WGU - D080 FVC1 Enhanced Study Guide

WGU - D080/ FVC1 Enhanced Study Guide 12 studiers recently (1 review) Students also studied Terms in this set (286) Western Governors UniversityIT C182 Save D080 study for OA 241 terms collegerules2 Preview Managing in a Global Business Envir...186 terms marlio4Preview

WGU D080

149 terms kxllxnPreview WGU D 553 term infin What is globalization?When international integration arises from the interchange of world views, products, ideas and cultures.What business opportunities are presented by globalization?Trade, transactions, capital, and investment movements. The migration and movement of people and the dissemination of knowledge.What are the economic effects of globalization? International movement of goods, capital, services and technology and information.What are the political effects of globalization? Reduces importance of nation states What are the cultural effects of globalization?Ideas, meanings, values. Decreased uniqueness by once-isolated communities.What are the arguments for globalization from a country's perspective?Access to broader market, gains access to cheap labor.What are the arguments against globalization from a country's perspective?Needs to understand foreign legal and political policies.

Explain the five stages of entering a global market. 1. First stage (market entry), Companies enter new country's using business models similar to the ones in home market.

• Second stage (product specialization),

Companies transfer the full production process of a product to a single location.

• Third stage (value chain disaggregation)

Desegregating the the production process and focus on completing each activity in a better location. (different areas)

• Fourth stage (value chain reengineering),

Companies seek to further increase their cost savings by reengineering their production process

• Fifth stage (creation of new markets)

Allows companies to lower their sticker prices in both new and old markets.Explain Four drivers of globalization.1. Market - explain convergence of needs, Allows companies to lower their sticker prices in both new and old markets.

• Cost - define economies of scale and economies of scope

Refers to product development, manufacturing, and sourcing.

• Competition - New markets, increased level of trade.
• Government - Absence or presence of trade policies, technical standards,

policies and regulations.What is the difference between the world is flat view and the CAGE analysis?Events that made the world smaller.CAGE analysis 1."C" is for culture - Shared beliefs, practices, norms.

2."A" is for administration - Similar country's trade with each other 3."G" is for geography - Location 4."E" is for economic distance - Socioeconomic and demiographic.What are the benefits of global expansion from MNCs' perspective?Unsaturated demand for new product Lower labor costs Less expensive natural resources Higher revenue or lower structure cost What are the costs of global expansion from MNCs' perspective?Costs Ethical business practice (labor, safety, environment) Organizational structure (incorporating new regions to the value chain) Public relations Leadership Legal and regulatory structure List five different political systems and differentiate them. Anarchy Monarchy Democracy Oligarchy Dictatorship AnarchyNo govt is needed - individuals control the country MonarchyKing or Queen rules the country or Constitutional Monarchy: Aruba & Australia

DemocracyCitizens organize political parties. Equal voice or vote in determining policy but government is involved OligarchyOwned by a small group of people, achieves power due to military, economic or other powers DictatorshipSingle person is in charge AnarchyNo countries are ruled by anarchy, but some regions in Afghanistan and Somalia Absolute monarchysingle person ruling until death, such as the United Kingdom Constitutional monarchyAustralia OligarchyRussia, S. Korea DictatorshipLibya or Germany during WWI and WWII DemocracyUnited States of America List four different economic systems1. Traditional Economy

• Market Economy
• Command Economy
• Mixed Economies

Traditional EconomyThe traditional economy uses methods of trade and exchange that are passed through generations. It is the oldest of the four economic systems and can still be found in parts of South America, Africa, and Asia. Occupations, usually farming, are passed down through generations. People live off the products of their labor.Traditional economies have very little economic evolution or growth.Market EconomyIn a market (decentralized) economic system, 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 many products and services are made available through their purchasing and usage patterns.Command EconomyCommunist societies use a command or centrally controlled economy. Resources and businesses are owned by the government, which decides which goods and services will be produced and what prices will be charged. North Korea and Cuba have command economies.Mixed EconomiesA mixed economy borrows the following characteristics from a market economy: It protects private property, the laws of supply and demand determine prices in a free market, and it is driven by self-interest. A mixed economy, like a command economy, uses the federal government to protect the people and the market and oversee the military, international trade, and national transportation.

List different legal systemsa. Civil law Common Law Religious Law Please provide three legal systems1. Civil law

• Common Law
• Religious law

Civil lawIt is based on a detailed set of laws that constitute a code and focuses on how the law is applied to the facts. The civil law system is inquisitorial, where the investigating judge investigates the facts of the case, and Juries are rarely used.The victim may participate in the trial and have rights. It is the most widespread legal system in the world. Approximately 150 countries have a primarily civil law system. The civil law system is found in most of continental Europe, Central America, and South America. Basis in the Roman legal tradition.Common LawJudges interpret the law, and judicial rulings can set precedent. Common law systems are often adversarial because the judge's role is to act as a moderator between two opposing parties. A jury may determine the facts, and a judge decides which law will be applied to the case. Both prosecutors and defense attorneys have an active role. Victims may serve as witnesses, but they are not a party in criminal cases. The legal system of the United States - except Louisiana, which has a mix of civil and common laws - is a common law system. found in Australia, Canada, England, and Wales. Approximately 80 countries have common law systems. Based on traditions and precedence and can be traced to the English monarchy.Religious LawAlso known as theocratic law and is based on religious guidelines.Islamic law and prohibition of interestIslamic law systems are found throughout Africa, the Middle East, Central Asia, and South Asia. The most commonly known example of religious law is Islamic law. Sharia governs several Islamic nations and communities around the world and is the most widely accepted religious law system.Christian Canon LawThe Christian Canon system is not practiced at the national level in any country.Canon law is the body of laws and regulations made by the ecclesiastical authority governing Christian communities. Canon law was the basis for much of the Western legal tradition used today. The Christian Canon system is observed in Vatican City.Talmudic lawThe Talmudic legal system relies on the written opinions of those well-trained in law. This applies in some countries and regions in which the Jewish population is heavily concentrated. The sources of law in this system are the written and oral Torah and the Talmud.Five stages of entering a global marketFirst stage (market entry) Second stage (product specialization), Third stage (value chain disaggregation) Fourth stage (value chain reengineering) Fifth stage (creation of new markets)