WGU D080 EXAM QUESTION WITH
ANSWERS
What is globalization? - CORRECT ANSWERS-When international integration arises
from the interchange of world views, products, ideas, and other aspects of cultures.
different types of Globalization - CORRECT ANSWERS-1. Economic
2. Political
3. Cultural
Advantages of Economic globalization - CORRECT ANSWERS-more trade,
investments, information technology, faster economic development, and increased
social being
Disadvantages of Economic globalization - CORRECT ANSWERS-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 - CORRECT ANSWERS-more cooperation amount
countries, formation of international or regional organizations, NGOs
Disadvantages of Political globalization - CORRECT ANSWERS-reduce the importance
of nation-states, loss of sovereignty and power of local government
Advantages of Cultural globalization - CORRECT ANSWERS-awareness of
international community
Disadvantages of Cultural globalization - CORRECT ANSWERS-loss of uniqueness of
a country's culture
What is international business? - CORRECT ANSWERS-any situation where the
production or distribution of goods or services crosses country borders
What are opportunities for international business? - CORRECT ANSWERS-New and
large international markets offers possible more revenues, lower costs, and access to
advanced technology
,What are challenges for international business? - CORRECT ANSWERS-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? - CORRECT ANSWERS-1. Market entry
2. product specialization
3. value chain disaggregation
4. value chain reengineering
5. creation of new markets
Market Entry - CORRECT ANSWERS-Companies enter new countries using business
models similar to the ones deployed in their home markets
Product specialization - CORRECT ANSWERS-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 - CORRECT ANSWERS-Companies disaggregate the
production process and focus on completing each activity in the most advantageous
location
Value chain reengineering - CORRECT ANSWERS-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 - CORRECT ANSWERS-creates new demand due to the
reduction of ticket price
What are the 4 drivers of Globalization? - CORRECT ANSWERS-1. Market
2. Cost
3. Competition
4. Government
Market - CORRECT ANSWERS-Opportunity for scale and convergence of needs
(foreign consumers have the same demand as domestic consumer, no need to
redesign)
Cost - CORRECT ANSWERS-- 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 - CORRECT ANSWERS-New markets & increased levels of trade
, Government - CORRECT ANSWERS-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? - CORRECT ANSWERS-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? - CORRECT ANSWERS-The world is a multi-domestic
world
What is CAGE analysis? - CORRECT ANSWERS-Culture, Administration, Geography,
and Economics
Culture (CAGE) - CORRECT ANSWERS-Cultural difference could reduce country's
trade volume
Administration (CAGE) - CORRECT ANSWERS-Administrative similar countries trade
more, countries hold membership of the same trade
Geography (CAGE) - CORRECT ANSWERS-geographical distance between countries
impact trade volume
Economics (CAGE) - CORRECT ANSWERS-differences in demographics and
socioeconomics conditions such as standard of living, factors of production costs, etc.
Anarchy - CORRECT ANSWERS-individuals country the country, no government
needed
Monarchy - CORRECT ANSWERS-Royal power
Absolute monarchy - CORRECT ANSWERS-king/queen has absolute power
constitutional monarchy - CORRECT ANSWERS-queen is only symbol, prime minister
has absolute admin. power
Oligarchy - CORRECT ANSWERS-Achieve power due to military, economic, or other
powers, small group of elite members
Dictatorship - CORRECT ANSWERS-Single person
Democracy - CORRECT ANSWERS-Equal voice or vote in determining state policy
Economic systems - CORRECT ANSWERS-determines a county's economic
production of goods and services
ANSWERS
What is globalization? - CORRECT ANSWERS-When international integration arises
from the interchange of world views, products, ideas, and other aspects of cultures.
different types of Globalization - CORRECT ANSWERS-1. Economic
2. Political
3. Cultural
Advantages of Economic globalization - CORRECT ANSWERS-more trade,
investments, information technology, faster economic development, and increased
social being
Disadvantages of Economic globalization - CORRECT ANSWERS-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 - CORRECT ANSWERS-more cooperation amount
countries, formation of international or regional organizations, NGOs
Disadvantages of Political globalization - CORRECT ANSWERS-reduce the importance
of nation-states, loss of sovereignty and power of local government
Advantages of Cultural globalization - CORRECT ANSWERS-awareness of
international community
Disadvantages of Cultural globalization - CORRECT ANSWERS-loss of uniqueness of
a country's culture
What is international business? - CORRECT ANSWERS-any situation where the
production or distribution of goods or services crosses country borders
What are opportunities for international business? - CORRECT ANSWERS-New and
large international markets offers possible more revenues, lower costs, and access to
advanced technology
,What are challenges for international business? - CORRECT ANSWERS-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? - CORRECT ANSWERS-1. Market entry
2. product specialization
3. value chain disaggregation
4. value chain reengineering
5. creation of new markets
Market Entry - CORRECT ANSWERS-Companies enter new countries using business
models similar to the ones deployed in their home markets
Product specialization - CORRECT ANSWERS-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 - CORRECT ANSWERS-Companies disaggregate the
production process and focus on completing each activity in the most advantageous
location
Value chain reengineering - CORRECT ANSWERS-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 - CORRECT ANSWERS-creates new demand due to the
reduction of ticket price
What are the 4 drivers of Globalization? - CORRECT ANSWERS-1. Market
2. Cost
3. Competition
4. Government
Market - CORRECT ANSWERS-Opportunity for scale and convergence of needs
(foreign consumers have the same demand as domestic consumer, no need to
redesign)
Cost - CORRECT ANSWERS-- 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 - CORRECT ANSWERS-New markets & increased levels of trade
, Government - CORRECT ANSWERS-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? - CORRECT ANSWERS-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? - CORRECT ANSWERS-The world is a multi-domestic
world
What is CAGE analysis? - CORRECT ANSWERS-Culture, Administration, Geography,
and Economics
Culture (CAGE) - CORRECT ANSWERS-Cultural difference could reduce country's
trade volume
Administration (CAGE) - CORRECT ANSWERS-Administrative similar countries trade
more, countries hold membership of the same trade
Geography (CAGE) - CORRECT ANSWERS-geographical distance between countries
impact trade volume
Economics (CAGE) - CORRECT ANSWERS-differences in demographics and
socioeconomics conditions such as standard of living, factors of production costs, etc.
Anarchy - CORRECT ANSWERS-individuals country the country, no government
needed
Monarchy - CORRECT ANSWERS-Royal power
Absolute monarchy - CORRECT ANSWERS-king/queen has absolute power
constitutional monarchy - CORRECT ANSWERS-queen is only symbol, prime minister
has absolute admin. power
Oligarchy - CORRECT ANSWERS-Achieve power due to military, economic, or other
powers, small group of elite members
Dictatorship - CORRECT ANSWERS-Single person
Democracy - CORRECT ANSWERS-Equal voice or vote in determining state policy
Economic systems - CORRECT ANSWERS-determines a county's economic
production of goods and services
