FREE Master of International Business Questions and Answers

Question 1

What Does MNC Stand For?

Accepted Answer

Multi-National Corporation

Answer

MNC stands for Multi-National Corporation. This term refers to a company that operates in several countries, not just its home country. MNCs typically have facilities and other assets in at least one country other than their home country, engaging in international business activities.

Question 2

Producing domestically or in just one nation, _______ concentrates on marketing these goods abroad, or the opposite is true.

Accepted Answer

Global corporation

Answer

A global corporation, in this context, refers to a company that produces goods domestically or in a single nation but focuses on marketing these goods abroad, or vice versa. This business model emphasizes a centralized production or sourcing strategy combined with an international market reach. It contrasts with a transnational corporation, which might have decentralized operations across many countries.

Question 3

Which of the following is not one of the Porter Five Forces?

Accepted Answer

Complementary products

Answer

Porter's Five Forces framework analyzes the competitive intensity and attractiveness of an industry. The five forces are: threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitute products or services, and intensity of rivalry among existing competitors. Complementary products are not one of the original five forces, though they can influence industry dynamics.

Question 4

It is stated by ________ in the Theory of Relative Factor Endowments.

Accepted Answer

Ohlin and hechsher

Answer

The Theory of Relative Factor Endowments, also known as the Heckscher-Ohlin (H-O) model, was developed by Swedish economists Eli Heckscher and Bertil Ohlin. This theory posits that countries will export goods that make intensive use of their relatively abundant and cheap factors of production, and import goods that make intensive use of their relatively scarce and expensive factors. It explains patterns of international trade based on differences in factor endowments.

Question 5

The most popular payment method in international trade is __________, because it gives the exporter the best guarantee that they will be reimbursed for the goods they sell abroad.

Accepted Answer

letter of credit

Answer

The letter of credit is considered the most popular and secure payment method in international trade, offering the best guarantee for exporters. It is a commitment by a bank on behalf of the buyer (importer) to pay the seller (exporter) a specified sum of money, provided the exporter presents the required documents by a specified deadline. This significantly reduces the risk of non-payment for the exporter.

MIB - Master of International Business Practice Test

MIB - Master of International Business Practice Test

FREE Master of International Business Questions and Answers