D080 STUDY FOR OA QUESTIONS & ANSWERS
What is globalization? - Answers -as international integration arising from the exchange
of world views, products, ideas, and other aspects of culture.
What is Culture Globalization? - Answers -refers to the transmission of ideas,
meanings, and values around the world in such a way that extends and intensifies
social relations.
What is Political Globalization? - Answers -Refers to the emergence of an increasing
number of global institutions such as the growth of both intergovernmental organizations
and nongovernmental organizations
What is Economic Globalization? - Answers -A process of increasing cross-border
flows of capital, goods, services, and people
What is International Business? - Answers -the buying, selling, and trading of goods
and services across national boundaries
What is intellectual property? - Answers -a work or invention that is the result of
creativity, such as a manuscript or a design, to which one has rights and for which one
may apply for a patent, copyright, trademark, etc.
What is the FIRST stage of going global? - Answers -Market entry- companies enter
new countries using business models similar to the ones deployed in their home
markets. To gain access to local customers, however, companies often need to
establish a production presence, either because of the nature of their businesses, such
as in-service industries like food, retail, or banking, or because of local countries'
regulatory restrictions, such as in the auto industry.
What is the SECOND stage of going global? - Answers -Product Specialization-
companies transfer the full production process of a particular product to a single, low-
cost location and export the goods to various consumer markets. In this scenario,
different locations begin to specialize in different products or components and trade in
finished goods.
What is the THIRD stage of going global? - Answers -value chain disaggregation-
represents the next step in the company's globalization of the supply chain
infrastructure. In this stage, companies disaggregate the production process and focus
on completing each activity in the most advantageous location. Individual components
of a single product might be manufactured in several different places and assembled
into final products elsewhere. Examples include the PC industry market and the
decision by companies to offshore some of their business processes and information
technology services.2
,What is the FOURTH stage of going global? - Answers -Value chain reengineering-
companies seek to further increase their cost savings by reengineering their processes
to suit local market conditions by substituting lower cost labor for capital. General
Electric's (GE) medical equipment division, for example, has tailored its manufacturing
processes abroad to take advantage of low labor costs. Not only does it use more labor-
intensive production processes, but it also designs and builds the capital equipment for
its local plants
What is the FIFTH stage of going global? - Answers -creation of new markets- the
focus is on market expansion. This allows companies to substantially lower their sticker
prices in both old and new markets and to expand demand. Significantly, the value of
new revenues generated in this last stage is often greater than the value of cost savings
in the other stages.
What are Globalization drivers? - Answers -*Market
*Cost
*Competition
*Government
What is a market globalization driver? - Answers -Opportunity for scale
Convergence of needs
What is a cost globalization driver? - Answers -Deals with economies of scale and
scope, Exploiting cost of factors of production
What is a competitive driver in globalization? - Answers -new markets
increase levels of trade
What is a government driver in globalization? - Answers -favorable policies
support for industry
What is economies of scale? - Answers -when the average cost of producing a good or
service falls as the quantity produced increases
What is economies of scope? - Answers --Lowering the initial price of production
-Multi-product production
What are some issues that can arise when a company moves to another country? -
Answers -Ethical issues, governmental policies, and economic restrictions are all likely
when a company moves into an unfamiliar global space. A multinational company may
also face infrastructural and technological challenges in a developing country.
What is Anarchism? - Answers -which contends that individuals should control political
activities, and public government is both unnecessary and unwanted.
, What is Totalarianism? - Answers -which contends that every aspect of an individual's
life should be controlled and dictated by a strong central government.
What is Pluralism? - Answers -which asserts that both public and private groups are
essential in a well-functioning political system. Although most countries are pluralistic
politically, they may lean more to one extreme than to the other.
What is a Authoritarian government? - Answers -centralize all control in the hands of
one strong leader or a strong small group of leaders who have full authority. These
leaders are not democratically elected and are not politically, economically, or socially
accountable to the people in the country.
What is a Monarchy? - Answers -A single person rules until he or she dies or abdicates
the throne.
Power can vary by type: absolute, constitutional, or a mix of both.
What is Oligarchy? - Answers -A small, elite group holds power
Status not achieved through noble ancestry
What is dictatorship? - Answers -A single person (or a very small group of people)
holds power.
Wields complete and absolute authority over a government and population.
What is a democracy? - Answers -Citizens organize political parties and elect leaders
Leaders power organized through constitution and term limits
What government do other countries favor in terms of having a high success rate? -
Answers -Authoritarian
What are the classifications of economic growth in countries? - Answers -industrialized,
developing, and less-developed nations.
What is an industrialized nation? - Answers -Industrialized nation is technology, $$$,
and jobs.
EXAMPLE: USA, Canada, Italy, France, Most other nations.
What is a less-developed country? - Answers -agriculture remains the common
industry. Subsistence Farming is common and poverty is extremely high. Latin America,
Asia and Africa are very high in underdeveloped countries
What is a developing nation? - Answers -that make the transition from economies
based on agricultural and raw materials production to industrialized economies. They
exhibit rising levels of education, technology, and per capita incomes. Governments in
these nations have often made steady progress in improving the climate for business,
which attracts business and economic investment. Examples of developing nations
include India and Costa Rica.2
What is globalization? - Answers -as international integration arising from the exchange
of world views, products, ideas, and other aspects of culture.
What is Culture Globalization? - Answers -refers to the transmission of ideas,
meanings, and values around the world in such a way that extends and intensifies
social relations.
What is Political Globalization? - Answers -Refers to the emergence of an increasing
number of global institutions such as the growth of both intergovernmental organizations
and nongovernmental organizations
What is Economic Globalization? - Answers -A process of increasing cross-border
flows of capital, goods, services, and people
What is International Business? - Answers -the buying, selling, and trading of goods
and services across national boundaries
What is intellectual property? - Answers -a work or invention that is the result of
creativity, such as a manuscript or a design, to which one has rights and for which one
may apply for a patent, copyright, trademark, etc.
What is the FIRST stage of going global? - Answers -Market entry- companies enter
new countries using business models similar to the ones deployed in their home
markets. To gain access to local customers, however, companies often need to
establish a production presence, either because of the nature of their businesses, such
as in-service industries like food, retail, or banking, or because of local countries'
regulatory restrictions, such as in the auto industry.
What is the SECOND stage of going global? - Answers -Product Specialization-
companies transfer the full production process of a particular product to a single, low-
cost location and export the goods to various consumer markets. In this scenario,
different locations begin to specialize in different products or components and trade in
finished goods.
What is the THIRD stage of going global? - Answers -value chain disaggregation-
represents the next step in the company's globalization of the supply chain
infrastructure. In this stage, companies disaggregate the production process and focus
on completing each activity in the most advantageous location. Individual components
of a single product might be manufactured in several different places and assembled
into final products elsewhere. Examples include the PC industry market and the
decision by companies to offshore some of their business processes and information
technology services.2
,What is the FOURTH stage of going global? - Answers -Value chain reengineering-
companies seek to further increase their cost savings by reengineering their processes
to suit local market conditions by substituting lower cost labor for capital. General
Electric's (GE) medical equipment division, for example, has tailored its manufacturing
processes abroad to take advantage of low labor costs. Not only does it use more labor-
intensive production processes, but it also designs and builds the capital equipment for
its local plants
What is the FIFTH stage of going global? - Answers -creation of new markets- the
focus is on market expansion. This allows companies to substantially lower their sticker
prices in both old and new markets and to expand demand. Significantly, the value of
new revenues generated in this last stage is often greater than the value of cost savings
in the other stages.
What are Globalization drivers? - Answers -*Market
*Cost
*Competition
*Government
What is a market globalization driver? - Answers -Opportunity for scale
Convergence of needs
What is a cost globalization driver? - Answers -Deals with economies of scale and
scope, Exploiting cost of factors of production
What is a competitive driver in globalization? - Answers -new markets
increase levels of trade
What is a government driver in globalization? - Answers -favorable policies
support for industry
What is economies of scale? - Answers -when the average cost of producing a good or
service falls as the quantity produced increases
What is economies of scope? - Answers --Lowering the initial price of production
-Multi-product production
What are some issues that can arise when a company moves to another country? -
Answers -Ethical issues, governmental policies, and economic restrictions are all likely
when a company moves into an unfamiliar global space. A multinational company may
also face infrastructural and technological challenges in a developing country.
What is Anarchism? - Answers -which contends that individuals should control political
activities, and public government is both unnecessary and unwanted.
, What is Totalarianism? - Answers -which contends that every aspect of an individual's
life should be controlled and dictated by a strong central government.
What is Pluralism? - Answers -which asserts that both public and private groups are
essential in a well-functioning political system. Although most countries are pluralistic
politically, they may lean more to one extreme than to the other.
What is a Authoritarian government? - Answers -centralize all control in the hands of
one strong leader or a strong small group of leaders who have full authority. These
leaders are not democratically elected and are not politically, economically, or socially
accountable to the people in the country.
What is a Monarchy? - Answers -A single person rules until he or she dies or abdicates
the throne.
Power can vary by type: absolute, constitutional, or a mix of both.
What is Oligarchy? - Answers -A small, elite group holds power
Status not achieved through noble ancestry
What is dictatorship? - Answers -A single person (or a very small group of people)
holds power.
Wields complete and absolute authority over a government and population.
What is a democracy? - Answers -Citizens organize political parties and elect leaders
Leaders power organized through constitution and term limits
What government do other countries favor in terms of having a high success rate? -
Answers -Authoritarian
What are the classifications of economic growth in countries? - Answers -industrialized,
developing, and less-developed nations.
What is an industrialized nation? - Answers -Industrialized nation is technology, $$$,
and jobs.
EXAMPLE: USA, Canada, Italy, France, Most other nations.
What is a less-developed country? - Answers -agriculture remains the common
industry. Subsistence Farming is common and poverty is extremely high. Latin America,
Asia and Africa are very high in underdeveloped countries
What is a developing nation? - Answers -that make the transition from economies
based on agricultural and raw materials production to industrialized economies. They
exhibit rising levels of education, technology, and per capita incomes. Governments in
these nations have often made steady progress in improving the climate for business,
which attracts business and economic investment. Examples of developing nations
include India and Costa Rica.2
