INTB Exam 1
Globalization correct answersrefers to the shift toward a more
integrated and interdependent world economy.
Globalization of Markets correct answersrefers to the merging of historically
distinct and separate national markets into one huge global marketplace.
Globalization of Production correct answersrefers to the 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
Factors of Production correct answerssuch as labor, energy, land, and capital
General Agreement on Tariffs and Trade (GATT) correct answersa 1948
agreement that established an international forum for negotiating mutual
reductions in trade restrictions
World Trade Organization (WTO) correct answersis 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
International Monetary Fund (IMF) correct answersboth created in 1944 by
44 nations that met at Bretton Woods, New Hampshire, was established to
maintain order in the international monetary system;
World Bank correct answersboth created in 1944 by 44 nations that met
at Bretton Woods, New Hampshire, was
set up to promote economic development.
United Nations (UN) correct answerswas established October 24, 1945, by
51 countries committed to preserving peace through international
cooperation and collective security
Group of 20 (G20) correct answersEstablished in 1999, the comprises the
finance ministers and central bank governors of the 19 largest economies
in the world, plus representatives from the European Union and the
European Central Bank.
Collectively, the represents 90 percent of global GDP and 80
percent of international global trade.
International Trade correct answersoccurs when a firm exports goods or
services to consumers in another country
Foreign Direct Investment (FDI) correct answersoccurs when a firm
invests
, resources in business activities outside its home country.
Moore's Law correct answerswhich predicts that the power of
microprocessor technology doubles and its cost of production falls
in half every 18 months
Stock of Foreign Direct Investment (FDI) correct answersrefers to the total
cumulative value of foreign investments.
Multinational Enterprise (MNE) correct answersis any business that has
productive activities in two or more countries. Since the 1960s, two
notable trends in the demographics of the multinational
enterprise have been (1) the rise of non-U.S. multinationals and (2) the
growth of minimultinationals.
International Business correct answersis any firm that engages in
international trade or investment.
Political Economy correct answersto stress that the political, economic,
and legal systems of a country are interdependent; they interact with and
influence each other, and in doing so, they affect the level of economic
well-being
Political System correct answerssystem of government in a nation
Collectivism correct answersrefers to a political system that stresses the
primacy of collective goals over individual goals.2
Socialists correct answerstrace their intellectual roots to Karl Marx, a form
of society in which government owns or controls major industries.
Transitional change between capitalism and communism
Communists correct answersbelieved that socialism could be achieved
only through violent revolution and totalitarian dictatorship,
Social Democrats correct answerscommitted themselves to achieving
socialism by democratic means, turning their backs on violent
revolution and dictatorship.
Individualism correct answersrefers to a philosophy that an individual
should have freedom in his or her economic and political pursuits.
Privitization correct answersThese parties sold state-owned
enterprises to private investors (a process referred to as
Democracy correct answersrefers to a political system in which
government is by the people, exercised either directly or
through elected representatives.
Globalization correct answersrefers to the shift toward a more
integrated and interdependent world economy.
Globalization of Markets correct answersrefers to the merging of historically
distinct and separate national markets into one huge global marketplace.
Globalization of Production correct answersrefers to the 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
Factors of Production correct answerssuch as labor, energy, land, and capital
General Agreement on Tariffs and Trade (GATT) correct answersa 1948
agreement that established an international forum for negotiating mutual
reductions in trade restrictions
World Trade Organization (WTO) correct answersis 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
International Monetary Fund (IMF) correct answersboth created in 1944 by
44 nations that met at Bretton Woods, New Hampshire, was established to
maintain order in the international monetary system;
World Bank correct answersboth created in 1944 by 44 nations that met
at Bretton Woods, New Hampshire, was
set up to promote economic development.
United Nations (UN) correct answerswas established October 24, 1945, by
51 countries committed to preserving peace through international
cooperation and collective security
Group of 20 (G20) correct answersEstablished in 1999, the comprises the
finance ministers and central bank governors of the 19 largest economies
in the world, plus representatives from the European Union and the
European Central Bank.
Collectively, the represents 90 percent of global GDP and 80
percent of international global trade.
International Trade correct answersoccurs when a firm exports goods or
services to consumers in another country
Foreign Direct Investment (FDI) correct answersoccurs when a firm
invests
, resources in business activities outside its home country.
Moore's Law correct answerswhich predicts that the power of
microprocessor technology doubles and its cost of production falls
in half every 18 months
Stock of Foreign Direct Investment (FDI) correct answersrefers to the total
cumulative value of foreign investments.
Multinational Enterprise (MNE) correct answersis any business that has
productive activities in two or more countries. Since the 1960s, two
notable trends in the demographics of the multinational
enterprise have been (1) the rise of non-U.S. multinationals and (2) the
growth of minimultinationals.
International Business correct answersis any firm that engages in
international trade or investment.
Political Economy correct answersto stress that the political, economic,
and legal systems of a country are interdependent; they interact with and
influence each other, and in doing so, they affect the level of economic
well-being
Political System correct answerssystem of government in a nation
Collectivism correct answersrefers to a political system that stresses the
primacy of collective goals over individual goals.2
Socialists correct answerstrace their intellectual roots to Karl Marx, a form
of society in which government owns or controls major industries.
Transitional change between capitalism and communism
Communists correct answersbelieved that socialism could be achieved
only through violent revolution and totalitarian dictatorship,
Social Democrats correct answerscommitted themselves to achieving
socialism by democratic means, turning their backs on violent
revolution and dictatorship.
Individualism correct answersrefers to a philosophy that an individual
should have freedom in his or her economic and political pursuits.
Privitization correct answersThese parties sold state-owned
enterprises to private investors (a process referred to as
Democracy correct answersrefers to a political system in which
government is by the people, exercised either directly or
through elected representatives.
