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.
Correct Answer :
A. Countries specializing in production of goods they are best suited for.
Related Questions
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
Which of these is/are the characteristic of a licensing agreement
The licensor might provide access to some of its patents or trademarks
The licensor might provide access to technology
It might be used to avoid the risks of foreign involvement
All of the above
The country that attracts the largest FDI inflow is
India
China
USA
Brazil
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.
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 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.
The Theory of Relative Factor Endowments is given by
Ohilin-Hecksher
FY Taylor
Richardo
Porter
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
Typically the last step in the internationalization process is:
Licensing
Exporting
Wholly owned subsidiaries
Foreign Direct Investment
Subsidiaries consider regional environment for policy / Strategy formulation is known as
Polycentric Approach
Regiocentric Approach
Ethnocentric Approach
Geocentric Approach
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
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.
Factor of Interdependence in Multi-domestic strategy is
LOW
MODERATE
HIGH
VERY HIGH
Which of these is a characteristic of multinational corporations>
At least one -third directors are foreign nationals
The company does 40% of its business in foreign markets
The overseas markets are larger than the domestic market
The affiliates are responsive tio a number of important environmental forces
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
According to economic growth model of Rostow, passage of a country through the stages is
in the order specified.
in any order.
in the order specified, but certain stages may be skipped.
automatic.
9.The theory of Comparative cost advantage is given by
Porter
Adam Smith
Varnoon
D. Richardo
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.
In relation to the PESTEL framework, which of the following statements is correct?
It assists in the assessment of organisational strengths and weaknesses.
It allows a detailed analysis of the structure of an industry.
It can be used as a checklist to understand the different environmental influences in the macro environment.
Takes an historical perspective on the main political, economic, sociocultural, technological, environmental and legal factors.
For the society, religion has no influence on
holidays.
language.
role of women.
marketing practices.
Credits transferable by original beneficiary in favor of secondary beneficiary are known as
Deferred credits
Transit credits
Instalment credits
Transferable credits
An attribute that doesnt contribute to Porters Diamond model is
Government
Organized Trade union
Factor Conditions
Demand Conditions
The following is not a component of culture
Attitudes.
Beliefs.
Education.
Life expectancy.
As a part of WTO guidelines, Agreement on Agriculture (AOA) doesnt consider
Direct payments to farmers are permitted.
Indirect assistance and support to farmers including R & D support by govt. are not permitted.
Domestic policies which directly effect on production and trade have to be cut back.
Least developed countries do not need to make any cuts.
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.
India is an
Emerging economy
Developed economy
Less developed economy
None of these
The following nationals would be aggressive at the beginning of business negotiations, but offer large concessions in the end
American.
Russian.
German.
Japanese.
Social stratification is done based on
Income level.
caste.
education.
any of the above.
Ownership of intellectual property is recognized in law by granting
Licenses.
Patents.
Copyrights.
Patent, copyright or trademark as appropriate.
Business across several countries with some decentralization of management decision making to subsidiaries is
Global business.
Multinational business.
Transnational business.
Multi-regional business.