D080 Managing in a Global Business Environment - Set 1 - Part 3

Correct Answer: Dumping

Dumping occurs when a company sells goods in a foreign market at a price lower than its cost of production or lower than in its home market, often to gain market share.

Correct Answer: To settle trade disputes between countries

The WTO resolves trade disputes between member countries, ensuring that international trade flows as smoothly, predictably, and freely as possible.

Correct Answer: Trade surplus

A trade surplus occurs when a country exports more goods and services than it imports, leading to a positive balance of trade.

Correct Answer: Voluntary export restriction

Voluntary export restrictions (VERs) are agreements between exporting and importing countries where the exporter agrees to limit the quantity of goods shipped to the importer.

Correct Answer: Crowdsourcing

Crowdsourcing allows individuals or companies to raise funds from multiple small investors, usually via the internet, to finance a new venture or project.

Correct Answer: Digital divide

The digital divide refers to the gap between individuals or regions that have access to modern information and communication technology and those that do not.

Correct Answer: International Telecommunication Union

The International Telecommunication Union (ITU) is a UN agency responsible for global telecommunication standards, policies, and international cooperation on information technology.

Correct Answer: Rural areas

Rural areas often suffer from the digital divide due to limited access to infrastructure, internet connectivity, and technological resources compared to urban areas.

Correct Answer: Goods and services tax

Goods and services tax

Correct Answer: Legal

Legal globalization risk involves complying with the varying legal systems and regulations in the countries where a company operates.