WGU - D080/ FVC1
Enhanced Study Guide
,What is globalization? - CORRECT ANSWERS-When international integration arises
from the interchange of world views, products, ideas and cultures.
What business opportunities are presented by globalization? - CORRECT ANSWERS-
Trade, transactions, capital, and investment movements. The migration and movement
of people and the dissemination of knowledge.
What are the economic effects of globalization? - CORRECT ANSWERS-International
movement of goods, capital, services and technology and information.
What are the political effects of globalization? - CORRECT ANSWERS-Reduces
importance of nation states
What are the cultural effects of globalization? - CORRECT ANSWERS-Ideas,
meanings, values. Decreased uniqueness by once-isolated communities.
What are the arguments for globalization from a country's perspective? - CORRECT
ANSWERS-Access to broader market, gains access to cheap labor.
What are the arguments against globalization from a country's perspective? -
CORRECT ANSWERS-Needs to understand foreign legal and political policies.
Explain the five stages of entering a global market. - CORRECT ANSWERS-1. First
stage (market entry),
Companies enter new country's using business models similar to the ones in home
market.
2. Second stage (product specialization),
Companies transfer the full production process of a product to a single location.
3. Third stage (value chain disaggregation)
Desegregating the the production process and focus on completing each activity in a
better location. (different areas)
4. Fourth stage (value chain reengineering),
Companies seek to further increase their cost savings by reengineering their production
process
5. Fifth stage (creation of new markets)
Allows companies to lower their sticker prices in both new and old markets.
Explain Four drivers of globalization. - CORRECT ANSWERS-1. Market - explain
convergence of needs,
Allows companies to lower their sticker prices in both new and old markets.
2. Cost - define economies of scale and economies of scope
Refers to product development, manufacturing, and sourcing.
3. Competition - New markets, increased level of trade.
4. Government - Absence or presence of trade policies, technical standards, policies
and regulations.
,What is the difference between the world is flat view and the CAGE analysis? -
CORRECT ANSWERS-Events that made the world smaller.
CAGE analysis
1."C" is for culture - Shared beliefs, practices, norms.
2."A" is for administration - Similar country's trade with each other
3."G" is for geography - Location
4."E" is for economic distance - Socioeconomic and demiographic.
What are the benefits of global expansion from MNCs' perspective? - CORRECT
ANSWERS-Unsaturated demand for new product
Lower labor costs
Less expensive natural resources
Higher revenue or lower structure cost
What are the costs of global expansion from MNCs' perspective? - CORRECT
ANSWERS-Costs
Ethical business practice (labor, safety, environment)
Organizational structure (incorporating new regions to the value chain)
Public relations
Leadership
Legal and regulatory structure
List five different political systems and differentiate them. - CORRECT ANSWERS-
Anarchy
Monarchy
Democracy
Oligarchy
Dictatorship
Anarchy - CORRECT ANSWERS-No govt is needed - individuals control the country
Monarchy - CORRECT ANSWERS-King or Queen rules the country or Constitutional
Monarchy: Aruba & Australia
Democracy - CORRECT ANSWERS-Citizens organize political parties. Equal voice or
vote in determining policy but government is involved
Oligarchy - CORRECT ANSWERS-Owned by a small group of people, achieves power
due to military, economic or other powers
Dictatorship - CORRECT ANSWERS-Single person is in charge
Anarchy - CORRECT ANSWERS-No countries are ruled by anarchy, but some regions
in Afghanistan and Somalia
, Absolute monarchy - CORRECT ANSWERS-single person ruling until death, such as
the United Kingdom
Constitutional monarchy - CORRECT ANSWERS-Australia
Oligarchy - CORRECT ANSWERS-Russia, S. Korea
Dictatorship - CORRECT ANSWERS-Libya or Germany during WWI and WWII
Democracy - CORRECT ANSWERS-United States of America
List four different economic systems - CORRECT ANSWERS-1. Traditional Economy
2. Market Economy
3. Command Economy
4. Mixed Economies
Traditional Economy - CORRECT ANSWERS-The traditional economy uses methods of
trade and exchange that are passed through generations. It is the oldest of the four
economic systems and can still be found in parts of South America, Africa, and Asia.
Occupations, usually farming, are passed down through generations. People live off the
products of their labor. Traditional economies have very little economic evolution or
growth.
Market Economy - CORRECT ANSWERS-In a market (decentralized) economic
system, leaders make decisions based on consumer demands. Goods and services are
produced and distributed according to the rules of supply and demand. In other words,
consumers influence how many products and services are made available through their
purchasing and usage patterns.
Command Economy - CORRECT ANSWERS-Communist societies use a command or
centrally controlled economy. Resources and businesses are owned by the
government, which decides which goods and services will be produced and what prices
will be charged. North Korea and Cuba have command economies.
Mixed Economies - CORRECT ANSWERS-A mixed economy borrows the following
characteristics from a market economy: It protects private property, the laws of supply
and demand determine prices in a free market, and it is driven by self-interest. A mixed
economy, like a command economy, uses the federal government to protect the people
and the market and oversee the military, international trade, and national transportation.
List different legal systems - CORRECT ANSWERS-a. Civil law
Common Law
Religious Law
Please provide three legal systems - CORRECT ANSWERS-1. Civil law
2. Common Law
Enhanced Study Guide
,What is globalization? - CORRECT ANSWERS-When international integration arises
from the interchange of world views, products, ideas and cultures.
What business opportunities are presented by globalization? - CORRECT ANSWERS-
Trade, transactions, capital, and investment movements. The migration and movement
of people and the dissemination of knowledge.
What are the economic effects of globalization? - CORRECT ANSWERS-International
movement of goods, capital, services and technology and information.
What are the political effects of globalization? - CORRECT ANSWERS-Reduces
importance of nation states
What are the cultural effects of globalization? - CORRECT ANSWERS-Ideas,
meanings, values. Decreased uniqueness by once-isolated communities.
What are the arguments for globalization from a country's perspective? - CORRECT
ANSWERS-Access to broader market, gains access to cheap labor.
What are the arguments against globalization from a country's perspective? -
CORRECT ANSWERS-Needs to understand foreign legal and political policies.
Explain the five stages of entering a global market. - CORRECT ANSWERS-1. First
stage (market entry),
Companies enter new country's using business models similar to the ones in home
market.
2. Second stage (product specialization),
Companies transfer the full production process of a product to a single location.
3. Third stage (value chain disaggregation)
Desegregating the the production process and focus on completing each activity in a
better location. (different areas)
4. Fourth stage (value chain reengineering),
Companies seek to further increase their cost savings by reengineering their production
process
5. Fifth stage (creation of new markets)
Allows companies to lower their sticker prices in both new and old markets.
Explain Four drivers of globalization. - CORRECT ANSWERS-1. Market - explain
convergence of needs,
Allows companies to lower their sticker prices in both new and old markets.
2. Cost - define economies of scale and economies of scope
Refers to product development, manufacturing, and sourcing.
3. Competition - New markets, increased level of trade.
4. Government - Absence or presence of trade policies, technical standards, policies
and regulations.
,What is the difference between the world is flat view and the CAGE analysis? -
CORRECT ANSWERS-Events that made the world smaller.
CAGE analysis
1."C" is for culture - Shared beliefs, practices, norms.
2."A" is for administration - Similar country's trade with each other
3."G" is for geography - Location
4."E" is for economic distance - Socioeconomic and demiographic.
What are the benefits of global expansion from MNCs' perspective? - CORRECT
ANSWERS-Unsaturated demand for new product
Lower labor costs
Less expensive natural resources
Higher revenue or lower structure cost
What are the costs of global expansion from MNCs' perspective? - CORRECT
ANSWERS-Costs
Ethical business practice (labor, safety, environment)
Organizational structure (incorporating new regions to the value chain)
Public relations
Leadership
Legal and regulatory structure
List five different political systems and differentiate them. - CORRECT ANSWERS-
Anarchy
Monarchy
Democracy
Oligarchy
Dictatorship
Anarchy - CORRECT ANSWERS-No govt is needed - individuals control the country
Monarchy - CORRECT ANSWERS-King or Queen rules the country or Constitutional
Monarchy: Aruba & Australia
Democracy - CORRECT ANSWERS-Citizens organize political parties. Equal voice or
vote in determining policy but government is involved
Oligarchy - CORRECT ANSWERS-Owned by a small group of people, achieves power
due to military, economic or other powers
Dictatorship - CORRECT ANSWERS-Single person is in charge
Anarchy - CORRECT ANSWERS-No countries are ruled by anarchy, but some regions
in Afghanistan and Somalia
, Absolute monarchy - CORRECT ANSWERS-single person ruling until death, such as
the United Kingdom
Constitutional monarchy - CORRECT ANSWERS-Australia
Oligarchy - CORRECT ANSWERS-Russia, S. Korea
Dictatorship - CORRECT ANSWERS-Libya or Germany during WWI and WWII
Democracy - CORRECT ANSWERS-United States of America
List four different economic systems - CORRECT ANSWERS-1. Traditional Economy
2. Market Economy
3. Command Economy
4. Mixed Economies
Traditional Economy - CORRECT ANSWERS-The traditional economy uses methods of
trade and exchange that are passed through generations. It is the oldest of the four
economic systems and can still be found in parts of South America, Africa, and Asia.
Occupations, usually farming, are passed down through generations. People live off the
products of their labor. Traditional economies have very little economic evolution or
growth.
Market Economy - CORRECT ANSWERS-In a market (decentralized) economic
system, leaders make decisions based on consumer demands. Goods and services are
produced and distributed according to the rules of supply and demand. In other words,
consumers influence how many products and services are made available through their
purchasing and usage patterns.
Command Economy - CORRECT ANSWERS-Communist societies use a command or
centrally controlled economy. Resources and businesses are owned by the
government, which decides which goods and services will be produced and what prices
will be charged. North Korea and Cuba have command economies.
Mixed Economies - CORRECT ANSWERS-A mixed economy borrows the following
characteristics from a market economy: It protects private property, the laws of supply
and demand determine prices in a free market, and it is driven by self-interest. A mixed
economy, like a command economy, uses the federal government to protect the people
and the market and oversee the military, international trade, and national transportation.
List different legal systems - CORRECT ANSWERS-a. Civil law
Common Law
Religious Law
Please provide three legal systems - CORRECT ANSWERS-1. Civil law
2. Common Law
