WGU D080 Exam ACTUAL QUESTIONS
AND CORRECT ANSWERS
What are the 5 stages of going global? - CORRECT ANSWER 1. Market entry
2. product specialization
3. value chain disaggregation
4. value chain reengineering
5. creation of new markets
Market Entry - CORRECT ANSWER Companies enter new countries using business models
similar to the ones deployed in their home markets
Product specialization - CORRECT ANSWER 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 - CORRECT ANSWER Companies disaggregate the production
process and focus on completing each activity in the most advantageous location
Value chain reengineering - CORRECT ANSWER 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 - CORRECT ANSWER creates new demand due to the reduction of
ticket price
What are the 4 drivers of Globalization? - CORRECT ANSWER 1. Market
2. Cost
3. Competition
4. Government
Market - CORRECT ANSWER Opportunity for scale and convergence of needs (foreign
consumers have the same demand as domestic consumer, no need to redesign)
, Cost - CORRECT ANSWER - 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 - CORRECT ANSWER New markets & increased levels of trade
Government - CORRECT ANSWER 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? - CORRECT ANSWER 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? - CORRECT ANSWER The world is a multi-domestic world
What is CAGE analysis? - CORRECT ANSWER Culture, Administration, Geography, and
Economics
What are the 3 international institutions - CORRECT ANSWER International Monetary Fund,
World Bank, and World trade organization
What are the twin institutions - CORRECT ANSWER IMF & World bank
What was the INITIAL goal of the IMF - CORRECT ANSWER restore international payment
system, oversee the fixed exchange rate system (Brenton Woods system)
What is the current goal of the IMF - CORRECT ANSWER monitor the exchange rate system
and stabilize exchange rates, guide member countries to develop economic policies, correct the debt
issue
IMF - CORRECT ANSWER financial stability, debt, currency, and exchange rate
AND CORRECT ANSWERS
What are the 5 stages of going global? - CORRECT ANSWER 1. Market entry
2. product specialization
3. value chain disaggregation
4. value chain reengineering
5. creation of new markets
Market Entry - CORRECT ANSWER Companies enter new countries using business models
similar to the ones deployed in their home markets
Product specialization - CORRECT ANSWER 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 - CORRECT ANSWER Companies disaggregate the production
process and focus on completing each activity in the most advantageous location
Value chain reengineering - CORRECT ANSWER 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 - CORRECT ANSWER creates new demand due to the reduction of
ticket price
What are the 4 drivers of Globalization? - CORRECT ANSWER 1. Market
2. Cost
3. Competition
4. Government
Market - CORRECT ANSWER Opportunity for scale and convergence of needs (foreign
consumers have the same demand as domestic consumer, no need to redesign)
, Cost - CORRECT ANSWER - 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 - CORRECT ANSWER New markets & increased levels of trade
Government - CORRECT ANSWER 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? - CORRECT ANSWER 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? - CORRECT ANSWER The world is a multi-domestic world
What is CAGE analysis? - CORRECT ANSWER Culture, Administration, Geography, and
Economics
What are the 3 international institutions - CORRECT ANSWER International Monetary Fund,
World Bank, and World trade organization
What are the twin institutions - CORRECT ANSWER IMF & World bank
What was the INITIAL goal of the IMF - CORRECT ANSWER restore international payment
system, oversee the fixed exchange rate system (Brenton Woods system)
What is the current goal of the IMF - CORRECT ANSWER monitor the exchange rate system
and stabilize exchange rates, guide member countries to develop economic policies, correct the debt
issue
IMF - CORRECT ANSWER financial stability, debt, currency, and exchange rate
