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.
Correct Answer :
C. It can be used as a checklist to understand the different environmental influences in the macro environment.
Related Questions
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.
Non- verbal communication
includes written communication.
has no place in international business.
includes body language.
should be learnt by business managers to communicate with foreigners.
Business across several countries with some decentralization of management decision making to subsidiaries is
Global business.
Multinational business.
Transnational business.
Multi-regional business.
The following statement with respect to culture is false
Culture is enduring.
Culture is changing.
Culture is evolved among the members of a society.
Culture is determined by national boundaries.
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
Theory of Mercantilism propagates
Encourage exports and imports
Encourage exports and discourage imports
Discourage exports and imports
Discourage exports and encourage imports
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.
The following factor does not differentiate international business from domestic business
different currencies
product quality
product mobility
trade policies
The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year 1999 is an example of
Subsidiary
Joint venture
Strategic International Alliance
License agreement
Professional culture refers to
Shared belief of top managers about how they should manage themselves and their employees
Shared code of ethics and other commonalities shared by members of a given group
Both (a) and (c)
None of the above
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
India is an
Emerging economy
Developed economy
Less developed economy
None of these
In a business cycle, the phase preceding prosperity is
recession.
depression.
recovery.
recession or depression.
Credits transferable by original beneficiary in favor of secondary beneficiary are known as
Deferred credits
Transit credits
Instalment credits
Transferable credits
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
In international business cheaper alternatives to litigation is/ are
Conciliation.
Arbitration.
Negotiations.
Conciliation and arbitration.
The country that attract the largest FDI inflow is
USA
INDIA
CHINA
BRAZIL
The world trade organization was formed in the year _________ with GATT as it basis.
1993
1994
1995
1996
Uneven distribution of natural resources
is the only cause for international business.
is the major factor for international business.
is among the major factors for international business.
is not a cause for international business.
Theory of Mercantilism propagates
Encourage imports and exports
Encourage exports and discourage imports
Discourage imports
None of these
Identify a factor that doesnt play an important role in attracting FDI
Laws, rule sand regulations
Administrative procedures and efficiency
Infrastructure related factors
Language
Factor of Interdependence in Multi-domestic strategy is
LOW
MODERATE
HIGH
VERY HIGH
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.
The world trade organization was formed in the year _________ with GATT as it basis.
1992
1993
1995
1994
A firm investing in a foreign country to distribute the products there in creation of
Asset seeking FDI.
Backward vertical FDI.
Forward vertical FDI.
Distribution FDI.
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.
Which is the right sequence of a stages of Internationalization
Domestic, Transnational, Global, International, Multinational
Domestic, International, Multinational, Global, Transnational
Domestic, Multinational, International, Transnational, Global
Domestic, International, Transnational, Multinational, Global
General electric follows ___________ as its international operational strategy
Global
International
Multi-domestic
Transnational
An attribute that doesnt contribute to Porters Diamond model is
Government
Organized Trade union
Factor Conditions
Demand Conditions