WGU D080
Objective Assessment Questions and Answers (Verified Answers)
1. Which negative outcome on political systems comes from globalization ANS : -
Creation of isolationist policies
2. Which factor results in a higher rate of globalization ANS : Reduced trade barriers
3. What are the four factors in Ghemawat's CAGE analysis ANS : Culture, adminis-
tration, geography, economy
4. What is a major drawback to the home country when companies outsource
manufacturing jobs to countries with lower worker wages ANS : Loss of manufac-
turing jobs
5. A country has a characteristic traditional economic system with poor infra-
structure 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 ofliving.
6. What is a characteristic of a market economy ANS : Firms seek to maximize profits.
7. Which impact does Islamic law directly have on businesses ANS : It forbids
charging interest.
8. Which institution helps to maintain availability of global financing to solve
trade deficit issues ANS : International Monetary Fund
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, 9. What is the current focus of the World Bank ANS : Improving quality of life
10. For which concern has the World Trade Organization been criticized ANS : -
Adoption of labor standards protecting labor rights
11. How is the Special Drawing Right of the International Monetary Fund (IMF)
valued ANS : It is based on the value of the five most significant members' currencies.
12. Two countries agree to open their borders to international business trans-
actions with one another without tariffs.
How does this affect global business ANS : It leads to developing free trade policieswith
strategic partners.
13. A country uses its established technology infrastructure to produce agood.
What is the impact of this infrastructure on trade ANS : It will create barriers to entry
for other nations.
14. What was the economic impact of the North American Free Trade Agree-
ment (NAFTA) ANS : The shift of jobs away from low comparative advantage industries
15. A company that is located in Country A would like to sell products in Coun-try B.
The government of Country B is pushing for a tariff-based international
2/8
Objective Assessment Questions and Answers (Verified Answers)
1. Which negative outcome on political systems comes from globalization ANS : -
Creation of isolationist policies
2. Which factor results in a higher rate of globalization ANS : Reduced trade barriers
3. What are the four factors in Ghemawat's CAGE analysis ANS : Culture, adminis-
tration, geography, economy
4. What is a major drawback to the home country when companies outsource
manufacturing jobs to countries with lower worker wages ANS : Loss of manufac-
turing jobs
5. A country has a characteristic traditional economic system with poor infra-
structure 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 ofliving.
6. What is a characteristic of a market economy ANS : Firms seek to maximize profits.
7. Which impact does Islamic law directly have on businesses ANS : It forbids
charging interest.
8. Which institution helps to maintain availability of global financing to solve
trade deficit issues ANS : International Monetary Fund
1/8
, 9. What is the current focus of the World Bank ANS : Improving quality of life
10. For which concern has the World Trade Organization been criticized ANS : -
Adoption of labor standards protecting labor rights
11. How is the Special Drawing Right of the International Monetary Fund (IMF)
valued ANS : It is based on the value of the five most significant members' currencies.
12. Two countries agree to open their borders to international business trans-
actions with one another without tariffs.
How does this affect global business ANS : It leads to developing free trade policieswith
strategic partners.
13. A country uses its established technology infrastructure to produce agood.
What is the impact of this infrastructure on trade ANS : It will create barriers to entry
for other nations.
14. What was the economic impact of the North American Free Trade Agree-
ment (NAFTA) ANS : The shift of jobs away from low comparative advantage industries
15. A company that is located in Country A would like to sell products in Coun-try B.
The government of Country B is pushing for a tariff-based international
2/8
