D080- Managing in a Global Business
Environment
Which negative outcome on political systems comes from globalization? - ANS-Creation
of isolationist policies
Which factor results in a higher rate of globalization? - ANS-Reduced trade barriers
What is a major drawback to the home country when companies outsource
manufacturing jobs to countries with lower worker wages? - ANS-Loss of manufacturing
jobs
In which political system do individuals control all political activity, which eliminates the
government creating any laws to help businesses with their globalization efforts? -
ANS-Anarchy
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? - ANS-The globalization process is at a disadvantage as the country has
a lower standard of living.
A company headquartered in the United States is considering expanding its activities
into a different country that follows the same legal system as most states in the United
States. Which country is suited for this expansion? - ANS-Australia
Which impact does Islamic law directly have on businesses? - ANS-It forbids charging
interest.
Two countries agree to open their borders to international business transactions with
one another without tariffs.
How does this affect global business? - ANS-It leads to developing free trade policies
with strategic partners.
Country A manufactures products less expensively than Country B. Due to changes in
international agreements, Country B has decided to stop producing the products that
Country A makes. Instead, Country B will purchase the same number of products from
Country A that they would have normally produced on their own.
, How will this affect global trade? - ANS-Increases economies of scale in Country A
Why has the Doha Round of the General Agreement on Tariffs and Trade (GATT) been
inconclusive? - ANS-Developing countries have not been satisfied with the proposed
reductions in agricultural tariffs.
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? - ANS-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? - ANS-Increases
What is the purpose of a country that has a new economy implementing trade
protectionism in relation to countries with more developed economies? - ANS-To restrict
international trade
How do Congress and the Department of Agriculture use quotas to their advantage? -
ANS-They reduce domestic competition by limiting foreign companies' sales volume.
A country wants to develop an international relationship with another country for future
investments, allowing new foreign investors entitlement to a five-year tax holiday. Which
benefit leads to foreign direct investment (FDI) in this situation? - ANS-Dividend
repatriation
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? - ANS-Provide tax exemptions
What is enhanced when creating regional trade agreements? - ANS-Economic
opportunity
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
Environment
Which negative outcome on political systems comes from globalization? - ANS-Creation
of isolationist policies
Which factor results in a higher rate of globalization? - ANS-Reduced trade barriers
What is a major drawback to the home country when companies outsource
manufacturing jobs to countries with lower worker wages? - ANS-Loss of manufacturing
jobs
In which political system do individuals control all political activity, which eliminates the
government creating any laws to help businesses with their globalization efforts? -
ANS-Anarchy
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? - ANS-The globalization process is at a disadvantage as the country has
a lower standard of living.
A company headquartered in the United States is considering expanding its activities
into a different country that follows the same legal system as most states in the United
States. Which country is suited for this expansion? - ANS-Australia
Which impact does Islamic law directly have on businesses? - ANS-It forbids charging
interest.
Two countries agree to open their borders to international business transactions with
one another without tariffs.
How does this affect global business? - ANS-It leads to developing free trade policies
with strategic partners.
Country A manufactures products less expensively than Country B. Due to changes in
international agreements, Country B has decided to stop producing the products that
Country A makes. Instead, Country B will purchase the same number of products from
Country A that they would have normally produced on their own.
, How will this affect global trade? - ANS-Increases economies of scale in Country A
Why has the Doha Round of the General Agreement on Tariffs and Trade (GATT) been
inconclusive? - ANS-Developing countries have not been satisfied with the proposed
reductions in agricultural tariffs.
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? - ANS-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? - ANS-Increases
What is the purpose of a country that has a new economy implementing trade
protectionism in relation to countries with more developed economies? - ANS-To restrict
international trade
How do Congress and the Department of Agriculture use quotas to their advantage? -
ANS-They reduce domestic competition by limiting foreign companies' sales volume.
A country wants to develop an international relationship with another country for future
investments, allowing new foreign investors entitlement to a five-year tax holiday. Which
benefit leads to foreign direct investment (FDI) in this situation? - ANS-Dividend
repatriation
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? - ANS-Provide tax exemptions
What is enhanced when creating regional trade agreements? - ANS-Economic
opportunity
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
