INTB 200 Midterm Exam Questions With
Correct Detailed Solutions.
Globalization - Answer The shift towards a more integrated and interdependent world
economy
Globalization of Markets - Answer The merging of historically distinct and separate national
markets into one huge marketplace
World Trade Organization (WTO) - Answer Polices the world trading system, promotes lower
barriers to trade and investment
International Monetary Fund (IMF) - Answer Maintains order in the international monetary
system, lends money only in times of crisis
World Bank - Answer Promotes economic development via low interest loans for
infrastructure projects
Foreign Direct Investment (FDI) - Answer Occurs when a firm invests resources in business
activities outside its home country
Political System - Answer The system of government in a nation
Collectivism - Answer Stresses the primacy of collective goals over individual goals, Totalitarian
Communism - Answer Socialism can only be achieved through violent revolution and
totalitarian dictatorship
Social Democrats - Answer Socialism is achieved through democratic means (ex. Sweden,
Bernie Sanders)
Individualism - Answer Philosophy that an individual should have freedom in his own
economic and political pursuits
, Totalitarianism - Answer Form of government in which one person or political party exercises
absolute control over all spheres of human life and prohibits opposing political parties
Communist Totalitarianism - Answer Found in states where the communist part monopolizes
power
Theocratic Totalitarianism - Answer Found in states where political power is monopolized by a
party, group, or individual that governs according to religious principles
Tribal Totalitarianism - Answer Found in states where a political party that represents the
interests of a particular tribe monopolizes power
Right-wing Totalitarianism - Answer Permits some individual economic freedom, but restricts
individual political freedom
Market Economies - Answer All productive activities are privately owned and production is
determined by the interaction of supply and demand
Command Economies - Answer Government plans the goods and services that a country
produces, the quantity that is produced, and the prices as which they are sold (everything state
owned)
Mixed Economies - Answer Certain sectors of the economy are left to private ownership and
free market mechanisms while other sectors have significant state ownership and government
planning
Common Law - Answer Based on tradition, precedent, and custom (Flexible)
Civic Law - Answer Based on a detailed set of laws organized into codes (less need for lawyers)
Theocratic Law - Answer Law is based on religious teachings (Sharia)
United Nations Convention on Contracts for the International Sale of Goods (CIGS) - Answer
Establishes a uniform set of rules governing certain aspects of the making and performance of
everyday commercial contracts between buyers and sellers (ratified by 70 countries)
Correct Detailed Solutions.
Globalization - Answer The shift towards a more integrated and interdependent world
economy
Globalization of Markets - Answer The merging of historically distinct and separate national
markets into one huge marketplace
World Trade Organization (WTO) - Answer Polices the world trading system, promotes lower
barriers to trade and investment
International Monetary Fund (IMF) - Answer Maintains order in the international monetary
system, lends money only in times of crisis
World Bank - Answer Promotes economic development via low interest loans for
infrastructure projects
Foreign Direct Investment (FDI) - Answer Occurs when a firm invests resources in business
activities outside its home country
Political System - Answer The system of government in a nation
Collectivism - Answer Stresses the primacy of collective goals over individual goals, Totalitarian
Communism - Answer Socialism can only be achieved through violent revolution and
totalitarian dictatorship
Social Democrats - Answer Socialism is achieved through democratic means (ex. Sweden,
Bernie Sanders)
Individualism - Answer Philosophy that an individual should have freedom in his own
economic and political pursuits
, Totalitarianism - Answer Form of government in which one person or political party exercises
absolute control over all spheres of human life and prohibits opposing political parties
Communist Totalitarianism - Answer Found in states where the communist part monopolizes
power
Theocratic Totalitarianism - Answer Found in states where political power is monopolized by a
party, group, or individual that governs according to religious principles
Tribal Totalitarianism - Answer Found in states where a political party that represents the
interests of a particular tribe monopolizes power
Right-wing Totalitarianism - Answer Permits some individual economic freedom, but restricts
individual political freedom
Market Economies - Answer All productive activities are privately owned and production is
determined by the interaction of supply and demand
Command Economies - Answer Government plans the goods and services that a country
produces, the quantity that is produced, and the prices as which they are sold (everything state
owned)
Mixed Economies - Answer Certain sectors of the economy are left to private ownership and
free market mechanisms while other sectors have significant state ownership and government
planning
Common Law - Answer Based on tradition, precedent, and custom (Flexible)
Civic Law - Answer Based on a detailed set of laws organized into codes (less need for lawyers)
Theocratic Law - Answer Law is based on religious teachings (Sharia)
United Nations Convention on Contracts for the International Sale of Goods (CIGS) - Answer
Establishes a uniform set of rules governing certain aspects of the making and performance of
everyday commercial contracts between buyers and sellers (ratified by 70 countries)
