Question

Calculate An Index Of Multinationality Based Upon The Geographical Distribution

from France and Germany. 5. Volkswagen AG and Daimler AG, both based in Germany, are two of the largest auto- mobile manufacturers in the world. The following information was provided in each company's 2016 annual report. Required: Calculate an index of multinationality based upon the geographical distribution of sales revenue and noncurrent assets (employee information is not available) to determine which of these two companies is more multinational. VOLKSWAGEN AG 2016 Annual Report Germany Europe/Other markets North America South America Asia-Pacific Total * Excluding Germany * In millions of euros Sales revenue from external customers 43,634 94.445 35,454 7.973 35,761 217,267 Intangible assets, property, plant and equipment, lease assets and investment property 84,525 40.717 23,958 3.320 3,064 155,583 In millions of euros Europe thereof Germany NAFTA region thereof United States Asia thereof China Other markets DAIMLER AG 2016 Annual Report Revenue 63,417 23,509 44.960 39.169 35,562 15,984 Noncurrent assets 45,565 34,981 24,105 21,878 2.161 100 1,502 73,333 9,322 153,261 la millions of euros

Answer 1

	Amounts in Million Euro
Particulars	Volkawagen AG	Daimler AG
Sales in Germany	43,634	23,509
Foreign Sales	173,633	129,752
Total sales	217,267	153,261
Foreign Sales/ Total Sales	80%	85%
Non Current Asset in Germany	84,525	34,981
Foreign Non Current Assets	71,058	38,352
Total non Current Assets	155,583	73,333
Foreign Non Current Assets/ Total Non Current Assets	46%	52%
Arithmetic average of A&B=
Multinationality Index=	63%	68%

So Daimler AG is more Multinational as the index is higher