INTB 200 FULL ACTUAL MIDTERM EXAM 2025 VERIFIED WITH COMPLETE SOLUTIONS
Globalization
The shift towards a more integrated and interdependent world economy
Globalization of Markets
The merging of historically distinct and separate national markets into one huge
marketplace
World Trade Organization (WTO)
Polices the world trading system, promotes lower barriers to trade and investment
International Monetary Fund (IMF)
Maintains order in the international monetary system, lends money only in times of crisis
World Bank
Promotes economic development via low interest loans for infrastructure projects
Foreign Direct Investment (FDI)
Occurs when a firm invests resources in business activities outside its home country
,Political System
The system of government in a nation
Collectivism
Stresses the primacy of collective goals over individual goals, Totalitarian
Communism
Socialism can only be achieved through violent revolution and totalitarian dictatorship
Social Democrats
Socialism is achieved through democratic means (ex. Sweden, Bernie Sanders)
Individualism
Philosophy that an individual should have freedom in his own economic and political
pursuits
Democracy
Political system in which government is by the people, exercised either directly or through
elected representatives
,Totalitarianism
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
Found in states where the communist part monopolizes power
Theocratic Totalitarianism
Found in states where political power is monopolized by a party, group, or individual that
governs according to religious principles
Tribal Totalitarianism
Found in states where a political party that represents the interests of a particular tribe
monopolizes power
Right-wing Totalitarianism
Permits some individual economic freedom, but restricts individual political freedom
Market Economies
All productive activities are privately owned and production is determined by the
interaction of supply and demand
, Command Economies
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)
Greenfield Investments
Normally 100% ownership of a foreign company, usually in developing countries
Exporting
Producing goods at home and then shipping them to the receiving country for sale (direct
and indirect)
Licensing
Granting a foreign entity the right to produce and sell the firm's product in return for a
royalty fee on every unit that the foreign entity sells
Radical View of FDI
The MNE is an instrument of imperialist domination and a tool for exploiting host countries
to the exclusive benefit of their capitalist-imperialist home countries
Free Market View of FDI
International production should be distributed among countries according to the theory of
comparative advantage
Globalization
The shift towards a more integrated and interdependent world economy
Globalization of Markets
The merging of historically distinct and separate national markets into one huge
marketplace
World Trade Organization (WTO)
Polices the world trading system, promotes lower barriers to trade and investment
International Monetary Fund (IMF)
Maintains order in the international monetary system, lends money only in times of crisis
World Bank
Promotes economic development via low interest loans for infrastructure projects
Foreign Direct Investment (FDI)
Occurs when a firm invests resources in business activities outside its home country
,Political System
The system of government in a nation
Collectivism
Stresses the primacy of collective goals over individual goals, Totalitarian
Communism
Socialism can only be achieved through violent revolution and totalitarian dictatorship
Social Democrats
Socialism is achieved through democratic means (ex. Sweden, Bernie Sanders)
Individualism
Philosophy that an individual should have freedom in his own economic and political
pursuits
Democracy
Political system in which government is by the people, exercised either directly or through
elected representatives
,Totalitarianism
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
Found in states where the communist part monopolizes power
Theocratic Totalitarianism
Found in states where political power is monopolized by a party, group, or individual that
governs according to religious principles
Tribal Totalitarianism
Found in states where a political party that represents the interests of a particular tribe
monopolizes power
Right-wing Totalitarianism
Permits some individual economic freedom, but restricts individual political freedom
Market Economies
All productive activities are privately owned and production is determined by the
interaction of supply and demand
, Command Economies
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)
Greenfield Investments
Normally 100% ownership of a foreign company, usually in developing countries
Exporting
Producing goods at home and then shipping them to the receiving country for sale (direct
and indirect)
Licensing
Granting a foreign entity the right to produce and sell the firm's product in return for a
royalty fee on every unit that the foreign entity sells
Radical View of FDI
The MNE is an instrument of imperialist domination and a tool for exploiting host countries
to the exclusive benefit of their capitalist-imperialist home countries
Free Market View of FDI
International production should be distributed among countries according to the theory of
comparative advantage
