ECON 3600 Study guide for D080 Global Business chapter 1- chapter 11 (Western Governors University)

ECON 3600 Study guide for D080 Global Business (Western Governors University) lOMoARcPSD| Study guide for D080 Global Business (Western Governors University) Unit 2 Globalization Module 1: Political, Economic, and Legal Systems (Lesson 1-6) 1. What is globalization? 2. What business opportunities are presented by globalization? 3. What are the economic, political, and cultural effects of globalization? 4. What are the arguments for and against globalization? 5. What are the different forms of international business? Explain each form. 6. What are the 5 stages of entering a global market? Explain each stage 7. What are the 4 drivers of globalization? Explain 8. What is the difference between the world is flat view and the CAGE analysis? 9. What are the benefits and costs of global expansion from MNCs’ perspective? 10. List different political systems and differentiate them. 11. List different economic systems and differentiate. 12. List different legal systems and differentiate. Module 2: Shaping the Economic Environment (Lesson 7-9) 1. Identify and differentiate the IMF, the World Bank, and the WTO’s major functions and conditionality. Explain criticisms of each international organization. 2. How does each institution influence other international institutions, governments, and political systems? Module 3: International Agreements (Lesson 10-13) 1. List and explain each international trade theory. Focus on the features of each theory. 2. Why does international trade occur? Creates win-win situations for both exporting and importing countries, promotes economic development and increases living standard, specialization and economies of scale, govt policy’s impact 3. List and explain types of tariffs. 4. How does tariff impact prices, quantity of imported product, consumers, domestic businesses, and the government? 5. What are the types of quotas? Explain the impact of quota? 6. What is the Voluntary Export Restraint (VER)? 7. What is managed trade? 8. What is the rationale for governments to utilize key instruments (tariffs, quotas, embargos,…) to manage trade? 9. How does free international trade impact manufacturing jobs in developed nations? What are the concerns on the use of labor in developing nations caused by trade? 10. What is free trade agreement? How is it approved? 11. Identify and explain political, economic, and social rational of managing international trade from government’s perspective. Module 4: Relationships, Foreign Investment, and Trade (Lesson 14-20) 1. Define and compare portfolio investment and foreign direct investment. 2. Identify the reason and strategies that governments restrict or promote FDI. 3. Define two forms of FDI. Give an example for each. 4. Define greenfield and brownfield FDIs. Give an example for each. 5. What are the benefits of FDI? 6. What are the costs of FDI? 7. Define multinational companies. Identify benefits of being a multinational company. Identify impacts of multinational companies. 8. Define regional economic integration. 9. Identify the features of the 5 stages of regional economic integration and relate an example to each stage. 10. List the benefits and costs of regional economic integration. 11. Identify features of each regional integration bloc and differentiate them. 12. Define supply and demand of a currency. 13. Identify reasoning behind strengthening and weakening currency. How does it impact international trade? 14. Define 3 exchange rate policies and give an example of each. Unit 3: Legal and Ethical Considerations Module 5: The global Regulatory Environment (Lesson 21-26) 1. Define monopoly. How does monopoly hurt consumers? 2. Identify how antitrust law is implemented in Europe and U.S. 3. List different environmental laws and identify the features for each. 4. Why do countries need production and labor law? 5. List labor conventions that help protect workers. Explain the features of each labor convention 6. Define contract. 7. Identify two primary sources of law govern contracts in the U.S. 8. Identify applications of different laws in the U.S. 9. Define 3 ways to protect intellectual properties. 10. What is WIPO’s major functions? 11. What’s the function of Sarbanes-Oxley Act? 12. Why are protections needed for whistleblowers? 13. How do laws regulate behavior? What legal consequences are faced by global businesses for non-compliance? 14. What is intellectual property? 15. What are intellectual property protections and what do they look like in a global business environment? Module 6: Ethical Considerations (Lesson 27-31) 1. What is business ethic? How does business ethic impact different parties in the society, such as business and consumers? 2. Define Corporate Social Responsibility. 3. How does culture impacts business ethic standard? Explain and give examples. 4. Identify examples of unethical practices in business operation. 5. What is internal control? What are the functions of internal control system? 6. Define and differentiate discrepancies and irregularities. Unit 4 Business Strategies Module 7: Organizational Structures in In 1. What is an organizational structure, and what types organizational structures are found in international business? Your answer should include a description of the functional/departmental structure, the divisional structure, the matrix structure and the teams structure. 2. What are the challenges and opportunities associated with creating an international division? Explain the trade-offs between global integration and local responsiveness. In so doing, also provide descriptions of the export, standardization, multidomestic and transnational strategies. Module 8: Entry Strategies for Foreign Markets 1. What are the costs and benefits of foreign direct investments (FDI)? List and describe the positives and negatives of FDI. 2. What types of marketing strategies are used when entering foreign markets? You answer should include explanations of standardization, adaptation and localization. 3. What are the various strategies and associated risks for entering foreign markets? Explain the risks and rewards associated with exporting, franchising, licensing, joint ventures, strategic partnerships, direct investment and wholly owned subsidiaries. 4. Given potential risks, why do businesses expand into international markets? List and explain the reasons . Module 9: Culture and Communications 1. What is culture? Describe each of Hofstede’s six cultural dimensions with respect to global business. 2. What are the significant cultural differences, norms and values of the various nations in which a multinational organization function? What is the impact of those attributes on the way the business functions? 3. What are the reputable primary and secondary sources for learning about foreign cultures? 4. How does culture influence staffing strategies, performance evaluation, benefits and compensation in global business? Make sure to include a description of the advantages and disadvantages of the three HR strategies. 5. What are the pros and cons of hiring expatriates? Unit 5 Global Business Practices Module 10: Global Production and Supply Chain Practices 1. What are the considerations for locating and relocating production facilities? List and explain the factors in location decisions. List and explain the factors in relocation decisions. Location: 2. What are the reasons for insourcing and outsourcing? Explain the advantages of outsourcing. Describe the risks associated with outsourcing and explain the reasons for insourcing. 3. What are the advantages and disadvantages of different distribution strategies? Structure your answer in terms of comparing the indirect strategy to the direct strategy. Module 11: Decisions to Maximize Financial Outcomes 1. What are the sources of financing (funding) global business and international investment? List and describe funding sources. 2. How do the functions of generally accepted accounting principles (GAAP) and the international accounting standards board (IASB) differ? 3. What are the risks associated with investing, financing and foreign exchange in global business? Make sure to include transaction, translation, economic and political risks in your answer. 4. What are the various ways to hedging foreign exchange risks? Explain hedging and financial derivatives. Describe the four derivative currency instruments used to hedge against currency risk. 4. How do international corporate tax brackets influence global business decisions? Unit 6 Technologies and Trends Module 12: Impact of Technology 1. What is meant by the digital divide and how can technology bridge gaps to promote globalization? 2. How has technology significantly affected global business? Also describe the types of technology used by global businesses in your answer. 3. What tools and methods are used to increase work efficiency? 4. What is an enterprise resource planning system (ERP)? 5. What are the trends in global business adoption, use and growth in technology? Include a description of artificial intelligence, cybersecurity and virtual reality in your answer. 6. How have new technologies impacted global staffing strategies? 7. What is the 4th industrial revolution? 8. How has technology impacted particular industries (automotive, finance and investment, …)? 9. What are the major international legislation and reforms regarding the use of technology by global businesses? Include an explanation of how various countries determine the trade-offs between easier internet access and more privacy.