WGU D080 QUESTIONS AND ANSWERS
What is globalization? - Answers -When international integration arises from the
interchange of world views, products, ideas, and other aspects of cultures.
different types of Globalization - Answers -1. Economic
2. Political
3. Cultural
Advantages of Economic globalization - Answers -more trade, investments, information
technology, faster economic development, and increased social being
Disadvantages of Economic globalization - Answers -benefits the rich at the expense of
the poor, manufacturing job loss in developed countries, environmental damage, and
unethical practices of labor
Advantages of Political globalization - Answers -more cooperation amount countries,
formation of international or regional organizations, NGOs
Disadvantages of Political globalization - Answers -reduce the importance of nation-
states, loss of sovereignty and power of local government
Advantages of Cultural globalization - Answers -awareness of international community
Disadvantages of Cultural globalization - Answers -loss of uniqueness of a country's
culture
What is international business? - Answers -any situation where the production or
distribution of goods or services crosses country borders
What are opportunities for international business? - Answers -New and large
international markets offers possible more revenues, lower costs, and access to
advanced technology
What are challenges for international business? - Answers -Ethical business practice
concerns, organizational structure (create new division), public relations (build customer
loyalty), leaderships, and legal and regulatory structure
What are the 5 stages of going global? - Answers -1. Market entry
2. product specialization
3. value chain disaggregation
4. value chain reengineering
5. creation of new markets
, Market Entry - Answers -Companies enter new countries using business models similar
to the ones deployed in their home markets
Product specialization - Answers -Companies transfer the full production process of a
particular product line to a single, low-cost location and export the goods to various
consumer markets
Value chain disaggregation - Answers -Companies disaggregate the production
process and focus on completing each activity in the most advantageous location
Value chain reengineering - Answers -Companies seek to further increase their cost
savings by reengineering their processes to suit local market conditions by substituting
lower cost labor for capital
Creation of new markets - Answers -creates new demand due to the reduction of ticket
price
What are the 4 drivers of Globalization? - Answers -1. Market
2. Cost
3. Competition
4. Government
Market - Answers -Opportunity for scale and convergence of needs (foreign consumers
have the same demand as domestic consumer, no need to redesign)
Cost - Answers -- Economies of scale & scope: use same production facility for multiple
procedures.
- Exploiting cost of factors of production: labor cost reductions, natural resources cost
reduction
Competition - Answers -New markets & increased levels of trade
Government - Answers -Favorable policies, support for the industry ((can use tax
bracket to attract FDI and subsidies (free money) can help domestic business reduce
cost and charge lower price))
What did Thomas Friedman propose? - Answers -The world is flat view - the use of
technology and internet has made it easier for businesses to conduct global operation
What did Ghemawat propose? - Answers -The world is a multi-domestic world
What is CAGE analysis? - Answers -Culture, Administration, Geography, and
Economics
Culture (CAGE) - Answers -Cultural difference could reduce country's trade volume
What is globalization? - Answers -When international integration arises from the
interchange of world views, products, ideas, and other aspects of cultures.
different types of Globalization - Answers -1. Economic
2. Political
3. Cultural
Advantages of Economic globalization - Answers -more trade, investments, information
technology, faster economic development, and increased social being
Disadvantages of Economic globalization - Answers -benefits the rich at the expense of
the poor, manufacturing job loss in developed countries, environmental damage, and
unethical practices of labor
Advantages of Political globalization - Answers -more cooperation amount countries,
formation of international or regional organizations, NGOs
Disadvantages of Political globalization - Answers -reduce the importance of nation-
states, loss of sovereignty and power of local government
Advantages of Cultural globalization - Answers -awareness of international community
Disadvantages of Cultural globalization - Answers -loss of uniqueness of a country's
culture
What is international business? - Answers -any situation where the production or
distribution of goods or services crosses country borders
What are opportunities for international business? - Answers -New and large
international markets offers possible more revenues, lower costs, and access to
advanced technology
What are challenges for international business? - Answers -Ethical business practice
concerns, organizational structure (create new division), public relations (build customer
loyalty), leaderships, and legal and regulatory structure
What are the 5 stages of going global? - Answers -1. Market entry
2. product specialization
3. value chain disaggregation
4. value chain reengineering
5. creation of new markets
, Market Entry - Answers -Companies enter new countries using business models similar
to the ones deployed in their home markets
Product specialization - Answers -Companies transfer the full production process of a
particular product line to a single, low-cost location and export the goods to various
consumer markets
Value chain disaggregation - Answers -Companies disaggregate the production
process and focus on completing each activity in the most advantageous location
Value chain reengineering - Answers -Companies seek to further increase their cost
savings by reengineering their processes to suit local market conditions by substituting
lower cost labor for capital
Creation of new markets - Answers -creates new demand due to the reduction of ticket
price
What are the 4 drivers of Globalization? - Answers -1. Market
2. Cost
3. Competition
4. Government
Market - Answers -Opportunity for scale and convergence of needs (foreign consumers
have the same demand as domestic consumer, no need to redesign)
Cost - Answers -- Economies of scale & scope: use same production facility for multiple
procedures.
- Exploiting cost of factors of production: labor cost reductions, natural resources cost
reduction
Competition - Answers -New markets & increased levels of trade
Government - Answers -Favorable policies, support for the industry ((can use tax
bracket to attract FDI and subsidies (free money) can help domestic business reduce
cost and charge lower price))
What did Thomas Friedman propose? - Answers -The world is flat view - the use of
technology and internet has made it easier for businesses to conduct global operation
What did Ghemawat propose? - Answers -The world is a multi-domestic world
What is CAGE analysis? - Answers -Culture, Administration, Geography, and
Economics
Culture (CAGE) - Answers -Cultural difference could reduce country's trade volume
