FVC1 - Global Business UNIT QUIZZES QUESTIONS WITH COMPLETE SOLUTIONS

What effect does a command economy have on the process of globalization? correct answer: The government is less flexible, so the globalization process is stopped. Which core principle of the World Trade Organization supports equality among member nations and helps fight discrimination among them? correct answer: Most-favored-nation (MFN) status 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? correct answer: Increases How do governments help companies offset the cost of manufacturing domestically? correct answer: Subsidies 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? correct answer: More valuable export sales How is global business positively affected by intercultural exchange? correct answer: It increases worldwide connections that support commodity trading. How does globalization support tolerance for different people and ideas? correct answer: By increasing the access to information A business has recently started selling in a new global marketplace. Shortly after the company made this global expansion, the new country opted to implement ad valorem tariffs. How will this change affect the company? correct answer: It will levy a variable tax based on the value of goods imported. Which business component does the TRIPS agreement help protect for member nations? correct answer: Intellectual property protection for all member nations Countries A, B, and C have a trade agree