D080 Pre-Assessment Questions and
Answers
Which negative outcome on political systems comes from globalization? - ANS-Creation
of isolationist policies
Which factor results in a higher rate of globalization? - ANS-Reduced trade barriers
What are the four factors in Ghemawat's CAGE analysis? - ANS-Culture, administration,
geography, economy
What is a major drawback to the home country when companies outsource
manufacturing jobs to countries with lower worker wages? - ANS-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? - ANS-The
globalization process is at a disadvantage as the country has a lower standard of living.
What is a characteristic of a market economy? - ANS-Firms seek to maximize profi ts.
Which impact does Islamic law directly have on businesses? - ANS-It forbids charging
interest.
Which institution helps to maintain availability of global financing to solve trade deficit
issues? - ANS-International Monetary Fund
What is the current focus of the World Bank? - ANS-Improving quality of life
For which concern has the World Trade Organization been criticized? - ANS-Adoption of
labor standards protecting labor rights
How is the Special Drawing Right of the International Monetary Fund (IMF) valued? -
ANS-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? - ANS-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? - ANS-It will create barriers to entry
for other nations.
What was the economic impact of the North American Free Trade Agreement (NAFTA)?
- ANS-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? - ANS-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? - ANS-Increases
Two countries decide to open up trade with each other.
What is likely to happen when trade opens up? - ANS-Jobs will increase in comparative
advantage industries.
What is a purpose of a country implementing trade protectionism? - ANS-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? - ANS-Provide
tax exemptions
Answers
Which negative outcome on political systems comes from globalization? - ANS-Creation
of isolationist policies
Which factor results in a higher rate of globalization? - ANS-Reduced trade barriers
What are the four factors in Ghemawat's CAGE analysis? - ANS-Culture, administration,
geography, economy
What is a major drawback to the home country when companies outsource
manufacturing jobs to countries with lower worker wages? - ANS-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? - ANS-The
globalization process is at a disadvantage as the country has a lower standard of living.
What is a characteristic of a market economy? - ANS-Firms seek to maximize profi ts.
Which impact does Islamic law directly have on businesses? - ANS-It forbids charging
interest.
Which institution helps to maintain availability of global financing to solve trade deficit
issues? - ANS-International Monetary Fund
What is the current focus of the World Bank? - ANS-Improving quality of life
For which concern has the World Trade Organization been criticized? - ANS-Adoption of
labor standards protecting labor rights
How is the Special Drawing Right of the International Monetary Fund (IMF) valued? -
ANS-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? - ANS-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? - ANS-It will create barriers to entry
for other nations.
What was the economic impact of the North American Free Trade Agreement (NAFTA)?
- ANS-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? - ANS-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? - ANS-Increases
Two countries decide to open up trade with each other.
What is likely to happen when trade opens up? - ANS-Jobs will increase in comparative
advantage industries.
What is a purpose of a country implementing trade protectionism? - ANS-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? - ANS-Provide
tax exemptions
