1|Page
INTERNATIONAL BUSINESS TEST 1
(CHAPTERS 1-6)2026- COMPLETE EXAM SET
WITH ACTUAL QUESTIONS AND VERIFIED
SOLUTIONS
Globalization of Markets - correct-answer -Merging of separate markets into one
huge global marketplace
Globalization of production - correct-answer -Sourcing of goods and services from
locations around the globe to take advantage of national differences in the cost
and quality of factors of production.
Foreign direct investment (FDI) - correct-answer -occurs when a firm invests
resources in business activities outside its home country.
-Greater than 10% investment.
4 stylized facts that describe the demographic changes of the global economy -
correct-answer -1. The changing world output and world trade picture.
2. The changing foreign direct investment picture.
3. The changing nature of the multinational enterprise
, 2|Page
4. The changing world order.
Individualism - correct-answer -Individuals should have freedom in his/her
economic and political pursuits
Collectivism - correct-answer -Political system that stresses the primary of
collective goals over individuals goals
Totalitarianism - correct-answer -Form gov't where one person or political party
exercises absolute control over all spheres of human life and prohibits opposing
political parties.
Democracy - correct-answer -Political system where gov't is run by the people
Communists - correct-answer -Believe that socialism could be achieved through
violent revolution and totalitarian dictatorship.
Social Democrats - correct-answer -Turned their backs on violent revolution and
dictatorship
INTERNATIONAL BUSINESS TEST 1
(CHAPTERS 1-6)2026- COMPLETE EXAM SET
WITH ACTUAL QUESTIONS AND VERIFIED
SOLUTIONS
Globalization of Markets - correct-answer -Merging of separate markets into one
huge global marketplace
Globalization of production - correct-answer -Sourcing of goods and services from
locations around the globe to take advantage of national differences in the cost
and quality of factors of production.
Foreign direct investment (FDI) - correct-answer -occurs when a firm invests
resources in business activities outside its home country.
-Greater than 10% investment.
4 stylized facts that describe the demographic changes of the global economy -
correct-answer -1. The changing world output and world trade picture.
2. The changing foreign direct investment picture.
3. The changing nature of the multinational enterprise
, 2|Page
4. The changing world order.
Individualism - correct-answer -Individuals should have freedom in his/her
economic and political pursuits
Collectivism - correct-answer -Political system that stresses the primary of
collective goals over individuals goals
Totalitarianism - correct-answer -Form gov't where one person or political party
exercises absolute control over all spheres of human life and prohibits opposing
political parties.
Democracy - correct-answer -Political system where gov't is run by the people
Communists - correct-answer -Believe that socialism could be achieved through
violent revolution and totalitarian dictatorship.
Social Democrats - correct-answer -Turned their backs on violent revolution and
dictatorship
