WGU D080 Study Guide Module Breakdown - Exam Solutions A+ Quality

WGU D080 Study Guide Module Breakdown - Exam Solutions A+ Quality What is globalization? - answer - When international integration arises from the interchange of world views, products, ideas, and other aspects of cultures. different types of Globalization - answer - 1. Economic 2. Political 3. Cultural Advantages of Economic globalization - answer - more trade, investments, information technology, faster economic development, and increased social being Disadvantages of Economic globalization - answer - benefits the rich at the expense of the poor, manufacturing job loss in developed countries, environmental damage, and unethical practices of labor Advantages of Political globalization - answer - more cooperation amount countries, formation of international or regional organizations, NGOs Disadvantages of Political globalization - answer - reduce the importance of nation-states, loss of sovereignty and power of local government Advantages of Cultural globalization - answer - awareness of international community Disadvantages of Cultural globalization - answer - loss of uniqueness of a country's culture What is international business? - answer - any situation where the production or distribution of goods or services crosses country borders What are opportunities for international business? - answer - New and large international markets offers possible more revenues, lower costs, and access to advanced technology What are challenges for international business? - answer - Ethical business practice concerns, organizational structure (create new division), public relations (build customer loyalty), leaderships, and legal and regulatory structure What are the 5 stages of going global? - answer - 1. Market entry 2. product specialization 3. value chain disaggregation 4. value chain reengineering 5. creation of new markets Market Entry - answer - Companies enter new countries using business models similar to the ones deployed in their home markets Product specialization - answer - Companies transfer the full production process of a particular product line to a single, low-cost location and export the goods to various consumer markets Value chain disaggregation - answer - Companies disaggregate the production process and focus on completing each activity in the most advantageous location Value chain reengineering - answer - Companies seek to further increase their cost savings by reengineering their processes to suit local market conditions by substituting lower cost labor for capital Creation of new markets - answer - creates new demand due to the reduction of ticket price What are the 4 drivers of Globalization? - answer - 1. Market 2. Cost 3. Competition 4. Government Market - answer - Opportunity for scale and convergence of needs (foreign consumers have the same demand as domestic consumer, no need to redesign) Cost - answer - - Economies of scale & scope: use same production facility for multiple procedures. - Exploiting cost of factors of production: labor cost reductions, natural resources cost reduction Competition - answer - New markets & increased levels of trade Government - answer - Favorable policies, support for the industry ((can use tax bracket to attract FDI and subsidies (free money) can help domestic business reduce cost and charge lower price)) What did Thomas Friedman propose? - answer - The world is flat view - the use of technology and internet has made it easier for businesses to conduct global operation What did Ghemawat propose? - answer - The world is a multi-domestic world What is CAGE analysis? - answer - Culture, Administration, Geography, and Economics Culture (CAGE) - answer - Cultural difference could reduce country's trade volume Administration (CAGE) - answer - Administrative similar countries trade more, countries hold membership of the same trade Geography (CAGE) - answer - geographical distance between countries impact trade volume Economics (CAGE) - answer - diffe