D080 PRE-ASSESSMENT QUESTIONS AND ANSWERS
Which negative outcome on political systems comes from globalization? - Answers -
Creation of isolationist policies
Which factor results in a higher rate of globalization? - Answers -Reduced trade
barriers
What are the four factors in Ghemawat's CAGE analysis? - Answers -Culture,
administration, geography, economy
What is a major drawback to the home country when companies outsource
manufacturing jobs to countries with lower worker wages? - Answers -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? - Answers -The
globalization process is at a disadvantage as the country has a lower standard of living.
What is a characteristic of a market economy? - Answers -Firms seek to maximize profi
ts.
Which impact does Islamic law directly have on businesses? - Answers -It forbids
charging interest.
Which institution helps to maintain availability of global financing to solve trade deficit
issues? - Answers -International Monetary Fund
What is the current focus of the World Bank? - Answers -Improving quality of life
For which concern has the World Trade Organization been criticized? - Answers -
Adoption of labor standards protecting labor rights
How is the Special Drawing Right of the International Monetary Fund (IMF) valued? -
Answers -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? - Answers -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? - Answers -It will create barriers to
entry for other nations.
What was the economic impact of the North American Free Trade Agreement
(NAFTA)? - Answers -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? - Answers -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? - Answers -
Increases
Two countries decide to open up trade with each other.
What is likely to happen when trade opens up? - Answers -Jobs will increase in
comparative advantage industries.
What is a purpose of a country implementing trade protectionism? - Answers -To
protect an infant industry
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? - Answers -
Provide tax exemptions
Which level of regional economic integration is a key feature of a Customs Union? -
Answers -Unified trading policies with non-members
What is a drawback of creating regional trade agreements? - Answers -They shift
employment opportunities.
The United States-Mexico- Canada Agreement (USMCA), a modification of the North
American FreeTrade Agreement (NAFTA), broadened the scope of free trade between
member nations and tightened restrictions in the region.
Which negative outcome on political systems comes from globalization? - Answers -
Creation of isolationist policies
Which factor results in a higher rate of globalization? - Answers -Reduced trade
barriers
What are the four factors in Ghemawat's CAGE analysis? - Answers -Culture,
administration, geography, economy
What is a major drawback to the home country when companies outsource
manufacturing jobs to countries with lower worker wages? - Answers -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? - Answers -The
globalization process is at a disadvantage as the country has a lower standard of living.
What is a characteristic of a market economy? - Answers -Firms seek to maximize profi
ts.
Which impact does Islamic law directly have on businesses? - Answers -It forbids
charging interest.
Which institution helps to maintain availability of global financing to solve trade deficit
issues? - Answers -International Monetary Fund
What is the current focus of the World Bank? - Answers -Improving quality of life
For which concern has the World Trade Organization been criticized? - Answers -
Adoption of labor standards protecting labor rights
How is the Special Drawing Right of the International Monetary Fund (IMF) valued? -
Answers -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? - Answers -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? - Answers -It will create barriers to
entry for other nations.
What was the economic impact of the North American Free Trade Agreement
(NAFTA)? - Answers -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? - Answers -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? - Answers -
Increases
Two countries decide to open up trade with each other.
What is likely to happen when trade opens up? - Answers -Jobs will increase in
comparative advantage industries.
What is a purpose of a country implementing trade protectionism? - Answers -To
protect an infant industry
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? - Answers -
Provide tax exemptions
Which level of regional economic integration is a key feature of a Customs Union? -
Answers -Unified trading policies with non-members
What is a drawback of creating regional trade agreements? - Answers -They shift
employment opportunities.
The United States-Mexico- Canada Agreement (USMCA), a modification of the North
American FreeTrade Agreement (NAFTA), broadened the scope of free trade between
member nations and tightened restrictions in the region.
