D080 PA QUESTIONS AND ANSWERS GRADED A
Which negative outcome on political systems comes from globalization? ✔✔Creation of
isolationist policies
Which factor results in a higher rate of globalization? ✔✔Reduced trade barriers
What are the four factors in Ghemawat's CAGE analysis? ✔✔Culture, administration,
geography, economy
What is a major drawback to the home country when companies outsource manufacturing jobs to
countries with lower worker wages? ✔✔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?
✔✔The globalization process is at a disadvantage as the country has a lower standard of living.
What is a characteristic of a market economy? ✔✔Firms seek to maximize profits.
Which impact does Islamic law directly have on businesses? ✔✔It forbids charging interest.
Which institution helps to maintain availability of global financing to solve trade deficit issues?
✔✔International Monetary Fund
What is the current focus of the World Bank? ✔✔Improving quality of life
For which concern has the World Trade Organization been criticized? ✔✔Adoption of labor
standards protecting labor rights
How is the Special Drawing Right of the International Monetary Fund (IMF) valued? ✔✔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? ✔✔It leads to developing free trade policies with strategic
partners.