WGU - D080/ FVC1 Enhanced Study Guide || with 100%
Correct Answers.
What is globalization? correct answers When international integration arises from the
interchange of world views, products, ideas and cultures.
What business opportunities are presented by globalization? correct answers Trade, transactions,
capital, and investment movements. The migration and movement of people and the
dissemination of knowledge.
What are the economic effects of globalization? correct answers International movement of
goods, capital, services and technology and information.
What are the political effects of globalization? correct answers Reduces importance of nation
states
What are the cultural effects of globalization? correct answers Ideas, meanings, values.
Decreased uniqueness by once-isolated communities.
What are the arguments for globalization from a country's perspective? correct answers Access
to broader market, gains access to cheap labor.
What are the arguments against globalization from a country's perspective? correct answers
Needs to understand foreign legal and political policies.
Explain the five stages of entering a global market. correct answers 1. First stage (market entry),
Companies enter new country's using business models similar to the ones in home market.
2. Second stage (product specialization),
Companies transfer the full production process of a product to a single location.
3. Third stage (value chain disaggregation)
Desegregating the the production process and focus on completing each activity in a better
location. (different areas)
4. Fourth stage (value chain reengineering),
Companies seek to further increase their cost savings by reengineering their production process
5. Fifth stage (creation of new markets)
Allows companies to lower their sticker prices in both new and old markets.
Explain Four drivers of globalization. correct answers 1. Market - explain convergence of needs,
Allows companies to lower their sticker prices in both new and old markets.
2. Cost - define economies of scale and economies of scope
Refers to product development, manufacturing, and sourcing.
3. Competition - New markets, increased level of trade.
4. 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? correct answers
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? correct answers 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? correct answers 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. correct answers Anarchy
Monarchy
Democracy
Oligarchy
Dictatorship
Anarchy correct answers No govt is needed - individuals control the country
Monarchy correct answers King or Queen rules the country or Constitutional Monarchy: Aruba
& Australia
Democracy correct answers Citizens organize political parties. Equal voice or vote in
determining policy but government is involved
Oligarchy correct answers Owned by a small group of people, achieves power due to military,
economic or other powers
Dictatorship correct answers Single person is in charge
Anarchy correct answers No countries are ruled by anarchy, but some regions in Afghanistan and
Somalia
Absolute monarchy correct answers single person ruling until death, such as the United Kingdom
Constitutional monarchy correct answers Australia
,Oligarchy correct answers Russia, S. Korea
Dictatorship correct answers Libya or Germany during WWI and WWII
Democracy correct answers United States of America
List four different economic systems correct answers 1. Traditional Economy
2. Market Economy
3. Command Economy
4. Mixed Economies
Traditional Economy correct answers The 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 Economy correct answers In 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 Economy correct answers Communist 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 Economies correct answers A 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 systems correct answers a. Civil law
Common Law
Religious Law
Please provide three legal systems correct answers 1. Civil law
2. Common Law
3. Religious law
Civil law correct answers It 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 Law correct answers Judges 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 Law correct answers Also known as theocratic law and is based on religious
guidelines.
Islamic law and prohibition of interest correct answers Islamic 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 Law correct answers The 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 law correct answers The 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 market correct answers First stage (market entry)
Second stage (product specialization),
Third stage (value chain disaggregation)
Fourth stage (value chain reengineering)
Fifth stage (creation of new markets)
CAGE analysis correct answers 1."C" is for culture
2."A" is for administration
3."G" is for geography
4."E" is for economic distance - Socioeconomic and demiographic.
What are the IMF's major functions? correct answers Monitors exchange rates, stabilizes
international monetary systems, and fosters global financial cooperation. Their stated goal was to
stabilize exchange rates and assist in the reconstruction of the world's international payment
system. Focuses more on maintaining short-term global financial stability & making
