WGU D080 OA EXAM PREP FULL
QUESTIONS AND SOLUTIONS ALREADY
PASSED STUDY SHEET
●● What is Culture Globalization?
Answer: 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?
Answer: 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?
Answer: A process of increasing cross-border flows of capital, goods,
services, and people
●● What is International Business?
Answer: the buying, selling, and trading of goods and services across
national boundaries
●● What is intellectual property?
,Answer: 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?
Answer: 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?
Answer: 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?
Answer: 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?
Answer: 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?
Answer: 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?
Answer: *Market
*Cost
*Competition
*Government
, ●● What is a market globalization driver?
Answer: Opportunity for scale
Convergence of needs
●● What is a cost globalization driver?
Answer: Deals with economies of scale and scope, Exploiting cost of
factors of production
●● What is a competitive driver in globalization?
Answer: new markets
increase levels of trade
●● What is a government driver in globalization?
Answer: favorable policies
support for industry
●● What is economies of scale?
Answer: when the average cost of producing a good or service falls as
the quantity produced increases
●● What is economies of scope?
Answer: -Lowering the initial price of production
QUESTIONS AND SOLUTIONS ALREADY
PASSED STUDY SHEET
●● What is Culture Globalization?
Answer: 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?
Answer: 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?
Answer: A process of increasing cross-border flows of capital, goods,
services, and people
●● What is International Business?
Answer: the buying, selling, and trading of goods and services across
national boundaries
●● What is intellectual property?
,Answer: 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?
Answer: 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?
Answer: 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?
Answer: 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?
Answer: 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?
Answer: 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?
Answer: *Market
*Cost
*Competition
*Government
, ●● What is a market globalization driver?
Answer: Opportunity for scale
Convergence of needs
●● What is a cost globalization driver?
Answer: Deals with economies of scale and scope, Exploiting cost of
factors of production
●● What is a competitive driver in globalization?
Answer: new markets
increase levels of trade
●● What is a government driver in globalization?
Answer: favorable policies
support for industry
●● What is economies of scale?
Answer: when the average cost of producing a good or service falls as
the quantity produced increases
●● What is economies of scope?
Answer: -Lowering the initial price of production
