INB 300 EXAM 1 STUDY GUIDE 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ Pendulum view of globalization Answer: Upward Swing: Countries
open borders, sign trade deals, encourage foreign investment
Downward Swing: People think globalization has gone too far,
restrictive immigration, increase in tariffs
◉ Absolute Advantage Answer: The ability to produce a greater
quantity of a good than competitors, using the same amount of resources
◉ International product life cycle theory Answer: New product stage:
Production stays in home country
Maturing product stage: Starts shifting abroad
Standardized product stage: Shifts entirely to developing nations (low
cost labor)
◉ Natural Trade Theory Answer: A nations success is often created, not
inherited
◉ Protectionism Answer: Economic policy of restricting imports from
other countries through methods such as tariffs, import quotas
, ◉ Semi-globalization Answer: that while the world is much more
connected than it used to be borders and national differences still matter
immensely
◉ Foreign direct investment Answer: is a category of cross border
investment in which an investor from one country establishes a lasting
interest in a significant control over a business located in another
country.
◉ Ghemawat message Answer: the counter argument that the world is
only about 10% integrated. Overestimate how connected we are; borders
culture and distance still create significant friction
◉ Stake holder theory Answer: Create shared value, balance all groups,
long term sustainability, "business is about creating a better world"
◉ Expatriate manager Answer: An employee who is sent by their
company to work in a foreign country for a significant period of time
◉ World trade organiztion Answer: global international organization
dealing with the rules of trade between nations
Established jan 1, 1995
◉ Democracy Answer: Where the government is by the people, through
elected representatives
QUESTIONS WITH ANSWERS GRADED A+
◉ Pendulum view of globalization Answer: Upward Swing: Countries
open borders, sign trade deals, encourage foreign investment
Downward Swing: People think globalization has gone too far,
restrictive immigration, increase in tariffs
◉ Absolute Advantage Answer: The ability to produce a greater
quantity of a good than competitors, using the same amount of resources
◉ International product life cycle theory Answer: New product stage:
Production stays in home country
Maturing product stage: Starts shifting abroad
Standardized product stage: Shifts entirely to developing nations (low
cost labor)
◉ Natural Trade Theory Answer: A nations success is often created, not
inherited
◉ Protectionism Answer: Economic policy of restricting imports from
other countries through methods such as tariffs, import quotas
, ◉ Semi-globalization Answer: that while the world is much more
connected than it used to be borders and national differences still matter
immensely
◉ Foreign direct investment Answer: is a category of cross border
investment in which an investor from one country establishes a lasting
interest in a significant control over a business located in another
country.
◉ Ghemawat message Answer: the counter argument that the world is
only about 10% integrated. Overestimate how connected we are; borders
culture and distance still create significant friction
◉ Stake holder theory Answer: Create shared value, balance all groups,
long term sustainability, "business is about creating a better world"
◉ Expatriate manager Answer: An employee who is sent by their
company to work in a foreign country for a significant period of time
◉ World trade organiztion Answer: global international organization
dealing with the rules of trade between nations
Established jan 1, 1995
◉ Democracy Answer: Where the government is by the people, through
elected representatives
