D080 Pre-Assessment Questions and Answers with Certified Solutions

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