Question 1

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

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 _____.

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.

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 _____.

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 _____.

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 ____.

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.

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.

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.

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 _______.

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 Mittelstand refers to small and medium-sized enterprises in German-speaking countries, known for their specialized approach and not typically large export-oriented firms.

Question 12

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

Accepted Answer

The financial crisis led to a decline in world FDI inflows due to investor caution and instability in the global economy.

Question 13

Ethnocentric firms are more globally oriented that polycentric firms.

Accepted Answer

Ethnocentric firms prioritize their home country's values and practices, while polycentric firms adapt their strategies to the local market where they operate. Therefore, polycentric firms tend to be more globally oriented than ethnocentric firms, as they are better able to understand and respond to diverse cultural and market conditions.

Question 14

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

Accepted Answer

According to the Forbes Global 2000 list of 2021, 6 out of the top 10 firms and many others in the top 20 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.

Accepted Answer

In 2010, the combined share of world trade of the BRIC nations (Brazil, Russia, India, and China) surpassed that of the United States, reflecting their growing economic influence and the shift in global economic power towards emerging economies.

Quiz 1: An Introduction to International Business and Multinational Corporations

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