161. Geographical indications specify
A. Place of origin of goods.
B. Special characteristics of the product associated with the place of origin.
C. Place and special characters of the product.
D. Place or special characters of the product.
Answer
C. Place and special characters of the product.
162. Business across several countries with some decentralization of management decisionmaking to subsidiaries is
A. Global business.
B. Multinational business.
C. Transnational business.
D. Multi-regional business.
Answer
B. Multinational business.
163. Wholly owned subsidiary can be set up
A. as a Greenfield venture.
B. to acquire an existing firm.
C. to have products marketed overseas.
D. to have management is overseas.
Answer
A. as a Greenfield venture.
164. The essential feature of FDI is
A. Investment of a very high value.
B. Investment in shares.
C. Investor’s influence on the management of the enterprise.
D. Investment of low value.
Answer
C. Investor’s influence on the management of the enterprise.
165. No new investment in the host country is created in the case of
A. Greenfield FDI.
B. Acquisition.
C. Horizontal FDI.
D. Vertical FDI.
Answer
B. Acquisition.
166. A firm investing in a foreign country to distribute the products there in creation of
A. Asset seeking FDI.
B. Backward vertical FDI.
C. Forward vertical FDI.
D. Distribution FDI.
Answer
C. Forward vertical FDI.
167. The disadvantages of Greenfield FDI as compared to acquisition is
A. Profit will be less.
B. Size of investment will be high.
C. Lesser control in management.
D. Delay in establishment.
Answer
D. Delay in establishment.
168. Conglomerate FDI refers to
A. FDI made by a group of firms.
B. FDI made in subsidiaries.
C. FDI made in similar products.
D. FDI made in unrelated products.
Answer
D. FDI made in unrelated products.
169. Countries/ regions with huge market size will attract
A. Market seeking FDI.
B. Efficiency seeking FDI.
C. Vertical FDI.
D. Created assets seeking FDI.
Answer
A. Market seeking FDI.
170. The following statement with respect to culture is false
A. Culture is enduring.
B. Culture is changing.
C. Culture is evolved among the members of a society.
D. Culture is determined by national boundaries.
Answer
D. Culture is determined by national boundaries.
171. The following is not a component of culture
A. Attitudes.
B. Beliefs.
C. Education.
D. Life expectancy.
Answer
D. Life expectancy.
172. Non- verbal communication
A. includes written communication.
B. has no place in international business.
C. includes body language.
D. should be learnt by business managers to communicate with foreigners.
Answer
C. includes body language.
173. Religion of a person affects his/her
A. attitude towards entrepreneurship.
B. gifting practices.
C. use of products.
D. all of the above.
Answer
D. all of the above.
174. For the society, religion has no influence on
A. holidays.
B. language.
C. role of women.
D. marketing practices.
Answer
B. language.
175. The role of women is restricted in
A. Eastern countries.
B. Middle East countries.
C. Traditional Islamic countries.
D. India.
Answer
C. Traditional Islamic countries.
176. The following nationals would be aggressive at the beginning of business negotiations,but offer large concessions in the end
A. American.
B. Russian.
C. German.
D. Japanese.
Answer
B. Russian.
177. Social stratification is done based on
A. Income level.
B. caste.
C. education.
D. any of the above.
Answer
B. caste.
178. Social mobility is measured by
A. The extent to which an individual can move the strata to which he/she belongs.
B. The promptness with which an individual accepts foreign assignments.
C. The extent to which inter- caste marriage is encouraged by the society.
D. The extent to which the society as a whole shifts its habitat.
Answer
A. The extent to which an individual can move the strata to which he/she belongs.
179. Lower power distance countries are characterized by
A. relationships based on equality and informality.
B. authority being accepted without question.
C. managers being paternalistic.
D. tall organizations structure.
Answer
A. relationships based on equality and informality.
180. A country with high uncertainty avoidance will witness
A. lower level of stress among people.
B. decision taken as a result of group consensus.
C. less dependence on rules and regulations.
D. people are serene.
Answer
B. decision taken as a result of group consensus.
181. As per cultural dimensions of Hofstede, masculinity refers to
A. Male- female ratio in the country.
B. Society dominated by male members.
C. Society characterized by aggressive and materialistic behaviour.
D. War- ridden societies.
Answer
C. Society characterized by aggressive and materialistic behaviour.
182. According to economic growth model of Rostow, passage of a country through thestages is
A. in the order specified.
B. in any order.
C. in the order specified, but certain stages may be skipp
Answer
A. in the order specified.
183. A country in the stage of traditional society is characterized by
A. existence of traditional rule.
B. non existence of industries.
C. predominance of agriculture.
D. complete absence of literacy.
Answer
C. predominance of agriculture.
184. The stage indicating highest level of economic growth is
A. age of mass consumption.
B. age of mass production.
C. maturity.
D. drive to maturity.
Answer
A. age of mass consumption.
185. The income level of residents in a country is indicated by
A. gross national income.
B. gross domestic product.
C. per capita gross national income.
D. per capita gross domestic product.
Answer
C. per capita gross national income.
186. For a country with relatively lower level of cost of living PPP per capita GNI will be
A. lower than per capita GNI.
B. higher than per capita GNI.
C. same as per capita GNI.
D. may be lower or higher than per capita GNI.
Answer
B. higher than per capita GNI.
187. In a business cycle, the phase preceding prosperity is
A. recession.
B. depression.
C. recovery.
D. recession or depression.
Answer
C. recovery.
188. Monetary policy relates to controlling
A. money supply.
B. money supply and interest rate.
C. money supply, interest rate and exchange rate.
D. credit creation by banks.
Answer
C. money supply, interest rate and exchange rate.
189. Analysing the business environment best assists in
A. Identifying key competitive forces; identifying competitive position; identifying key opportunities, threats, strengths and weaknesses.
B. Auditing macro environmental influences; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.
C. Auditing external and organisational factors; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.
D. Assessing historical trends; auditing environmental dangers; identifying strategic capabilities; identifying competitive position.
Answer
B. Auditing macro environmental influences; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.
190. In relation to the PESTEL framework, which of the following statements is correct?
A. It assists in the assessment of organisational strengths and weaknesses.
B. It allows a detailed analysis of the structure of an industry.
C. It can be used as a checklist to understand the different environmental influences in the macro environment.
D. Takes an historical perspective on the main political, economic, sociocultural,
Answer
C. It can be used as a checklist to understand the different environmental influences in the macro environment.
191. The following factors are key drivers of globalisation
A. Government action, exchange rates, competition and sociodemographic factors.
B. Market convergence, competition, exchange rates and cost advantages.
C. Cost advantages, government action, economic cycles and competition.
D. Market, cost, competition and government policies.
Answer
D. Market, cost, competition and government policies.
192. Scenarios are used to
A. Develop a long term view of strategy.
B. Build plausible views of different possible futures and develop a long term view of strategy.
C. Identify key drivers of change.
D. 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.
Answer
D. 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.
193. Porter suggests the following reasons for one nation being more competitive than another
A. Ability to speak English; developed network of supporting industries; absence of competition; and low labour cost.
B. Abundant natural resources; skilled labour force; temperate climate; and democracy.
C. Factor conditions; demand conditions; related and supporting industries; and firm strategy, industry strategy and rivalry.
D. Strong sporting ethos; emphasis on individual achievement; strong national party in power; large home market.
Answer
C. Factor conditions; demand conditions; related and supporting industries; and firm strategy, industry strategy and rivalry.
194. The five forces that affect the level of competition in an industry are
A. Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry.
B. Threat of buyers; power of entry; power of substitutes; threat of suppliers; threat of recession.
C. Threat of recession; power of buyers; power of suppliers; threat of management failure; competitive rivalry.
D. Threat of entry; power of buyers; power of suppliers; threat of substitutes; government action.
Answer
A. Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry.
195. In international business cheaper alternatives to litigation is/ are
A. Conciliation.
B. Arbitration.
C. Negotiations.
D. Conciliation and arbitration.
Answer
D. Conciliation and arbitration.
196. A contract drafted under civil law differs from that drafted under common law in thefollowing respect
A. It will be detailed.
B. It will be shorter and less specific.
C. It will provide less severe damages.
D. It will be in detail.
Answer
B. It will be shorter and less specific.
197. Ownership of intellectual property is recognized in law by granting
A. Licenses.
B. Patents.
C. Copyrights.
D. Patent, copyright or trademark as appropriate.
Answer
D. Patent, copyright or trademark as appropriate.
