D080 Global Business Pre-Assessment
Creation of isolationist policies - ANS-Which negative outcome on political systems
comes from globalization?
Reduced trade barriers - ANS-Which factor results in a higher rate of globalization?
Loss of manufacturing jobs - ANS-What is a major drawback to the home country when
companies outsource manufacturing jobs to countries with lower worker wages?
Anarchy - ANS-In which political system do individuals control all political activity, which
eliminates the government creating any laws to help businesses with their globalization
efforts?
The globalization process is at a disadvantage as the country has a lower standard of
living. - ANS-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?
Australia - ANS-A company headquartered in the United States is considering
expanding its activities into a different country that follows the same legal system as
most states in the United States.
Which country is suited for this expansion?
It forbids charging interest. - ANS-Which impact does Islamic law directly have on
businesses?
International Monetary Fund - ANS-Which institution helps to maintain liquidity of global
funding?
Privatization - ANS-Which structural adjustment of the International Monetary Fund
gives to citizen owners businesses that were previously owned by the state?
Improving quality of life - ANS-What is the current focus of the World Bank?
Influence of free trade policies on labor rights - ANS-For which concern has the World
Trade Organization been criticized?
, It leads to developing free trade policies with strategic partners. - ANS-Two countries
agree to open their borders to international business transactions with one another
without tariffs.
How does this affect global business?
Increases economies of scale in Country A - ANS-Country A manufactures products
less expensively than Country B. Due to changes in international agreements, Country
B has decided to stop producing the products that Country A makes. Instead, Country B
will purchase the same number of products from Country A that they would have
normally produced on their own.
How will this affect global trade?
Developing countries have not been satisfied with the proposed reductions in
agricultural tariffs. - ANS-Why has the Doha Round of the General Agreement on Tariffs
and Trade (GATT) been inconclusive?
Country B seeks to protect its economy and give it the opportunity for long-term
expansion. - ANS-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?
Increases - ANS-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?
To restrict international trade - ANS-What is the purpose of a country that has a new
economy implementing trade protectionism in relation to countries with more developed
economies?
They reduce domestic competition by limiting domestic companies' sales volume. -
ANS-How do Congress and the Department of Agriculture use quotas to their
advantage?
Creation of isolationist policies - ANS-Which negative outcome on political systems
comes from globalization?
Reduced trade barriers - ANS-Which factor results in a higher rate of globalization?
Loss of manufacturing jobs - ANS-What is a major drawback to the home country when
companies outsource manufacturing jobs to countries with lower worker wages?
Anarchy - ANS-In which political system do individuals control all political activity, which
eliminates the government creating any laws to help businesses with their globalization
efforts?
The globalization process is at a disadvantage as the country has a lower standard of
living. - ANS-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?
Australia - ANS-A company headquartered in the United States is considering
expanding its activities into a different country that follows the same legal system as
most states in the United States.
Which country is suited for this expansion?
It forbids charging interest. - ANS-Which impact does Islamic law directly have on
businesses?
International Monetary Fund - ANS-Which institution helps to maintain liquidity of global
funding?
Privatization - ANS-Which structural adjustment of the International Monetary Fund
gives to citizen owners businesses that were previously owned by the state?
Improving quality of life - ANS-What is the current focus of the World Bank?
Influence of free trade policies on labor rights - ANS-For which concern has the World
Trade Organization been criticized?
, It leads to developing free trade policies with strategic partners. - ANS-Two countries
agree to open their borders to international business transactions with one another
without tariffs.
How does this affect global business?
Increases economies of scale in Country A - ANS-Country A manufactures products
less expensively than Country B. Due to changes in international agreements, Country
B has decided to stop producing the products that Country A makes. Instead, Country B
will purchase the same number of products from Country A that they would have
normally produced on their own.
How will this affect global trade?
Developing countries have not been satisfied with the proposed reductions in
agricultural tariffs. - ANS-Why has the Doha Round of the General Agreement on Tariffs
and Trade (GATT) been inconclusive?
Country B seeks to protect its economy and give it the opportunity for long-term
expansion. - ANS-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?
Increases - ANS-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?
To restrict international trade - ANS-What is the purpose of a country that has a new
economy implementing trade protectionism in relation to countries with more developed
economies?
They reduce domestic competition by limiting domestic companies' sales volume. -
ANS-How do Congress and the Department of Agriculture use quotas to their
advantage?
