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
Correct Answer :
A. Can earn a return on knowledge asset
Related Questions
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
Monetary policy relates to controlling
money supply.
money supply and interest rate.
money supply, interest rate and exchange rate.
credit creation by banks.
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
1 …………… is application of knowledge which redefine the boundaries of global business
Cultural Values
Society
Technology
Economy
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.
Identify a factor that doesnt play an important role in attracting FDI
Laws, rule sand regulations
Administrative procedures and efficiency
Infrastructure related factors
Language
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 firm investing in a foreign country to distribute the products there in creation of
Asset seeking FDI.
Backward vertical FDI.
Forward vertical FDI.
Distribution FDI.
A Most Favoured nation status doesnt necessarily refer to
Same and equal economic treatment
Non-discriminatory treatment
Same tariff rates applicable
Uniform civil code
General electric follows ___________ as its international operational strategy
Global
International
Multi-domestic
Transnational
The essential feature of FDI is
Investment of a very high value.
Investment in shares.
Investors influence on the management of the enterprise.
Investment of low value.
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.
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.
3.Identify a factor that doesnt play an important role in attracting FDI
Language
Laws, rules and regulations
Cost of resources
Infrastructure related factors
Business across several countries with some decentralization of management decision making to subsidiaries is
Global business.
Multinational business.
Transnational business.
Multi-regional business.
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.
The following nationals would be aggressive at the beginning of business negotiations, but offer large concessions in the end
American.
Russian.
German.
Japanese.
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
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
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
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%
Scenarios are used to
Develop a long term view of strategy.
Build plausible views of different possible futures and develop a long term view of strategy.
Identify key drivers of change.
Develop a view of an environment which has a high degree of uncertainty, build plausible views of different possible futures and take a long term view of strategy.
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
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.
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
Capitalistic, communistic and mixed are the types of
Economic system
Political system
Social System
Cultural Attitudes
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
By having business in different countries, a firm reduces
credit risk.
political risk.
financial risk.
business risk.
Quantitative restrictions refer to limit set by countries to curb
Imports
Exports
Imports and Exports
All of the above
The Theory of Absolute Cost Advantage is given by
Adam smith
D. Richardo
Raymond Varnoon
Porter