WGU D080 Pre-Assessment Questions With Correct Answers (Latest Graded A+) ()

WGU D080 Pre-Assessment Questions Two countries agree to open their borders to international business transactions with one another without tariffs . How does this affect global business? - Answer It leads to developing free trade policies with strategic partners. A country uses its established technology infrastructure to produce a good. What is the impact of this infrastructure on trade? - Answer It will create barriers to entry for other nations . What was the economic impact of the North American Free Trade Agreement (NAFTA)? - Answer The shift of jobs away from low comparative advantage industries 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? - Answe r 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? - Answer Increases Two countries decide to open up trade with each other. What is likely to happen when trade opens up? - Answer Jobs will increase in comparative advantage industries. What is a purpose of a country implementing trade protectionism? - Answer To protect an infant industry Which negative outcome on political systems comes from globalization? - Answer Creation of isolationist policies Which factor results in a higher rate of globalization? - Answer Reduced trade barriers What are the four factors in Ghemawat's CAGE analysis? - Answer Culture, administration, geography, economy What is a major drawback to the home country when companies outsource manufacturing jobs to countries with lower worker wages? - Answer Loss of manufacturing jobs 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? - Answer The globalization process is at a disadvantage as the country has a lower standard of living . What is a characteristic of a market economy? - Answer Firms seek to maximize profits. Which impact does Islamic law directly have on businesses? - Answer It forbids charging interest. Country A and Country B are trying to mend their relationship. A company from Country A would like to invest in a company in Country B.Which action by Country B will help these two countries meet their goal? - Answer Provide tax exemptions Which level of regional economic integration is a key feature of a Customs Union? - Answer Unified trading policies with non-members What is a drawback of creating regional trade agreements? - Answer They shift employment opportunities . The United States-Mexico- Canada Agreement (USMCA), a modification of the North American Free Trade Agreement (NAFTA), broadened the scope of free-trade between member nations and tightened restrictions in the region. Which regulation was established by this new agreement? - Answer Almost half of all automobile parts must be made by a labor force that earns a minimum of $16 per hour by 2023 . A U.S. capital investment firm is researching new markets to enter to diversify its portfolio. The director of foreign investments presented a pitch to the board of directors encouraging entry into the Costa Rican telecommunications market by investing in local companies in the region through acquisition. Which alliance supports this director's suggestion? - Answer Central America Free Trade Agreement A firm based in Country A manufactures its products in Country B and pays the manufacturing employees in the currency in which they are located.Which currency situation will result in the maximum profit for the firm? - Answer The currency in Country A is strong relative to the currency in Country B. Which drawback is associated with regional economic integration? - Answer Increased exclusive internal trade Which institution helps to maintain availability of global financing to solve trade deficit issues? - Answer International Monetary Fund