D080 EXAM 7 QUESTIONS AND CORRECT
ANSWERS!!
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 profits.
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?
ANSWERS!!
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 profits.
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?
