International Business Exam 1 Review.Final Test 2026\2027.
Globalization
Movement from thinking about markets in terms of geographic areas to thinking about them
as something that transcends borders; the shift towards a more integrated and
interdependent world economy
World-wide sourcing
All types of businesses are getting inputs from several global locations
Globalization of markets
Merging of historically distinct and separate national markets into one huge global market;
Globalization of production
Sourcing of goods and services from locations around the globe to take advantage of
national differences in cost and quality factors of production
Factors of production
inputs into the productive processes of a firm, including labor management, land, capital,
and technological know how
General Agreement on Tariffs and Trade (GATT)
International treaty that committed signatures to lowering barriers to the free flow of goods
across national borders and led to the WTO
World Trade Organization
Primarily responsible for policing the world trading system and making sure nation-states
adhere to the rules laid down in trade treaties signed by WTO member states (97% of world
trade countries)
International Monetary Fund
International institution set up to maintain order in the international monetary system
United Nations
International organization made up of 193 countries to promote peace, security, and
cooperation
G20
, International Business Exam 1 Review.Final Test 2026\2027.
Comprises the finance ministers and central bank governors of the 19 largest economies in
the world, plus representatives from the EU and European Central Bank
International Trade
Occurs when a firm exports goods or services to consumers in another country
Foreign Direct Investment (FDI)
Direct investment in business operations in a foreign country
Two factors that underlie trend towards greater globalization
Declining barriers to international trade and technological chanve
Moore's Law
The power of microprocessor technology doubles and its costs of production fall in half
every 18 months
Stock of FDI
The total accumulated value of foreign-owned assets at a given time
Multinational Enterprise
A firm that owns business operations in more than one country
International Business
Any firm that engages in international trade or investment
Two major forces in the global economy
trade and investment
Political economy
The political, economic, and legal systems of a country
Political system
System of government in a nation
Collectivism
A political system that emphasizes collective goals as opposed to individual goals
Socialist
Someone who believes in public ownership of the means of production for the common good
of society
Communists
Globalization
Movement from thinking about markets in terms of geographic areas to thinking about them
as something that transcends borders; the shift towards a more integrated and
interdependent world economy
World-wide sourcing
All types of businesses are getting inputs from several global locations
Globalization of markets
Merging of historically distinct and separate national markets into one huge global market;
Globalization of production
Sourcing of goods and services from locations around the globe to take advantage of
national differences in cost and quality factors of production
Factors of production
inputs into the productive processes of a firm, including labor management, land, capital,
and technological know how
General Agreement on Tariffs and Trade (GATT)
International treaty that committed signatures to lowering barriers to the free flow of goods
across national borders and led to the WTO
World Trade Organization
Primarily responsible for policing the world trading system and making sure nation-states
adhere to the rules laid down in trade treaties signed by WTO member states (97% of world
trade countries)
International Monetary Fund
International institution set up to maintain order in the international monetary system
United Nations
International organization made up of 193 countries to promote peace, security, and
cooperation
G20
, International Business Exam 1 Review.Final Test 2026\2027.
Comprises the finance ministers and central bank governors of the 19 largest economies in
the world, plus representatives from the EU and European Central Bank
International Trade
Occurs when a firm exports goods or services to consumers in another country
Foreign Direct Investment (FDI)
Direct investment in business operations in a foreign country
Two factors that underlie trend towards greater globalization
Declining barriers to international trade and technological chanve
Moore's Law
The power of microprocessor technology doubles and its costs of production fall in half
every 18 months
Stock of FDI
The total accumulated value of foreign-owned assets at a given time
Multinational Enterprise
A firm that owns business operations in more than one country
International Business
Any firm that engages in international trade or investment
Two major forces in the global economy
trade and investment
Political economy
The political, economic, and legal systems of a country
Political system
System of government in a nation
Collectivism
A political system that emphasizes collective goals as opposed to individual goals
Socialist
Someone who believes in public ownership of the means of production for the common good
of society
Communists
