MIB Study Guide 2026

According to the GLOBE project, Switzerland is characterized by a high future orientation, indicating a strong emphasis on planning, investing in the future, and delaying gratification. However, Swiss culture also tends to be less assertive compared to some other cultures, favoring modesty and cooperation over aggressive self-promotion.

Comprehensive statutory codes as the primary legal source is a feature of civil law systems; common law systems rely primarily on case law and judicial precedent.

Buyer switching costs refer to the costs (monetary, time, effort) that a buyer incurs when changing from one supplier's product or service to another's. While they influence the bargaining power of buyers, they are not typically considered a direct barrier to entry for new firms entering an industry. Entry barriers are factors that prevent new companies from even getting into the market in the first place.

A transient competitive advantage is short-lived, and this occurs when an innovation can be easily copied. If barriers to imitation are low, competitors can quickly replicate the innovation. Furthermore, weak intellectual property rights offer little legal protection, allowing rivals to erode the initial advantage rapidly and prevent sustained competitive differentiation.

The infant industry argument justifies temporary trade protection to allow newly established industries to achieve economies of scale and compete effectively in global markets.

The cost of transporting goods is a fundamental factor influencing various aspects of international business. It directly impacts the viability and efficiency of global supply chains, as higher costs can make certain routes or sourcing options uneconomical. Furthermore, transport costs shape the pattern of trade by determining which goods are cost-effective to move across borders, and they define the boundaries between tradable and non-tradable goods, as some goods become non-tradable if transport costs exceed their value.