Question 1

The German Mittelstand consists of ____ , ____ businesses which have experienced exporting success in recent years.&#10;A) Small, publicly traded&#10;B) Medium-sized, family owned&#10;C) Inflexible, domestic&#10;D) Cost-sensitive, European

Accepted Answer

The German Mittelstand consists of medium-sized, family-owned businesses which have experienced exporting success in recent years.

Question 2

Differences in global markets can arise in all of the following except _____.&#10;A) languages&#10;B) currencies&#10;C) tax regimes&#10;D) Basel accord compliance

Accepted Answer

The Basel accord compliance is a universal standard followed by banks all over the world to ensure financial stability and is not a factor that creates differences in global markets. However, languages, currencies, and tax regimes can differ from country to country and impact global markets.

Question 3

________ organizations typically do not integrate the management of operations in different countries.&#10;A) Geocentric&#10;B) Ethnocentric&#10;C) Narcissistic&#10;D) Polycentric

Accepted Answer

Polycentric organizations tend to operate independently in each country and do not integrate the management of operations in different countries. Ethnocentric organizations prioritize central control at the headquarters and Geocentric organizations strive for a balance between global integration and local responsiveness. Narcissistic is not a valid type of organization.

Question 4

Some advantages gained by multinationals include all of the following except _____.&#10;A) Host country regulations&#10;B) Economies of scale&#10;C) Lower input costs&#10;D) Ability to access raw materials abroad

Accepted Answer

Host country regulations are not an advantage gained by multinationals, as they are often faced with varying regulations across different countries which can be costly and time-consuming to navigate. The other choices (B, C, and D) are advantages gained by multinationals such as increased efficiency and profitability through economies of scale, access to lower input costs, and access to raw materials abroad.

Question 5

Some disadvantages experienced by multinationals include all of the following except _____.&#10;A) Business risks&#10;B) Host country regulations&#10;C) Inferior technical know-how&#10;D) Different legal systems

Accepted Answer

Multinationals generally have advanced technical know-how due to their experience and resources. Thus, inferior technical know-how would not be a disadvantage. However, business risks, host country regulations, and different legal systems are common disadvantages experienced by multinationals.

Question 6

BRIC nations consist of all except ____.&#10;A) China&#10;B) Rhodesia&#10;C) Brazil&#10;D) India

Accepted Answer

Rhodesia is not a BRIC nation. The term BRIC refers to Brazil, Russia, India, and China, all considered to be rapidly developing economies with significant economic potential.

Question 7

Based on 2010 performance, the _____ is the world's leader in the volume of trade.&#10;A) United States&#10;B) China&#10;C) South American Alliance&#10;D) European Union

Accepted Answer

In 2010, the European Union was the world's leader in the volume of trade, surpassing other major economies due to its large internal market and extensive trade relations with countries around the world.

Question 8

The market research capabilities of a multinational firm would be considered a(n) _______ advantage.&#10;A) Financial flexibility&#10;B) Information&#10;C) Low-cost financing&#10;D) Goodwill

Accepted Answer

Market research capabilities of a multinational firm provide valuable information that can be used to make strategic decisions and gain a competitive advantage. It allows the firm to assess market trends, customer preferences, and competitor actions in different regions or countries where it operates. This information can be used to develop effective marketing strategies, products, and services that meet the needs of local customers. As a result, market research capabilities are a key advantage for multinational firms. Financial flexibility, low-cost financing, and goodwill are also important advantages for firms in different contexts, but they are not directly related to market research capabilities.

Question 9

The varying business cycles experienced by a multinational firm in its various operating jurisdictions are an example of ______ advantage.&#10;A) Diversification&#10;B) Managerial expertise&#10;C) Information&#10;D) Financial Flexibility

Accepted Answer

The varying business cycles in different operating jurisdictions highlight the benefits of diversification, which allows the firm to balance out risks and opportunities across different regions. Managerial expertise, information, and financial flexibility may also be important advantages for the firm, but they are not specifically highlighted by the example given.

Question 10

Trade routes were first established in the Mediterranean in _______.&#10;A) The early 1990s&#10;B) The industrial revolution&#10;C) Ancient times&#10;D) The 1750s&#10;True or False Questions

Accepted Answer

Trade routes in the Mediterranean were established in ancient times, facilitating the exchange of goods, culture, and ideas among civilizations such as the Egyptians, Phoenicians, Greeks, and Romans.

Question 11

The Mittelstand are traditionally large export oriented German firms.

Accepted Answer

The answer of The Mittelstand are traditionally large export oriented...

Question 12

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

Accepted Answer

The answer of In the wake of the financial crisis,...

Question 13

Ethnocentric firms are more globally oriented that polycentric firms.

Accepted Answer

The answer of Ethnocentric firms are more globally oriented that...

Question 14

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

Accepted Answer

The answer of Most of the world's top twenty firms...

Question 15

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

Accepted Answer

The answer of In 2010 the BRIC nations had a...

Deck 1: An Introduction to International Business and Multinational Corporations