Global Business and Trade Quiz

Which of the following best defines corporate environmental responsibility?

• Reducing employee wages to save costs

• Increasing profits through natural resource exploitation

• Implementing practices that minimize negative impacts on the environment

• Expanding operations regardless of environmental laws

Why is outsourcing often criticized from an ethical perspective?

• It reduces corporate taxes

• It can lead to job losses in the home country

• It improves communication between countries

• It eliminates trade tariffs

Using offshore labour may raise ethical concerns due to:

• Increased productivity

• Enhanced language skills

• Lack of regulation and poor working conditions

• Higher employee retention

A company committed to ethical global practices is likely to:

• Seek the cheapest labour regardless of conditions

• Ignore host country regulations

• Evaluate the social and environmental impact of decisions

• Focus only on shareholder profits

A government grant provided to exporting businesses is intended to:

• Limit foreign competition

• Increase the cost of production

• Encourage businesses to expand into international markets

• Discourage trade with certain countries

Tax incentives are commonly used by home governments to:

• Punish businesses for moving offshore

• Encourage international expansion and investment

• Prevent imports from entering the domestic market

• Raise additional revenue

Host countries may offer incentives to foreign investors to:

• Protect domestic industries from competition

• Attract foreign direct investment and boost the local economy

• Prevent capital outflows

• Encourage local businesses to move abroad

Which of the following is an example of a home government incentive for international trade?

• Import duties

• Export grants

• Border taxes

• Trade bans

What is the primary goal of a Free Trade Agreement (FTA)?

• To create import quotas

• To restrict business expansion

• To reduce or eliminate trade barriers between member countries

• To increase domestic production costs

The ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) includes countries in:

• South America

• Europe

• Southeast Asia and the Pacific

• North America