D080 GLOBALIZATION MODULE 1 QUESTIONS
1. Globalization- Answers - International integration arises from the exchange of world views product ideas and
culture. Removing barriers that prevent this from occurring.
2. Economic effects of Globalization- Answers - International movement of goods, capital, services and
technol- ogy and information. Could Benefit the rich and make the poor poorer, or cause environmental damage.
3. Political Globalization- Answers - the process by which political decisions and actions are becoming
increasingly international. Could reduce nations sovereignty. Could benefit with protection i.e Nato
4. cultural globalization- Answers - worldwide spread of similar norms, values, and practices, Pros-
Answers - Awareness in communities Cons- Answers - Loss of unique cultures
5. What are the 5 stages of entering a global economy- Answers - 1. Market Entry
2. Product Specialization
3. Value-Chain Disaggregation
4. Value chain reengineering
5. New Market
6. market entry- Answers - The first stage of entering a global economy. Companies enter new countries using
business models similar to on ones deployed in the home market
7. product specialization- Answers - The second stage of entering a global economy. Company transfers the
full production process of a particular product to a single low-cost location and export goods to various consumer markets
8. Value Chain Disaggregation- Answers - Third step in entering a global market. complete each activity in
the most advantageous location
9. Value Chain Reengineering- Answers - The fourth step in entering a global market. Companies seek to
further increase their cost savings by reengineering their processes to suit local market conditions by substituting lower
cost labor for capital
10. Creation of New Markets- Answers - The fifth step in entering a global market. Creating extra demand for
their
product.
1/5
, 11. What are the 4 drivers of globalization?- Answers - 1. Market
2. Cost
3. Competition
4. Government
12. Market Drivers of Globalization- Answers - Convergence of needs, customers don't have needs ditterent
than home customers. Opportunity for a market of scale.
13. Cost drivers of globalization- Answers - Economies of scale (widespread makes cheaper) and scope
(variety of products made on the same machines is cheaper), and exploiting other cost factors of production.
2/5
1. Globalization- Answers - International integration arises from the exchange of world views product ideas and
culture. Removing barriers that prevent this from occurring.
2. Economic effects of Globalization- Answers - International movement of goods, capital, services and
technol- ogy and information. Could Benefit the rich and make the poor poorer, or cause environmental damage.
3. Political Globalization- Answers - the process by which political decisions and actions are becoming
increasingly international. Could reduce nations sovereignty. Could benefit with protection i.e Nato
4. cultural globalization- Answers - worldwide spread of similar norms, values, and practices, Pros-
Answers - Awareness in communities Cons- Answers - Loss of unique cultures
5. What are the 5 stages of entering a global economy- Answers - 1. Market Entry
2. Product Specialization
3. Value-Chain Disaggregation
4. Value chain reengineering
5. New Market
6. market entry- Answers - The first stage of entering a global economy. Companies enter new countries using
business models similar to on ones deployed in the home market
7. product specialization- Answers - The second stage of entering a global economy. Company transfers the
full production process of a particular product to a single low-cost location and export goods to various consumer markets
8. Value Chain Disaggregation- Answers - Third step in entering a global market. complete each activity in
the most advantageous location
9. Value Chain Reengineering- Answers - The fourth step in entering a global market. Companies seek to
further increase their cost savings by reengineering their processes to suit local market conditions by substituting lower
cost labor for capital
10. Creation of New Markets- Answers - The fifth step in entering a global market. Creating extra demand for
their
product.
1/5
, 11. What are the 4 drivers of globalization?- Answers - 1. Market
2. Cost
3. Competition
4. Government
12. Market Drivers of Globalization- Answers - Convergence of needs, customers don't have needs ditterent
than home customers. Opportunity for a market of scale.
13. Cost drivers of globalization- Answers - Economies of scale (widespread makes cheaper) and scope
(variety of products made on the same machines is cheaper), and exploiting other cost factors of production.
2/5
