economic: developed economies integrating with developing countries through
foreign direct investment, lowering the costs of doing business, reducing trade
barriers, and, in many cases, increasing cross-border migration.
political: globalization may ultimately reduce the importance of nation-states.
cultural: The spread of culture has added to processes such as commodity
exchange and colonization, which have a more extended history of carrying
cultural meaning around the globe. The circulation of cultures enables individuals
to partake in extended social relations that cross national and regional borders.
What are the economic, political, and cultural effects of globalization?
any nonprofit, voluntary citizens' groups that are organized on a local, national, or
international level
What is nongovernmental organization and how does it impact government public
policy across national boundaries?
International business encompasses a full range of cross-border exchanges of
goods, services, or resources across two or more nations. These exchanges can go
beyond the exchange of money for physical goods to include international
transfers of other resources such as people; intellectual property such as patents,
copyrights, brand trademarks, and data; and contractual assets or liabilities. Such
assets or liabilities include the right to use some foreign asset, provide some future
service to overseas customers, or execute a complex financial instrument. The
entities involved in international business range from large multinational firms with
thousands of employees doing business in many countries to a small one-person
company acting as an importer or exporter. This broader definition of international
business also encompasses for-profit, border-crossing transactions as well as
transactions motivated by nonfinancial gains.
What are the features of international business?
,WGU D080 Managing in a Global Business Environment Diagram
- Exporting
- franchising
- joint ventures
- home-owned affiliates
- fully global ventures
What are the different forms of international business? Explain each form.
1. market entry
2. product specialization
3. value chain disaggregation
4. value chain reengineering
5. creation of new markets
What are the 5 stages of entering a global market? Explain each stage
market, cost, competition, government
What are the 4 drivers of globalization? Explain
unsaturated demand for new products, lower labor costs, less expensive natural
resources, and other inputs to products.
What are the benefits and costs of global expansion from MNCs' perspective?
1.0: the first stage of globalism and is pushed forward by nationalism and religion.
2.0: the second stage of globalization and is characterized by advances in methods
of transportation.
3.0: the third stage of globalization and is characterized by advancements across
the board, especially technology and communication.
What are the characteristics of each stage of globalization?
,WGU D080 Managing in a Global Business Environment Diagram
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 are the criticisms of globalization?
There are more than 13 major types of government, each of which consists of
multiple variations. At one end of the extremes of political ideologies is anarchism,
which contends that individuals should control political activities, and public
government is both unnecessary and unwanted. At the other extreme is
totalitarianism, which contends that every aspect of an individual's life should be
controlled and dictated by a strong central government.
Totalitarianism
Authoritarian
Monarchy
Democracy
Oligarchy
Dictatorship
What are different types of governments? Explain
Local policies, rules, and regulations can have a significant effect on the success
rate of a business. Depending on how long a company expects to operate in a
country and how easy it is for business to enter and exit, a firm may also assess the
country's political risk and stability.
What impacts does a political system have on international trade and business?
, WGU D080 Managing in a Global Business Environment Diagram
- Industrialized nations have economies characterized by a healthy climate for
private enterprise (business) and by a consumer orientation, meaning the business
climate focuses on meeting consumers' long-term wants and needs.
- Less-developed nations, also known as least-developed countries (LDCs), have
extensive poverty, low per capita income and standards of living, low literacy rates,
and minimal technology.
- Developing nations are those that make the transition from economies based on
agricultural and raw materials production to industrialized economies.
What are the features of industrialized, less-developed, and developing nations?
- Traditional economies are found in rural countries where the primary occupation
is farming.
- In a command economy found in a communist country, most of the economic
system is controlled by a centralized power.
- In a planned economy found in a socialist country, the factors of production are
used for the common good.
- In an open economy, a democratic method is used to determine how to use the
factors of production.
- A market economy is a decentralized economy in which firms and households
determine how resources are allocated based on how best to satisfy their needs.
- A mixed economy has less government intervention than a command economy.
Supply and demand control the economy, and ideally, the government steps in
when needed.
What are different economic systems and how to differentiate them?