The Theory of Absolute Cost Advantage is given by
Adam smith
D. Richardo
Raymond Varnoon
Porter
Correct Answer :
A. Adam smith
Related Questions
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 basic objective of export Promotion Council is to promote and develop the Exports of the
Particular products of country
Only attractive projects of the country
Only services industry products of the country
Overall exports of the country.
Monetary policy relates to controlling
money supply.
money supply and interest rate.
money supply, interest rate and exchange rate.
credit creation by banks.
Lower power distance countries are characterized by
relationships based on equality and informality.
authority being accepted without question.
managers being paternalistic.
tall organizations structure.
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
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
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.
By having business in different countries, a firm reduces
credit risk.
political risk.
financial risk.
business risk.
Ultimately ……………… was replaced by the …………….on 1st Jan 1995
GATT/WTO
GATS/IMF
WTO/WORLD BANK
WORLD BANK/WIPO
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
Business across several countries with some decentralization of management decision making to subsidiaries is
Global business.
Multinational business.
Transnational business.
Multi-regional business.
India is an
Emerging economy
Developed economy
Less developed economy
None of these
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.
Typically the last step in the internationalization process is:
Licensing
Exporting
Wholly owned subsidiaries
Foreign Direct Investment
Ownership of intellectual property is recognized in law by granting
Licenses.
Patents.
Copyrights.
Patent, copyright or trademark as appropriate.
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.
For the society, religion has no influence on
holidays.
language.
role of women.
marketing practices.
An attribute that doesnt contribute to Porters Diamond model is
Government
Organized Trade union
Factor Conditions
Demand Conditions
Credits transferable by original beneficiary in favor of secondary beneficiary are known as
Deferred credits
Transit credits
Instalment credits
Transferable credits
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.
In 90s the global management perception was based on
Standardization v/s adaptation
Globalization v/s localization
Global integration v/s Local Responsiveness
Local responsiveness
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
Which one of the following is a method for an exporter to get a contract
Proforma invoice
Purchase order
Sales contract
All the above
When the transaction is of high value, complex In nature and more technical __________ method of the export sales contract is used.
Performa invoice
Purchase order
Sales contact
None of the above
The stage indicating highest level of economic growth is
age of mass consumption.
age of mass production.
maturity.
drive to maturity.
The world trade organization was formed in the year _________ with GATT as it basis.
1993
1994
1995
1996
Quantitative restrictions refer to limit set by countries to curb
Imports
Exports
Imports & exports
None of the above
In a business cycle, the phase preceding prosperity is
recession.
depression.
recovery.
recession or depression.
Factor of Interdependence in Multi-domestic strategy is
Low
Moderate
High
Very High