D080 WGU Study Guide
D080 WGU Study Guide
Study online at https://quizlet.com/_i6xbuz
1. What is globaliza- Globalization is the process of increasing economic, political, social, and techno-
tion? logical interdependence and integration among countries, driven by cross-border
trade, investment, migration, information flows, and the spread of ideas and
technologies. It reshapes markets, governance, and cultures by enabling firms,
governments, and individuals to interact and transact across national boundaries
at greater speed and lower cost.
2. What business Globalization presents numerous business opportunities including access to larger
opportunities are international markets and customer bases, access to lower-cost inputs and labor,
presented by ability to diversify risk geographically, opportunities for strategic partnerships and
globalization? foreign direct investment, access to new technologies and skills, scale economies
from serving bigger markets, and the potential to tap emerging-market growth
and innovation hubs.
3. Describe eco- Economic globalization refers to the increasing integration of national economies
nomic globaliza- through trade, investment, capital flows, and technology transfer. Effects include
tion and its ef- higher trade volumes, global supply chains, specialization based on comparative
fects. advantage, increased competition, faster capital movement, potential growth in
GDP and incomes, and also risks like contagion from financial crises, job displace-
ment in some sectors, and distributional inequality within and between countries.
4. Describe political Political globalization is the convergence and interaction of political systems and
globalization and governance across borders, driven by international institutions, treaties, transna-
its effects. tional norms, and diplomatic cooperation. Effects include stronger international
regulatory regimes, more multilateral policymaking (e.g., WTO, UN), diffusion
of policy ideas, joint responses to global problems (climate, security), but also
tensions over sovereignty, domestic backlash against perceived external influence,
and new governance challenges.
5. Describe cultural Cultural globalization is the spread and mutual exchange of cultural ele-
globalization and ments—ideas, values, media, language, cuisine, and consumer tastes—across
its effects. countries. Effects include greater cultural hybridization, global media and brands
, D080 WGU Study Guide
D080 WGU Study Guide
Study online at https://quizlet.com/_i6xbuz
shaping preferences, diffusion of norms (e.g., human rights), increased cross-cul-
tural understanding, but also concerns about cultural homogenization, loss of local
traditions, and resistance to perceived cultural imperialism.
6. What are Arguments for globalization include economic growth from larger markets and
the arguments investment, increased efficiency through specialization, access to technologies
for globalization and knowledge transfer, job creation in export sectors, lower prices and greater
from a country's consumer choice, opportunities to attract foreign capital and develop industries,
perspective? and diplomatic ties that can foster peace and cooperation.
7. What are Arguments against globalization include job losses and wage pressure in indus-
the arguments tries facing foreign competition, widening income inequality, loss of cultural iden-
against globaliza- tity, vulnerability to global economic shocks, erosion of domestic policy autonomy,
tion from a coun- environmental degradation driven by global production, and exploitation of labor
try's perspective? in countries with weak protections.
8. Explain the five 1) Market entry: Firms begin exporting or selling to foreign markets to test de-
stages of enter- mand. 2) Product specialization: Firms focus on products where they have com-
ing a global mar- petitive advantage and export them widely. 3) Value-chain disaggregation: Firms
ket. separate production stages geographically to reduce costs and optimize expertise.
4) Value-chain reengineering: Firms redesign processes and integrate global
suppliers to gain efficiency and innovation. 5) Creation of new markets: Firms and
industries develop entirely new global customer segments or ecosystems through
innovation and global coordination.
9. Explain the four 1) Market drivers: Convergence of customer needs and desire for new markets en-
drivers of global- courage global expansion. 2) Cost drivers: Economies of scale (lower per-unit cost
ization. from larger production) and economies of scope (cost advantages from producing
multiple related products) motivate firms to centralize or rationalize production
internationally. 3) Competitive drivers: Competition pushes firms to globalize to
defend or grow market position, access resources, and follow rivals. 4) Government
drivers: Policies such as trade liberalization, favorable tax or investment incentives,
and support for industries can accelerate globalization.
D080 WGU Study Guide
Study online at https://quizlet.com/_i6xbuz
1. What is globaliza- Globalization is the process of increasing economic, political, social, and techno-
tion? logical interdependence and integration among countries, driven by cross-border
trade, investment, migration, information flows, and the spread of ideas and
technologies. It reshapes markets, governance, and cultures by enabling firms,
governments, and individuals to interact and transact across national boundaries
at greater speed and lower cost.
2. What business Globalization presents numerous business opportunities including access to larger
opportunities are international markets and customer bases, access to lower-cost inputs and labor,
presented by ability to diversify risk geographically, opportunities for strategic partnerships and
globalization? foreign direct investment, access to new technologies and skills, scale economies
from serving bigger markets, and the potential to tap emerging-market growth
and innovation hubs.
3. Describe eco- Economic globalization refers to the increasing integration of national economies
nomic globaliza- through trade, investment, capital flows, and technology transfer. Effects include
tion and its ef- higher trade volumes, global supply chains, specialization based on comparative
fects. advantage, increased competition, faster capital movement, potential growth in
GDP and incomes, and also risks like contagion from financial crises, job displace-
ment in some sectors, and distributional inequality within and between countries.
4. Describe political Political globalization is the convergence and interaction of political systems and
globalization and governance across borders, driven by international institutions, treaties, transna-
its effects. tional norms, and diplomatic cooperation. Effects include stronger international
regulatory regimes, more multilateral policymaking (e.g., WTO, UN), diffusion
of policy ideas, joint responses to global problems (climate, security), but also
tensions over sovereignty, domestic backlash against perceived external influence,
and new governance challenges.
5. Describe cultural Cultural globalization is the spread and mutual exchange of cultural ele-
globalization and ments—ideas, values, media, language, cuisine, and consumer tastes—across
its effects. countries. Effects include greater cultural hybridization, global media and brands
, D080 WGU Study Guide
D080 WGU Study Guide
Study online at https://quizlet.com/_i6xbuz
shaping preferences, diffusion of norms (e.g., human rights), increased cross-cul-
tural understanding, but also concerns about cultural homogenization, loss of local
traditions, and resistance to perceived cultural imperialism.
6. What are Arguments for globalization include economic growth from larger markets and
the arguments investment, increased efficiency through specialization, access to technologies
for globalization and knowledge transfer, job creation in export sectors, lower prices and greater
from a country's consumer choice, opportunities to attract foreign capital and develop industries,
perspective? and diplomatic ties that can foster peace and cooperation.
7. What are Arguments against globalization include job losses and wage pressure in indus-
the arguments tries facing foreign competition, widening income inequality, loss of cultural iden-
against globaliza- tity, vulnerability to global economic shocks, erosion of domestic policy autonomy,
tion from a coun- environmental degradation driven by global production, and exploitation of labor
try's perspective? in countries with weak protections.
8. Explain the five 1) Market entry: Firms begin exporting or selling to foreign markets to test de-
stages of enter- mand. 2) Product specialization: Firms focus on products where they have com-
ing a global mar- petitive advantage and export them widely. 3) Value-chain disaggregation: Firms
ket. separate production stages geographically to reduce costs and optimize expertise.
4) Value-chain reengineering: Firms redesign processes and integrate global
suppliers to gain efficiency and innovation. 5) Creation of new markets: Firms and
industries develop entirely new global customer segments or ecosystems through
innovation and global coordination.
9. Explain the four 1) Market drivers: Convergence of customer needs and desire for new markets en-
drivers of global- courage global expansion. 2) Cost drivers: Economies of scale (lower per-unit cost
ization. from larger production) and economies of scope (cost advantages from producing
multiple related products) motivate firms to centralize or rationalize production
internationally. 3) Competitive drivers: Competition pushes firms to globalize to
defend or grow market position, access resources, and follow rivals. 4) Government
drivers: Policies such as trade liberalization, favorable tax or investment incentives,
and support for industries can accelerate globalization.
