D080 PA QUESTIONS AND ANSWERS GRADED A

Which negative outcome on political systems comes from globalization? ✔✔Creation of isolationist policies Which factor results in a higher rate of globalization? ✔✔Reduced trade barriers What are the four factors in G ...

Which negative outcome on political systems comes from globalization? ✔✔Creation of isolationist policies Which factor results in a higher rate of globalization? ✔✔Reduced trade barriers What are the four factors in Ghemawat's CAGE analysis? ✔✔Culture, administration, geography, economy What is a major drawback to the home country when companies outsource manufacturing jobs to countries with lower worker wages? ✔✔Loss of manufacturing jobs 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? ✔✔The globalization process is at a disadvantage as the country has a lower standard of living. What is a characteristic of a market economy? ✔✔Firms seek to maximize profits.Which impact does Islamic law directly have on businesses? ✔✔It forbids charging interest. Which institution helps to maintain availability of global financing to solve trade deficit issues? ✔✔International Monetary Fund What is the current focus of the World Bank? ✔✔Improving quality of life For which concern has the World Trade Organization been criticized? ✔✔Adoption of labor standards protecting labor rights How is the Special Drawing Right of the International Monetary Fund (IMF) valued? ✔✔It is based on the value of the five most significant members' currencies. Two countries agree to open their borders to international business transactions with one another without tariffs. How does this affect global business? ✔✔It leads to developing free trade policies with strategic partners.A country uses its established technology infrastructure to produce a good.What is the impact of this infrastructure on trade? ✔✔It will create barriers to entry for other nations. What was the economic impact of the North American Free Trade Agreement (NAFTA)? ✔✔The shift of jobs away from low comparative advantage industries Workers 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? ✔✔Enterprise resource planning system 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? ✔✔Country B seeks to protect its economy and give it the opportunity for long-term expansion. 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? ✔✔EducationCountries 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? ✔✔Increases An 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? ✔✔Fourth Industrial Revolution Two countries decide to open up trade with each other. What is likely to happen when trade opens up? ✔✔Jobs will increase in comparative advantage industries. 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? ✔✔Blockchain What is a purpose of a country implementing trade protectionism? ✔✔To protect an infant industryA manufacturing facility would like to consider the use of artificial intelligence deep learning. Which practice illustrates the use of this approach? ✔✔Machines become familiar with common defects in products. 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? ✔✔Provide tax exemptions 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? ✔✔Cloud-based file share Which level of regional economic integration is a key feature of a Customs Union? ✔✔Unified trading policies with non-members 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? ✔✔EmpowermentWhat is a drawback of creating regional trade agreements? ✔✔They shift employment opportunities. What is an example of a micro risk for multinational companies? ✔✔Government nationalization of assets 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? ✔✔Almost half of all automobile parts must be made by a labor force that earns a minimum of $16 per hour by 2023. A multinational company uses transfer pricing to reduce its tax burden in the subsidiaries' countries. Which effect does this action have on subsidiaries? ✔✔Lowered profit 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 regionthrough acquisition. Which alliance supports this director's suggestion? ✔✔Central America Free Trade Agreement A company wants to reduce the effects of currency fluctuations with its host country subsidiaries for the coming year. Which action should the company take? ✔✔Use a forward contract 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? ✔✔The currency in Country A is strong relative to the currency in Country B. How do banks and investors use financial statements? ✔✔To decide whether to grant access to money Which drawback is associated with regional economic integration? ✔✔Increased exclusive internal trade 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? ✔✔Generally accepted accounting principlesWhich factor contributes to the creation of a monopoly? ✔✔Control of natural resources Which form of funding requires a low cost of capital and does not require time to mature? ✔✔Loans Which convention provides gap fillers for terms that may not be expressly stated in agreements between two companies? ✔✔Contracts for the International Sale of Goods A company's distribution channel consists of a producer, a distributor, a retailer, and a consumer. What is a distribution channel with this structure called? ✔✔Indirect Which laws are violated by practices such as price-fixing, price discrimination, restraints, and monopolization? ✔✔Anti-trust A new start-up company wants to connect directly with its consumers. How many layers of intermediaries should the company consider? ✔✔0An 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? ✔✔Decreased profitability What is an advantage of using intermediaries in an indirect distribution channel? ✔✔It r educes up-front costs with the use of an existing channel. 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? ✔✔Increase shareholder trust via high ethical standards A multinational company sources the components for its products from multiple countries around the globe and assembles the final finished product locally in the country of sale. However the consumers in the local country do not prefer locally made goods. Which phenomenon is the company experiencing? ✔✔Country-of-origin effectA 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? ✔✔Engage stakeholders on the issue of air quality 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? ✔✔Value-to-weight ratio 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? ✔✔Ethical behaviors are not standardized across the world. A computer technology company has several factories in three countries. The headquarters introduces steps in the manufacturing process so that waste decreases dramatically.Which supply chain practice is this company using to optimize production efficiency? ✔✔Lean manufacturingA CEO of a multinational corporation tells employees that they are expected to follow the organization's values, remember the mission, and adapt behaviors to be in alignment with the vision and mission, regardless of the situation.Which ethical standard is being stressed by this company? ✔✔Code of ethics 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? ✔✔There is less flexibility in adjusting to changing local conditions. 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 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? ✔✔Matrix Which organizational structure helps increase employee creativity, productivity, and mutual accountability? ✔✔TeamsA global household appliance company competes in three areas: washers, dryers, and refrigerators.Which type of departmentalization does this company use? ✔✔Product A multinational corporation (MNC) with headquarters in the United States is seeking to limit its supply chain to U.S. companies so that decision-making authority is localized at the highest level of the organization. What is a result of using this decision-making structure? ✔✔There is increased consistency in operations. An employee for a global technology company was assigned to the overseas office in Asia. Once the assignment was completed, the employee experienced disorientation in repatriating to the head office in the United States.What caused this disorientation? ✔✔Changes in work culture and customs 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? ✔✔The senior manager would be given a very favorable performance evaluation.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? ✔✔Individualistic Which national cultural dimension in global business refers to the amount of ambiguity a society is willing to accept? ✔✔Uncertainty avoidance Which national cultural dimension refers to how agreeably a society accepts hierarchical differences between people in the global workplace? ✔✔Power distance 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? ✔✔Subsidiary A company would like to have a direct operating presence in a foreign country. The company is concerned about being exposed to the highest levels of risk and a slow market entry. Which entry strategy is the company concerned about? ✔✔Subsidiary 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 ofmarket 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? ✔✔Costs of transporting goods is high. A company has entered several foreign markets and maintains the same branding in all of them.What is the term for this marketing strategy? ✔✔Standardization A multinational company hires a distributor to manage the distribution of products in a new international market that it recently entered. Which entry strategy is the company using? ✔✔Exporting 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? ✔✔Greenfield venture 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? ✔✔Decentralized manufacturingWhich type of globalization is represented by Sure Start expanding into South America, Europe, and Asia? ✔✔Economic 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 Which antiglobalization argument could lead to Sure Start continuing to maintain its current factories instead of moving them to Asia? ✔✔Factory workers fear their jobs will be moved to another country. 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 Which economic system facilitates the global expansion of Sure Start? ✔✔Market Which legal system will Sure Start be following when they begin operating in Germany? ✔✔Civil lawHow is global business positively affected by intercultural exchange? ✔✔It increases worldwide connections that support commodity trading. How does globalization support tolerance for different people and ideas? ✔✔By increasing the access to information 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 levy a tax based on the value of goods imported, causing this company to export less. Which business component does the TRIPS agreement help protect for member nations? ✔✔Intellectual property protection for all member nations A business operating globally wants to increase its overall production efficiency. Which strategy should the business use? ✔✔Focus on specialization 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 protects German Tshirt producers.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