Subsidiaries consider regional environment for policy / Strategy formulation is known as
Polycentric Approach
Regiocentric Approach
Ethnocentric Approach
Geocentric Approach
Correct Answer :
B. Regiocentric Approach
Related Questions
An attribute that doesnt contribute to Porters Diamond model is
Government
Organized Trade union
Factor Conditions
Demand Conditions
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
IBRD (International Bank for Reconstruction and Development) also known as
EXIM Bank
World Bank
IMF
International Financial Bank
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.
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.
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.
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.
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.
Factor of Interdependence in Multi-domestic strategy is
LOW
MODERATE
HIGH
VERY HIGH
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.
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.
A contract drafted under civil law differs from that drafted under common law in the following respect
It will be detailed.
It will be shorter and less specific.
It will provide less severe damages.
It will be in detail.
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
Lower power distance countries are characterized by
relationships based on equality and informality.
authority being accepted without question.
managers being paternalistic.
tall organizations structure.
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
India is an
Emerging economy
Developed economy
Less developed economy
None of these
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
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.
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.
Theory of Mercantilism propagates
Encourage exports and imports
Encourage exports and discourage imports
Discourage exports and imports
Discourage exports and encourage imports
The stage indicating highest level of economic growth is
age of mass consumption.
age of mass production.
maturity.
drive to maturity.
The Theory of Absolute Cost Advantage is given by
Adam smith
D. Richardo
Raymond Varnoon
Porter
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.
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.
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
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.
Which one of the following is a method for an exporter to get a contract
Proforma invoice
Purchase order
Sales contract
All 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.
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.
International business does not result in the following
Innovation is encouraged.
International cooperation is encouraged.
Imports are rendered cheap.
Consumption is minimized.