The world trade organization was formed in the year _________ with GATT as it basis.
1993
1994
1995
1996
Correct Answer :
C. 1995
Related Questions
The following is not a component of culture
Attitudes.
Beliefs.
Education.
Life expectancy.
International business does not result in the following
Innovation is encouraged.
International cooperation is encouraged.
Imports are rendered cheap.
Consumption is minimized.
Typically the last step in the internationalization process is:
Licensing
Exporting
Wholly owned subsidiaries
Foreign Direct Investment
3.Identify a factor that doesnt play an important role in attracting FDI
Language
Laws, rules and regulations
Cost of resources
Infrastructure related factors
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.
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 country that attract the largest FDI inflow is
USA
INDIA
CHINA
BRAZIL
Factor of Interdependence in Multi-domestic strategy is
LOW
MODERATE
HIGH
VERY HIGH
Theory of Mercantilism propagates
Encourage imports and exports
Encourage exports and discourage imports
Discourage imports
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
The country that attracts the largest FDI inflow is
India
China
USA
Brazil
Lower power distance countries are characterized by
relationships based on equality and informality.
authority being accepted without question.
managers being paternalistic.
tall organizations structure.
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.
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
Subsidiaries consider regional environment for policy / Strategy formulation is known as
Polycentric Approach
Regiocentric Approach
Ethnocentric Approach
Geocentric Approach
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
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.
Porter suggests the following reasons for one nation being more competitive than another
Ability to speak English; developed network of supporting industries; absence of competition; and low labour cost.
Abundant natural resources; skilled labour force; temperate climate; and democracy.
Factor conditions; demand conditions; related and supporting industries; and firm strategy, industry strategy and rivalry.
Strong sporting ethos; emphasis on individual achievement; strong national party in power; large home market.
Identify a factor that doesnt play an important role in attracting FDI
Laws, rule sand regulations
Administrative procedures and efficiency
Infrastructure related factors
Language
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.
An attribute that doesnt contribute to Porters Diamond model is
Government
Organized Trade union
Factor Conditions
Demand Conditions
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.
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
In a business cycle, the phase preceding prosperity is
recession.
depression.
recovery.
recession or depression.
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.
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.
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.
In international business cheaper alternatives to litigation is/ are
Conciliation.
Arbitration.
Negotiations.
Conciliation and arbitration.
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
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.