IB Business Management Quiz

What is 'globalisation'?

• process through which transportation becomes more efficient

• process through which people are able to travel to different parts of the world

• process through which ideas and activities in different parts of the world become interconnected

• process through which companies are able to dominate different markets

What do 'MNCs' stand for?

• Mega National Corporations

• Multiple Nations Companies

• Multinational Corporations

• Multinational Companies

What are 'Free Trade Agreements'?

• Businesses that are well known

• Businesses which are supported by their governments

• A business that operates in two or more countries or is legally registered in more than one country.

• Treaties which make trade and investment between 2 or more countries easier

One of the positive impacts of MNCs are

• Exploitative business practices

• Loss of cultural identity

• Tax advantages

• Employment opportunities

What is 'Foreign Direct Investment'?

• An investment made by a firm or individual in one country into business interests located in another country

• An investment made by a firm or individual in one country into business interests located within their country

• An investment made by a firm or individual in one country into a sports team of another country

• This refers to cross-border investment in which a foreign company establishes an ongoing and significant stake (financial interest and degree of influence) in its operations in another economy.

What is the best-selling product in McDonald's?

• Burger

• French Fries

• Softdrinks

• Icecreams

A business that has headquarters in one country but operates or is legally registered in two or more countries is known as

• a strategic alliance

• a multinational corporation

• a global conglomerate

• a transnational company

The growing presence of multinational companies, and the convergence of habits and tastes brought about by globalization, can cause a loss of local diversity.

• True

• False

A highly profitable multinational company benefits the host country's government as they pay larger amounts of corporate taxes.

• True

• False