Question 1

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

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

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

Accepted Answer

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

Question 4

The Mittelstand are traditionally large export oriented German firms.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Ethnocentric firms are more globally oriented that polycentric firms.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Trade routes were first established in the Mediterranean in _______.

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

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

Accepted Answer

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

Question 14

BRIC nations consist of all except ____.

Accepted Answer

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

Question 15

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

Accepted Answer

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

Exam 1: An Introduction to International Business and Multinational Corporations

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