D080 Managing in a Global Business Environment - Set 5 - Part 3

Correct Answer: They provide funding and mentorship to early-stage startups

Angel investors are individuals who provide financial support and often mentorship to early-stage startups, helping them grow in exchange for equity or convertible debt.

Correct Answer: Floating exchange rate

In a floating exchange rate system, the value of a currency is determined by market forces such as supply and demand, and it fluctuates without direct government intervention.

Correct Answer: UN Convention on Contracts for the International Sale of Goods (CISG)

The CISG is a treaty that governs the international sale of goods between businesses located in different countries, providing a consistent legal framework for cross-border transactions.

Correct Answer: To prevent foreign companies from selling goods at below-market prices

Antidumping laws are designed to protect domestic industries by preventing foreign companies from selling products at artificially low prices, which can harm local businesses.

Correct Answer: NAFTA

The North American Free Trade Agreement (NAFTA) was established in 1994 to create a free trade zone between the U.S., Canada, and Mexico, reducing tariffs and promoting cross-border trade.

Correct Answer: To set limits on water pollutants discharged into U.S. waterways

The Clean Water Act aims to protect the integrity of U.S. water bodies by setting maximum permissible levels of pollutants that can be discharged into waterways, ensuring water is safe for public use and wildlife.

Correct Answer: Debt financing

Debt financing involves borrowing money from lenders with the agreement to repay the loan amount (principal) along with interest over a specified period.

Correct Answer: To minimize the risk by spreading investments across different markets

Diversification involves entering different markets or industries to spread risk, so that if one market faces challenges, the business has other revenue streams to rely on.

Correct Answer: Employees may feel disconnected from decision-making

In high power distance cultures, decision-making is often concentrated at the top levels of the hierarchy, leaving lower-level employees feeling disengaged or powerless in the organizational process.

Correct Answer: Paris Agreement

The Paris Agreement is a global climate accord that aims to limit global temperature increases by reducing greenhouse gas emissions and fostering sustainable development practices.