D080 Unit 2 Test
Which effect does a command economy have on the process of globalization? -
ANS-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? - ANS-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?
- ANS-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? - ANS-Most-favored-nation (MFN)
status
What is true regarding free trade? - ANS-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? - ANS-Increases
How do governments help companies offset the cost of manufacturing domestically? -
ANS-Subsidies
What would a mercantilist value the most? - ANS-A trade surplus
A multinational corporation has manufacturing facilities in many Asian countries due to
cheaper labor. Which strategy is the corporation using? - ANS-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? - ANS-More
valuable export sales
How is global business positively affected by intercultural exchange? - ANS-It increases
worldwide connections that support commodity trading.
Which effect does a command economy have on the process of globalization? -
ANS-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? - ANS-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?
- ANS-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? - ANS-Most-favored-nation (MFN)
status
What is true regarding free trade? - ANS-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? - ANS-Increases
How do governments help companies offset the cost of manufacturing domestically? -
ANS-Subsidies
What would a mercantilist value the most? - ANS-A trade surplus
A multinational corporation has manufacturing facilities in many Asian countries due to
cheaper labor. Which strategy is the corporation using? - ANS-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? - ANS-More
valuable export sales
How is global business positively affected by intercultural exchange? - ANS-It increases
worldwide connections that support commodity trading.
