WGU D080

WGU D080

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Students also studied Terms in this set (149) Western Governors UniversityIT C182 Save D080 study for OA 241 terms collegerules2 Preview

WGU - C722

281 terms LearningChuPreview Managing in a Global Business Envir...186 terms marlio4Preview WGU - 286 term axs Practice questions for this set Learn1 / 7Study using Learn `Convention (2011) aimed at protecting domestic workers from abuse and exploitation What is globalization?When international integration arises from the interchange of world views, products, ideas, and other aspects of cultures.different types of Globalization1. Economic

• Political
• Cultural

Choose an answer 1Domestic Workers Convention, 20112What is globalization?3Market Entry4Advantages of Political globalization Don't know?

Advantages of Economic globalizationmore trade, investments, information technology, faster economic development, and increased social being Disadvantages of Economic globalizationbenefits the rich at the expense of the poor, manufacturing job loss in developed countries, environmental damage, and unethical practices of labor Advantages of Political globalizationmore cooperation amount countries, formation of international or regional organizations, NGOs Disadvantages of Political globalizationreduce the importance of nation-states, loss of sovereignty and power of local government Advantages of Cultural globalizationawareness of international community Disadvantages of Cultural globalizationloss of uniqueness of a country's culture What is international business?any situation where the production or distribution of goods or services crosses country borders What are opportunities for international business? New and large international markets offers possible more revenues, lower costs, and access to advanced technology What are challenges for international business? Ethical business practice concerns, organizational structure (create new division), public relations (build customer loyalty), leaderships, and legal and regulatory structure What are the 5 stages of going global?1. Market entry

• product specialization
• value chain disaggregation
• value chain reengineering
• creation of new markets

Market EntryCompanies enter new countries using business models similar to the ones deployed in their home markets Product specializationCompanies transfer the full production process of a particular product line to a single, low-cost location and export the goods to various consumer markets Value chain disaggregationCompanies disaggregate the production process and focus on completing each activity in the most advantageous location Value chain reengineeringCompanies seek to further increase their cost savings by reengineering their processes to suit local market conditions by substituting lower cost labor for capital Creation of new marketscreates new demand due to the reduction of ticket price

What are the 4 drivers of Globalization?1. Market

• Cost
• Competition
• Government

MarketOpportunity for scale and convergence of needs (foreign consumers have the same demand as domestic consumer, no need to redesign)

Cost- Economies of scale & scope: use same production facility for multiple

procedures.

• Exploiting cost of factors of production: labor cost reductions, natural resources

cost reduction CompetitionNew markets & increased levels of trade GovernmentFavorable policies, support for the industry ((can use tax bracket to attract FDI and subsidies (free money) can help domestic business reduce cost and charge lower price)) What did Thomas Friedman propose?The world is flat view - the use of technology and internet has made it easier for businesses to conduct global operation What did Ghemawat propose?The world is a multi-domestic world What is CAGE analysis?Culture, Administration, Geography, and Economics Culture (CAGE)Cultural difference could reduce country's trade volume Administration (CAGE)Administrative similar countries trade more, countries hold membership of the same trade Geography (CAGE)geographical distance between countries impact trade volume Economics (CAGE)differences in demographics and socioeconomics conditions such as standard of living, factors of production costs, etc.Anarchyindividuals country the country, no government needed MonarchyRoyal power Absolute monarchyking/queen has absolute power constitutional monarchyqueen is only symbol, prime minister has absolute admin. power OligarchyAchieve power due to military, economic, or other powers, small group of elite members DictatorshipSingle person

DemocracyEqual voice or vote in determining state policy Economic systemsdetermines a county's economic production of goods and services Traditional economy- Farming

• centered around family
• everyone consumes the same goods
• relies on bartering
• no surplus

Command economy- more sustainable

• controlling by the ruling class
• all resources are owned by the government

Market economy- privately owned

• the market controls the distribution of resources
• minimum government control

Mixed Economy- United states uses

• the market is the major determining power
• partial government regulation as needed

What are the legal systems?1. civil law

• common law
• religious law

Civil lawJudge applies law code, rarely uses the jury (Continental Europe & Latin/Central America) Common lawJudge interprets the law, the jury determines the facts (US, UK, Australia) Religious lawreligious guidelines, Islamic law, Talmudic law, Cannon law, customary law, etc.(middle-eastern, southeast Asia) Talmudic lawJewish Cannon lawChristian Customary lawno strong justice system, verbally transferred What are the 3 international institutionsInternational Monetary Fund, World Bank, and World trade organization What are the twin institutionsIMF & World bank What was the INITIAL goal of the IMFrestore international payment system, oversee the fixed exchange rate system (Brenton Woods system) What is the current goal of the IMFmonitor the exchange rate system and stabilize exchange rates, guide member countries to develop economic policies, correct the debt issue