D080 GLOBAL BUSINESS PRE-
ASSESSMENT EXAM QUESTIONS &
VALID CORRECT ANSWERS PASSED
ALREADY GRADED A+
Which negative outcome on political systems comes from globalization? CORRECT
ANSWER - Creation of isolationist policies
Which factor results in a higher rate of globalization? CORRECT ANSWER - Reduced
trade barriers
What is a major drawback to the home country when companies outsource
manufacturing jobs to countries with lower worker wages? CORRECT ANSWER - Loss
of manufacturing jobs
In which political system do individuals control all political activity, which eliminates the
government creating any laws to help businesses with their globalization efforts?
CORRECT ANSWER - Anarchy
A country has a characteristic traditional economic system with poor infrastructure and
limited economic opportunity.
What is the impact of this system on the process of globalization? CORRECT ANSWER
- The globalization process is at a disadvantage as the country has a lower standard of
living.
A company headquartered in the United States is considering expanding its activities
into a different country that follows the same legal system as most states in the United
States.
Which country is suited for this expansion? CORRECT ANSWER - Australia
Which impact does Islamic law directly have on businesses? CORRECT ANSWER - It
forbids charging interest.
Which institution helps to maintain liquidity of global funding? CORRECT ANSWER -
International Monetary Fund
, Which structural adjustment of the International Monetary Fund gives to citizen owners
businesses that were previously owned by the state? CORRECT ANSWER -
Privatization
What is the current focus of the World Bank? CORRECT ANSWER - Improving quality
of life
For which concern has the World Trade Organization been criticized? CORRECT
ANSWER - Influence of free trade policies on labor rights
Two countries agree to open their borders to international business transactions with
one another without tariffs.
How does this affect global business? CORRECT ANSWER - It leads to developing free
trade policies with strategic partners.
Country A manufactures products less expensively than Country B. Due to changes in
international agreements, Country B has decided to stop producing the products that
Country A makes. Instead, Country B will purchase the same number of products from
Country A that they would have normally produced on their own.
How will this affect global trade? CORRECT ANSWER - Increases economies of scale
in Country A
Why has the Doha Round of the General Agreement on Tariffs and Trade (GATT) been
inconclusive? CORRECT ANSWER - Developing countries have not been satisfied with
the proposed reductions in agricultural tariffs.
A company that is located in Country A would like to sell products in Country B. The
government of Country B is pushing for a tariff-based international trade agreement on
the product.
What is the reasoning behind Country B's decision? CORRECT ANSWER - Country B
seeks to protect its economy and give it the opportunity for long-term expansion.
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
What is the purpose of a country that has a new economy implementing trade
protectionism in relation to countries with more developed economies? CORRECT
ANSWER - To restrict international trade
ASSESSMENT EXAM QUESTIONS &
VALID CORRECT ANSWERS PASSED
ALREADY GRADED A+
Which negative outcome on political systems comes from globalization? CORRECT
ANSWER - Creation of isolationist policies
Which factor results in a higher rate of globalization? CORRECT ANSWER - Reduced
trade barriers
What is a major drawback to the home country when companies outsource
manufacturing jobs to countries with lower worker wages? CORRECT ANSWER - Loss
of manufacturing jobs
In which political system do individuals control all political activity, which eliminates the
government creating any laws to help businesses with their globalization efforts?
CORRECT ANSWER - Anarchy
A country has a characteristic traditional economic system with poor infrastructure and
limited economic opportunity.
What is the impact of this system on the process of globalization? CORRECT ANSWER
- The globalization process is at a disadvantage as the country has a lower standard of
living.
A company headquartered in the United States is considering expanding its activities
into a different country that follows the same legal system as most states in the United
States.
Which country is suited for this expansion? CORRECT ANSWER - Australia
Which impact does Islamic law directly have on businesses? CORRECT ANSWER - It
forbids charging interest.
Which institution helps to maintain liquidity of global funding? CORRECT ANSWER -
International Monetary Fund
, Which structural adjustment of the International Monetary Fund gives to citizen owners
businesses that were previously owned by the state? CORRECT ANSWER -
Privatization
What is the current focus of the World Bank? CORRECT ANSWER - Improving quality
of life
For which concern has the World Trade Organization been criticized? CORRECT
ANSWER - Influence of free trade policies on labor rights
Two countries agree to open their borders to international business transactions with
one another without tariffs.
How does this affect global business? CORRECT ANSWER - It leads to developing free
trade policies with strategic partners.
Country A manufactures products less expensively than Country B. Due to changes in
international agreements, Country B has decided to stop producing the products that
Country A makes. Instead, Country B will purchase the same number of products from
Country A that they would have normally produced on their own.
How will this affect global trade? CORRECT ANSWER - Increases economies of scale
in Country A
Why has the Doha Round of the General Agreement on Tariffs and Trade (GATT) been
inconclusive? CORRECT ANSWER - Developing countries have not been satisfied with
the proposed reductions in agricultural tariffs.
A company that is located in Country A would like to sell products in Country B. The
government of Country B is pushing for a tariff-based international trade agreement on
the product.
What is the reasoning behind Country B's decision? CORRECT ANSWER - Country B
seeks to protect its economy and give it the opportunity for long-term expansion.
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
What is the purpose of a country that has a new economy implementing trade
protectionism in relation to countries with more developed economies? CORRECT
ANSWER - To restrict international trade
