WGU D080 OA UPDATED ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS
●● different types of Globalization
Answer: 1. Economic
2. Political
3. Cultural
●● Advantages of Economic globalization
Answer: more trade, investments, information technology, faster
economic development, and increased social being
●● Disadvantages of Economic globalization
Answer: benefits the rich at the expense of the poor, manufacturing job
loss in developed countries, environmental damage, and unethical
practices of labor
●● Advantages of Political globalization
Answer: more cooperation amount countries, formation of international
or regional organizations, NGOs
●● Disadvantages of Political globalization
,Answer: reduce the importance of nation-states, loss of sovereignty and
power of local government
●● Advantages of Cultural globalization
Answer: awareness of international community
●● Disadvantages of Cultural globalization
Answer: loss of uniqueness of a country's culture
●● What is international business?
Answer: any situation where the production or distribution of goods or
services crosses country borders
●● What are opportunities for international business?
Answer: New and large international markets offers possible more
revenues, lower costs, and access to advanced technology
●● What are challenges for international business?
Answer: Ethical business practice concerns, organizational structure
(create new division), public relations (build customer loyalty),
leaderships, and legal and regulatory structure
●● What are the 5 stages of going global?
,Answer: 1. Market entry
2. product specialization
3. value chain disaggregation
4. value chain reengineering
5. creation of new markets
●● Market Entry
Answer: Companies enter new countries using business models similar
to the ones deployed in their home markets
●● Product specialization
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
Answer: Companies disaggregate the production process and focus on
completing each activity in the most advantageous location
●● Value chain reengineering
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
Answer: creates new demand due to the reduction of ticket price
●● What are the 4 drivers of Globalization?
Answer: 1. Market
2. Cost
3. Competition
4. Government
●● Market
Answer: Opportunity for scale and convergence of needs (foreign
consumers have the same demand as domestic consumer, no need to
redesign)
●● Cost
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
Answer: New markets & increased levels of trade
QUESTIONS AND CORRECT ANSWERS
●● different types of Globalization
Answer: 1. Economic
2. Political
3. Cultural
●● Advantages of Economic globalization
Answer: more trade, investments, information technology, faster
economic development, and increased social being
●● Disadvantages of Economic globalization
Answer: benefits the rich at the expense of the poor, manufacturing job
loss in developed countries, environmental damage, and unethical
practices of labor
●● Advantages of Political globalization
Answer: more cooperation amount countries, formation of international
or regional organizations, NGOs
●● Disadvantages of Political globalization
,Answer: reduce the importance of nation-states, loss of sovereignty and
power of local government
●● Advantages of Cultural globalization
Answer: awareness of international community
●● Disadvantages of Cultural globalization
Answer: loss of uniqueness of a country's culture
●● What is international business?
Answer: any situation where the production or distribution of goods or
services crosses country borders
●● What are opportunities for international business?
Answer: New and large international markets offers possible more
revenues, lower costs, and access to advanced technology
●● What are challenges for international business?
Answer: Ethical business practice concerns, organizational structure
(create new division), public relations (build customer loyalty),
leaderships, and legal and regulatory structure
●● What are the 5 stages of going global?
,Answer: 1. Market entry
2. product specialization
3. value chain disaggregation
4. value chain reengineering
5. creation of new markets
●● Market Entry
Answer: Companies enter new countries using business models similar
to the ones deployed in their home markets
●● Product specialization
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
Answer: Companies disaggregate the production process and focus on
completing each activity in the most advantageous location
●● Value chain reengineering
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
Answer: creates new demand due to the reduction of ticket price
●● What are the 4 drivers of Globalization?
Answer: 1. Market
2. Cost
3. Competition
4. Government
●● Market
Answer: Opportunity for scale and convergence of needs (foreign
consumers have the same demand as domestic consumer, no need to
redesign)
●● Cost
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
Answer: New markets & increased levels of trade
