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.
Correct Answer :
A. as a Greenfield venture.
Related Questions
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.
The Theory of Absolute Cost Advantage is given by
Adam smith
D. Richardo
Raymond Varnoon
Porter
Countries/ regions with huge market size will attract
Market seeking FDI.
Efficiency seeking FDI.
Vertical FDI.
Created assets seeking FDI.
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
Factor of Interdependence in Multi-domestic strategy is
LOW
MODERATE
HIGH
VERY HIGH
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.
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.
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.
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
Credits transferable by original beneficiary in favor of secondary beneficiary are known as
Deferred credits
Transit credits
Instalment credits
Transferable credits
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.
Uneven distribution of natural resources
is the only cause for international business.
is the major factor for international business.
is among the major factors for international business.
is not a cause for international business.
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.
The following factor does not differentiate international business from domestic business
different currencies
product quality
product mobility
trade policies
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.
Quantitative restrictions refer to limit set by countries to curb
Imports
Exports
Imports and Exports
All of the above
An attribute that doesnt contribute to Porters Diamond model is
Government
Organized Trade union
Factor Conditions
Demand Conditions
Which one of the following is a method for an exporter to get a contract
Proforma invoice
Purchase order
Sales contract
All the above
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
Conglomerate FDI refers to
FDI made by a group of firms.
FDI made in subsidiaries.
FDI made in similar products.
FDI made in unrelated products.
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
Business across several countries with some decentralization of management decision making to subsidiaries is
Global business.
Multinational business.
Transnational business.
Multi-regional business.
Theory of Mercantilism propagates
Encourage imports and exports
Encourage exports and discourage imports
Discourage imports
None of these
Quantitative restrictions refer to limit set by countries to curb
Imports
Exports
Imports & exports
None of the above
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.
Which is the right sequence of a stages of Internationalization
Domestic, Transnational, Global, International, Multinational
Domestic, International, Multinational, Global, Transnational
Domestic, Multinational, International, Transnational, Global
Domestic, International, Transnational, Multinational, Global
Religion of a person affects his/her
attitude towards entrepreneurship.
gifting practices.
use of products.
all of the above.
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
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.
A country with high uncertainty avoidance will witness
lower level of stress among people.
decision taken as a result of group consensus.
less dependence on rules and regulations.
people are serene.