Deck 1: An Introduction to International Business and Multinational Corporations

Question 1

The German Mittelstand consists of ____ , ____ businesses which have experienced exporting success in recent years.

A) Small, publicly traded
B) Medium-sized, family owned
C) Inflexible, domestic
D) Cost-sensitive, European

Answer 1

B

Question 2

Differences in global markets can arise in all of the following except _____.

A) languages
B) currencies
C) tax regimes
D) Basel accord compliance

Answer 2

D

Question 3

________ organizations typically do not integrate the management of operations in different countries.

A) Geocentric
B) Ethnocentric
C) Narcissistic
D) Polycentric

Answer 3

D

Question 4

Some advantages gained by multinationals include all of the following except _____.

A) Host country regulations
B) Economies of scale
C) Lower input costs
D) Ability to access raw materials abroad

Question 5

Some disadvantages experienced by multinationals include all of the following except _____.

A) Business risks
B) Host country regulations
C) Inferior technical know-how
D) Different legal systems

Question 6

BRIC nations consist of all except ____.

A) China
B) Rhodesia
C) Brazil
D) India

Question 7

Based on 2010 performance, the _____ is the world's leader in the volume of trade.

A) United States
B) China
C) South American Alliance
D) European Union

Question 8

The market research capabilities of a multinational firm would be considered a(n) _______ advantage.

A) Financial flexibility
B) Information
C) Low-cost financing
D) Goodwill

Question 9

The varying business cycles experienced by a multinational firm in its various operating jurisdictions are an example of ______ advantage.

A) Diversification
B) Managerial expertise
C) Information
D) Financial Flexibility

Question 10

Trade routes were first established in the Mediterranean in _______.

A) The early 1990s
B) The industrial revolution
C) Ancient times
D) The 1750s
True or False Questions

Question 11

The Mittelstand are traditionally large export oriented German firms.

Question 12

In the wake of the financial crisis, world FDI inflows declined.

Question 13

Ethnocentric firms are more globally oriented that polycentric firms.

Question 14

Most of the world's top twenty firms are associated with the oil or automobile industry.

Question 15

In 2010 the BRIC nations had a larger share of world trade than the United States.