Typically the last step in the internationalization process is:
Licensing
Exporting
Wholly owned subsidiaries
Foreign Direct Investment
Correct Answer :
D. Foreign Direct Investment
Related Questions
The country that attract the largest FDI inflow is
USA
INDIA
CHINA
BRAZIL
For the society, religion has no influence on
holidays.
language.
role of women.
marketing practices.
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
The Theory of Relative Factor Endowments is given by
Ohilin-Hecksher
FY Taylor
Richardo
Porter
The following factors are key drivers of globalisation
Government action, exchange rates, competition and sociodemographic factors.
Market convergence, competition, exchange rates and cost advantages.
Cost advantages, government action, economic cycles and competition.
Market, cost, competition and government policies.
No new investment in the host country is created in the case of
Greenfield FDI.
Acquisition.
Horizontal FDI.
Vertical 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
India is an
Emerging economy
Developed economy
Less developed economy
None of these
9.The theory of Comparative cost advantage is given by
Porter
Adam Smith
Varnoon
D. Richardo
Ownership of intellectual property is recognized in law by granting
Licenses.
Patents.
Copyrights.
Patent, copyright or trademark as appropriate.
Credits transferable by original beneficiary in favor of secondary beneficiary are known as
Deferred credits
Transit credits
Instalment credits
Transferable credits
Capitalistic, communistic and mixed are the types of
Economic system
Political system
Social System
Cultural Attitudes
In a business cycle, the phase preceding prosperity is
recession.
depression.
recovery.
recession or depression.
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 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
Social stratification is done based on
Income level.
caste.
education.
any of the above.
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
IBRD (International Bank for Reconstruction and Development) also known as
EXIM Bank
World Bank
IMF
International Financial Bank
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
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.
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
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.
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
Lower power distance countries are characterized by
relationships based on equality and informality.
authority being accepted without question.
managers being paternalistic.
tall organizations structure.
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
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.
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
B2B sector specific policy of Indian Government is
FDI up to 100% subject to condition that they invest 26 % in favour of Indian Public within 5 yrs
FDI up to 100%
FDI up to 100% subject to condition that they invest 26 % in favor of Indian Public within 10 yrs
FDI up to 49%
Countries/ regions with huge market size will attract
Market seeking FDI.
Efficiency seeking FDI.
Vertical FDI.
Created assets seeking FDI.