D080 UNIT 2 TEST QUESTIONS &
ANSWERS PASSED ALREADY
GRADED A+
Which effect does a command economy have on the process of globalization? - Correct
Answer The government is less flexible, so the globalization process is challenged.
A company is conducting a legal risk analysis for a country that has a civil law system.
Which statement accurately characterizes this legal system? - Correct Answer It is
based on a detailed set of laws that form a code.
Which fact should a company opening its operations in the U.S. state of Louisiana note?
- Correct Answer The state has a mixed law system.
Which core principle of the World Trade Organization supports equality among member
nations and helps fight discrimination among them? - Correct Answer Most-favored-
nation (MFN) status
What is true regarding free trade? - Correct Answer Free trade leads to specialization of
each country and increases production efficiency.
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? - Correct Answer
Increases
How do governments help companies offset the cost of manufacturing domestically? -
Correct Answer Subsidies
What would a mercantilist value the most? - Correct Answer A trade surplus
A multinational corporation has manufacturing facilities in many Asian countries due to
cheaper labor. Which strategy is the corporation using? - Correct Answer Acquisition of
resources
A firm in Country A exports products to Country B. The currency in Country B is strong
relative to the currency in Country A. What does this mean for the firm? - Correct
Answer More valuable export sales
ANSWERS PASSED ALREADY
GRADED A+
Which effect does a command economy have on the process of globalization? - Correct
Answer The government is less flexible, so the globalization process is challenged.
A company is conducting a legal risk analysis for a country that has a civil law system.
Which statement accurately characterizes this legal system? - Correct Answer It is
based on a detailed set of laws that form a code.
Which fact should a company opening its operations in the U.S. state of Louisiana note?
- Correct Answer The state has a mixed law system.
Which core principle of the World Trade Organization supports equality among member
nations and helps fight discrimination among them? - Correct Answer Most-favored-
nation (MFN) status
What is true regarding free trade? - Correct Answer Free trade leads to specialization of
each country and increases production efficiency.
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? - Correct Answer
Increases
How do governments help companies offset the cost of manufacturing domestically? -
Correct Answer Subsidies
What would a mercantilist value the most? - Correct Answer A trade surplus
A multinational corporation has manufacturing facilities in many Asian countries due to
cheaper labor. Which strategy is the corporation using? - Correct Answer Acquisition of
resources
A firm in Country A exports products to Country B. The currency in Country B is strong
relative to the currency in Country A. What does this mean for the firm? - Correct
Answer More valuable export sales
