MGSC EXAM 2 PAPER 2026 SOLVED
QUESTIONS AND FULL SOLUTION GRADED A+
◉ Global Locations: Facilitates Factors.
Answer: • Two key factors have contributed to the attractiveness of
globalization:
- Trade Agreements such as
• North American Free Trade Agreement (NAFTA)
• General Agreement on Tariffs and Trade (GATT)
• U.S.-China Trade Relations Act
• EU and WTO efforts to facilitate trade
- Technology
• Advances in communication and information
technology
◉ Global locations: Benefits.
Answer: • A wide range of benefits have accrued to
organizations that have globalized
operations:
- Markets
- Cost savings
,- Legal and regulatory
- Financial
- Other
◉ Global locations: disadvantages.
Answer: • There are a number of disadvantages that
may arise when locating globally:
- Transportation costs
- Security costs
- Unskilled labor
- Import restrictions
- Criticism for locating out-of-country
◉ Global locations: risks.
Answer: • Organizations locating globally should be
aware of potential risk factors related to:
- Political instability and unrest
- Terrorism
- Economic instability
- Legal regulation
- Ethical considerations
- Cultural differences
,◉ Managing Global Operations.
Answer: • Managerial implications for global operations:
- Language and cultural differences
• Risk of miscommunication
• Development of trust
• Different management styles
• Corruption and bribery
- Increased travel (and related) costs
- Challenges associated with managing far-flung operations
- Level of technology and resistance to technological
change
- Domestic personnel may resist locating, even temporarily
◉ Capabilities and the decision location.
Answer: • Often driven too much by short-term
considerations
- wage rates
- exchange rates
• Better approach is to consider how
location impacts development of long-term
capabilities
, ◉ Six step process.
Answer: • Identify Sources of Value - order winners
• Identify Capabilities Needed - to have a comp.
adv. (B&D small electric motors, Sony - miniaturization, Canon-
imaging)
• Assess Implications of Location Decision
on Development of Capabilities (Quality Coils)
• Identify Potential Locations
• Evaluate Locations
• Develop Strategy for Building Network of
Locations
◉ Levels of location decisions.
Answer: • Continent/ Country
• Region within a country
• Community/ Locality
• Specific site
◉ Identify a country.
Answer: Image
QUESTIONS AND FULL SOLUTION GRADED A+
◉ Global Locations: Facilitates Factors.
Answer: • Two key factors have contributed to the attractiveness of
globalization:
- Trade Agreements such as
• North American Free Trade Agreement (NAFTA)
• General Agreement on Tariffs and Trade (GATT)
• U.S.-China Trade Relations Act
• EU and WTO efforts to facilitate trade
- Technology
• Advances in communication and information
technology
◉ Global locations: Benefits.
Answer: • A wide range of benefits have accrued to
organizations that have globalized
operations:
- Markets
- Cost savings
,- Legal and regulatory
- Financial
- Other
◉ Global locations: disadvantages.
Answer: • There are a number of disadvantages that
may arise when locating globally:
- Transportation costs
- Security costs
- Unskilled labor
- Import restrictions
- Criticism for locating out-of-country
◉ Global locations: risks.
Answer: • Organizations locating globally should be
aware of potential risk factors related to:
- Political instability and unrest
- Terrorism
- Economic instability
- Legal regulation
- Ethical considerations
- Cultural differences
,◉ Managing Global Operations.
Answer: • Managerial implications for global operations:
- Language and cultural differences
• Risk of miscommunication
• Development of trust
• Different management styles
• Corruption and bribery
- Increased travel (and related) costs
- Challenges associated with managing far-flung operations
- Level of technology and resistance to technological
change
- Domestic personnel may resist locating, even temporarily
◉ Capabilities and the decision location.
Answer: • Often driven too much by short-term
considerations
- wage rates
- exchange rates
• Better approach is to consider how
location impacts development of long-term
capabilities
, ◉ Six step process.
Answer: • Identify Sources of Value - order winners
• Identify Capabilities Needed - to have a comp.
adv. (B&D small electric motors, Sony - miniaturization, Canon-
imaging)
• Assess Implications of Location Decision
on Development of Capabilities (Quality Coils)
• Identify Potential Locations
• Evaluate Locations
• Develop Strategy for Building Network of
Locations
◉ Levels of location decisions.
Answer: • Continent/ Country
• Region within a country
• Community/ Locality
• Specific site
◉ Identify a country.
Answer: Image
