WGU D080 MANAGING IN A GLOBAL BUSINESS
ENVIRONMENT EXAM QUESTIONS WITH
CORRECT DETAILED SOLUTIONS
What are the 5 stages of entering a global market? Explain each stage
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
market, cost, competition, government
What are the benefits and costs of global expansion from MNCs' perspective?
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?
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,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.
3.0: the third stage of globalization and is characterized by advancements across
the board, especially technology and communication.
What are the criticisms of globalization?
Ethical issues, governmental policies, and economic restrictions are all likely
when a company moves into an unfamiliar global space. A multinational
company may also face infrastructural and technological challenges in a
developing country.
What are different types of governments? Explain
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
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,Monarchy
Democracy
Oligarchy
Dictatorship
What impacts does a political system have on international trade and business?
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 are the features of industrialized, less-developed, and developing nations?
- 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.
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, What are different economic systems and how to differentiate them?
- Traditional economies are found in rural countries where the primary
occupation is farming.
- In a command economy found in a communist country, most of the economic
system is controlled by a centralized power.
- In a planned economy found in a socialist country, the factors of production
are used for the common good.
- In an open economy, a democratic method is used to determine how to use the
factors of production.
- A market economy is a decentralized economy in which firms and households
determine how resources are allocated based on how best to satisfy their needs.
- A 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 is globalization?
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.
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ENVIRONMENT EXAM QUESTIONS WITH
CORRECT DETAILED SOLUTIONS
What are the 5 stages of entering a global market? Explain each stage
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
market, cost, competition, government
What are the benefits and costs of global expansion from MNCs' perspective?
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?
Page | 1
,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.
3.0: the third stage of globalization and is characterized by advancements across
the board, especially technology and communication.
What are the criticisms of globalization?
Ethical issues, governmental policies, and economic restrictions are all likely
when a company moves into an unfamiliar global space. A multinational
company may also face infrastructural and technological challenges in a
developing country.
What are different types of governments? Explain
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
Page | 2
,Monarchy
Democracy
Oligarchy
Dictatorship
What impacts does a political system have on international trade and business?
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 are the features of industrialized, less-developed, and developing nations?
- 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.
Page | 3
, What are different economic systems and how to differentiate them?
- Traditional economies are found in rural countries where the primary
occupation is farming.
- In a command economy found in a communist country, most of the economic
system is controlled by a centralized power.
- In a planned economy found in a socialist country, the factors of production
are used for the common good.
- In an open economy, a democratic method is used to determine how to use the
factors of production.
- A market economy is a decentralized economy in which firms and households
determine how resources are allocated based on how best to satisfy their needs.
- A 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 is globalization?
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.
Page | 4
