What is globalization? - ANS-When international integration arises from the interchange
of world views, products, ideas and cultures.
What are business opportunities that are presented by globalization? - ANS-Trade,
transactions, capital and investment movements. The migration and movement of
people and the dissemination of knowledge.
Culture effects of globalization - ANS-Ideas, meanings, values. Decreased uniqueness
by once isolated communities.
Political effects of globalization - ANS-Reduces importance of nation states
Economic effects of globalization - ANS-International movement of goods, capital,
services and technology and information.
What are arguments for globalization? - ANS-Access to broader market, gains access
to cheap labor.
What are arguments against globalization? - ANS-Needs to understand foreign legal
and political policies.
Market entry (Five stages of entering a global market) - ANS-Companies enter new
country's using business models similar to the ones in home market.
Production Specialization (Five stages of entering a global market) - ANS-Companies
transfer the full production process of a product to a single location.
Value Chain Desegregation (Five stages of entering a global market) -
ANS-Desegregating the the production process and focus on completing each activity in
a better location. (different areas)
Value Chain Reengineering (Five stages of entering a global market) - ANS-Companies
seek to further increase their cost savings by reengineering their production process.
Creation of New Markets (Five stages of entering a global market) - ANS-Allows
companies to lower their sticker prices in both new and old markets.
, Cost Driver (4 drivers of globalization) - ANS-Refers to product development,
manufacturing, and sourcing.
Competitive Driver (4 drivers of globalization) - ANS-New markets, increased level of
trade.
Market Driver (4 drivers of globalization) - ANS-Customer needs. Preferences vary by
product.
Government Driver (4 drivers of globalization) - ANS-Absence or presence of trade
policies, technical standards, policies and regulations.
Economies of Scale - ANS-Refers to the concept that the unit cost to produce a product
will decline as the variety increases.
Benefits of Global Expansion - ANS-More array of products, services technologies,
medicines, and knowledge
Increased sales and exchanges
Growth rate in GDP
MNC's Benefits of Global Expansion - ANS-Unsaturated demand for new product
Lower labor costs
Less expensive natural resources
Higher revenue or lower structure cost
MNC's Cost of Global Expansion - ANS-Ethical business practice (labor, safety,
environment)
Organizational structure (incorporating new regions to the value chain)
Public relations
Leadership
Legal and regulatory structure
C (CAGE) - ANS-Culture. Shared beliefs, practices, norms.
A (CAGE) - ANS-Administration. Similar country's trade with each other
G (CAGE) - ANS-Geography. Location
E (CAGE) - ANS-Economic. Socioeconomic and demiographic