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.
Correct Answer :
D. Delay in establishment.
Related Questions
9.The theory of Comparative cost advantage is given by
Porter
Adam Smith
Varnoon
D. Richardo
Religion of a person affects his/her
attitude towards entrepreneurship.
gifting practices.
use of products.
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.
Factor of Interdependence in Multi-domestic strategy is
LOW
MODERATE
HIGH
VERY HIGH
Trade Related Investment Measures (TRIMS) doesnt apply for
Measures that affect trade in goods.
Measures that lead to restrictions on quantities.
Discouraging measures that limit a companys imports.
Discouraging measures that limit a companys exports.
Subsidiaries consider regional environment for policy / Strategy formulation is known as
Polycentric Approach
Regiocentric Approach
Ethnocentric Approach
Geocentric Approach
Ultimately ……………… was replaced by the …………….on 1st Jan 1995
GATT/WTO
GATS/IMF
WTO/WORLD BANK
WORLD BANK/WIPO
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.
The country that attracts the largest FDI inflow is
India
China
USA
Brazil
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
In international business cheaper alternatives to litigation is/ are
Conciliation.
Arbitration.
Negotiations.
Conciliation and arbitration.
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
The Theory of Relative Factor Endowments is given by
Ohilin-Hecksher
FY Taylor
Richardo
Porter
Credits transferable by original beneficiary in favor of secondary beneficiary are known as
Deferred credits
Transit credits
Instalment credits
Transferable credits
A Most Favoured nation status doesnt necessarily refer to
Same and equal economic treatment
Non-discriminatory treatment
Same tariff rates applicable
Uniform civil code
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
Monetary policy relates to controlling
money supply.
money supply and interest rate.
money supply, interest rate and exchange rate.
credit creation by banks.
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
International business does not result in the following
Innovation is encouraged.
International cooperation is encouraged.
Imports are rendered cheap.
Consumption is minimized.
Quantitative restrictions refer to limit set by countries to curb
Imports
Exports
Imports and Exports
All of the above
Social stratification is done based on
Income level.
caste.
education.
any of the above.
________theory states that, lack of resources often helps countries to become competitive
Competitive theory
Porters Diamond Model
Theory of Mercantilism
Product life cycle theory
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
Countries/ regions with huge market size will attract
Market seeking FDI.
Efficiency seeking FDI.
Vertical FDI.
Created assets seeking FDI.
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
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.
Ownership of intellectual property is recognized in law by granting
Licenses.
Patents.
Copyrights.
Patent, copyright or trademark as appropriate.
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.
Theory of Mercantilism propagates
Encourage imports and exports
Encourage exports and discourage imports
Discourage imports
None of these