D080 WGU QUESTIONS & ANSWERS
What is globalization? - Answers -Globalization is the process of increasing economic,
political, social, and technological 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.
What business opportunities are presented by globalization? - Answers -Globalization
presents numerous business opportunities including access to larger international
markets and customer bases, access to lower-cost inputs and labor, ability to diversify
risk geographically, opportunities for strategic partnerships and 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.
Describe economic globalization and its effects. - Answers -Economic globalization
refers to the increasing integration of national economies through trade, investment,
capital flows, and technology transfer. Effects include higher trade volumes, global
supply chains, specialization based on comparative advantage, increased competition,
faster capital movement, potential growth in GDP and incomes, and also risks like
contagion from financial crises, job displacement in some sectors, and distributional
inequality within and between countries.
Describe political globalization and its effects. - Answers -Political globalization is the
convergence and interaction of political systems and governance across borders, driven
by international institutions, treaties, transnational 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.
Describe cultural globalization and its effects. - Answers -Cultural globalization is the
spread and mutual exchange of cultural elements—ideas, values, media, language,
cuisine, and consumer tastes—across countries. Effects include greater cultural
hybridization, global media and brands shaping preferences, diffusion of norms (e.g.,
human rights), increased cross-cultural understanding, but also concerns about cultural
homogenization, loss of local traditions, and resistance to perceived cultural
imperialism.
What are the arguments for globalization from a country's perspective? - Answers -
Arguments for globalization include economic growth from larger markets and
investment, increased efficiency through specialization, access to technologies and
knowledge transfer, job creation in export sectors, lower prices and greater consumer
, choice, opportunities to attract foreign capital and develop industries, and diplomatic ties
that can foster peace and cooperation.
What are the arguments against globalization from a country's perspective? - Answers -
Arguments against globalization include job losses and wage pressure in industries
facing foreign competition, widening income inequality, loss of cultural identity,
vulnerability to global economic shocks, erosion of domestic policy autonomy,
environmental degradation driven by global production, and exploitation of labor in
countries with weak protections.
Explain the five stages of entering a global market. - Answers -1) Market entry: Firms
begin exporting or selling to foreign markets to test demand. 2) Product specialization:
Firms focus on products where they have competitive advantage and export them
widely. 3) Value-chain disaggregation: Firms 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.
Explain the four drivers of globalization. - Answers -1) Market drivers: Convergence of
customer needs and desire for new markets encourage global expansion. 2) Cost
drivers: Economies of scale (lower per-unit cost 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.
What is the 'world is flat' view? - Answers -The 'world is flat' view, popularized by
Thomas Friedman, argues that technological change, reduced trade barriers, and digital
platforms have leveled the global competitive playing field—making it easier for
individuals and firms anywhere to compete and collaborate globally. It emphasizes
globalization powered by IT, outsourcing, and the spread of market-driven practices.
What is CAGE analysis? - Answers -CAGE analysis evaluates differences between
countries along four dimensions that influence cross-border economic activity: Cultural
distance (C), Administrative or political distance (A), Geographic distance (G), and
Economic distance (E). It helps firms assess barriers and frictions when entering foreign
markets and explains why globalization is uneven.
What does 'C' for culture in CAGE analysis mean? - Answers -Culture refers to
differences in language, values, norms, social networks, and consumer preferences
between countries. Cultural distance increases costs in marketing, management, and
product adaptation when cultural practices or norms diverge.
What is globalization? - Answers -Globalization is the process of increasing economic,
political, social, and technological 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.
What business opportunities are presented by globalization? - Answers -Globalization
presents numerous business opportunities including access to larger international
markets and customer bases, access to lower-cost inputs and labor, ability to diversify
risk geographically, opportunities for strategic partnerships and 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.
Describe economic globalization and its effects. - Answers -Economic globalization
refers to the increasing integration of national economies through trade, investment,
capital flows, and technology transfer. Effects include higher trade volumes, global
supply chains, specialization based on comparative advantage, increased competition,
faster capital movement, potential growth in GDP and incomes, and also risks like
contagion from financial crises, job displacement in some sectors, and distributional
inequality within and between countries.
Describe political globalization and its effects. - Answers -Political globalization is the
convergence and interaction of political systems and governance across borders, driven
by international institutions, treaties, transnational 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.
Describe cultural globalization and its effects. - Answers -Cultural globalization is the
spread and mutual exchange of cultural elements—ideas, values, media, language,
cuisine, and consumer tastes—across countries. Effects include greater cultural
hybridization, global media and brands shaping preferences, diffusion of norms (e.g.,
human rights), increased cross-cultural understanding, but also concerns about cultural
homogenization, loss of local traditions, and resistance to perceived cultural
imperialism.
What are the arguments for globalization from a country's perspective? - Answers -
Arguments for globalization include economic growth from larger markets and
investment, increased efficiency through specialization, access to technologies and
knowledge transfer, job creation in export sectors, lower prices and greater consumer
, choice, opportunities to attract foreign capital and develop industries, and diplomatic ties
that can foster peace and cooperation.
What are the arguments against globalization from a country's perspective? - Answers -
Arguments against globalization include job losses and wage pressure in industries
facing foreign competition, widening income inequality, loss of cultural identity,
vulnerability to global economic shocks, erosion of domestic policy autonomy,
environmental degradation driven by global production, and exploitation of labor in
countries with weak protections.
Explain the five stages of entering a global market. - Answers -1) Market entry: Firms
begin exporting or selling to foreign markets to test demand. 2) Product specialization:
Firms focus on products where they have competitive advantage and export them
widely. 3) Value-chain disaggregation: Firms 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.
Explain the four drivers of globalization. - Answers -1) Market drivers: Convergence of
customer needs and desire for new markets encourage global expansion. 2) Cost
drivers: Economies of scale (lower per-unit cost 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.
What is the 'world is flat' view? - Answers -The 'world is flat' view, popularized by
Thomas Friedman, argues that technological change, reduced trade barriers, and digital
platforms have leveled the global competitive playing field—making it easier for
individuals and firms anywhere to compete and collaborate globally. It emphasizes
globalization powered by IT, outsourcing, and the spread of market-driven practices.
What is CAGE analysis? - Answers -CAGE analysis evaluates differences between
countries along four dimensions that influence cross-border economic activity: Cultural
distance (C), Administrative or political distance (A), Geographic distance (G), and
Economic distance (E). It helps firms assess barriers and frictions when entering foreign
markets and explains why globalization is uneven.
What does 'C' for culture in CAGE analysis mean? - Answers -Culture refers to
differences in language, values, norms, social networks, and consumer preferences
between countries. Cultural distance increases costs in marketing, management, and
product adaptation when cultural practices or norms diverge.
