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What type of firms were pioneers of the capital-intensive technologies of the Second Industrial Revolution?
What type of firms were pioneers of the capital-intensive technologies of the Second Industrial Revolution?
The firms that pioneered the capital-intensive technologies of the Second Industrial Revolution were multinational.
Which industries were the post-World War II successors of the industries that pioneered the technologies of the Second Industrial Revolution?
Which industries were the post-World War II successors of the industries that pioneered the technologies of the Second Industrial Revolution?
Multinational manufacturing existed before the 19th century.
Multinational manufacturing existed before the 19th century.
False (B)
What is the name of the German firm that pioneered the development of telegraph and cable equipment in the 1850s?
What is the name of the German firm that pioneered the development of telegraph and cable equipment in the 1850s?
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What company is considered the first successful US multinational manufacturer?
What company is considered the first successful US multinational manufacturer?
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Which of these products were the primary focus of multinational manufacturing in the late 19th century?
Which of these products were the primary focus of multinational manufacturing in the late 19th century?
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The late 19th century saw a decline in the chemical industry.
The late 19th century saw a decline in the chemical industry.
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What is the name of the largest German firm that had a minority interest in a US manufacturing company in 1871?
What is the name of the largest German firm that had a minority interest in a US manufacturing company in 1871?
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German chemical companies were primarily focused on domestic markets in the late 19th century.
German chemical companies were primarily focused on domestic markets in the late 19th century.
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What is the name of the pharmaceutical product that Bayer famously developed?
What is the name of the pharmaceutical product that Bayer famously developed?
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Which of these countries were among the first to host foreign subsidiaries of the leading German dyestuffs firms?
Which of these countries were among the first to host foreign subsidiaries of the leading German dyestuffs firms?
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US manufacturers of industrial chemicals and pharmaceuticals ventured beyond their home market before World War II.
US manufacturers of industrial chemicals and pharmaceuticals ventured beyond their home market before World War II.
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What is the name of the US company that became the first worldwide producer of lifts?
What is the name of the US company that became the first worldwide producer of lifts?
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What is the name of the US company that became the world's first-mover in cash registers by the early 20th century?
What is the name of the US company that became the world's first-mover in cash registers by the early 20th century?
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Multinational manufacturing was absent from branded consumer goods by 1914.
Multinational manufacturing was absent from branded consumer goods by 1914.
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What is the name of the Swiss firm that originated as a producer of condensed milk, baby food, and chocolates—and later became a major multinational corporation?
What is the name of the Swiss firm that originated as a producer of condensed milk, baby food, and chocolates—and later became a major multinational corporation?
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What is the name of the British company that was the predecessor to Unilever and was known for its multiplant operations in the soap industry?
What is the name of the British company that was the predecessor to Unilever and was known for its multiplant operations in the soap industry?
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What factors significantly contributed to the growth of international cartels in the interwar period?
What factors significantly contributed to the growth of international cartels in the interwar period?
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Interwar European governments typically opposed the spread of cartel agreements.
Interwar European governments typically opposed the spread of cartel agreements.
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International cartels primarily emerged in industries with a large number of producers.
International cartels primarily emerged in industries with a large number of producers.
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Which of these factors contributed to the success of the 'classic' interwar cartel model?
Which of these factors contributed to the success of the 'classic' interwar cartel model?
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Cartels were always effective in preventing cheating and opportunistic behavior by members.
Cartels were always effective in preventing cheating and opportunistic behavior by members.
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Cartel administrators were always centrally located in large European cities.
Cartel administrators were always centrally located in large European cities.
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World War II had a negligible impact on international cartels.
World War II had a negligible impact on international cartels.
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After World War II, the growth of manufacturing FDI resumed.
After World War II, the growth of manufacturing FDI resumed.
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Which of these sectors were prominent areas of investment for US multinational firms in the postwar period?
Which of these sectors were prominent areas of investment for US multinational firms in the postwar period?
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US companies were not significant innovators in technology during the postwar period.
US companies were not significant innovators in technology during the postwar period.
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Which of these countries were among the most active in manufacturing FDI in the postwar period?
Which of these countries were among the most active in manufacturing FDI in the postwar period?
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British firms had a strong bias towards investing in the developed Commonwealth markets in the postwar period.
British firms had a strong bias towards investing in the developed Commonwealth markets in the postwar period.
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Which of these firms are prominent examples of Dutch multinational corporations?
Which of these firms are prominent examples of Dutch multinational corporations?
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French and German manufacturers engaged in FDI on a substantial scale in the early postwar years.
French and German manufacturers engaged in FDI on a substantial scale in the early postwar years.
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US firms were the primary focus of multinational investment in Europe in the postwar period.
US firms were the primary focus of multinational investment in Europe in the postwar period.
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What is the name of the US company that invested significantly in the soap and detergents market in Europe, expanding beyond its previous focus on Canada and Britain?
What is the name of the US company that invested significantly in the soap and detergents market in Europe, expanding beyond its previous focus on Canada and Britain?
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Japanese manufacturers rebuilt their businesses after World War II with a primary focus on domestic markets.
Japanese manufacturers rebuilt their businesses after World War II with a primary focus on domestic markets.
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The fixing of the exchange rate at Yen 360/US $1 between 1949 and 1972 hindered the growth of Japanese export competitiveness.
The fixing of the exchange rate at Yen 360/US $1 between 1949 and 1972 hindered the growth of Japanese export competitiveness.
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Which of these factors fueled 'new protectionism' against Japanese exports in the 1970s?
Which of these factors fueled 'new protectionism' against Japanese exports in the 1970s?
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Japanese FDI in the 1970s was primarily driven by the desire to gain access to the European market.
Japanese FDI in the 1970s was primarily driven by the desire to gain access to the European market.
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The growth of demand for chemical products in the developed world consistently exceeded overall rates of growth.
The growth of demand for chemical products in the developed world consistently exceeded overall rates of growth.
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The petrochemical industry initially emerged as a primarily European enterprise.
The petrochemical industry initially emerged as a primarily European enterprise.
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What are the names of the two US oil companies that were active in the early development of the petrochemical industry?
What are the names of the two US oil companies that were active in the early development of the petrochemical industry?
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US chemical companies initially focused on exporting chemical products abroad rather than establishing FDI.
US chemical companies initially focused on exporting chemical products abroad rather than establishing FDI.
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Which of these US chemical companies were particularly prominent in petrochemicals in the postwar period?
Which of these US chemical companies were particularly prominent in petrochemicals in the postwar period?
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German chemical companies were completely absent from foreign production after World War II.
German chemical companies were completely absent from foreign production after World War II.
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The leading German chemical companies abandoned their cartel in 1950 primarily due to a decline in investment opportunities.
The leading German chemical companies abandoned their cartel in 1950 primarily due to a decline in investment opportunities.
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Which of these factors contributed to the widespread adoption of FDI in the automobile industry?
Which of these factors contributed to the widespread adoption of FDI in the automobile industry?
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Which firms are prominent examples of the consolidation of fragmented low-volume manufacturers in the German automobile industry?
Which firms are prominent examples of the consolidation of fragmented low-volume manufacturers in the German automobile industry?
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Japanese automobile manufacturers relied heavily on exports before the 1970s.
Japanese automobile manufacturers relied heavily on exports before the 1970s.
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Toyota's lean production system originated in the 1980s.
Toyota's lean production system originated in the 1980s.
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Japanese automobile manufacturers primarily focused on the production of luxury vehicles in the 1970s
Japanese automobile manufacturers primarily focused on the production of luxury vehicles in the 1970s
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The US government imposed a Voluntary Export Restraint (VER) on Japanese automobile imports before 1982.
The US government imposed a Voluntary Export Restraint (VER) on Japanese automobile imports before 1982.
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Japanese companies controlled about one-third of the US car market by the late 1980s.
Japanese companies controlled about one-third of the US car market by the late 1980s.
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South Korea's automobile industry was primarily developed by small and medium-sized enterprises.
South Korea's automobile industry was primarily developed by small and medium-sized enterprises.
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Which of these firms were among the first to recognize the commercial applications of computers?
Which of these firms were among the first to recognize the commercial applications of computers?
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The US government played a minimal role in the development of the computer industry.
The US government played a minimal role in the development of the computer industry.
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What is the name of the first computer designed for business use that was developed by Remington Rand?
What is the name of the first computer designed for business use that was developed by Remington Rand?
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IBM's strategy for computer sales in the 1950s was based on a single family of incompatible computers.
IBM's strategy for computer sales in the 1950s was based on a single family of incompatible computers.
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Which firms were the primary beneficiaries of IBM's decision to outsource the disk operating system and microprocessor for the PC?
Which firms were the primary beneficiaries of IBM's decision to outsource the disk operating system and microprocessor for the PC?
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IBM had exclusive rights to Microsoft and Intel's technologies.
IBM had exclusive rights to Microsoft and Intel's technologies.
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Microsoft and Intel's capabilities were not protected by copyright and other measures.
Microsoft and Intel's capabilities were not protected by copyright and other measures.
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Microsoft acquired a near monopoly in personal computer operating systems in the 1980s.
Microsoft acquired a near monopoly in personal computer operating systems in the 1980s.
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The Microsoft Explorer 2.0 browser was only available after the commercial launch of the Internet.
The Microsoft Explorer 2.0 browser was only available after the commercial launch of the Internet.
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Study Notes
Multinational Strategies and Manufacturing
- Multinational strategies have been prominent in manufacturing industries since the late 19th century
- Firms from the Second Industrial Revolution rapidly expanded into international markets
- Post-World War II saw a continuation of these trends in various industries
Origins and Growth of Multinationals
- Multinational manufacturing did not exist before the 19th century
- Early examples emerged in the 1830s, with Swiss cotton firms investing in southern Germany
- Mid-19th century saw more sustained direct investments
- Siemens and Halske, a German firm, pioneered telegraph and cable equipment, establishing workshops in St. Petersburg and London.
- 1863 saw Siemens and Halske establish its own cable factory near London, ensuring independence from existing suppliers
- Singer, the sewing machine company, was an early example of a successful US multinational by 1914, having established a large international business.
Chemicals and Machinery
- Late 19th century saw significant developments in the chemical industry, driven by applied scientific research to industrial processes leading to new products.
- German chemical companies, like BASF, Bayer, and Hoechst, invested heavily in research and production, becoming major exporters of their products and establishing subsidiaries abroad
- By 1914, major German dyestuff firms held a significant portion of the global production
Pharmaceutical Industry
- German pharmaceutical firms also expanded internationally before 1914, with companies like Merck entering the US market in 1899 and France in 1912
- International operations included manufacturing and research based in other countries
Swiss and Belgian Firms
- Swiss firms like Geigy, Sandoz, and Hoffmann La Roche also had small manufacturing operations in various countries by the 1910s.
- Belgium's Solvay played a large role by developing and industrializing caustic soda production processes, used in multiple industries
- The US saw limited expansion in chemicals before World War II.
Machinery Industry
- US-based companies like Otis Elevator and National Cash Register became prominent international investors in machinery industries, surpassing their role in the chemical sector
- This was in contrast with US chemical investment during that time.
Branded Consumer Goods
- By 1914, internationally-branded consumer goods were prevalent.
- British companies produced various food products
- British, German, and US companies produced gramophone machines and record players.
- Other consumer goods businesses, such as Nestlé (which produced condensed milk, baby food, and chocolates) and Unilever, were also expanding internationally by 1914
Interwar Cartels
- By the 1930s, worldwide manufacturing was often controlled by international cartels
- Market conditions such as depressed markets, political instability, and exchange restrictions fueled the spread of such agreements
- International cooperation was often prevalent during this era especially in the chemical industry.
Automobiles and Food
- Automobile manufacturing began in Europe in the late 1890s
- European firms like Renault, Daimler-Benz, and Fiat started building plants internationally
- US automobile makers had initially focused locally, becoming more prominent after World War I. Leading US companies like Ford and General Motors expanded their activities by the 1920s via vertical integration and efficient production methods like the assembly line.
Henry Ford
- Henry Ford transformed the automobile industry with the introduction of the standardized production process and the assembly line
- These processes led to significant cost reductions that were unmatched in Europe at the time.
Electronics
- US firms, especially IBM in partnership with companies like Microsoft and Intel led the way in the personal computer industry.
- IBM's recognition of the significance of electronics for data processing led to heavy investment in research and production.
The Interwar Period
- World War I altered the existing industrial landscape as several countries sought to acquire greater control of industrial activities within their own borders
- Increased tariffs and nationalistic fervor hampered international relations and investments.
1950s and 1960s
- The Post-war period witnessed renewed multinational investment activity
- This was particularly true for industries such as machinery, chemicals, and automobiles.
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Description
Explore the evolution of multinational strategies in the manufacturing sector from the late 19th century to post-World War II. This quiz covers early examples, significant firms that shaped the industry, and the impact of international investments. Test your knowledge of key milestones and major players in the history of multinational manufacturing.
