WGU D080 EXAM QUESTIONS AND ANSWERS VERIFIED
AND APPROVED BY EXPERT
What is globalization?
When international integration arises from the interchange of world views, products,
ideas, and other aspects of cultures.
different types of Globalization
1. Economic
2. Political
3. Cultural
Advantages of Economic globalization
more trade, investments, information technology, faster economic development, and
increased social being
Disadvantages of Economic globalization
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
more cooperation amount countries, formation of international or regional organizations,
NGOs
Disadvantages of Political globalization
reduce the importance of nation-states, loss of sovereignty and power of local
government
Advantages of Cultural globalization
awareness of international community
Disadvantages of Cultural globalization
loss of uniqueness of a country's culture
,What is international business?
any situation where the production or distribution of goods or services crosses country
borders
What are opportunities for international business?
New and large international markets offers possible more revenues, lower costs, and
access to advanced technology
What are challenges for international business?
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?
1. Market entry
2. product specialization
3. value chain disaggregation
4. value chain reengineering
5. creation of new markets
Market Entry
Companies enter new countries using business models similar to the ones deployed in
their home markets
Product specialization
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
Companies disaggregate the production process and focus on completing each activity
in the most advantageous location
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
Creation of new markets
creates new demand due to the reduction of ticket price
What are the 4 drivers of Globalization?
, 1. Market
2. Cost
3. Competition
4. Government
Market
Opportunity for scale and convergence of needs (foreign consumers have the same
demand as domestic consumer, no need to redesign)
Cost
- 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
New markets & increased levels of trade
Government
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?
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?
The world is a multi-domestic world
What is CAGE analysis?
Culture, Administration, Geography, and Economics
Culture (CAGE)
Cultural difference could reduce country's trade volume
Administration (CAGE)
Administrative similar countries trade more, countries hold membership of the same
trade
Geography (CAGE)
geographical distance between countries impact trade volume
AND APPROVED BY EXPERT
What is globalization?
When international integration arises from the interchange of world views, products,
ideas, and other aspects of cultures.
different types of Globalization
1. Economic
2. Political
3. Cultural
Advantages of Economic globalization
more trade, investments, information technology, faster economic development, and
increased social being
Disadvantages of Economic globalization
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
more cooperation amount countries, formation of international or regional organizations,
NGOs
Disadvantages of Political globalization
reduce the importance of nation-states, loss of sovereignty and power of local
government
Advantages of Cultural globalization
awareness of international community
Disadvantages of Cultural globalization
loss of uniqueness of a country's culture
,What is international business?
any situation where the production or distribution of goods or services crosses country
borders
What are opportunities for international business?
New and large international markets offers possible more revenues, lower costs, and
access to advanced technology
What are challenges for international business?
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?
1. Market entry
2. product specialization
3. value chain disaggregation
4. value chain reengineering
5. creation of new markets
Market Entry
Companies enter new countries using business models similar to the ones deployed in
their home markets
Product specialization
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
Companies disaggregate the production process and focus on completing each activity
in the most advantageous location
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
Creation of new markets
creates new demand due to the reduction of ticket price
What are the 4 drivers of Globalization?
, 1. Market
2. Cost
3. Competition
4. Government
Market
Opportunity for scale and convergence of needs (foreign consumers have the same
demand as domestic consumer, no need to redesign)
Cost
- 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
New markets & increased levels of trade
Government
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?
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?
The world is a multi-domestic world
What is CAGE analysis?
Culture, Administration, Geography, and Economics
Culture (CAGE)
Cultural difference could reduce country's trade volume
Administration (CAGE)
Administrative similar countries trade more, countries hold membership of the same
trade
Geography (CAGE)
geographical distance between countries impact trade volume
