WGU D080 Managing in a Global Business Environment Diagram qa
International business encompasses a full range of What are the features of international business?
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.
- Exporting What are the different forms of international business? Explain each form.
- franchising
- joint ventures
- home-owned affiliates
- fully global ventures
1. market entry What are the 5 stages of entering a global market? Explain each stage
2. product specialization
3. value chain disaggregation
4. value chain reengineering
5. creation of new markets
market, cost, competition, government What are the 4 drivers of globalization? Explain
unsaturated demand for new products, lower labor What are the benefits and costs of global expansion from MNCs' perspective?
costs, less expensive natural resources, and other
inputs to products.
1.0: the first stage of globalism and is pushed forward What are the characteristics of each stage of globalization?
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.
Ethical issues, governmental policies, and economic What are the criticisms of globalization?
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.
,WGU D080 Managing in a Global Business Environment Diagram qa
There are more than 13 major types of government, What are different types of governments? Explain
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
Local policies, rules, and regulations can have a What impacts does a political system have on international trade and business?
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.
- Industrialized nations have economies characterized What are the features of industrialized, less-developed, and developing
by a healthy climate for private enterprise (business) nations?
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.
,WGU D080 Managing in a Global Business Environment Diagram qa
- Traditional economies are found in rural countries What are different economic systems and how to differentiate them?
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.
- Communisim is a system in which all property is What is communism, socialism, and capitalism?
publicly owned and the government controls global
trade
- Social ownership, central control of the means of
production, and a cooperative approach toward
management of the economy are hallmarks of
socialism.
- Capitalism is generally considered to be an economic
system based on private ownership of the means of
production and on the creation of goods or services
for profit by privately owned business enterprises.
- civil law system is an inquisitorial system where the Explain and differentiate common, civil, and theocratic legal systems.
investigating judge investigates the facts of the case. It
is the most widespread legal system in the world.
- Common law is based on traditions and precedence
and can be traced to the English monarchy. In common
law systems, judges interpret the law, and judicial
rulings can set precedent.
- Religious law is also known as theocratic law and is
based on religious guidelines.
- The IMF helps maintain liquidity of global funding by Identify and differentiate the IMF, the World Bank, and the WTO's major
providing a straight-forward method for nations to functions and conditionality. Explain criticisms of each international
borrow and loan to each other through a mechanism organization.
called the special drawing right.
- The World Bank's priorities are to help build
sustainable economic growth, invest in people, and
build resilience for shocks and threats.
- WTO reviews the trade policies of all nations to ensure
that each country is treated fairly and equally under the
most favored nation requirement.
- Criticisms are similar: a lack of transparency; neglect
for considering the environment when making
decisions; and policies in favor of more affluent,
developed countries at the expense of poorer nations
, WGU D080 Managing in a Global Business Environment Diagram qa
- mercantilism, a zero-sum theory advocating for each List and explain each international trade theory. Focus on the features of each
country to maintain a trade surplus. theory.
- Adam Smith's absolute advantage in which a country
exports the goods it can make more efficiently or more
cheaply.
- Ricardo's comparative advantage which extends the
theory to show benefits as long as each country
exports the product it is comparatively more efficient at
or can produce more cheaply and imports the others
- Heckscher-Ohlin which states that competitive
advantage comes from differences in natural resources.
-Leontief Paradox
- Country Similarity Theory
- Global Strategic Rivalry Theory
Technology and trade are two mechanisms to increase What are the two mechanisms to increase productivity? Explain.
productivity, which lead to more products and
ultimately to lower prices.
it takes fewer resources to produce a product.
a good can be produced at a lower cost in terms of
other goods.
- many assumptions are made in this theory. What are the criticisms of comparative advantage theory?
- The benefits of specialization may be overstated if the
transportation costs are not taken into account.
- There is an increasing opportunity cost with increased
specialization as less than ideal conditions or natural
resources must be used.
- Unemployment may be higher with complete
specialization because it would be difficult for workers
to transfer from one role to another.
- Organizations may not recognize that their
comparative advantage has changed over time as
conditions change.
- technology may make it possible for countries to
produce many or even most products using an
economy of scale, which makes comparative advantage
an obsolete concept
By specializing, countries would generate efficiencies What is specialization and what is the impact of it?
because their labor force would become more skilled
by doing the same tasks repeatedly. Production would
also become more efficient because there would be an
incentive to create faster and better production
methods to increase the benefit from specialization.
Specialization leads to increased productivity, which
can in turn lead to increased unemployment.
International business encompasses a full range of What are the features of international business?
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.
- Exporting What are the different forms of international business? Explain each form.
- franchising
- joint ventures
- home-owned affiliates
- fully global ventures
1. market entry What are the 5 stages of entering a global market? Explain each stage
2. product specialization
3. value chain disaggregation
4. value chain reengineering
5. creation of new markets
market, cost, competition, government What are the 4 drivers of globalization? Explain
unsaturated demand for new products, lower labor What are the benefits and costs of global expansion from MNCs' perspective?
costs, less expensive natural resources, and other
inputs to products.
1.0: the first stage of globalism and is pushed forward What are the characteristics of each stage of globalization?
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.
Ethical issues, governmental policies, and economic What are the criticisms of globalization?
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.
,WGU D080 Managing in a Global Business Environment Diagram qa
There are more than 13 major types of government, What are different types of governments? Explain
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
Local policies, rules, and regulations can have a What impacts does a political system have on international trade and business?
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.
- Industrialized nations have economies characterized What are the features of industrialized, less-developed, and developing
by a healthy climate for private enterprise (business) nations?
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.
,WGU D080 Managing in a Global Business Environment Diagram qa
- Traditional economies are found in rural countries What are different economic systems and how to differentiate them?
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.
- Communisim is a system in which all property is What is communism, socialism, and capitalism?
publicly owned and the government controls global
trade
- Social ownership, central control of the means of
production, and a cooperative approach toward
management of the economy are hallmarks of
socialism.
- Capitalism is generally considered to be an economic
system based on private ownership of the means of
production and on the creation of goods or services
for profit by privately owned business enterprises.
- civil law system is an inquisitorial system where the Explain and differentiate common, civil, and theocratic legal systems.
investigating judge investigates the facts of the case. It
is the most widespread legal system in the world.
- Common law is based on traditions and precedence
and can be traced to the English monarchy. In common
law systems, judges interpret the law, and judicial
rulings can set precedent.
- Religious law is also known as theocratic law and is
based on religious guidelines.
- The IMF helps maintain liquidity of global funding by Identify and differentiate the IMF, the World Bank, and the WTO's major
providing a straight-forward method for nations to functions and conditionality. Explain criticisms of each international
borrow and loan to each other through a mechanism organization.
called the special drawing right.
- The World Bank's priorities are to help build
sustainable economic growth, invest in people, and
build resilience for shocks and threats.
- WTO reviews the trade policies of all nations to ensure
that each country is treated fairly and equally under the
most favored nation requirement.
- Criticisms are similar: a lack of transparency; neglect
for considering the environment when making
decisions; and policies in favor of more affluent,
developed countries at the expense of poorer nations
, WGU D080 Managing in a Global Business Environment Diagram qa
- mercantilism, a zero-sum theory advocating for each List and explain each international trade theory. Focus on the features of each
country to maintain a trade surplus. theory.
- Adam Smith's absolute advantage in which a country
exports the goods it can make more efficiently or more
cheaply.
- Ricardo's comparative advantage which extends the
theory to show benefits as long as each country
exports the product it is comparatively more efficient at
or can produce more cheaply and imports the others
- Heckscher-Ohlin which states that competitive
advantage comes from differences in natural resources.
-Leontief Paradox
- Country Similarity Theory
- Global Strategic Rivalry Theory
Technology and trade are two mechanisms to increase What are the two mechanisms to increase productivity? Explain.
productivity, which lead to more products and
ultimately to lower prices.
it takes fewer resources to produce a product.
a good can be produced at a lower cost in terms of
other goods.
- many assumptions are made in this theory. What are the criticisms of comparative advantage theory?
- The benefits of specialization may be overstated if the
transportation costs are not taken into account.
- There is an increasing opportunity cost with increased
specialization as less than ideal conditions or natural
resources must be used.
- Unemployment may be higher with complete
specialization because it would be difficult for workers
to transfer from one role to another.
- Organizations may not recognize that their
comparative advantage has changed over time as
conditions change.
- technology may make it possible for countries to
produce many or even most products using an
economy of scale, which makes comparative advantage
an obsolete concept
By specializing, countries would generate efficiencies What is specialization and what is the impact of it?
because their labor force would become more skilled
by doing the same tasks repeatedly. Production would
also become more efficient because there would be an
incentive to create faster and better production
methods to increase the benefit from specialization.
Specialization leads to increased productivity, which
can in turn lead to increased unemployment.
