Managing in a Global Business
Environment- D080
globalization - ANS-worldwide interconnections in virtually every sphere of activity
including the spread of products, technology, info, and job opportunities
4 fundamental aspects of globalization - ANS--trade and transactions
-capital and investment movements
-migration and movement of people
-dissemination of knowledge
outsource - ANS-to obtain goods or services from an outside or foreign supplier
cultural globalization - ANS-the transmission of ideas, meanings, and values around the
world in a way that extends/intensifies social relations
3 major areas of globalization - ANS--economic
-cultural
-political
economic globalization - ANS-the widespread, International movement of goods,
capital, services, technology, and info
NGOs (non-governmental organizations) - ANS-not for profit organizations that are
independent of the government and are active in humanitarian causes
5 stages of going global - ANS-1. Market entry
2. Product specialization
3. Value chain disaggregation
4. Value chain reengineering
5. Creation of new markets
foreign direct investment - ANS-when a firm invests assets directly into a foreign
country's buildings, equipment, or organizations
opportunities for scale - ANS-cost advantages due to an increase in the amount of
output and a decrease in the cost per unit
, 4 industry globalization drivers - ANS--market
-cost
-competition
-government
CAGE analysis - ANS-cultural, administrative, geographic, economic
free trade zone - ANS-a geographic region that a country has opted to reduce barriers
to trade with
subsidies - ANS-when a government gives a tax break to a producer to increase their
global competitiveness
types of economy - ANS--industrialized
-less developed
-developing
planned economy - ANS-government controls factors of production
free market - ANS-individuals own factors of production
traditional economy - ANS-An economy in which production is based on customs and
traditions and economic roles are typically passed down from one generation to the next
command economy - ANS-economic effort is devoted to goals passes down from a ruler
or a ruling class
market economy - ANS-leaders make decisions based on consumer demands
underground economies - ANS-economic transactions that are deemed illegal
socialism - ANS-a system in which the government controls the means of production
and regulates global trade
capitalism - ANS-a system in which the means of production is controlled by private
owners who can choose to participate in global trade
communism - ANS-a system in which all property is publicly owned and the government
controls global trade
Environment- D080
globalization - ANS-worldwide interconnections in virtually every sphere of activity
including the spread of products, technology, info, and job opportunities
4 fundamental aspects of globalization - ANS--trade and transactions
-capital and investment movements
-migration and movement of people
-dissemination of knowledge
outsource - ANS-to obtain goods or services from an outside or foreign supplier
cultural globalization - ANS-the transmission of ideas, meanings, and values around the
world in a way that extends/intensifies social relations
3 major areas of globalization - ANS--economic
-cultural
-political
economic globalization - ANS-the widespread, International movement of goods,
capital, services, technology, and info
NGOs (non-governmental organizations) - ANS-not for profit organizations that are
independent of the government and are active in humanitarian causes
5 stages of going global - ANS-1. Market entry
2. Product specialization
3. Value chain disaggregation
4. Value chain reengineering
5. Creation of new markets
foreign direct investment - ANS-when a firm invests assets directly into a foreign
country's buildings, equipment, or organizations
opportunities for scale - ANS-cost advantages due to an increase in the amount of
output and a decrease in the cost per unit
, 4 industry globalization drivers - ANS--market
-cost
-competition
-government
CAGE analysis - ANS-cultural, administrative, geographic, economic
free trade zone - ANS-a geographic region that a country has opted to reduce barriers
to trade with
subsidies - ANS-when a government gives a tax break to a producer to increase their
global competitiveness
types of economy - ANS--industrialized
-less developed
-developing
planned economy - ANS-government controls factors of production
free market - ANS-individuals own factors of production
traditional economy - ANS-An economy in which production is based on customs and
traditions and economic roles are typically passed down from one generation to the next
command economy - ANS-economic effort is devoted to goals passes down from a ruler
or a ruling class
market economy - ANS-leaders make decisions based on consumer demands
underground economies - ANS-economic transactions that are deemed illegal
socialism - ANS-a system in which the government controls the means of production
and regulates global trade
capitalism - ANS-a system in which the means of production is controlled by private
owners who can choose to participate in global trade
communism - ANS-a system in which all property is publicly owned and the government
controls global trade
