WGU D080 Managing in a Global Business Environment

WGU D080 Managing in a Global Business Environment 4.1 (38 reviews) Students also studied Terms in this set (553) Western Governors UniversityIT C182 Save Managing in a Global Business Envir...186 terms marlio4Preview

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281 terms LearningChuPreview D080 study for OA 241 terms collegerules2 Preview WGU D 149 term kxll The key element of globalization is interdependence and 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.What is globalization?

economic: developed economies integrating with

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.What are the economic, political, and cultural effects of globalization?any nonprofit, voluntary citizens' groups that are organized on a local, national, or international level What is nongovernmental organization and how does it impact government public policy across national boundaries?

International business encompasses a full range of cross- 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.What are the features of international business?

• Exporting
• franchising
• joint ventures
• home-owned affiliates
• fully global ventures

What are the different forms of international business? Explain each form.

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

What are the 5 stages of entering a global market? Explain each stage market, cost, competition, governmentWhat are the 4 drivers of globalization? Explain unsaturated demand for new products, lower labor costs, less expensive natural resources, and other inputs to products.What are the benefits and costs of global expansion from MNCs' perspective?

1.0: the first stage of globalism and is pushed forward by

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.What are the characteristics of each stage of globalization?Ethical issues, governmental policies, and economic 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.What are the criticisms of globalization?

There are more than 13 major types of government, 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 What are different types of governments? Explain Local policies, rules, and regulations can have a 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.What impacts does a political system have on international trade and business?

• Industrialized nations have economies characterized by

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.What are the features of industrialized, less-developed, and developing nations?

• Traditional economies are found in rural countries

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.What are different economic systems and how to differentiate them?

• Communisim is a system in which all property is publicly

owned and the government controls global trade

• Social ownership, central control of the means of

production, and a cooperative approach toward management of the economy are hallmarks of socialism.

• Capitalism is generally considered to be an economic

system based on private ownership of the means of production and on the creation of goods or services for profit by privately owned business enterprises.What is communism, socialism, and capitalism?

• civil law system is an inquisitorial system where the

investigating judge investigates the facts of the case. It is the most widespread legal system in the world.

• Common law is based on traditions and precedence

and can be traced to the English monarchy. In common law systems, judges interpret the law, and judicial rulings can set precedent.

• Religious law is also known as theocratic law and is

based on religious guidelines.Explain and differentiate common, civil, and theocratic legal systems.

• The IMF helps maintain liquidity of global funding by

providing a straight-forward method for nations to borrow and loan to each other through a mechanism called the special drawing right.

• The World Bank's priorities are to help build sustainable

economic growth, invest in people, and build resilience for shocks and threats.

• WTO reviews the trade policies of all nations to ensure

that each country is treated fairly and equally under the most favored nation requirement.

- Criticisms are similar: a lack of transparency; neglect for

considering the environment when making decisions; and policies in favor of more affluent, developed countries at the expense of poorer nations Identify and differentiate the IMF, the World Bank, and the WTO's major functions and conditionality. Explain criticisms of each international organization.

• mercantilism, a zero-sum theory advocating for each

country to maintain a trade surplus.

• Adam Smith's absolute advantage in which a country

exports the goods it can make more efficiently or more cheaply.

• Ricardo's comparative advantage which extends the

theory to show benefits as long as each country exports the product it is comparatively more efficient at or can produce more cheaply and imports the others

• Heckscher-Ohlin which states that competitive

advantage comes from differences in natural resources.-Leontief Paradox

• Country Similarity Theory
• Global Strategic Rivalry Theory

List and explain each international trade theory. Focus on the features of each theory.