Question 1

If a German manufacturer of household appliances wants to take advantage of the cheaper labor available in the Czech Republic, which of the following actions will not serve that purpose?&#10;A)build a manufacturing subsidiary there and employ czech workers.&#10;B)build a plant in the czech republic and send all german workers to operate it.&#10;C)license a czech firm to produce its products under its own label.&#10;D)contract for a czech firm to do some of the processing for it.

Accepted Answer

Building a plant in the Czech Republic and sending all German workers to operate it will not take advantage of the cheaper labor available in the Czech Republic, as it involves using German workers instead of hiring local, potentially less expensive, Czech workers.

Question 2

Removing barriers or restrictions set by the government is called:&#10;A)liberalisation&#10;B)investment&#10;C)favorable trade&#10;D)free trade

Accepted Answer

Liberalisation refers to the process of removing government restrictions, usually in areas like trade and investment, to allow for more freedom in the market.

Question 3

Which is the right sequence of stages of Internationalization&#10;A)domestic, transnational, global, international, multinational&#10;B)domestic, international, multinational, global, transnational&#10;C)domestic, multinational, international, transnational, global&#10;D)domestic, international, transnational, multinational, global

Accepted Answer

The correct sequence of stages of internationalization for a company typically progresses from domestic, where a company starts its operations within its home country, to international, where it begins to enter foreign markets. It then moves to multinational, operating in several countries but managing them separately. The global stage is where the company begins to treat the world as a single market, and finally, transnational, where it operates globally but with a strong local presence.

Question 4

Subsidiaries consider the regional environment for policy / Strategy formulation is known as&#10;A)polycentric approach&#10;B)regionocentric approach&#10;C)ethnocentric approach&#10;D)geocentric approach

Accepted Answer

Regionocentric approach involves subsidiaries considering the regional environment for policy and strategy formulation, focusing on the needs and conditions of the region they operate in.

Question 5

Which is not an Indian Multinational Company?&#10;A)unilever&#10;B)asian paints&#10;C)piramal&#10;D)wipro

Accepted Answer

Unilever is not an Indian multinational company; it is a British-Dutch multinational company. Asian Paints, Piramal, and Wipro are all Indian multinational companies.

Question 6

Select example of Indian Multinational Company&#10;A)hindustan unilever&#10;B)videocon&#10;C)cargill&#10;D)tesco

Accepted Answer

Videocon is an Indian multinational conglomerate with diversified interests, making it an example of an Indian multinational company.

Question 7

&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;corporation produces in the home country or in a single country and focuses on marketing these products globally or vice a versa.&#10;A)global&#10;B)international&#10;C)transnational&#10;D)none of the above

Accepted Answer

A global corporation produces in the home country or in a single country and focuses on marketing these products globally.

Question 8

The ------company produces, markets, invests and operates across the world&#10;A)global&#10;B)international&#10;C)transnational&#10;D)multinational

Accepted Answer

The answer of The ------company produces, markets, invests and operates...

Question 9

Business across several countries with some decentralization of management decision making to subsidiaries is&#10;A)global business.&#10;B)multinational business.&#10;C)transnational business.&#10;D)multi-regional business.

Accepted Answer

A multinational business operates in several countries but allows each subsidiary to make its own decisions and tailor its operations to the local environment, which is the key aspect described in the question.

Question 10

Immobility of labor among nations is&#10;A)absolute.&#10;B)relatively of a higher degree than among regions in the same country.&#10;C)relatively easier than movement within the country.&#10;D)of the same degree as within the country.

Accepted Answer

Labor mobility among nations is generally lower than within a country due to factors like immigration laws, cultural barriers, and language differences, making it relatively harder for workers to move internationally compared to within their own country.

Question 11

The following factor does not differentiate international business from domestic business&#10;A)different currencies&#10;B)product quality&#10;C)product mobility&#10;D)trade policies

Accepted Answer

The answer of The following factor does not differentiate international...

Question 12

By entering into international business, a firm expects improvement in&#10;A)marketing.&#10;B)all spheres of marketing, operation and finance simultaneously.&#10;C)any or all spheres of marketing, operation and finance.&#10;D)finance only

Accepted Answer

The answer of By entering into international business, a firm...

Question 13

Ultimately &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;was replaced by the &#8230;&#8230;&#8230;&#8230;&#8230;.on 1st Jan 1995&#10;A)gats, wto&#10;B)wto, gatt&#10;C)gatt, wto&#10;D)imf, gatt

Accepted Answer

The answer of Ultimately &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;was replaced by the &#8230;&#8230;&#8230;&#8230;&#8230;.on 1st...

Question 14

_______ is the first step in the internationalization process.&#10;A)license&#10;B)foreign investment&#10;C)sales&#10;D)export

Accepted Answer

The answer of _______ is the first step in the...

Question 15

If the U.S. dollar appreciates relative to the British pound,&#10;A)it will take fewer dollars to purchase a pound&#10;B)it will take more dollars to purchase a pound&#10;C)it is called a weakening of the dollar&#10;D)both a & c

Accepted Answer

The answer of If the U.S. dollar appreciates relative to...

Question 16

An economist will define the exchange rate between two currencies as the:&#10;A)amount of one currency that must be paid in order to obtain one unit of another currency&#10;B)difference between total exports and total imports within a country&#10;C)price at which the sales and purchases of foreign goods takes place&#10;D)ratio of import prices to export prices for a particular country

Accepted Answer

The answer of An economist will define the exchange rate...

Question 17

India is facing continuous deficit in its balance of payments. In the foreign exchange market rupee is expected to&#10;A)depreciate.&#10;B)appreciate.&#10;C)show no specific tendency.&#10;D)depreciate against currencies of the countries with positive balance of payment and appreciate against

Accepted Answer

The answer of India is facing continuous deficit in its...

Question 18

The demand for domestic currency in the foreign exchange market is indicated by the following transactions in balance of payment&#10;A)export of goods and services&#10;B)import of goods and services.&#10;C)export of goods and services and capital inflows.&#10;D)import of goods and services and capital outflows.

Accepted Answer

The answer of The demand for domestic currency in the...

Deck 2: International Business and Foreign Exchange Market