D270 MIDTERM EXAM STUDY GUIDE
2025/2026 ACCURATE QUESTIONS AND
VERIFIED CORRECT SOLUTIONS WITH
RATIONALES || 100% GUARANTEED PASS
<LATEST VERSION>
1. What is International Business? - ANSWER ✓ Any commercial transactions
between 2 or more countries
2. What is globalization? - ANSWER ✓ - a process of broadening of
interdependent relationships among people who are divided into national
boarders
- reduction of barriers on movements of goods. services, capital, tech,
and people
- increasing connection between people and places
3. What are the 4 types of globalizations? - ANSWER ✓ - Social
- Political
- Economic
- Cultural
(SPEC)
4. How do we measure Globalization? - ANSWER ✓ - 25% of global
production sold outside
- country of origin (7% in 1950)
- Restrictions on imports have been decreasing since WWII
- Foreign ownership of assets (land) has been increasing since WWII
- World trade has grown more rapidly than production since WWII
- Trade!! How we get things in and out of the country
5. What are the 3 forces driving globalizations and IB? - ANSWER ✓ -
globalization has been growing less sporadically
- it is LESS pervasive than generally thought
, - has economic and non-economic dimensions
6. 7 interrelated factors stimulating globalization (1-4) - ANSWER ✓ 1.
increase in application of technology (ex: improvements in transportation
and communication networks)
2. liberation of trade and resource movements (ex: Nike)
3. development of activities that support IB (tourism)
4. growing consumer pressure (ex: Dominos, 85 countries)
7. 7 interrelated factors stimulating globalization (5-7) - ANSWER ✓ 5.
increased global competition (ex: IBM)
6. changing political and gov. policies (ex: Coca-Cola)
7. expanded cross-national corporation (ex: Toyota)
8. The Dark Side of Globalization - ANSWER ✓ 1. Threats to national
sovereignty
2. Environmental stress
3. Growing income inequality and personal stress
9. Threats to national sovereignty - ANSWER ✓ - reduce autonomy and
control of countries over own affairs
- weaker ones that depend of larger and stronger ones
ex: Greece w/ amazon
10.Environmental stress - ANSWER ✓ - increase consumption and depletion of
natural resources
- emission and pollution of greenhouse gasses
ex: China w/ Shell (any oil company really)
11.Growing income inequality and personal stress - ANSWER ✓ - creates
winners and losers
- widening gap between rich and poor
ex: Walmart in India would close down local businesses
12.Why do firms go international? - ANSWER ✓ 1. increase sales (ex: Apple)
2. expand resources ( ex: Ikea)
, - international locations give companies lower costs
3. Reduce risk (ex: Netflix)
- reduce operating risk by smoothening sales, profits, and supplies
- prevents competition to get advantage
13.What are GOOD examples of offshoring? - ANSWER ✓ - lower costs
- sell more home goods in host country
- growing in host country = more jobs at home
- move simple production abroad = more productivity at home
- jobs abroad = helps host country buy more from home
ex: General Electric
14.political ideology - ANSWER ✓ the doctrine of political behavior and
change and the outlining of how to go about it
15.pluralism - ANSWER ✓ more than one opinion about an issue in a nation
16.political spectrum - ANSWER ✓ the layout of the various forms of political
ideologies
17.political freedom - ANSWER ✓ measures the degree to which fair and
competitive elections occur, the presence of the freedom of press, individual
and group freedoms, and the legitimacy of the law
18.democracy - ANSWER ✓ participation by all citizens in a fair and just
decision-making process, "government by the people and for the people"
19.totalitarianism - ANSWER ✓ consolidates power in a single agent who then
control the political, economic, and social activities within a nation
20.free country - ANSWER ✓ open political competition
21.partly free country - ANSWER ✓ limited political rights and civil liberties
22.not free country - ANSWER ✓ few to no political rights and civil liberties
, 23.Third Wave of Democratization - ANSWER ✓ major surge of democracy in
the 20th century, beginning in 1974 that doubled the number of democratic
governments in the world
24.Political risk - ANSWER ✓ risk that political decision, events, or conditions
will affect a country's business environment in ways that negatively affect
the profitability of an investment
25.Why is it important to perform a country analysis before deciding to do
business in that country?
a. To choose an order of expansion over time
b. To decide on the most effective entry modes in a particular
country
c. To identify which products or services would be most suitable
d. All of the answers are correct
e. To decide the most suitable country in which to expand -
ANSWER ✓ d. All of the answers are correct
26.When corporations practice offshoring, all of the following are benefits
except
a. Growth in Host country creates more jobs in home country
b. Chance to sell more home country goods in the host country
c. Moving simple production abroad boosts productivity at
Home
d. Low wage pressures on remaining home jobs
e. Chance to lower costs - ANSWER ✓ d. Low wage pressures
on remaining home jobs
27.Imported tomatoes have become a major competitor to U.S farmers who
grow tomatoes. From this list below, what is probably the most important
reason for the increase in imported tomatoes coming into the U.S
marketplace?
a. Cross-national cooperation
b. More people living in the U.S.A
c. Advance in communication system
d. More effective production techniques
e. Advances in transportation and logistics - ANSWER ✓ e.
Advances in transportation and logistics
2025/2026 ACCURATE QUESTIONS AND
VERIFIED CORRECT SOLUTIONS WITH
RATIONALES || 100% GUARANTEED PASS
<LATEST VERSION>
1. What is International Business? - ANSWER ✓ Any commercial transactions
between 2 or more countries
2. What is globalization? - ANSWER ✓ - a process of broadening of
interdependent relationships among people who are divided into national
boarders
- reduction of barriers on movements of goods. services, capital, tech,
and people
- increasing connection between people and places
3. What are the 4 types of globalizations? - ANSWER ✓ - Social
- Political
- Economic
- Cultural
(SPEC)
4. How do we measure Globalization? - ANSWER ✓ - 25% of global
production sold outside
- country of origin (7% in 1950)
- Restrictions on imports have been decreasing since WWII
- Foreign ownership of assets (land) has been increasing since WWII
- World trade has grown more rapidly than production since WWII
- Trade!! How we get things in and out of the country
5. What are the 3 forces driving globalizations and IB? - ANSWER ✓ -
globalization has been growing less sporadically
- it is LESS pervasive than generally thought
, - has economic and non-economic dimensions
6. 7 interrelated factors stimulating globalization (1-4) - ANSWER ✓ 1.
increase in application of technology (ex: improvements in transportation
and communication networks)
2. liberation of trade and resource movements (ex: Nike)
3. development of activities that support IB (tourism)
4. growing consumer pressure (ex: Dominos, 85 countries)
7. 7 interrelated factors stimulating globalization (5-7) - ANSWER ✓ 5.
increased global competition (ex: IBM)
6. changing political and gov. policies (ex: Coca-Cola)
7. expanded cross-national corporation (ex: Toyota)
8. The Dark Side of Globalization - ANSWER ✓ 1. Threats to national
sovereignty
2. Environmental stress
3. Growing income inequality and personal stress
9. Threats to national sovereignty - ANSWER ✓ - reduce autonomy and
control of countries over own affairs
- weaker ones that depend of larger and stronger ones
ex: Greece w/ amazon
10.Environmental stress - ANSWER ✓ - increase consumption and depletion of
natural resources
- emission and pollution of greenhouse gasses
ex: China w/ Shell (any oil company really)
11.Growing income inequality and personal stress - ANSWER ✓ - creates
winners and losers
- widening gap between rich and poor
ex: Walmart in India would close down local businesses
12.Why do firms go international? - ANSWER ✓ 1. increase sales (ex: Apple)
2. expand resources ( ex: Ikea)
, - international locations give companies lower costs
3. Reduce risk (ex: Netflix)
- reduce operating risk by smoothening sales, profits, and supplies
- prevents competition to get advantage
13.What are GOOD examples of offshoring? - ANSWER ✓ - lower costs
- sell more home goods in host country
- growing in host country = more jobs at home
- move simple production abroad = more productivity at home
- jobs abroad = helps host country buy more from home
ex: General Electric
14.political ideology - ANSWER ✓ the doctrine of political behavior and
change and the outlining of how to go about it
15.pluralism - ANSWER ✓ more than one opinion about an issue in a nation
16.political spectrum - ANSWER ✓ the layout of the various forms of political
ideologies
17.political freedom - ANSWER ✓ measures the degree to which fair and
competitive elections occur, the presence of the freedom of press, individual
and group freedoms, and the legitimacy of the law
18.democracy - ANSWER ✓ participation by all citizens in a fair and just
decision-making process, "government by the people and for the people"
19.totalitarianism - ANSWER ✓ consolidates power in a single agent who then
control the political, economic, and social activities within a nation
20.free country - ANSWER ✓ open political competition
21.partly free country - ANSWER ✓ limited political rights and civil liberties
22.not free country - ANSWER ✓ few to no political rights and civil liberties
, 23.Third Wave of Democratization - ANSWER ✓ major surge of democracy in
the 20th century, beginning in 1974 that doubled the number of democratic
governments in the world
24.Political risk - ANSWER ✓ risk that political decision, events, or conditions
will affect a country's business environment in ways that negatively affect
the profitability of an investment
25.Why is it important to perform a country analysis before deciding to do
business in that country?
a. To choose an order of expansion over time
b. To decide on the most effective entry modes in a particular
country
c. To identify which products or services would be most suitable
d. All of the answers are correct
e. To decide the most suitable country in which to expand -
ANSWER ✓ d. All of the answers are correct
26.When corporations practice offshoring, all of the following are benefits
except
a. Growth in Host country creates more jobs in home country
b. Chance to sell more home country goods in the host country
c. Moving simple production abroad boosts productivity at
Home
d. Low wage pressures on remaining home jobs
e. Chance to lower costs - ANSWER ✓ d. Low wage pressures
on remaining home jobs
27.Imported tomatoes have become a major competitor to U.S farmers who
grow tomatoes. From this list below, what is probably the most important
reason for the increase in imported tomatoes coming into the U.S
marketplace?
a. Cross-national cooperation
b. More people living in the U.S.A
c. Advance in communication system
d. More effective production techniques
e. Advances in transportation and logistics - ANSWER ✓ e.
Advances in transportation and logistics
