By having business in different countries, a firm reduces
credit risk.
political risk.
financial risk.
business risk.
Correct Answer :
B. political risk.
Related Questions
Firm that operates internationally is able to
earn a greater return from their skills and core competencies
realize location economies where they can be performed most efficiently
realize greater experience curve economies, which reduces the cost of production
All the above
General electric follows ___________ as its international operational strategy
Global
International
Multi-domestic
Transnational
In 90s the global management perception was based on
Standardization v/s adaptation
Globalization v/s localization
Global integration v/s Local Responsiveness
Local responsiveness
By having business in different countries, a firm reduces
credit risk.
political risk.
financial risk.
business risk.
An attribute that doesnt contribute to Porters Diamond model is
Government
Organized Trade union
Factor Conditions
Demand Conditions
According to this theory the holdings of a countrys treasure primarily in the form of gold constituted its wealth.
Gold Theory
Ricardo Theory
Mercantilism
H .O. THEORY
CISF pricing includes the following
Commission is paid to the agent involved in the transaction
Cost of the goods exported
Freight & Insurance charges for the goods exported
All of the above
By entering into international business, a firm expects improvement in
Marketing.
All spheres of marketing, operation and finance simultaneously.
Any or all spheres of marketing, operation and finance.
Finance only.
Analysing the business environment best assists in
Identifying key competitive forces; identifying competitive position; identifying key opportunities, threats, strengths and weaknesses.
Auditing macro environmental influences; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.
Auditing external and organisational factors; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.
Assessing historical trends; auditing environmental dangers; identifying strategic capabilities; identifying competitive position.
9.The theory of Comparative cost advantage is given by
Porter
Adam Smith
Varnoon
D. Richardo
When the exporter, expects the importer, to make the payment immediately upon the draft being presented to him is called.
Sight Draft.
Usance Draft
Demand draft
Pay Note
The following is not a component of culture
Attitudes.
Beliefs.
Education.
Life expectancy.
As per cultural dimensions of Hofstede, masculinity refers to
Male- female ratio in the country.
Society dominated by male members.
Society characterized by aggressive and materialistic behaviour.
War- ridden societies.
1 …………… is application of knowledge which redefine the boundaries of global business
Cultural Values
Society
Technology
Economy
A country with high uncertainty avoidance will witness
lower level of stress among people.
decision taken as a result of group consensus.
less dependence on rules and regulations.
people are serene.
Business across several countries with some decentralization of management decision making to subsidiaries is
Global business.
Multinational business.
Transnational business.
Multi-regional business.
The Theory of Absolute Cost Advantage is given by
Adam smith
D. Richardo
Raymond Varnoon
Porter
Power distance Index (PDI) of 77 compared to a world average of 56.5 for India indicates
High level of inequality of power and wealth within the society
Low level of inequality of power and wealth within the society
High level of Political corruption
Low level of Human development Index
Ultimately ……………… was replaced by the …………….on 1st Jan 1995
GATT/WTO
GATS/IMF
WTO/WORLD BANK
WORLD BANK/WIPO
Theory of Mercantilism propagates
Encourage exports and imports
Encourage exports and discourage imports
Discourage exports and imports
Discourage exports and encourage imports
Wholly owned subsidiary can be set up
as a Greenfield venture.
to acquire an existing firm.
to have products marketed overseas.
to have management is overseas.
IBRD (International Bank for Reconstruction and Development) also known as
EXIM Bank
World Bank
IMF
International Financial Bank
General Agreement on Trade in Services will not be applicable to
Services supplied from one country to another cross border supply
Transaction of goods across the border Export Import
Individuals traveling from own country to supply services in another presence of natural persons.
Consumers/firms making use of a service in another country consumption abroad.
Social mobility is measured by
The extent to which an individual can move the strata to which he/she belongs.
The promptness with which an individual accepts foreign assignments.
The extent to which inter- caste marriage is encouraged by the society.
The extent to which the society as a whole shifts its habitat.
Conglomerate FDI refers to
FDI made by a group of firms.
FDI made in subsidiaries.
FDI made in similar products.
FDI made in unrelated products.
Which of the following is an advantage of turnkey projects?
Can earn a return on knowledge asset
Will not create a competitor
Tight control of operations
All the above
The Theory of Relative Factor Endowments is given by
Ohilin-Hecksher
FY Taylor
Richardo
Porter
A country in the stage of traditional society is characterized by
existence of traditional rule.
non existence of industries.
predominance of agriculture.
complete absence of literacy.
The five forces that affect the level of competition in an industry are
Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry.
Threat of buyers; power of entry; power of substitutes; threat of suppliers; threat of recession.
Threat of recession; power of buyers; power of suppliers; threat of management failure; competitive rivalry.
Threat of entry; power of buyers; power of suppliers; threat of substitutes; government action
The essential feature of FDI is
Investment of a very high value.
Investment in shares.
Investors influence on the management of the enterprise.
Investment of low value.