STRATEGIC MANAGEMENT AND BUSINESS
POLICY GLOBALIZATION EXAM SCRIPT
COMPREHENSIVE STUDY GUIDE
●● In which stage of the five stages of becoming a global company does
the company transfer the full production process to a single low-cost
location?
Answer: Product Specialization
●● What is a drawback of the global expansion of a multinational
corporation?
Answer: Regulatory Structure
●● What type of system is impacting a country where a small group of
business owners has captured control of natural resources?
Answer: Oligarchy
●● Which economic system allows for the most innovative and rapid
response to global consumer needs?
Answer: Market
●● Which political system offers the most political stability for
attracting foreign investment?
,Answer: Democracy
●● What is a characteristic of a command economy?
Answer: Labor is allocated by the state.
●● What policy commitment form is used to ensure a country meets
specific measurable conditions for review?
Answer: Quantitative performance criteria
●● Why does the World Bank have a AAA bond rating?
Answer: Its debt is backed by member countries
●● How does the World Trade Organization promote transparency
among its member nations?
Answer: By mandating that changes in trade policies be reported to
member nations
●● What condition could the IMF impose in exchange for financial
resources?
Answer: Privatization or nationalized industries
●● Which stakeholders will be most dissatisfied with the outsourcing
decision?
, Answer: Employees
●● How does restricting international steel transactions affect global
business?
Answer: It imposes import restrictions for domestic steel companies
●● What outcome can result from countries establishing new trade
agreements?
Answer: Increased average wages
●● Which form of trade do two countries of similar economic status
trading similar goods use?
Answer: Intra-Industry
●● What is the impact of countervailing duties levied by a country's
government?
Answer: It brings an imported product's value closer to the normal value.
●● Why would a country choose to implement trade protectionism?
Answer: To restrict international trade
●● What is a voluntary export restriction?
Answer: A restriction of exports by the exporting country.
POLICY GLOBALIZATION EXAM SCRIPT
COMPREHENSIVE STUDY GUIDE
●● In which stage of the five stages of becoming a global company does
the company transfer the full production process to a single low-cost
location?
Answer: Product Specialization
●● What is a drawback of the global expansion of a multinational
corporation?
Answer: Regulatory Structure
●● What type of system is impacting a country where a small group of
business owners has captured control of natural resources?
Answer: Oligarchy
●● Which economic system allows for the most innovative and rapid
response to global consumer needs?
Answer: Market
●● Which political system offers the most political stability for
attracting foreign investment?
,Answer: Democracy
●● What is a characteristic of a command economy?
Answer: Labor is allocated by the state.
●● What policy commitment form is used to ensure a country meets
specific measurable conditions for review?
Answer: Quantitative performance criteria
●● Why does the World Bank have a AAA bond rating?
Answer: Its debt is backed by member countries
●● How does the World Trade Organization promote transparency
among its member nations?
Answer: By mandating that changes in trade policies be reported to
member nations
●● What condition could the IMF impose in exchange for financial
resources?
Answer: Privatization or nationalized industries
●● Which stakeholders will be most dissatisfied with the outsourcing
decision?
, Answer: Employees
●● How does restricting international steel transactions affect global
business?
Answer: It imposes import restrictions for domestic steel companies
●● What outcome can result from countries establishing new trade
agreements?
Answer: Increased average wages
●● Which form of trade do two countries of similar economic status
trading similar goods use?
Answer: Intra-Industry
●● What is the impact of countervailing duties levied by a country's
government?
Answer: It brings an imported product's value closer to the normal value.
●● Why would a country choose to implement trade protectionism?
Answer: To restrict international trade
●● What is a voluntary export restriction?
Answer: A restriction of exports by the exporting country.
