Global Business FVC1 WGU Questions With 100% Correct Answers.

Creation of isolationist policies - Which negative outcome on political systems comes from globalization? Reduced trade barriers - Which factor results in a higher rate of globalization? Culture, administration, geography, economy - What are the four factors in Ghemawat's CAGE analysis? Loss of manufacturing jobs - What is a major drawback to the home country when companies outsource manufacturing jobs to countries with lower worker wages? The globalization process is at a disadvantage as the country has a lower standard of living. - 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? Firms seek to maximize profits - What is a characteristic of a market economy? It forbids charging interest - Which impact does Islamic law directly have on businesses? International Monetary Fund - Which institution helps to maintain availability of global financing to solve trade deficit issues? improving quality of life - What is the current focus of the World Bank? Inluence of free trade policies on labor rights - For which concern has the World Trade Organization been criticized?It is based on the value of the Five most significant members' currencies. - How is the Special Drawing Right of the International Monetary Fund (IMF) valued? It leads to developing free trade policies with strategic partners. - Two countries agree to open their borders to international business transactions with one another without tariffs. How does this affect global business? It will create barriers to entry for other nations. - A country uses its mature technology infrastructure to produce a good. What is the impact of this infrastructure on trade? The shift of jobs away from low comparative advantage industries - What was the economic impact of the North American Free Trade Agreement (NAFTA)? Country B seeks to protect its economy and give it the opportunity for long-term expansion. - 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 - 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? Jobs will increase in comparative advantage industries. - Two countries decide to open up trade with each other. What is likely to happen when trade opens up? To protect an infant industry - What is a purpose of a country implementing trade protectionism?Provide Tax Exemptions - 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? Unified trading policies with non-members - Which level of regional economic integration is a key feature of a Customs Union? They create shifts in employment and resource allocation. - What is a drawback of creating regional trade agreements? Almost half of all automobile parts must be made by a labor force that earns a minimum of $16 per hour by 2023. - The United States-Mexico- Canada Agreement (USMCA), a modification of the North American Free Trade Agreement (NAFTA), broadened the scope of free-trade between member nations and tightened restrictions in the region. Which regulation was established by this new agreement? Central America Free Trade Agreement - A U.S. capital investment firm is researching new markets to enter to diversify its portfolio. The director of foreign investments presented a pitch to the board of directors encouraging entry into the Costa Rican telecommunications market by investing in local companies in the region through acquisition. Which alliance supports this director's suggestion? The currency in Country A is strong relative to the currency in Country B. - A firm based in Country A manufactures its products in Country B and pays the manufacturing employees in the currency in which they are located. Which currency situation will result in the maximum prot for the firm? Increased exclusive internal trade - Which drawback is associated with regional economic integration?