Lowered prokt Increased morale Reduced compliance Relaxed regulations 64. A 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? YOUR ANSWER CORRECT ANSWER Economic Usability Empowerment Accessibility 65. A roundtable discussion of senior executives is conducted in order to establish a procedure for big data. The individual responsible for managing all data resources promises to provide reports at the next meeting. Which individual will be providing this data? YOUR ANSWER CORRECT ANSWER Chief information ofkcer (CIO) Chief executive ofkcer (CEO) Chief marketing ofkcer (CMO) Chief operating ofkcer (COO) 66. A global company wants to share and store business information online 24/7 for employees so they can access the items when they are not physically in the office. Which tool should the company use for this purpose? YOUR ANSWER CORRECT ANSWER Cloud-based kle share Email attachments Social media pages Desktop publishing program 67. A manufacturing facility would like to consider the use of artificial intelligence deep learning. Which practice illustrates the use of this approach? YOUR ANSWER CORRECT ANSWER Employees use kngerprint readers to enter doors. Machines become familiar with common defects in products. Items are sorted by bar codes before being packaged. Orders populate immediately as clients place them. 68. A company is interested in working with the technology that will allow consumers to privately and securely store personal information such as social security and credit card numbers, making it accessible around the world. Which piece of technology is of interest to this company? YOUR ANSWER CORRECT ANSWER Blockchain Antivirus software Artikcial intelligence Virtual reality 69. An 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? YOUR ANSWER CORRECT ANSWER Financial services Healthcare Transportation Education 70. A marketing manager of a company based in the United States is traveling to China to hold meetings with the company's manufacturing partners. While in China, the marketing manager realizes the internet is not allowing access to the social media platforms the manager uses to speak with family back home. Which piece of technology must the manager install and access prior to arriving in China to have that form of communication available? YOUR ANSWER CORRECT ANSWER Anti-spam program Email service in China Virtual private network DNS anti-blocking program [Show More]
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