WGU D080 Managing in a Global Business Environment(test
bank)
Answers questions
The key element of globalization is interdependence and What is
globalization? 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.
economic: developed economies integrating with What are the economic, political, and cultural effects of globalization?
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.
any nonprofit, voluntary citizens' groups that are What is nongovernmental organization and how does it impact
government organized on a local, national, or international level public policy across national boundaries?
,International business encompasses a full range of cross- What are the features of international
business? 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.
- Exporting What are the different forms of international business? Explain each form.
- franchising
- joint ventures
- home-owned affiliates
- fully global ventures
1. market entry What are the 5 stages of entering a global market? Explain each
stage
2.product specialization
3.value chain disaggregation
4. value chain reengineering
5.creation of new markets
market, cost, competition, government What are the 4 drivers of globalization? Explain
unsaturated demand for new products, lower labor costs, What are the benefits and costs of global expansion from MNCs'
perspective? less expensive natural resources, and other inputs to
products.
1.0 : the first stage of globalism and is pushed forward
by What are the characteristics of each stage of globalization?
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.
Ethical issues, governmental policies, and economic What are the criticisms of globalization?
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.
, There are more than 13 major types of government,
What are different types of governments? Explain
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
Local policies, rules, and regulations can have a
What impacts does a political system have on international trade and business?
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.
- Industrialized nations have economies characterized by
What are the features of industrialized, less-developed, and developing nations?
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.
- Traditional economies are found in rural countries
What are different economic systems and how to differentiate them?
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.
bank)
Answers questions
The key element of globalization is interdependence and What is
globalization? 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.
economic: developed economies integrating with What are the economic, political, and cultural effects of globalization?
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.
any nonprofit, voluntary citizens' groups that are What is nongovernmental organization and how does it impact
government organized on a local, national, or international level public policy across national boundaries?
,International business encompasses a full range of cross- What are the features of international
business? 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.
- Exporting What are the different forms of international business? Explain each form.
- franchising
- joint ventures
- home-owned affiliates
- fully global ventures
1. market entry What are the 5 stages of entering a global market? Explain each
stage
2.product specialization
3.value chain disaggregation
4. value chain reengineering
5.creation of new markets
market, cost, competition, government What are the 4 drivers of globalization? Explain
unsaturated demand for new products, lower labor costs, What are the benefits and costs of global expansion from MNCs'
perspective? less expensive natural resources, and other inputs to
products.
1.0 : the first stage of globalism and is pushed forward
by What are the characteristics of each stage of globalization?
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.
Ethical issues, governmental policies, and economic What are the criticisms of globalization?
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.
, There are more than 13 major types of government,
What are different types of governments? Explain
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
Local policies, rules, and regulations can have a
What impacts does a political system have on international trade and business?
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.
- Industrialized nations have economies characterized by
What are the features of industrialized, less-developed, and developing nations?
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.
- Traditional economies are found in rural countries
What are different economic systems and how to differentiate them?
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.
