D080 Pre-Assessment Questions And
Answers 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 are the four factors in Ghemawat's CAGE analysis? - correct 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? - correct 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? - correct 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? - correct answer. Firms seek to
maximize profi ts.
Which impact does Islamic law directly have on businesses? - correct answer. It
forbids charging interest.
Which institution helps to maintain availability of global financing to solve trade deficit
issues? - correct answer. International Monetary Fund
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.
Adoption of labor standards protecting labor rights
How is the Special Drawing Right of the International Monetary Fund (IMF) valued? -
correct answer. It is based on the value of the five most significant members'
currencies.
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.
A country uses its established technology infrastructure to produce a good.
What is the impact of this infrastructure on trade? - correct answer. It will create
barriers to entry for other nations.
What was the economic impact of the North American Free Trade Agreement
(NAFTA)? - correct 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? - 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
Two countries decide to open up trade with each other.
What is likely to happen when trade opens up? - correct answer. Jobs will increase in
comparative advantage industries.
What is a purpose of a country implementing trade protectionism? - correct answer.
To protect an infant industry
Answers 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 are the four factors in Ghemawat's CAGE analysis? - correct 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? - correct 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? - correct 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? - correct answer. Firms seek to
maximize profi ts.
Which impact does Islamic law directly have on businesses? - correct answer. It
forbids charging interest.
Which institution helps to maintain availability of global financing to solve trade deficit
issues? - correct answer. International Monetary Fund
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.
Adoption of labor standards protecting labor rights
How is the Special Drawing Right of the International Monetary Fund (IMF) valued? -
correct answer. It is based on the value of the five most significant members'
currencies.
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.
A country uses its established technology infrastructure to produce a good.
What is the impact of this infrastructure on trade? - correct answer. It will create
barriers to entry for other nations.
What was the economic impact of the North American Free Trade Agreement
(NAFTA)? - correct 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? - 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
Two countries decide to open up trade with each other.
What is likely to happen when trade opens up? - correct answer. Jobs will increase in
comparative advantage industries.
What is a purpose of a country implementing trade protectionism? - correct answer.
To protect an infant industry
