D080 Unit 2 Test with 100% Correct
Answers
The government is less flexible, so the globalization process is challenged. - ANSWER-
Which effect does a command economy have on the process of globalization?
It is based on a detailed set of laws that form a code. - ANSWER-A company is
conducting a legal risk analysis for a country that has a civil law system. Which
statement accurately characterizes this legal system?
The state has a mixed law system. - ANSWER-Which fact should a company opening
its operations in the U.S. state of Louisiana note?
Most-favored-nation (MFN) status - ANSWER-Which core principle of the World Trade
Organization supports equality among member nations and helps fight discrimination
among them?
Free trade leads to specialization of each country and increases production efficiency. -
ANSWER-What is true regarding free trade?
Increases - ANSWER-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?
Subsidies - ANSWER-How do governments help companies offset the cost of
manufacturing domestically?
A trade surplus - ANSWER-What would a mercantilist value the most?
Acquisition of resources - ANSWER-A multinational corporation has manufacturing
facilities in many Asian countries due to cheaper labor. Which strategy is the
corporation using?
More valuable export sales - ANSWER-A firm in Country A exports products to Country
B. The currency in Country B is strong relative to the currency in Country A. What does
this mean for the firm?
It increases worldwide connections that support commodity trading. - ANSWER-How is
global business positively affected by intercultural exchange?
Answers
The government is less flexible, so the globalization process is challenged. - ANSWER-
Which effect does a command economy have on the process of globalization?
It is based on a detailed set of laws that form a code. - ANSWER-A company is
conducting a legal risk analysis for a country that has a civil law system. Which
statement accurately characterizes this legal system?
The state has a mixed law system. - ANSWER-Which fact should a company opening
its operations in the U.S. state of Louisiana note?
Most-favored-nation (MFN) status - ANSWER-Which core principle of the World Trade
Organization supports equality among member nations and helps fight discrimination
among them?
Free trade leads to specialization of each country and increases production efficiency. -
ANSWER-What is true regarding free trade?
Increases - ANSWER-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?
Subsidies - ANSWER-How do governments help companies offset the cost of
manufacturing domestically?
A trade surplus - ANSWER-What would a mercantilist value the most?
Acquisition of resources - ANSWER-A multinational corporation has manufacturing
facilities in many Asian countries due to cheaper labor. Which strategy is the
corporation using?
More valuable export sales - ANSWER-A firm in Country A exports products to Country
B. The currency in Country B is strong relative to the currency in Country A. What does
this mean for the firm?
It increases worldwide connections that support commodity trading. - ANSWER-How is
global business positively affected by intercultural exchange?
