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Which negative outcome on political systems comes from globalization? - (ANSWER)Creation
of isolationist policies
Which factor results in a higher rate of globalization? - (ANSWER)Reduced trade barriers
What are the four factors in Ghemawat's CAGE analysis? - (ANSWER)Culture, administration,
geography, economy
What is a major drawback to the home country when companies outsource manufacturing jobs to
countries with lower worker wages? - (ANSWER)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? - (ANSWER)The
globalization process is at a disadvantage as the country has a lower standard of living.
,What is a characteristic of a market economy? - (ANSWER)Firms seek to maximize profi ts.
Which impact does Islamic law directly have on businesses? - (ANSWER)It forbids charging
interest.
Which institution helps to maintain availability of global financing to solve trade deficit issues? -
(ANSWER)International Monetary Fund
What is the current focus of the World Bank? - (ANSWER)Improving quality of life
For which concern has the World Trade Organization been criticized? - (ANSWER)Adoption of
labor standards protecting labor rights
How is the Special Drawing Right of the International Monetary Fund (IMF) valued? -
(ANSWER)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? - (ANSWER)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? - (ANSWER)It will create barriers to entry
for other nations.
What was the economic impact of the North American Free Trade Agreement (NAFTA)? -
(ANSWER)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? - (ANSWER)Country B seeks to protect its
economy and give it the opportunity for long-term expansion.