PRE-ASSESSMENT: MANAGING IN A GLOBAL BUSINESS ENVIRONMENT (HSO1) PHSO
Attempt #1 Status: Passed
1.
Which negative outcome on political systems comes
... [Show More] 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 Less]