D080 Global Business Pre-Assessment questions with 100% accurate solutions 2026-2027

Creation of isolationist policies

Which negative outcome on political systems comes from globalization?

Reduced trade barriers

Which factor results in a higher rate of globalization?

Loss of manufacturing jobs

What is a major drawback to the home country when companies outsource manufacturing jobs to countries with lower worker wages?

Anarchy

In which political system do individuals control all political activity, which eliminates the government creating any laws to help businesses with their globalization efforts?

The globalization process is at a disadvantage as the country has a lower standard of living.

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?

Australia

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?

It forbids charging interest.

Which impact does Islamic law directly have on businesses?

International Monetary Fund

Which institution helps to maintain liquidity of global funding?

Privatization

Which structural adjustment of the International Monetary Fund gives to citizen owners businesses that were previously owned by the state?

Improving quality of life

What is the current focus of the World Bank?

Influence of free trade policies on labor rights

For which concern has the World Trade Organization been criticized?

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?

Increases economies of scale in Country A

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?

Developing countries have not been satisfied with the proposed reductions in agricultural tariffs.

Why has the Doha Round of the General Agreement on Tariffs and Trade (GATT) been inconclusive?

Country B seeks to protect its economy and give it the opportunity for long-term expansion.

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?

Increases

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?

To restrict international trade

What is the purpose of a country that has a new economy implementing trade protectionism in relation to countries with more developed economies?

They reduce domestic competition by limiting domestic companies' sales volume.

How do Congress and the Department of Agriculture use quotas to their advantage?

Dividend repatriation

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?

Provide tax exemptions

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?

Economic opportunity

What is enhanced when 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 Agreement

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?

To end frequent wars between neighboring countries

What was the original reason for the creation of the European Union in 1950?

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?

Control of natural resources

Which factor contributes to the creation of a monopoly?

National Environmental Policy Act

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?

Anti-trust

Which laws are violated by practices such as price-fixing, price discrimination, restraints, and monopolization?

Clean Water Act

A company paid millions of dollars to a government in reparation for an oil spill.

Which law did the company breach?

Decreased profitability

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?

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?

Engage stakeholders on the issue of air quality

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?

Ethical behaviors are not standardized across the world.

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?

Functional

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?

Matrix

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?

Teams

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

Process

A global furniture company has three departments: lumber cutting and treatment, furniture finishing, and shipping.

Which type of departmentalization does this company use?

Inefficient decision-making

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?

Subsidiary

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?

Started to produce its own shows to be telecast on its channel

A movie rental company has expanded its business by vertical integration.

Which action has the company taken?

Costs of transporting goods is high.

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?

Centralized manufacturing

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?

Exporting

Which entry strategy offers the least amount of risk for a company entering a foreign market?

Greenfield 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?

Standardization

A company has entered several foreign markets and maintains the same branding in all of them.

What is the term for this marketing strategy?

Power distance

Which national cultural dimension refers to how agreeably a society accepts hierarchical differences between people in the global workplace?

Uncertainty avoidance

Which national cultural dimension in global business refers to the amount of ambiguity a society is willing to accept?

Individualistic

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?

Protocol

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?

The senior manager would be given a very favorable performance evaluation.

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?

Discomfort due to changes in customs and traditions

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?

Lean manufacturing

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?

Value-to-weight ratio

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?

Reduced cost through lower wages

What is the primary factor that a company considers when deciding to offshore some or all of its operations?

Patent

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?

It r educes up-front costs with the use of an existing channel.

What is an advantage of using intermediaries in an indirect distribution channel?

1

A new start-up company wants to connect directly with its consumers.

How many layers of intermediaries should the company consider?

GAAP

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?

To decide whether to grant access to money

How do banks and investors use financial statements?

Temporal

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?

Set an internal forward rate

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?

Reducing tax rates

Which approach is used by countries to increase the attractiveness of foreign direct investment?

Lowered profit

A multinational company uses transfer pricing to reduce its tax burden in the subsidiaries' countries.

Which effect does this action have on subsidiaries?

Empowerment

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?

Chief information officer (CIO)

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?

Cloud-based file share

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?

Machines become familiar with common defects in products.

A manufacturing facility would like to consider the use of artificial intelligence deep learning.

Which practice illustrates the use of this approach?

Blockchain

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?

Education

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?

Virtual private network

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?