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