WGU - D080 FVC1 ENHANCED STUDY
GUIDE QUESTIONS & DETAILED
CORRECT SOLUTIONS
What is globalization? - Correct Answer When international integration arises from the
interchange of world views, products, ideas and cultures.
What business opportunities are presented by globalization? - Correct Answer Trade,
transactions, capital, and investment movements. The migration and movement of
people and the dissemination of knowledge.
What are the economic effects of globalization? - Correct Answer International
movement of goods, capital, services and technology and information.
What are the political effects of globalization? - Correct Answer Reduces importance of
nation states
What are the cultural effects of globalization? - Correct Answer Ideas, meanings,
values. Decreased uniqueness by once-isolated communities.
What are the arguments for globalization from a country's perspective? - Correct
Answer Access to broader market, gains access to cheap labor.
What are the arguments against globalization from a country's perspective? - Correct
Answer Needs to understand foreign legal and political policies.
Explain the five stages of entering a global market. - Correct Answer 1. First stage
(market entry),
Companies enter new country's using business models similar to the ones in home
market.
2. Second stage (product specialization),
Companies transfer the full production process of a product to a single location.
3. Third stage (value chain disaggregation)
Desegregating the the production process and focus on completing each activity in a
better location. (different areas)
4. Fourth stage (value chain reengineering),
Companies seek to further increase their cost savings by reengineering their production
process
5. Fifth stage (creation of new markets)
Allows companies to lower their sticker prices in both new and old markets.
,Explain Four drivers of globalization. - Correct Answer 1. Market - explain convergence
of needs,
Allows companies to lower their sticker prices in both new and old markets.
2. Cost - define economies of scale and economies of scope
Refers to product development, manufacturing, and sourcing.
3. Competition - New markets, increased level of trade.
4. Government - Absence or presence of trade policies, technical standards, policies
and regulations.
What is the difference between the world is flat view and the CAGE analysis? - Correct
Answer Events that made the world smaller.
CAGE analysis
1."C" is for culture - Shared beliefs, practices, norms.
2."A" is for administration - Similar country's trade with each other
3."G" is for geography - Location
4."E" is for economic distance - Socioeconomic and demiographic.
What are the benefits of global expansion from MNCs' perspective? - Correct Answer
Unsaturated demand for new product
Lower labor costs
Less expensive natural resources
Higher revenue or lower structure cost
What are the costs of global expansion from MNCs' perspective? - Correct Answer
Costs
Ethical business practice (labor, safety, environment)
Organizational structure (incorporating new regions to the value chain)
Public relations
Leadership
Legal and regulatory structure
List five different political systems and differentiate them. - Correct Answer Anarchy
Monarchy
Democracy
Oligarchy
Dictatorship
Anarchy - Correct Answer No govt is needed - individuals control the country
Monarchy - Correct Answer King or Queen rules the country or Constitutional
Monarchy: Aruba & Australia
Democracy - Correct Answer Citizens organize political parties. Equal voice or vote in
determining policy but government is involved
,Oligarchy - Correct Answer Owned by a small group of people, achieves power due to
military, economic or other powers
Dictatorship - Correct Answer Single person is in charge
Anarchy - Correct Answer No countries are ruled by anarchy, but some regions in
Afghanistan and Somalia
Absolute monarchy - Correct Answer single person ruling until death, such as the
United Kingdom
Constitutional monarchy - Correct Answer Australia
Oligarchy - Correct Answer Russia, S. Korea
Dictatorship - Correct Answer Libya or Germany during WWI and WWII
Democracy - Correct Answer United States of America
List four different economic systems - Correct Answer 1. Traditional Economy
2. Market Economy
3. Command Economy
4. Mixed Economies
Traditional Economy - Correct Answer The traditional economy uses methods of trade
and exchange that are passed through generations. It is the oldest of the four economic
systems and can still be found in parts of South America, Africa, and Asia. Occupations,
usually farming, are passed down through generations. People live off the products of
their labor. Traditional economies have very little economic evolution or growth.
Market Economy - Correct Answer In a market (decentralized) economic system,
leaders make decisions based on consumer demands. Goods and services are
produced and distributed according to the rules of supply and demand. In other words,
consumers influence how many products and services are made available through their
purchasing and usage patterns.
Command Economy - Correct Answer Communist societies use a command or centrally
controlled economy. Resources and businesses are owned by the government, which
decides which goods and services will be produced and what prices will be charged.
North Korea and Cuba have command economies.
Mixed Economies - Correct Answer A mixed economy borrows the following
characteristics from a market economy: It protects private property, the laws of supply
and demand determine prices in a free market, and it is driven by self-interest. A mixed
economy, like a command economy, uses the federal government to protect the people
and the market and oversee the military, international trade, and national transportation.
, List different legal systems - Correct Answer a. Civil law
Common Law
Religious Law
Please provide three legal systems - Correct Answer 1. Civil law
2. Common Law
3. Religious law
Civil law - Correct Answer It is based on a detailed set of laws that constitute a code
and focuses on how the law is applied to the facts. The civil law system is inquisitorial,
where the investigating judge investigates the facts of the case, and Juries are rarely
used. The victim may participate in the trial and have rights. It is the most widespread
legal system in the world. Approximately 150 countries have a primarily civil law system.
The civil law system is found in most of continental Europe, Central America, and South
America. Basis in the Roman legal tradition.
Common Law - Correct Answer Judges interpret the law, and judicial rulings can set
precedent. Common law systems are often adversarial because the judge's role is to act
as a moderator between two opposing parties. A jury may determine the facts, and a
judge decides which law will be applied to the case. Both prosecutors and defense
attorneys have an active role. Victims may serve as witnesses, but they are not a party
in criminal cases. The legal system of the United States - except Louisiana, which has a
mix of civil and common laws - is a common law system. found in Australia, Canada,
England, and Wales. Approximately 80 countries have common law systems. Based on
traditions and precedence and can be traced to the English monarchy.
Religious Law - Correct Answer Also known as theocratic law and is based on religious
guidelines.
Islamic law and prohibition of interest - Correct Answer Islamic law systems are found
throughout Africa, the Middle East, Central Asia, and South Asia. The most commonly
known example of religious law is Islamic law. Sharia governs several Islamic nations
and communities around the world and is the most widely accepted religious law
system.
Christian Canon Law - Correct Answer The Christian Canon system is not practiced at
the national level in any country. Canon law is the body of laws and regulations made
by the ecclesiastical authority governing Christian communities. Canon law was the
basis for much of the Western legal tradition used today. The Christian Canon system is
observed in Vatican City.
Talmudic law - Correct Answer The Talmudic legal system relies on the written opinions
of those well-trained in law. This applies in some countries and regions in which the
Jewish population is heavily concentrated. The sources of law in this system are the
written and oral Torah and the Talmud.
GUIDE QUESTIONS & DETAILED
CORRECT SOLUTIONS
What is globalization? - Correct Answer When international integration arises from the
interchange of world views, products, ideas and cultures.
What business opportunities are presented by globalization? - Correct Answer Trade,
transactions, capital, and investment movements. The migration and movement of
people and the dissemination of knowledge.
What are the economic effects of globalization? - Correct Answer International
movement of goods, capital, services and technology and information.
What are the political effects of globalization? - Correct Answer Reduces importance of
nation states
What are the cultural effects of globalization? - Correct Answer Ideas, meanings,
values. Decreased uniqueness by once-isolated communities.
What are the arguments for globalization from a country's perspective? - Correct
Answer Access to broader market, gains access to cheap labor.
What are the arguments against globalization from a country's perspective? - Correct
Answer Needs to understand foreign legal and political policies.
Explain the five stages of entering a global market. - Correct Answer 1. First stage
(market entry),
Companies enter new country's using business models similar to the ones in home
market.
2. Second stage (product specialization),
Companies transfer the full production process of a product to a single location.
3. Third stage (value chain disaggregation)
Desegregating the the production process and focus on completing each activity in a
better location. (different areas)
4. Fourth stage (value chain reengineering),
Companies seek to further increase their cost savings by reengineering their production
process
5. Fifth stage (creation of new markets)
Allows companies to lower their sticker prices in both new and old markets.
,Explain Four drivers of globalization. - Correct Answer 1. Market - explain convergence
of needs,
Allows companies to lower their sticker prices in both new and old markets.
2. Cost - define economies of scale and economies of scope
Refers to product development, manufacturing, and sourcing.
3. Competition - New markets, increased level of trade.
4. Government - Absence or presence of trade policies, technical standards, policies
and regulations.
What is the difference between the world is flat view and the CAGE analysis? - Correct
Answer Events that made the world smaller.
CAGE analysis
1."C" is for culture - Shared beliefs, practices, norms.
2."A" is for administration - Similar country's trade with each other
3."G" is for geography - Location
4."E" is for economic distance - Socioeconomic and demiographic.
What are the benefits of global expansion from MNCs' perspective? - Correct Answer
Unsaturated demand for new product
Lower labor costs
Less expensive natural resources
Higher revenue or lower structure cost
What are the costs of global expansion from MNCs' perspective? - Correct Answer
Costs
Ethical business practice (labor, safety, environment)
Organizational structure (incorporating new regions to the value chain)
Public relations
Leadership
Legal and regulatory structure
List five different political systems and differentiate them. - Correct Answer Anarchy
Monarchy
Democracy
Oligarchy
Dictatorship
Anarchy - Correct Answer No govt is needed - individuals control the country
Monarchy - Correct Answer King or Queen rules the country or Constitutional
Monarchy: Aruba & Australia
Democracy - Correct Answer Citizens organize political parties. Equal voice or vote in
determining policy but government is involved
,Oligarchy - Correct Answer Owned by a small group of people, achieves power due to
military, economic or other powers
Dictatorship - Correct Answer Single person is in charge
Anarchy - Correct Answer No countries are ruled by anarchy, but some regions in
Afghanistan and Somalia
Absolute monarchy - Correct Answer single person ruling until death, such as the
United Kingdom
Constitutional monarchy - Correct Answer Australia
Oligarchy - Correct Answer Russia, S. Korea
Dictatorship - Correct Answer Libya or Germany during WWI and WWII
Democracy - Correct Answer United States of America
List four different economic systems - Correct Answer 1. Traditional Economy
2. Market Economy
3. Command Economy
4. Mixed Economies
Traditional Economy - Correct Answer The traditional economy uses methods of trade
and exchange that are passed through generations. It is the oldest of the four economic
systems and can still be found in parts of South America, Africa, and Asia. Occupations,
usually farming, are passed down through generations. People live off the products of
their labor. Traditional economies have very little economic evolution or growth.
Market Economy - Correct Answer In a market (decentralized) economic system,
leaders make decisions based on consumer demands. Goods and services are
produced and distributed according to the rules of supply and demand. In other words,
consumers influence how many products and services are made available through their
purchasing and usage patterns.
Command Economy - Correct Answer Communist societies use a command or centrally
controlled economy. Resources and businesses are owned by the government, which
decides which goods and services will be produced and what prices will be charged.
North Korea and Cuba have command economies.
Mixed Economies - Correct Answer A mixed economy borrows the following
characteristics from a market economy: It protects private property, the laws of supply
and demand determine prices in a free market, and it is driven by self-interest. A mixed
economy, like a command economy, uses the federal government to protect the people
and the market and oversee the military, international trade, and national transportation.
, List different legal systems - Correct Answer a. Civil law
Common Law
Religious Law
Please provide three legal systems - Correct Answer 1. Civil law
2. Common Law
3. Religious law
Civil law - Correct Answer It is based on a detailed set of laws that constitute a code
and focuses on how the law is applied to the facts. The civil law system is inquisitorial,
where the investigating judge investigates the facts of the case, and Juries are rarely
used. The victim may participate in the trial and have rights. It is the most widespread
legal system in the world. Approximately 150 countries have a primarily civil law system.
The civil law system is found in most of continental Europe, Central America, and South
America. Basis in the Roman legal tradition.
Common Law - Correct Answer Judges interpret the law, and judicial rulings can set
precedent. Common law systems are often adversarial because the judge's role is to act
as a moderator between two opposing parties. A jury may determine the facts, and a
judge decides which law will be applied to the case. Both prosecutors and defense
attorneys have an active role. Victims may serve as witnesses, but they are not a party
in criminal cases. The legal system of the United States - except Louisiana, which has a
mix of civil and common laws - is a common law system. found in Australia, Canada,
England, and Wales. Approximately 80 countries have common law systems. Based on
traditions and precedence and can be traced to the English monarchy.
Religious Law - Correct Answer Also known as theocratic law and is based on religious
guidelines.
Islamic law and prohibition of interest - Correct Answer Islamic law systems are found
throughout Africa, the Middle East, Central Asia, and South Asia. The most commonly
known example of religious law is Islamic law. Sharia governs several Islamic nations
and communities around the world and is the most widely accepted religious law
system.
Christian Canon Law - Correct Answer The Christian Canon system is not practiced at
the national level in any country. Canon law is the body of laws and regulations made
by the ecclesiastical authority governing Christian communities. Canon law was the
basis for much of the Western legal tradition used today. The Christian Canon system is
observed in Vatican City.
Talmudic law - Correct Answer The Talmudic legal system relies on the written opinions
of those well-trained in law. This applies in some countries and regions in which the
Jewish population is heavily concentrated. The sources of law in this system are the
written and oral Torah and the Talmud.
