Q&A 2026 STUDY GUIDE WITH VERIFIED
SOLUTIONS
◉ 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