WGU D080 Managing in a Global Business Environment Exam Study Guide Graded A 2024

Interdependence and interconnectedness among companies and countries around the globe. What is globalization? 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: 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 are the economic, political, and cultural effects of globalization? Any nonprofit, voluntary citizens' groups that are organized on a local, national, or international level What is a nongovernmental organization? Cross-border exchanges of goods, services, or resources across two or more nations. 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 assets, 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 features of international business? - Exporting - franchising - joint ventures - home-owned affiliates - fully global ventures What are the different forms of international business? 1. market entry 2. product specialization 3. value chain disaggregation 4. value chain reengineering 5. creation of new markets What are the 5 stages of entering a global market? market cost competition government What are the 4 drivers of globalization? unsaturated demand for new products, lower labor costs, less expensive natural resources, and other inputs to products. What are the benefits and costs of global expansion from MNCs' perspective? first stage of globalism is pushed forward by nationalism and religion. second stage of globalization is characterized by advances in methods of transportation. third stage of globalization is characterized by advancements across the board, especially technology and communication. What are the characteristics of each stage of globalization? Ethical issues governmental policies economic restrictions A multinational company may also face infrastructural and technological challenges in a developing country. What are the criticisms of globalization? There are more than 13 major types of government, each of which consists of multiple variations. At one end of the extremes of political ideologies is anarchism, which contends that individuals should control political activities, and public government is both unnecessary and unwanted. At the other extreme is totalitarianism, which contends that every aspect of an individual's life should be controlled and dictated by a strong central government. Totalitarianism Authoritarian Monarchy Democracy Oligarchy Dictatorship What are different types of governments? Explain Local policies, rules, and regulations can have a significant effect on the success rate of a business. Depending on how long a company expects to operate in a country and how easy it is for business to enter and exit, a firm may also assess the country's political risk and stability. What impacts does a political system have on international trade and business? - Industrialized nations have economies characterized by a healthy climate for private enterprise (business) and by a consumer orientation, meaning the business climate focuses on meeting consumers' long-term wants and needs. - Less-developed nations, also known as least-developed countries (LDCs), have extensive poverty, low per capita income and standards of living, low literacy rates, and minimal technology. - Developing nations are those that make the transition from economies based on agricultural and raw materials production to industrialized economies. What are the features of industrialized, less-developed, and developing nations? - Traditional economies are found in rural countries where the primary occupation is farming. - command economy found in a communist country, most of the economic system is controlled by a centralized power. - planned economy found in a socialist country, the factors of production are used for the common good. - open economy, a democratic method is used to determine how to use the factors of production. - market economy is a decentralized economy in which firms and households determine how resources are allocated based on how best to satisfy their needs. - mixed economy has less government intervention than a command economy. Supply and demand control the economy, and ideally, the government steps in when needed. What are different economic systems and how to differentiate them? - Communisim is a system in which all property is publicly owned and the government controls global trade - Social ownership, central control of the means of production, and a cooperative approach toward management of the economy are hallmarks of socialism.