GSCM 211 FINAL QUESTIONS WITH VERIFIED
ANSWERS
Globalization - Answers - "Globalization for business typically refers to an extension of
the make or buy decision beyond national borders."
Exchange of information, ideas, goods, etc. faster across the globe
Increases interactions
Example: iPhone parts
Pros of globalization - Answers - Increased awareness of other cultures and countries•
Globalization encourages innovation• Income of low cost labor in developing countries
has increased• Developing countries have increased access to first-world products
Cons of globalization - Answers - Unequal opportunities across the world• The world's
wealth is increasingly concentrated (rich getting richer)• Globalization strategy is poorly
managed (damage of the environment)
Comparative Advantage - Answers - the ability to produce a good at a lower opportunity
cost than another producer
ex: cotton sheets from Egypt
Protectionism - Answers - the practice of shielding a country's domestic industries from
foreign competition by taxing imports.
• Encourage growth within country
• Sometimes protectionism fails
physical operations - Answers - Having physical locations built/lent. Also called
Greenfield Developments (building from the ground up).
service operations - Answers - production activities that yield tangible and intangible
service products
Do we hire and manage employees who will represent our company in an international
location? Or do we contract with a third party provider to offer our services? Or
something in-between.
Greenfield development - Answers - building from the ground up
Ownership - Answers - Is the company a fully owned subsidiary? A joint venture? Or
some variation of a license or franchise model? From an operational perspective, we
ANSWERS
Globalization - Answers - "Globalization for business typically refers to an extension of
the make or buy decision beyond national borders."
Exchange of information, ideas, goods, etc. faster across the globe
Increases interactions
Example: iPhone parts
Pros of globalization - Answers - Increased awareness of other cultures and countries•
Globalization encourages innovation• Income of low cost labor in developing countries
has increased• Developing countries have increased access to first-world products
Cons of globalization - Answers - Unequal opportunities across the world• The world's
wealth is increasingly concentrated (rich getting richer)• Globalization strategy is poorly
managed (damage of the environment)
Comparative Advantage - Answers - the ability to produce a good at a lower opportunity
cost than another producer
ex: cotton sheets from Egypt
Protectionism - Answers - the practice of shielding a country's domestic industries from
foreign competition by taxing imports.
• Encourage growth within country
• Sometimes protectionism fails
physical operations - Answers - Having physical locations built/lent. Also called
Greenfield Developments (building from the ground up).
service operations - Answers - production activities that yield tangible and intangible
service products
Do we hire and manage employees who will represent our company in an international
location? Or do we contract with a third party provider to offer our services? Or
something in-between.
Greenfield development - Answers - building from the ground up
Ownership - Answers - Is the company a fully owned subsidiary? A joint venture? Or
some variation of a license or franchise model? From an operational perspective, we
