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
Correct Answer :
D. All the above
Related Questions
Free international trade maximizes world output through
Countries specializing in production of goods they are best suited for.
Reduction in taxes.
Increased factor income.
Encouraging competition.
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.
Porter suggests the following reasons for one nation being more competitive than another
Ability to speak English; developed network of supporting industries; absence of competition; and low labour cost.
Abundant natural resources; skilled labour force; temperate climate; and democracy.
Factor conditions; demand conditions; related and supporting industries; and firm strategy, industry strategy and rivalry.
Strong sporting ethos; emphasis on individual achievement; strong national party in power; large home market.
Business across several countries with some decentralization of management decision making to subsidiaries is
Global business.
Multinational business.
Transnational business.
Multi-regional business.
Factor of Interdependence in Multi-domestic strategy is
LOW
MODERATE
HIGH
VERY HIGH
The world trade organization was formed in the year _________ with GATT as it basis.
1992
1993
1995
1994
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
The income level of residents in a country is indicated by
gross national income.
gross domestic product.
per capita gross national income.
per capita gross domestic product.
An attribute that doesnt contribute to Porters Diamond model is
Government
Organized Trade union
Factor Conditions
Demand Conditions
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.
Religion of a person affects his/her
attitude towards entrepreneurship.
gifting practices.
use of products.
all of the above.
Quantitative restrictions refer to limit set by countries to curb
Imports
Exports
Imports and Exports
All of the above
The first phase of globalization started around 1870 and ended with …
The World War I
The World War II
The Establishment of GATT
In 1913 when GDP was high
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.
In a business cycle, the phase preceding prosperity is
recession.
depression.
recovery.
recession or depression.
Identify a factor that doesnt play an important role in attracting FDI
Laws, rule sand regulations
Administrative procedures and efficiency
Infrastructure related factors
Language
B2B sector specific policy of Indian Government is
FDI up to 100% subject to condition that they invest 26 % in favour of Indian Public within 5 yrs
FDI up to 100%
FDI up to 100% subject to condition that they invest 26 % in favor of Indian Public within 10 yrs
FDI up to 49%
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
Normal Power and Wealth
High level of political corruption
Low level of Human Development Index
Quantitative restrictions refer to limit set by countries to curb
Imports
Exports
Imports & exports
None of the above
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
Social stratification is done based on
Income level.
caste.
education.
any of the above.
Countries/ regions with huge market size will attract
Market seeking FDI.
Efficiency seeking FDI.
Vertical FDI.
Created assets seeking FDI.
_______ theory states that, lack of resources often helps countries to become competitive
Competitive theory
Porters Diamond Model
Theory of Mercantilism
Product life cycle theory
The following factors are key drivers of globalisation
Government action, exchange rates, competition and sociodemographic factors.
Market convergence, competition, exchange rates and cost advantages.
Cost advantages, government action, economic cycles and competition.
Market, cost, competition and government policies.
International business does not result in the following
Innovation is encouraged.
International cooperation is encouraged.
Imports are rendered cheap.
Consumption is minimized.
By having business in different countries, a firm reduces
credit risk.
political risk.
financial risk.
business risk.
Theory of Mercantilism propagates
Encourage imports and exports
Encourage exports and discourage imports
Discourage imports
None of these
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 factor does not differentiate international business from domestic business
different currencies
product quality
product mobility
trade policies
The disadvantages of Greenfield FDI as compared to acquisition is
Profit will be less.
Size of investment will be high.
Lesser control in management.
Delay in establishment.