WGU D080 Managing in a Global Business Environment Exam – Questions & Answers (GRADED A+)

What is globalization? - ANSWER - The key element of globalization is interdependence and interconnectedness among companies and countries around the globe. Globalism is characterized by an increasing number of worldwide connections, rapid and discontinuous change, an increasing number of diverse participants, and growing complexity. What are the economic, political, and cultural effects of globalization? - ANSWER - economic: developed economies integrating with developing countries through foreign direct investment, lowering the costs of doing business, reducing trade barriers, and, in many cases, increasing cross-border migration. political: globalization may ultimately reduce the importance of nation-states. cultural: The spread of culture has added to processes such as commodity exchange and colonization, which have a more extended history of carrying cultural meaning around the globe. The circulation of cultures enables individuals to partake in extended social relations that cross national and regional borders. What is nongovernmental organization and how does it impact government public policy across national boundaries? - ANSWER - any nonprofit, voluntary citizens' groups that are organized on a local, national, or international level What are the features of international business? - ANSWER - International business encompasses a full range of cross-border exchanges of goods, services, or resources across two or more nations. These exchanges can go beyond the exchange of money for physical goods to include international transfers of other resources such as people; intellectual property such as patents, copyrights, brand trademarks, and data; and contractual assets or liabilities. Such assets or liabilities include the right to use some foreign asset, provide some future service to overseas customers, or execute a complex financial instrument. The entities involved in international business range from large multinational firms with thousands of employees doing business in many countries to a small one-person company acting as an importer or exporter. This broader definition of international business also encompasses for-profit, border-crossing transactions as well as transactions motivated by nonfinancial gains. What are the different forms of international business? Explain each form. - ANSWER - - Exporting - franchising - joint ventures - home-owned affiliates - fully global ventures What are the 5 stages of entering a global market? Explain each stage - ANSWER - 1. market entry 2. product specialization 3. value chain disaggregation 4. value chain reengineering 5. creation of new markets What are the 4 drivers of globalization? Explain - ANSWER - market, cost, competition, government What are the benefits and costs of global expansion from MNCs' perspective? - ANSWER - unsaturated demand for new products, lower labor costs, less expensive natural resources, and other inputs to products. What are the characteristics of each stage of globalization? - ANSWER - 1.0: the first stage of globalism and is pushed forward by nationalism and religion. 2.0: the second stage of globalization and is characterized by advances in methods of transportation. What are the economic, political, and cultural effects of globalization? - ANSWER - economic: developed economies integrating with developing countries through foreign direct investment, lowering the costs of doing business, reducing trade barriers, and, in many cases, increasing cross-border