MIB Cheat Sheet 2026

The 30 highest-yield MIB facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What distinguishes the stakeholder approach as a whole? → The idea that many different groups have a legitimate interest in the corporation
2. ______is a conscious understanding of and genuine concern for the culture of another person. → Cultural empathy
3. When a parent company sets artificially low prices on goods sold to its foreign subsidiaries to reduce overall tax liability, this practice is called: → Transfer pricing manipulation
4. What is 'transfer of technology' in international trade and investment agreements? → Sharing of IP, technical knowledge, and processes with foreign partners or governments
5. Which of the following doesn't warrant international investment? → International investments have less political risk than domestic investments.
6. A global firm's R&D unit in Germany develops a process innovation. To transfer this to a subsidiary in Brazil, which barrier is most likely to arise? → Causal ambiguity making tacit knowledge hard to transfer
7. Which three stages of innovation are there? → In-market innovation, new market creation, leadership
8. Supplier development programs in global supply chains primarily aim to: → Improve supplier capabilities and performance over time
9. What does 'rules of origin' determine in international trade? → The nationality of a product for purposes of applying trade measures
10. The Eclectic (OLI) Paradigm developed by Dunning explains FDI based on three advantages. Which is NOT one of them? → Labor cost advantage
11. A multinational firm that adapts its products, marketing, and operations to each local market is pursuing which strategy? → Multi-domestic strategy
12. What is 'country-of-origin effect' in international marketing? → Consumer bias based on where a product was made
13. Which entry mode gives a firm the highest degree of control over its foreign operations but typically requires the greatest resource commitment? → Wholly owned subsidiary
14. Which international pricing approach sets prices based on what customers in each market are willing to pay? → Market-differentiated pricing
15. A multinational uses a 'natural hedge' to manage currency risk. Which scenario best illustrates this strategy? → Matching foreign currency revenues with foreign currency costs in the same currency
16. Which US trade law provision allows the President to impose tariffs on national security grounds? → Section 232 of the Trade Expansion Act of 1962
17. A country imposes a voluntary export restraint (VER). From a trade policy perspective, VERs are typically: → Agreements where the exporting country limits its own shipments under pressure
18. What is 'nearshoring' in global supply chain management? → Relocating operations to a nearby country
19. The OECD's Base Erosion and Profit Shifting (BEPS) project primarily targets: → Tax avoidance strategies that exploit gaps in international tax rules
20. The 'eurocurrency market' refers to: → Deposits and loans denominated in currencies held outside their country of origin
21. In comparison to newer businesses, established businesses excel at: → innovation which is competence-enhancing.
22. A multinational's 'country risk assessment' would least likely evaluate: → The educational attainment of the CEO's home-country workforce
23. Which pricing strategy involves setting a low initial price to quickly gain market share in a new international market? → Market penetration pricing
24. A firm tracks the ratio of revenue from new products to total revenue over time. This KPI is designed to measure: → Innovation metabolism — how quickly the firm renews its product portfolio
25. A Japanese company implements nemawashi before a major organizational change. This practice involves: → Consensus-building through informal consultations before formal approval
26. Businesses can use their expertise in overseas markets without a license thanks to licensing. → Major investment in foreign countries
27. A country adopts a currency board arrangement. This means its central bank: → Pegs the currency at a fixed rate backed fully by foreign reserves
28. A firm decides to license its technology to a local partner in a new market rather than establishing its own subsidiary. The primary knowledge-related risk is: → Unintended technology transfer that enables the partner to become a competitor
29. The principle of 'comparative advantage' implies that global welfare is maximized when each country: → Specializes in goods with the lowest opportunity cost relative to other countries
30. Who claimed that a company's main social responsibility is to maximize profits? → Milton Friedman