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Exam prep D0800

Managing in a Global Business Environment

TermDefinition
A country uses its established technology infrastructure to produce a good. What is the impact of this infrastructure on trade? It will create barriers to entry for other nations
What was the economic impact of the North American Free Trade Agreement (NAFTA)? The shift of jobs away from low comparative advantage industries
Countries A and B have trade agreements that allow free trade among participant countries. 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? Increases
Two countries decide to open up trade with each other. What is likely to happen when trade opens up? Jobs will increase in comparative advantage industries.
What is a purpose of a country implementing trade protectionism? To protect an infant industry
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 characteristic of a market economy? Firms seek to maximize profits.
Which impact does Islamic law directly have on businesses? It forbids charging interest.
Which level of regional economic integration is a key feature of a Customs Union? Unified trading policies with non-members
The US–Mexico– Canada Agreement (USMCA), a modification of NAFTA, broadened the scope of free-trade on member nations + tightened restrictions in the region. Which regulation was established by this new agreement? Almost half of all automobile parts must be made by a labor force that earns a minimum of $16 per hour by 2023
encouraging entry into the Costa Rican telecommunications market by investing in local companies in the region through acquisition. Which alliance supports this director's suggestion? Central America Free Trade Agreement
What is the current focus of the World Bank? Improving quality of life
Created by: drister05
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