No new investment in the host country is created in the case of
Greenfield FDI.
Acquisition.
Horizontal FDI.
Vertical FDI.
Correct Answer :
B. Acquisition.
Related Questions
Geographical indications specify
Place of origin of goods.
Special characteristics of the product associated with the place of origin.
Place and special characters of the product.
Place or special characters of the product.
Monetary policy relates to controlling
money supply.
money supply and interest rate.
money supply, interest rate and exchange rate.
credit creation by banks.
Business across several countries with some decentralization of management decision making to subsidiaries is
Global business.
Multinational business.
Transnational business.
Multi-regional business.
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
For a country with relatively lower level of cost of living PPP per capita GNI will be
lower than per capita GNI.
higher than per capita GNI.
same as per capita GNI.
may be lower or higher than per capita GNI.
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
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.
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.
No new investment in the host country is created in the case of
Greenfield FDI.
Acquisition.
Horizontal FDI.
Vertical FDI.
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
Credits transferable by original beneficiary in favor of secondary beneficiary are known as
Deferred credits
Transit credits
Instalment credits
Transferable credits
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
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.
9.The theory of Comparative cost advantage is given by
Porter
Adam Smith
Varnoon
D. Richardo
An attribute that doesnt contribute to Porters Diamond model is
Government
Organized Trade union
Factor Conditions
Demand Conditions
The role of women is restricted in
Eastern countries.
Middle East countries.
Traditional Islamic countries.
India.
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.
The following nationals would be aggressive at the beginning of business negotiations, but offer large concessions in the end
American.
Russian.
German.
Japanese.
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.
IBRD (International Bank for Reconstruction and Development) also known as
EXIM Bank
World Bank
IMF
International Financial Bank
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
0.Trade Related Investment Measures (TRIMS) doesnt apply for
Measures that lead to restrictions in quantities.
Discouraging measures that limit a companys imports
Discouraging measures that limit a companys exports.
ALL OF THE ABOVE
Typically the last step in the internationalization process is:
Licensing
Exporting
Wholly owned subsidiaries
Foreign Direct Investment
Quantitative restrictions refer to limit set by countries to curb
Imports
Exports
Imports & exports
None of the above
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.
Specific cultural dimensions that does not have a significant impact on cross-national business interactions is
Hofstedes five cultural dimensions
Monochromatic vs polychromatic tune
Communication
Geography
Ownership of intellectual property is recognized in law by granting
Licenses.
Patents.
Copyrights.
Patent, copyright or trademark as appropriate.
The country that attract the largest FDI inflow is
USA
INDIA
CHINA
BRAZIL
The following is not a component of culture
Attitudes.
Beliefs.
Education.
Life expectancy.
A Most Favoured nation status doesnt necessarily refer to
Same and equal economic treatment
Non-discriminatory treatment
Same tariff rates applicable
Uniform civil code