WGU D080 Module 4 Quiz with 100% correct answers

A Japanese company has purchased a German company with the intent of controlling and managing the German company's assets and decision making process. Which practice is used by this Japanese company?

A. Partnership

B. Strategic alliance

C. Portfolio investment

D. Foreign direct investment

D. Foreign direct investment

Q1 Module 4 Study Guide 2024

Which of the following is a strategy used by governments to encourage the foreign direct investment in this country?

A. Adding more regulations on industries.

B. Decreasing the value of the country's currency.

C. Creating domestic ownership restrictions on the industry.

D. Provide more education opportunities and job trainings to the workforce.

D. Provide more education opportunities and job trainings to the workforce.

Q2 Module 4 Study Guide 2024

A Chinese company would like to operate in Indonesia but is required to purchase 75% of the ingredients directly from Indonesian suppliers. This is_____________ used by the Indonesian government to restrict FDI.

A. Domestic ownership restriction strategy

B. Increased tax rate strategy

C. Specific product content requirement strategy

D. Nationalization of assets to protect critical resources strategy

C. Specific product content requirement strategy

Q3 Module 4 Study Guide 2024

Amazon is a U.S. based company. In recently years, Amazon has gradually established Amazon Japan, Amazon China, Amazon UK, etc. This is an example of_________.

A. Backward vertical FDI

B. Forward vertical FDI

C. Horizontal FDI

D. Greenfield FDI

C. Horizontal FDI

Q4 & 5 Module 4 Study Guide 2024

Netflix used to only provide movie rental service to customers. In recent years, Netflix has started to collaborate with foreign TV show producers and started to make Netflix original shows. This represents Netflix's effort in making a___________.

A. Brownfield FDI

B. Greenfield FDI

C. Backward vertical FDI

D. Forward vertical FDI

C. Backward vertical FDI

Q4 & 5 Module 4 Study Guide 2024

Which of the following is a reason for a government to promote FDI?

A. The inflow of capital benefits the host country's economic development.

B. The outflow of capital benefits the home country's economic development.

C. The outflow of capital generates more jobs for home country's workers.

D. The inflow of capital decreases competition in the host country.

A. The inflow of capital benefits the host country's economic development.

Q2 Module 4 Study Guide 2024

Mercosur is an example of ______stage of economic integration that removes all trade barriers and allow member nations to use same external trade policies.

A. Free trade area

B. Economic union

C. Common market

D. Customs union

D. Customs union

Q10 Module 4 Study Guide 2024

A German engineer plans to move to France and start working there for 2 months. He only needs to hold a valid identity card or passport to move to France. This is due to_____________.

A. The economic integration bloc that Germany and France belong to have free trade agreement.

B. EU allows member nations use the same external trade policies.

C. EU is moving toward a political union.

D. EU has the feature of common market stage of economic integration.

D. EU has the feature of common market stage of economic integration.

Q10 Module 4 Study Guide 2024

Which drawback is involved when regional agreements are created?

A. Companies experience higher overall costs.

B. Regions with higher economic development increase their gap over lower developed regions.

C. Manufacturing jobs are moved to member countries with more expensive labor cost.

D. Member countries will trade less with nonmember countries.

D. Member countries will trade less with nonmember countries.

Q11 Module 4 Study Guide 2024

What is a benefit of creating a regional economic integration agreement?

A. Less import potential

B. Accelerated economic growth

C. Decreased competition

D. Increased national cultural identity

B. Accelerated economic growth

Q11 Module 4 Study Guide 2024

Which agreement was established in 1994 and aims at removing trade barriers between Canada, the United States, and Mexico?

A. CAFTA

B. NAFTA

C. USMCA

D. COMESA

B. NAFTA

Q12 Module 4 Study Guide 2024

Which agreement was formalized in 1993 to create an economic union to help member countries form unified economic policies?

A. CAFTA-DR

B. ASEAN

C. MERCOSUR

D. EU

D. EU

Q12 Module 4 Study Guide 2024

A French tourist expects to have a 5 day vacation in Florida. Which of the following would he prefer before going to Florida?

A. The U.S. dollar is weak relative to Euro.

B. The U.S. dollar is strong relative to Euro.

C. The supply of dollar would decrease so that the U.S. dollar appreciates.

D. The demand of Euro would decrease so that Euro depreciates.

A. The U.S. dollar is weak relative to Euro.

Q14 Module 4 Study Guide 2024

A country's government allows its currency value to fluctuate within a certain range but would manage the currency value once the fluctuation exceeds the range. This country has been practicing___________.

A. A floating exchange rate system

B. A fixed exchange rate system

C. A pegged floating exchange rate system

D. A mixed floating exchange rate system

C. A pegged floating exchange rate system

Q15 Module 4 Study Guide 2024

Which of the following is not a supplier of US dollars?

A. US investors who want to buy stocks in Europe

B. U.S. investors who want to make foreign direct investment in Middle Eastern countries

C. U.S. tourists leaving to visit Japan

D. European investors who want to purchase bonds in the US bond market

D. European investors who want to purchase bonds in the US bond market

Q13 Module 4 Study Guide 2024