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D080 STUDY GUIDE FOR GLOBAL BUSINESS (Western Governors University)

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D080 STUDY GUIDE FOR GLOBAL BUSINESS (Western Governors University)What is globalization? Globalization is defined as international integration arising from the exchange of world views, products, ideas, and other aspec ...

D080 STUDY GUIDE FOR GLOBAL BUSINESS (Western Governors University)What is globalization? Globalization is defined as international integration arising from the exchange of world views, products, ideas, and other aspects of culture. 2. What business opportunities are presented by globalization? Unsaturated demand for new products, lower labor costs, less expensive materials 3. What are the economic, political, and cultural effects of globalization? Economic: Trade, investment, IT Political: Reduce the importance of nation-states, some companies don’t like might create isolation policy, NGOs (Non-governmental Organizations) Cultural: Transmission of ideas, meanings, and values around the world 4. What are the arguments for and against globalization? Pros: Economic growth, increased well-being of human society, increased trade or investment Cons: Benefits rich at expense of poor, job loss in developed countries, environmental damage and unethical labor practices, loss of power of local govt. 5. What are the different forms of international business? Explain each form. Businesses: person or organization engaged in commerce to achieve a profit Governmental bodies: international treaties; NAFTA; maintain embassies and consulates in foreign countries. NGOs: nonprofit, voluntary citizens' groups that are organized on a local, national, or international level 6. What are the 5 stages of entering a global market? Explain each stage Market Entry: Business needs to enter a falling market Product Specialization: Company is able to find a single location where they can move the entire production of a single product to that location and reduce production costs. Value Chain Disaggregation: Break down the entire production process to reduce production costs Value Chain Reengineering: Break down components and change the method of production; take advantage of unskilled labor to reduce production costs Creation of New Markets: Not entering existing market; reducing costs to attract customers that would not have previously purchased your product 7. What are the 4 drivers of globalization? Explain Market: Opportunity for scale and scope; convergence of needs

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