D080 MOCK EXAM QUESTIONS AND
CORRECT ANSWERS!!
five stages of entering a global market
1. market entry
2. product specialization
3. value chain disaggregation: completing each step of the process in the most advantageous
location
4. value chain reengineering: adjusting processes to suit local market conditions
5. creation of new markets: expanding
globalization drivers
- market: some extent of standardization between markets
- cost: economies of scale and scope
- competition: new markets and increased level of trade
- government: favorable trade policies and support for industry
benefits of globalization
- faster development
- greater awareness of international communities
- potential for more wealth as you sell to broader markets
- higher degrees of political and economic freedom
- more competition lowers prices
- greater access to information
- higher levels of tolerance
drawbacks of globalization
- environmental impact
- exploitation of developing countries
- manipulation of currency for price advantage
- fear of jobs being taken overseas
, - wider wage gap, poor get poorer
- more inequality
- large MNC's weakening small governments
- unfair exchange between big and small countries
ways to measure distance between countries
- culture
- administration
- geography
- economy
*countries that are more similar in these aspects are more likely to be successful in trading with
each other
types of political systems
- anarchy
- monarchy
- oligarchy
- dictatorship
- democracy
types of economic systems
- traditional: trade and bartering
- command: resources and businesses owned by the gov't
- market: driven by demand, decentralized
- mixed: protects private ownership, but there are regulations in place and some industries are
government run
types of legal systems
- civil law: written code that applies laws to facts. Judges instead of juries
- common law: based on precedents. Jury determines facts and judge applies the law
- religious law
- customary law; local or tribal, no strong formal justice system
CORRECT ANSWERS!!
five stages of entering a global market
1. market entry
2. product specialization
3. value chain disaggregation: completing each step of the process in the most advantageous
location
4. value chain reengineering: adjusting processes to suit local market conditions
5. creation of new markets: expanding
globalization drivers
- market: some extent of standardization between markets
- cost: economies of scale and scope
- competition: new markets and increased level of trade
- government: favorable trade policies and support for industry
benefits of globalization
- faster development
- greater awareness of international communities
- potential for more wealth as you sell to broader markets
- higher degrees of political and economic freedom
- more competition lowers prices
- greater access to information
- higher levels of tolerance
drawbacks of globalization
- environmental impact
- exploitation of developing countries
- manipulation of currency for price advantage
- fear of jobs being taken overseas
, - wider wage gap, poor get poorer
- more inequality
- large MNC's weakening small governments
- unfair exchange between big and small countries
ways to measure distance between countries
- culture
- administration
- geography
- economy
*countries that are more similar in these aspects are more likely to be successful in trading with
each other
types of political systems
- anarchy
- monarchy
- oligarchy
- dictatorship
- democracy
types of economic systems
- traditional: trade and bartering
- command: resources and businesses owned by the gov't
- market: driven by demand, decentralized
- mixed: protects private ownership, but there are regulations in place and some industries are
government run
types of legal systems
- civil law: written code that applies laws to facts. Judges instead of juries
- common law: based on precedents. Jury determines facts and judge applies the law
- religious law
- customary law; local or tribal, no strong formal justice system
