Multinational Business Quiz

What is the first step in the development of a multinational business?

• Focusing on the world market

• Establishing trade relationships

• Setting up a foreign subsidiary

• Creating a domestic marketing plan

What is the primary emphasis of a corporation when it first begins international trade?

• Domestic market

• World market

• Foreign subsidiaries

• Global marketing campaigns

What does a multinational corporation do once it focuses on the world market?

• Establish a foreign assembly plant

• Create an international marketing campaign

• Exclusively trade raw materials

• Focus only on the home market

What is one characteristic of a multinational corporation?

• It only operates in one country

• It has production and marketing activities in foreign countries

• It avoids global trade

• It focuses solely on domestic trade

Which of the following companies is an example of a multinational corporation mentioned in the text?

• Microsoft

• McDonald's

• Coca-Cola

• Tesla

Since World War II, multinational corporations have:

• Remained the same size

• Grown rapidly

• Decreased in number

• Focused only on domestic markets

What is necessary for a multinational corporation to operate successfully?

• Large domestic market

• Understanding of foreign business environments

• Ability to ignore foreign regulations

• Focus only on one foreign country

Which of the following is NOT a factor that varies from country to country and affects multinational corporations?

• Cultural systems

• Economic systems

• Technological systems

• Internal policies of multinational corporations

What is one of the actions a multinational corporation might take in developing its global presence?

• Build a foreign manufacturing company

• Only sell products domestically

• Engage solely in importing raw materials

• Avoid any foreign subsidiaries

A multinational corporation is defined as a company that:

• Only operates within its home country

• Focuses solely on contract manufacturing

• Has operations in multiple countries

• Has only marketing activities in foreign countries