D080 PRE-ASSESSMENT QUESTIONS
AND ANSWERS PASSED ALREADY
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
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? - CORRECT
ANSWER Provide tax exemptions
AND ANSWERS PASSED ALREADY
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
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? - CORRECT
ANSWER Provide tax exemptions
