D080 study for OA Questions and Answers Graded A

D080 study for OA Questions and Answers Graded A What is globalization? as international integration arising from the exchange of world views, products, ideas, and other aspects of culture. What is Culture Globalization? 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? 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? A process of increasing cross-border flows of capital, goods, services, and people What is International Business? the buying, selling, and trading of goods and services across national boundaries What is intellectual property? 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? 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? 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? 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? 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? 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? *Market *Cost *Competition *Government What is a market globalization driver? Opportunity for scale Convergence of needs What is a cost globalization driver? Deals with economies of scale and scope, Exploiting cost of factors of production What is a competitive driver in globalization? new markets increase levels of trade What is a government driver in globalization? favorable policies support for industry What is economies of scale? when the average cost of producing a good or service falls as the quantity produced increases What is economies of scope? -Lowering the initial price of production -Multi-product production