week 3 mix of all Flashcards

1
Q

A multinational enterprise has its management headquarters—-

A

in one country, the home country, while also operating in other countries, the host countries.

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1
Q

Multinational corporation or enterprise is——

A

an enterprise producing goods or delivering services in more than one country

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2
Q

What year did Ray Kroc get involved

A

1954

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3
Q

what were the names of the two brothers that formed Mcdonalds

A

Richard & Maurice McDonald.

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4
Q

Where did the McDonald brothers open up their first store?

A

San Bernardino, California

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5
Q

What year did Ray Kroc buy out the brothers

A

1961

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6
Q

Who invented the BIG MAC INDEX and when?

A

The Economist in 1986

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7
Q

Define PPP?

A

Purchasing-power-parity the notion that in the long run exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services in any two countries.

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8
Q

What is the Big mac index based off of?
aPurcahsing-power-parity
bPurcahsing-pinal-plants
cPurchasing-power- plans
dPurcahsing- pins- parity

A

a

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9
Q

What gave countries the opportunity to not be so reliant on Italy?

A

Developing technology (ships) these countries had the ability to get to trading routes/zones on their own without the help of Italians.

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10
Q

Venice dominated the exchange of goods until the 1400s. What countries resented them?
a. England, Holland, France, Portugal
b. Poland, America, France, Spain
c. Holland, France, America, Australia
d. None of the above

A

a

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11
Q

True or False Expanding Trade Companies
Investors would join together and mitigate the risk of unsuccessful trade voyages.

A

True

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12
Q

True or False
Two great examples of going on adventures to get silk and spice were the Dutch East India Company (known as VOC) and the British East India Company.

A

True

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13
Q

Dutch East Indian Co desired what?

A

Pepper, and other spices

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14
Q

What year did the four-ship exploratory occur?

1659
1899
1595
1706

A

1595

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15
Q

Where did the four-ship exploratory head off to?

A

The main pepper port of West Java, where they fought both the Portuguese and indigenous Indonesians.

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16
Q

In March 1599, a fleet of eight ships was the first Dutch fleet to reach the ‘Spice Islands’ of Maluuku, the source of pepper, cutting out the Javanese middlemen. The ships returned to Europe in 1599 and 1600… How much profit did they make.

A

the expedition made a 400 percent profit

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17
Q

What does VOC stand for?

A

Vereenigde Oostindische Compagnie

18
Q

The United East Indian Company (Dutch) or (VOC) was created by who and when?

A

created by the government of the Dutch Republic in 1602

19
Q

The United East Indian Company or VOC was given a ———- on all trade in the Pacific and Asia

A

monopoly

20
Q

What was one key to the success of the East Indian Dutch Company?

A

Any Dutch citizen could have a stake in the company and therefore be much more inclined to support the idea of a monopoly. Within their regulations, the home governments allowed the company to go out in those territories and create their own armies and laws.

21
Q

True or false In the early 1600s the Dutch East India company used their military power to seize and enslave the Indonesian islands of Banda.

A

True

22
Q

Resistance by the Bandas was met with extreme military force
In 1621 the Dutch company launched a major military campaign
By the end of this Banda Besar campaign, Dutch records indicate that—out of a pre-conflict population of about 15,000 in the year 1500—only 1,000 to 2,000 Bandanese remained cross all 11 islands

A

Wow

23
Q

In 1982, locals in the Banda’s took over the state-owned nutmeg growing enterprise, which still made up a major part of the local economy.

A

Nationalise the nutmeg industry. Banda restored their history.

24
Q

The end of the Dutch East Indian Company

A

As time went on the VOC suffered from local conflict and internal corruption.
As the Dutch fought with the British the VOC paid a price as the rival BEIC rose in power and influence
By the end of the 1700s the company was in ruins and was absorbed by the Dutch government
End of the 1700s, the company was in ruins. Facilities got knocked down. The Dutch empire lost control as time went on.

25
Q

In 1866 two Americans in Switzerland created a company Anglo-Swiss to make what product?

A

to make condensed milk

26
Q

Henri Nestlé began selling a mix of what

A

mix of milk and flour as a baby formula

27
Q

What year did Anglo-Swiss and Nestle combine

A

1905!!!!!!!!!

28
Q

Post World War One Nestlé began to expand their chocolate business in Europe and especially the United States. Despite the setbacks of the Depression they found success in creating Nescafe, an instant coffee that they sold to the U.S. Army

A

After the Second World War the company had established a strong international presence in condensed milk, baby formula, chocolate and a number of other products

29
Q

Expansion
In the period of the 1960s and after Nestlé began to expand.

A

Since 2014 Nestlé has been the largest food company in the world by revenue
Nestlé gained global power that allowed them to force situations to develop that local authorities are not able to control

30
Q

Controversies Controversies
1970s they were found to be selling baby formula in Africa as a replacement for, rather than a supplement to breastfeeding (for mothers that had trouble nursing). Poor water supply and incorrect usage led a number of infant deaths

A

The company’s status as an MNE made it difficult for local governments to regulate wanted to boycott cuz of infant deaths in Africa.
The company ignored criticism until it reached the national level (representation of the way multinationals respond to things). They responded by launching an organization that would supervise the safe use of baby formula.
Also used chocolate produced by forced child slave labour in Africa
The American Supreme Court in 2016 found that MNEs could be held liable for violations of international law in American courts.

31
Q

One of the oldest based Indian companies founded in what year?

A

Tata, 1868

32
Q

What did tata sought to achieve several goals in?

A

including a steel company, hydro-electric plants, hotels and education

33
Q

Growth of tata the son continued

A

Opended office in London
In 1938 JRD took over Tata. The Tata Group had 14 different enterprises. By 1988 these had expanded to 95 individual companies including chemicals, cosmetics, steel, education, engineering and tea
In 1932 Tata had launched an airline. The government of India took controlling interest in the airline in the 1950s, but J.R.D. remained the chairman. When the airline was privatised in the 2000s Tata resumed control.

34
Q

What does tata currently look like?

A

Tata Group is India’s largest group do business in 150 countries and operations in 100 countries
There are 29 publicly listed Tata companies with a combined market capitalization of nearly $400 billion U.S. dollars
Tata H.Q.in Bombay
Private enterprises, companies = multinational enterprises

35
Q

Where is the orgins of the east Indian from? (Tutorial)

A

In the late 1500s English sailors, like Francis Drake, found great success stealing from French and Spanish ships in both the Atlantic and Pacific. = Pirate Englishmen would sponsor this.

36
Q

Who granted the East Indian company royal charter? and when?

A

On the last day of 1600 Queen Elizabeth first granted a royal charter to a new East India company.

37
Q

Trading wihtin the East Indian Company

A

The new English East India Company was a monopoly in the sense that no other British subjects could legally trade in that territory, but it faced stiff competition from the Spanish and Portuguese, who already had trading outposts in India, and also the Dutch East Indies Company, founded in 1602.

38
Q

Shifting the East Indian Companies focus

A

Military setbacks in the Spice Islands and growing success in India led the company to shift focus to India.
First focusing on Bengal and establishing a trade relationship with the Mughal Empire in interior India.
Used their strengths and trading relationships to make great fortunes for both the company and the English government.

39
Q

More than a company
The collapse of the Mughal empire sparked a rapid military expansion by the company under Robert Clive.
The Company forced Mughal leaders and others to turn over administrative control of their territories to the company. In 1765, tax revenue in Bengal was turned over to the company.
William Dalrymple has suggested: “It was at this moment that the East India Company (EIC) ceased to be a conventional corporation”. Instead, it became a colonial power, able to tax and enforce laws.

A

True

40
Q

The Decline Continues
1825- In 1825, a global crash forces the company to take on huge loans from the government
1833- In 1833 The Charter Act reduced the independent powers of the East India Company and removes its trade monopoly with China
1839- The Opium War with China was caused largely by company smuggling
1853- In 1853 The Charter Act further reduced the independence of the East India Company
The Indian or Sepoy Mutiny
In 1857-58 a huge uprising against the rule of the company swept India.
It was put down with great difficulty.
The End
In 1858 the British government took control of India company
In 1874 The British Parliament formally dissolved the company
Models of MNCs

A

True

41
Q

Different models of MNC include

A
  1. Centralized
  2. Regional
  3. Multinational
42
Q

Advantages of Being a Multinational Corporation

A
  1. Efficiency
  2. Development
    3.Employment
  3. Innovation
43
Q

Disadvantages of Being a Multinational Corporation

A
  1. Increased Legal burden
  2. Increased Tax compliance
  3. Public Relations
  4. Political instability