Unit 1: Introduction to Business Management
Topic 1.6: Multinational Companies (MNCs) Questions
Practice 20 exam-style questions for IB Business Management Topic 1.6. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.
1Choose1 mark
What is standardisation in global marketing?
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Which is a likely benefit for a host country when a multinational opens a factory there?
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What is adaptation in global marketing?
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A clothing MNC opens a factory in Country A and hires 1,200 workers.
Explain one positive impact on Country A.
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State two possible benefits that an MNC can bring to a host country.
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Veloce, a bicycle maker with its head office in Italy, assembles its bikes in a factory in Portugal and runs repair workshops in Spain.
Define the term multinational company (MNC).
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Goldcrust plc, a national chain of 400 bakeries, has just opened its first 30 bakeries in the country across the border.
Define the term multinational company (MNC).
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Nordlys, a Norwegian furniture maker, is deciding whether to open a factory and three showrooms in Poland.
State two reasons why a business may become a multinational company.
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Oriel Pharma, a medicines company with its head office in Switzerland, runs research laboratories in India and a factory in Brazil.
State two features of a multinational company.
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Define the term adaptation in global marketing.
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Kaffa Roasters has its head office in Nairobi and runs 60 coffee shops in Kenya, Uganda and Tanzania.
Define the term multinational company (MNC).
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Define the term standardisation in global marketing.
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Which statement gives the clearest meaning of the term host country?
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Explain one advantage of standardisation for an MNC.
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A fast food chain keeps its logo and core menu the same worldwide but adds local menu items in each country. Identify the strategy being used.
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Explain one disadvantage of standardisation when entering culturally different markets.
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A mining MNC is accused of polluting a river in its host country. Explain one negative impact on the host country and one stakeholder group most affected.
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A home country government is concerned that an MNC is moving production overseas. Explain one likely negative impact on the home country.
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Explain one reason why services are harder to standardise globally than products.
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