INTERNATIONAL BUSINESS EXAM 1 REVIEW QUESTIONS AND ANSWERS 2025
Globalization - (ANSWER)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 - (ANSWER)All types of businesses are getting inputs from several global locations
Globalization of markets - (ANSWER)Merging of historically distinct and separate national markets into
one huge global market;
Globalization of production - (ANSWER)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 - (ANSWER)inputs into the productive processes of a firm, including labor
management, land, capital, and technological know how
General Agreement on Tariffs and Trade (GATT) - (ANSWER)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 - (ANSWER)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 - (ANSWER)International institution set up to maintain order in the
international monetary system
United Nations - (ANSWER)International organization made up of 193 countries to promote peace,
security, and cooperation
G20 - (ANSWER)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 BUSINESS EXAM 1 REVIEW QUESTIONS AND ANSWERS 2025
International Trade - (ANSWER)Occurs when a firm exports goods or services to consumers in another
country
Foreign Direct Investment (FDI) - (ANSWER)Direct investment in business operations in a foreign country
Two factors that underlie trend towards greater globalization - (ANSWER)Declining barriers to
international trade and technological chanve
Moore's Law - (ANSWER)The power of microprocessor technology doubles and its costs of production
fall in half every 18 months
Stock of FDI - (ANSWER)The total accumulated value of foreign-owned assets at a given time
Multinational Enterprise - (ANSWER)A firm that owns business operations in more than one country
International Business - (ANSWER)Any firm that engages in international trade or investment
Two major forces in the global economy - (ANSWER)trade and investment
Political economy - (ANSWER)The political, economic, and legal systems of a country
Political system - (ANSWER)System of government in a nation
Collectivism - (ANSWER)A political system that emphasizes collective goals as opposed to individual
goals
Socialist - (ANSWER)Someone who believes in public ownership of the means of production for the
common good of society
Globalization - (ANSWER)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 - (ANSWER)All types of businesses are getting inputs from several global locations
Globalization of markets - (ANSWER)Merging of historically distinct and separate national markets into
one huge global market;
Globalization of production - (ANSWER)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 - (ANSWER)inputs into the productive processes of a firm, including labor
management, land, capital, and technological know how
General Agreement on Tariffs and Trade (GATT) - (ANSWER)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 - (ANSWER)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 - (ANSWER)International institution set up to maintain order in the
international monetary system
United Nations - (ANSWER)International organization made up of 193 countries to promote peace,
security, and cooperation
G20 - (ANSWER)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 BUSINESS EXAM 1 REVIEW QUESTIONS AND ANSWERS 2025
International Trade - (ANSWER)Occurs when a firm exports goods or services to consumers in another
country
Foreign Direct Investment (FDI) - (ANSWER)Direct investment in business operations in a foreign country
Two factors that underlie trend towards greater globalization - (ANSWER)Declining barriers to
international trade and technological chanve
Moore's Law - (ANSWER)The power of microprocessor technology doubles and its costs of production
fall in half every 18 months
Stock of FDI - (ANSWER)The total accumulated value of foreign-owned assets at a given time
Multinational Enterprise - (ANSWER)A firm that owns business operations in more than one country
International Business - (ANSWER)Any firm that engages in international trade or investment
Two major forces in the global economy - (ANSWER)trade and investment
Political economy - (ANSWER)The political, economic, and legal systems of a country
Political system - (ANSWER)System of government in a nation
Collectivism - (ANSWER)A political system that emphasizes collective goals as opposed to individual
goals
Socialist - (ANSWER)Someone who believes in public ownership of the means of production for the
common good of society
