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- Country A has significant political turmoil that has resulted in a lengthy
16 WGU D080 STUDY GUIDE Questions and Answers 2023 (Verified Questions) 1.A company would like to obtain the benefits of outsourcing and focus sole- ly on marketing activities and research and development. Which advantage is this company hoping to achieve ANS Enhanced core business activities 2.A company is considering using a direct distribution strategy.What is a disadvantage of this distribution strategy ANS Required to arrange for transportation 3.A car manufacturing company manufacturers tires in Countries A, B, and
labor strike. Countries B and C have ramped up production resulting in sustained tire production for the company.Which practice has the company used to optimize its production efficiency?-
: Multinational production 1 / 3
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16 4.A company in the United States is considering a joint venture with a French supplier and needs to learn about the accounting standards used in France. How should the U.S. company approach this situation ANS Study the International Financial Reporting Standards (IFRS) online 5.A multinational company moves key production assets to a country with lower tax rates to avoid paying more taxes in the home country.Which type of pricing should be used to reduce taxes during production ANS - Transfer 6.A German company is considering outsourcing the manufacturing process to Japan. Some of the executive board directors are concerned that the Japanese company may not follow the exact production processes the German company normally uses. Which risk represents this concern ANS Loss of control 7.Which source of funding uses technology platforms to invite consumers to invest small amounts in support of a business idea or venture ANS Crowd- sourcing 2 / 3
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16 8.Which type of risk refers to the impact of random change in the value of one currency with respect to other currencies ANS Currency risk 9.Which term defines using currency derivatives to reduce potential curren- cy risks due to currency exchange rate movement that could lead to losses for a firm ANS Hedging