International Business: The New Realities 5th edition by S Tamer Cavusgil test bank
D) NGO
Answer: C
Diff: 1: Easy
Skill: Concept
Objective: 1-3: Identify major participants in international business
AACSB: Analytical Thinking
50) Which of the following countries hosts the greatest number of MNEs?
A) Germany
B) Japan
C) Netherlands
D) United States
Answer: D
Diff: 1: Easy
Skill: Concept
Objective: 1-3: Identify major participants in international business
AACSB: Analytical Thinking
51) Each of the following types of organizations is active in international business EXCEPT ________.
A) MNE
B) SME
C) RND
D) NGO
Answer: C
Diff: 1: Easy
Skill: Concept
Objective: 1-3: Identify major participants in international business
AACSB: Analytical Thinking
52) Which of the following is an example of a new global challenger?
A) a firm from Russia that is rapidly growing in the communications industry
B) a U.S. nonprofit that focuses on fundraising for children's health care
C) an MNE from France with large-scale operations across the globe
D) an SME from Canada that began international operations early in its development
Answer: A
Diff: 2: Moderate
Skill: Application
Objective: 1-3: Identify major participants in international business
AACSB: Application of Knowledge
53) Calexor is a telecommunications SME that has been highly successful despite its limited resources. Stakeholders attribute Calexor's success to its ability to serve niche markets. Which of the following, if TRUE, would most strongly support the claim that Calexor's growth can be attributed to niche market sales?
A) Calexor developed an interest in serving niche markets through an R & D experiment.
B) Most of Calexor's sales are in specialty markets that larger competitors do not serve.
C) Calexor's sales in mainstream telecommunications markets have always been strong.
D) Calexor's growth soared after it entered its first overseas market and has continued to climb.
Answer: B
Diff: 1: Easy
Skill: Critical Thinking
Objective: 1-3: Identify major participants in international business
AACSB: Analytical Thinking
54) The world's largest MNEs are concentrated in emerging economies.
Answer: FALSE
Diff: 1: Easy
Skill: Concept
Objective: 1-3: Identify major participants in international business
AACSB: Analytical Thinking
55) China has the second most MNEs.
Answer: TRUE
Diff: 1: Easy
Skill: Concept
Objective: 1-3: Identify major participants in international business
AACSB: Analytical Thinking
56) SMEs usually choose exporting as their main strategy for entering foreign markets.
Answer: TRUE
Diff: 1: Easy
Skill: Concept
Objective: 1-3: Identify major participants in international business
AACSB: Analytical Thinking
57) What distinguishes an MNE from an SME? In a short essay, describe the major differences between the two types of firms.
Answer: A multinational enterprise (MNE) is a large company with substantial resources that performs various business activities through a network of subsidiaries and affiliates located in multiple countries. Leading MNEs are listed in the Fortune Global 500 (www.fortune.com). Examples include well-known companies like Nestlé, Sony, Citibank, Unilever, Nokia, Ford, Barclays, DHL, Four Seasons Hotels, and Shell Oil. In recent years, the largest MNEs have been firms in the oil industry (such as Exxon-Mobil and Royal Dutch Shell) and the automotive industry (General Motors and Honda), as well as retailing (Walmart).