D080- Managing in a Global Business Environment
D080 Study Guide Questions
Completing the study guide can help to improve your knowledge, understanding, and retention
of the course concepts. Answer the questions below using the course text and videos.
This video teaches how to use the information in the learning resource to answer the study
guide questions in a good way. Click to watch the video "D080- How to Answer the Study
Guide."
Module 1: Political, Economic, and Legal Systems (Lesson 1-6)
1. What is globalization?
Globalization is when international integration arises from the interchange of world views, products,
ideas, and other aspects of culture. Is it interdependent interconnected process when businesses who
have products services have influence on markets outside of their country.
2. What business opportunities are presented by globalization?
(See the “Benefits of Global Expansion” section of Lesson 2)
.
3. What are the economic, political, and cultural effects of globalization?
a) Describe economic globalization and its effects
Economic globalization refers to widespread, international movement of goods, capital,
services, and technology, and information. It is the increase in economic integration and
interdependence of national, regional, and local economies across the world through an
intensification of cross-border movements of goods and services technologies and capital.
Brings economic growth, fosters innovation and technology, Lowers prices, provides a
higher standard of living, encourages cultural exchange.
b) Describe political globalization and its effects
Globalization ultimately reduced the importance of nation states. Supranational institutions
such as the European Union the World Trade Organization and the group of 8G8 and the
International Criminal Court, serve to replace or extend national functions to facilitate
international agreements
c) Describe cultural globalization and its effects Cultural globalization refers to the
transmission of ideas, meanings, and values around the world in such a way that extends and
intensifies social relations. The circulation of cultures enables individuals to partake in
extended social relations that cross national and regional borders. The creation and
expansion of those social relations are not merely observed on a material level: culture
globalization involves the formation of shared norms and knowledge with which people
associate their individual and collective cultural identity.
4. What are the arguments for and against globalization from a country's perspective?
(See “Debates over Globalization” and “Debates over Globalization Continued” sections in Lesson 3)
Arguments for Globalization Arguments Against Globalization
Globalization of introduction of products is
likely at the expense of local commerce
,D080- Managing in a Global Business Environment
business
5. Explain the 5 stages of entering a global market. (See Lesson 2)
a) First stage (market entry), Companies enter new countries using business models
similar to the ones deployed in their home markets period to gain access to local customers
however companies often need time to establish a production presence either because of the
nature of their business such as in service interest industries like food retail and banking or
because of local country regulations restrictions such as auto industry.
b) Second stage (product specialization), companies transferred the full production
process of a particular product to a single low cost location and export the goods to various
consumer markets in this scenario different locations specialize in different products or
components and in trade in finished goods.
c) Third stage (value chain disaggregation) Represents the next step in the company's
globalization of supply chain infrastructure. In this stage companies difficult disaggregate the
production process and focus on completing each activity in the most advantageous location.
Individual components of a single product might be manufactured in several different places
and assembled into final products elsewhere.
d) Fourth stage (value chain reengineering), Companies seek to further increase their cost
savings by re engineering their processes to suit local market conditions by substituting lower
cost labor from capital. General electrics medical equipment division for example has tailored
its manufacturing process to abroad to take advantage of low cost labor.
e) Fifth stage (creation of new markets) The focus is on market expansion. This allows
companies to substantially lower their sticker price in both old and new markets and to
expand demand. Significantly the value of new revenues generated in this last stage is often
greater than the value of cost savings in the other stages.
6. Explain Four drivers of globalization (See Lesson 2)
a) Market – explain convergence of needs, as customer needs and preferences
converge(example employees consumers desiring the same hot technological gadget like an
iPhone) businesses seize the opportunity to scale up offering similar products across the globe
This allows companies to expand their reach tapping into new markets and satisfying
universal desires
b) Cost – define economies of scale and economies of scope (Develop efficiencies in terms
of variety not volume) Economies of scale producing more units leads to lower cost per
unit(Volume) companies also exploit cost differences in factors of production like labor and
materials comma by sourcing from other countries where they are cheaper. This approach
minimizes expenses and maximizes profit
,D080- Managing in a Global Business Environment
c) Competition-When companies go into newer markets they are exposed to competition
this leads in order to stay competitive businesses expand, innovate, and improve quality to
offer better prices and benefits customers worldwide
d) Government—Give examples of favorable policies and explain support for industries-
Whenever the government provides favorable policies. It creates an environment where
industries can thrive government plays a crucial role in shaping globalization by setting
standards and providing incentives to encourage businesses to expand beyond their borders.
7. What is the difference between the world is flat view and the CAGE analysis?
a) Describe the world is flat view (See “How the World Got Flat” section in Lesson 3)
there are global events that became factors in the convergence of global awareness and
when technology the Internet new software an incorporation of knowledge into business
and personal communication came it made the world smaller.
b) Describe CAGE analysis (See “A Multi-Domestic World” section in Lesson 3)
i. “C” is for culture – Generally, cultural differences between two countries
reduce their economic exchange. Culture refers to a population's norms, shared beliefs, and
practices
ii. “A” is for administration – Bilateral trade flows show that administratively
similar countries trade much more with each other than dissimilar countries.
Administrative distance refers to historical governmental ties, such as those between India
and the United Kingdom.
iii. “G” is for geography – Geography is perhaps the most clear difference
between countries. Geographic differences also include time zones, access to ocean ports,
shared borders, topography, and climate. Generally, as distance goes up, trade goes down,
since distance usually increases the cost of transportation.
iv. “E” is for economic distance – Economic distance refers to differences in
demographic and socioeconomic conditions.
8. What are the benefits and costs of global expansion from MNCs’ perspective?
a) Benefits (See “Benefits of Global Expansion” section in Lesson 2) Unsaturated demand
for new products, lower labor costs, less expensive natural resources, and other inputs
two products. Technological developments have made our business internationally much
more convenient than in the past multinational corporations seek benefit from
globalization by selling goods in multiple countries as well as sourcing production in
areas that can produce goods more Profitably. In other words organizations choose to
operate internationally because they can achieve either higher levels of revenue or lower
cost structures within their operations.
b) Costs (See “The Challenges of Global Expansion” section in Lesson 2)
Being in markets that have maybe less regulations in our lower costs can present ethical
partner companies and services that are used in the area may do unlivable wages and are
, D080- Managing in a Global Business Environment
not protecting the environment and providing Fair Work locations and conditions also
can directly be involved in conflicts of interest when it comes to material sourcing from
certain lands.
9. List different political systems and differentiate them. (See Lesson 4).
Provide descriptions and provide examples of nations for the following:
a) Anarchy- which contends that individuals should control political activities, and public
government is both unnecessary and unwanted. When there is no political structure in place
and mob rule is the law of the land.
b) Absolute monarchy-A single person rules until he or she dies or abdicates the throne.
Countries that have absolute monarchy or Saudi Arabia and Qatar. Monarch runs the
country
c) Constitutional monarchy has a single person that rules until he or she dives or
advocates the throne such as United Kingdom. Monarch does not actually run the country but
does contribute in carrying out important tasks like appointing advising and dismissing
ministers.
d) Oligarchy a government ruled by a small elite group that holds power no their status is
not achieved by noble ancestry. Countries like Russia Venezuela and China
e) Dictatorship A government that is ran by a single person or a very small group of
people that hold power wields complete and absolute authority over the government and
population. These are places like North Korea and Cuba
f) Democracy citizens organize political parties and elect leaders leaders power organized
through constitutional and term limits. The United states
10. List different economic systems and differentiate. (See Lesson 5)
Provide descriptions and examples of nations for the following:
a) Traditional Economy The traditional economy uses methods of trade and exchange at
our pass through generations. It is the oldest of the four economic systems and can still be
farms in parts of South America Africa and Asia. Occupations usually farming are passed
down through generations. People live off the products of the labor traditional economies
have little economic evolution or growth. 5 characteristics of traditional economy include
family or tribe guided by tradition, found in hunter gatherer on nomadic societies, relies on
bartering, members produce what they need with no surplus, and eventually the economy
evolves to some form of currency.
b) Command Economy-In a command economy, economic effort is devoted to goals
passed down from ruler or ruling class period ancient Egypt was a good example a large part
of economic life was dedicated to building pyramids. Medieval manner life is another example
the Lord provided the land for growing crops and provided protection in the event of a war. In
a command economy, resources and businesses are owned by the government. The
government decides which goods and services will be produced and what prices will be
charged for them. They decide the methods of production will be used and how much workers
will be paid hmm certain services like healthcare and educated are provided for free as long as
they determined that they are needed currently only North Korea and Cuba have command
economies.
c) Market Economy-In a market decentralized economic systems leaders make decisions
based on consumer demands. Goods and services are produced and distributed according to
the rules of supply and demand in other words consumers influence how much product and
D080 Study Guide Questions
Completing the study guide can help to improve your knowledge, understanding, and retention
of the course concepts. Answer the questions below using the course text and videos.
This video teaches how to use the information in the learning resource to answer the study
guide questions in a good way. Click to watch the video "D080- How to Answer the Study
Guide."
Module 1: Political, Economic, and Legal Systems (Lesson 1-6)
1. What is globalization?
Globalization is when international integration arises from the interchange of world views, products,
ideas, and other aspects of culture. Is it interdependent interconnected process when businesses who
have products services have influence on markets outside of their country.
2. What business opportunities are presented by globalization?
(See the “Benefits of Global Expansion” section of Lesson 2)
.
3. What are the economic, political, and cultural effects of globalization?
a) Describe economic globalization and its effects
Economic globalization refers to widespread, international movement of goods, capital,
services, and technology, and information. It is the increase in economic integration and
interdependence of national, regional, and local economies across the world through an
intensification of cross-border movements of goods and services technologies and capital.
Brings economic growth, fosters innovation and technology, Lowers prices, provides a
higher standard of living, encourages cultural exchange.
b) Describe political globalization and its effects
Globalization ultimately reduced the importance of nation states. Supranational institutions
such as the European Union the World Trade Organization and the group of 8G8 and the
International Criminal Court, serve to replace or extend national functions to facilitate
international agreements
c) Describe cultural globalization and its effects Cultural globalization refers to the
transmission of ideas, meanings, and values around the world in such a way that extends and
intensifies social relations. The circulation of cultures enables individuals to partake in
extended social relations that cross national and regional borders. The creation and
expansion of those social relations are not merely observed on a material level: culture
globalization involves the formation of shared norms and knowledge with which people
associate their individual and collective cultural identity.
4. What are the arguments for and against globalization from a country's perspective?
(See “Debates over Globalization” and “Debates over Globalization Continued” sections in Lesson 3)
Arguments for Globalization Arguments Against Globalization
Globalization of introduction of products is
likely at the expense of local commerce
,D080- Managing in a Global Business Environment
business
5. Explain the 5 stages of entering a global market. (See Lesson 2)
a) First stage (market entry), Companies enter new countries using business models
similar to the ones deployed in their home markets period to gain access to local customers
however companies often need time to establish a production presence either because of the
nature of their business such as in service interest industries like food retail and banking or
because of local country regulations restrictions such as auto industry.
b) Second stage (product specialization), companies transferred the full production
process of a particular product to a single low cost location and export the goods to various
consumer markets in this scenario different locations specialize in different products or
components and in trade in finished goods.
c) Third stage (value chain disaggregation) Represents the next step in the company's
globalization of supply chain infrastructure. In this stage companies difficult disaggregate the
production process and focus on completing each activity in the most advantageous location.
Individual components of a single product might be manufactured in several different places
and assembled into final products elsewhere.
d) Fourth stage (value chain reengineering), Companies seek to further increase their cost
savings by re engineering their processes to suit local market conditions by substituting lower
cost labor from capital. General electrics medical equipment division for example has tailored
its manufacturing process to abroad to take advantage of low cost labor.
e) Fifth stage (creation of new markets) The focus is on market expansion. This allows
companies to substantially lower their sticker price in both old and new markets and to
expand demand. Significantly the value of new revenues generated in this last stage is often
greater than the value of cost savings in the other stages.
6. Explain Four drivers of globalization (See Lesson 2)
a) Market – explain convergence of needs, as customer needs and preferences
converge(example employees consumers desiring the same hot technological gadget like an
iPhone) businesses seize the opportunity to scale up offering similar products across the globe
This allows companies to expand their reach tapping into new markets and satisfying
universal desires
b) Cost – define economies of scale and economies of scope (Develop efficiencies in terms
of variety not volume) Economies of scale producing more units leads to lower cost per
unit(Volume) companies also exploit cost differences in factors of production like labor and
materials comma by sourcing from other countries where they are cheaper. This approach
minimizes expenses and maximizes profit
,D080- Managing in a Global Business Environment
c) Competition-When companies go into newer markets they are exposed to competition
this leads in order to stay competitive businesses expand, innovate, and improve quality to
offer better prices and benefits customers worldwide
d) Government—Give examples of favorable policies and explain support for industries-
Whenever the government provides favorable policies. It creates an environment where
industries can thrive government plays a crucial role in shaping globalization by setting
standards and providing incentives to encourage businesses to expand beyond their borders.
7. What is the difference between the world is flat view and the CAGE analysis?
a) Describe the world is flat view (See “How the World Got Flat” section in Lesson 3)
there are global events that became factors in the convergence of global awareness and
when technology the Internet new software an incorporation of knowledge into business
and personal communication came it made the world smaller.
b) Describe CAGE analysis (See “A Multi-Domestic World” section in Lesson 3)
i. “C” is for culture – Generally, cultural differences between two countries
reduce their economic exchange. Culture refers to a population's norms, shared beliefs, and
practices
ii. “A” is for administration – Bilateral trade flows show that administratively
similar countries trade much more with each other than dissimilar countries.
Administrative distance refers to historical governmental ties, such as those between India
and the United Kingdom.
iii. “G” is for geography – Geography is perhaps the most clear difference
between countries. Geographic differences also include time zones, access to ocean ports,
shared borders, topography, and climate. Generally, as distance goes up, trade goes down,
since distance usually increases the cost of transportation.
iv. “E” is for economic distance – Economic distance refers to differences in
demographic and socioeconomic conditions.
8. What are the benefits and costs of global expansion from MNCs’ perspective?
a) Benefits (See “Benefits of Global Expansion” section in Lesson 2) Unsaturated demand
for new products, lower labor costs, less expensive natural resources, and other inputs
two products. Technological developments have made our business internationally much
more convenient than in the past multinational corporations seek benefit from
globalization by selling goods in multiple countries as well as sourcing production in
areas that can produce goods more Profitably. In other words organizations choose to
operate internationally because they can achieve either higher levels of revenue or lower
cost structures within their operations.
b) Costs (See “The Challenges of Global Expansion” section in Lesson 2)
Being in markets that have maybe less regulations in our lower costs can present ethical
partner companies and services that are used in the area may do unlivable wages and are
, D080- Managing in a Global Business Environment
not protecting the environment and providing Fair Work locations and conditions also
can directly be involved in conflicts of interest when it comes to material sourcing from
certain lands.
9. List different political systems and differentiate them. (See Lesson 4).
Provide descriptions and provide examples of nations for the following:
a) Anarchy- which contends that individuals should control political activities, and public
government is both unnecessary and unwanted. When there is no political structure in place
and mob rule is the law of the land.
b) Absolute monarchy-A single person rules until he or she dies or abdicates the throne.
Countries that have absolute monarchy or Saudi Arabia and Qatar. Monarch runs the
country
c) Constitutional monarchy has a single person that rules until he or she dives or
advocates the throne such as United Kingdom. Monarch does not actually run the country but
does contribute in carrying out important tasks like appointing advising and dismissing
ministers.
d) Oligarchy a government ruled by a small elite group that holds power no their status is
not achieved by noble ancestry. Countries like Russia Venezuela and China
e) Dictatorship A government that is ran by a single person or a very small group of
people that hold power wields complete and absolute authority over the government and
population. These are places like North Korea and Cuba
f) Democracy citizens organize political parties and elect leaders leaders power organized
through constitutional and term limits. The United states
10. List different economic systems and differentiate. (See Lesson 5)
Provide descriptions and examples of nations for the following:
a) Traditional Economy The traditional economy uses methods of trade and exchange at
our pass through generations. It is the oldest of the four economic systems and can still be
farms in parts of South America Africa and Asia. Occupations usually farming are passed
down through generations. People live off the products of the labor traditional economies
have little economic evolution or growth. 5 characteristics of traditional economy include
family or tribe guided by tradition, found in hunter gatherer on nomadic societies, relies on
bartering, members produce what they need with no surplus, and eventually the economy
evolves to some form of currency.
b) Command Economy-In a command economy, economic effort is devoted to goals
passed down from ruler or ruling class period ancient Egypt was a good example a large part
of economic life was dedicated to building pyramids. Medieval manner life is another example
the Lord provided the land for growing crops and provided protection in the event of a war. In
a command economy, resources and businesses are owned by the government. The
government decides which goods and services will be produced and what prices will be
charged for them. They decide the methods of production will be used and how much workers
will be paid hmm certain services like healthcare and educated are provided for free as long as
they determined that they are needed currently only North Korea and Cuba have command
economies.
c) Market Economy-In a market decentralized economic systems leaders make decisions
based on consumer demands. Goods and services are produced and distributed according to
the rules of supply and demand in other words consumers influence how much product and
