D080 UNIT 2 TEST, LEARNING CHECKS AND QUIZZES
1. Which effect does a command economy have on the process of
globaliza- tion?- Answers - The government is less flexible, so the globalization process is challenged.
2. A company is conducting a legal risk analysis for a country that has a civil law
system. Which statement accurately characterizes this legal system?- Answers - It
is based on a detailed set of laws that form a code.
3. Which fact should a company opening its operations in the U.S. state
of Louisiana note?- Answers - The state has a mixed law system.
4. Which core principle of the World Trade Organization supports equality
among member nations and helps fight discrimination among them?-
Answers - Most-fa- vored-nation (MFN) status
5. What is true regarding free trade?- Answers - Free trade leads to specialization of each country and
increases production eflciency.
6. 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?- Answers -
Increases
7. How do governments help companies offset the cost of manufacturing do-
mestically?- Answers - Subsidies
8. What would a mercantilist value the most?- Answers - A trade surplus
9. A multinational corporation has manufacturing facilities in many Asian coun-
tries due to cheaper labor. Which strategy is the corporation using?- Answers -
Acquisition of resources
10. A firm in Country A exports products to Country B. The currency in
1/
15
, Country B is strong relative to the currency in Country A. What does this mean for
the firm?- Answers - More valuable export sales
11. How is global business positively affected by intercultural exchange?- Answers -
It increases worldwide connections that support commodity trading.
12. How does globalization support tolerance for different people and ideas?-
Answers - By increasing the access to information
13. A business has recently started selling in a new global marketplace. Shortly
after the company made this global expansion, the new country opted to
2/
15
1. Which effect does a command economy have on the process of
globaliza- tion?- Answers - The government is less flexible, so the globalization process is challenged.
2. A company is conducting a legal risk analysis for a country that has a civil law
system. Which statement accurately characterizes this legal system?- Answers - It
is based on a detailed set of laws that form a code.
3. Which fact should a company opening its operations in the U.S. state
of Louisiana note?- Answers - The state has a mixed law system.
4. Which core principle of the World Trade Organization supports equality
among member nations and helps fight discrimination among them?-
Answers - Most-fa- vored-nation (MFN) status
5. What is true regarding free trade?- Answers - Free trade leads to specialization of each country and
increases production eflciency.
6. 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?- Answers -
Increases
7. How do governments help companies offset the cost of manufacturing do-
mestically?- Answers - Subsidies
8. What would a mercantilist value the most?- Answers - A trade surplus
9. A multinational corporation has manufacturing facilities in many Asian coun-
tries due to cheaper labor. Which strategy is the corporation using?- Answers -
Acquisition of resources
10. A firm in Country A exports products to Country B. The currency in
1/
15
, Country B is strong relative to the currency in Country A. What does this mean for
the firm?- Answers - More valuable export sales
11. How is global business positively affected by intercultural exchange?- Answers -
It increases worldwide connections that support commodity trading.
12. How does globalization support tolerance for different people and ideas?-
Answers - By increasing the access to information
13. A business has recently started selling in a new global marketplace. Shortly
after the company made this global expansion, the new country opted to
2/
15
