D080 ENHANCED STUDY GUIDE FOR OA
Globalization's economic effect - Answers -Movement of goods, capital, services,
technology, and information internationally.
Globalization's political effect - Answers -Reduces importance of nation states.
Globalization's cultural effect - Answers -Spreads ideas and values, decreasing
uniqueness.
Reason for globalization for a country - Answers -Access to bigger markets and cheap
labor.
Reason against globalization for a country - Answers -Difficulty understanding foreign
legal and political systems.
First stage of entering a global market - Answers -Enter new countries using your home
model.
Second stage of global market entry - Answers -Move full production to one location.
Third stage of global market entry - Answers -Do each production task where it's best.
Fourth stage of global market entry - Answers -Redesign production for cost savings.
Fifth stage of global market entry - Answers -Create new markets, lower prices globally.
Four drivers of globalization - Answers -Market needs, cost, competition, and
government actions.
"World is flat" view - Answers -Technology/events have made the world smaller, more
connected.
CAGE - Answers -Culture, Administration, Geography, Economic distance.
Benefit of global expansion for MNCs - Answers -Unsaturated demand, cheaper
labor/resources, higher revenue.
Costs of global expansion for MNCs - Answers -Ethical, organizational, PR, leadership,
legal challenges.
Five political systems - Answers -Anarchy, monarchy, democracy, oligarchy,
dictatorship.
Anarchy - Answers -No government, individuals rule.
, Monarchy - Answers -Single ruler (king/queen) or constitutional.
Democracy - Answers -Citizens vote, government is involved.
Oligarchy - Answers -Small group holds power.
Dictatorship - Answers -Single person in charge.
Four economic systems - Answers -Traditional, market, command, mixed economies.
Traditional economy - Answers -Inherited jobs, minimal growth, oldest system.
Market economy - Answers -Consumer demand drives production and prices.
Command economy - Answers -Government controls resources, production, pricing.
Mixed economy - Answers -Combines free market with government intervention.
Heckscher-Ohlin theory - Answers -Countries excel in products using available
resources.
country similarity theory - Answers -Firms export to markets similar to their home
country.
global strategic rivalry theory - Answers -Firms trade globally to boost competitive edge
(like R&D, economies of scale).
specialization in trade - Answers -Countries produce only what they're best at for
greater efficiency.
major free trade concern for jobs - Answers -Manufacturing jobs lost in developed
nations; labor rights in developing nations.
import tariff - Answers -Tax on imports.
export tariff - Answers -Tax on goods leaving a country.
revenue tariff - Answers -Tariff to raise money for the government.
protective tariff - Answers -Tariff to protect domestic industries.
specific tariff - Answers -Fixed amount charged per unit.
ad valorem tariff - Answers -Tariff based on a percentage of item value.
Globalization's economic effect - Answers -Movement of goods, capital, services,
technology, and information internationally.
Globalization's political effect - Answers -Reduces importance of nation states.
Globalization's cultural effect - Answers -Spreads ideas and values, decreasing
uniqueness.
Reason for globalization for a country - Answers -Access to bigger markets and cheap
labor.
Reason against globalization for a country - Answers -Difficulty understanding foreign
legal and political systems.
First stage of entering a global market - Answers -Enter new countries using your home
model.
Second stage of global market entry - Answers -Move full production to one location.
Third stage of global market entry - Answers -Do each production task where it's best.
Fourth stage of global market entry - Answers -Redesign production for cost savings.
Fifth stage of global market entry - Answers -Create new markets, lower prices globally.
Four drivers of globalization - Answers -Market needs, cost, competition, and
government actions.
"World is flat" view - Answers -Technology/events have made the world smaller, more
connected.
CAGE - Answers -Culture, Administration, Geography, Economic distance.
Benefit of global expansion for MNCs - Answers -Unsaturated demand, cheaper
labor/resources, higher revenue.
Costs of global expansion for MNCs - Answers -Ethical, organizational, PR, leadership,
legal challenges.
Five political systems - Answers -Anarchy, monarchy, democracy, oligarchy,
dictatorship.
Anarchy - Answers -No government, individuals rule.
, Monarchy - Answers -Single ruler (king/queen) or constitutional.
Democracy - Answers -Citizens vote, government is involved.
Oligarchy - Answers -Small group holds power.
Dictatorship - Answers -Single person in charge.
Four economic systems - Answers -Traditional, market, command, mixed economies.
Traditional economy - Answers -Inherited jobs, minimal growth, oldest system.
Market economy - Answers -Consumer demand drives production and prices.
Command economy - Answers -Government controls resources, production, pricing.
Mixed economy - Answers -Combines free market with government intervention.
Heckscher-Ohlin theory - Answers -Countries excel in products using available
resources.
country similarity theory - Answers -Firms export to markets similar to their home
country.
global strategic rivalry theory - Answers -Firms trade globally to boost competitive edge
(like R&D, economies of scale).
specialization in trade - Answers -Countries produce only what they're best at for
greater efficiency.
major free trade concern for jobs - Answers -Manufacturing jobs lost in developed
nations; labor rights in developing nations.
import tariff - Answers -Tax on imports.
export tariff - Answers -Tax on goods leaving a country.
revenue tariff - Answers -Tariff to raise money for the government.
protective tariff - Answers -Tariff to protect domestic industries.
specific tariff - Answers -Fixed amount charged per unit.
ad valorem tariff - Answers -Tariff based on a percentage of item value.
