Deck 5: International Business and Trade

Question 1

Which organisations strain on the liberalisation of foreign investment and foreign trade?

A)international monetary fund
B)world health organisation
C)world trade organisation
D)international labour organisation

Answer 1

world trade organisation

Question 2

Free international trade maximizes world output through

A)countries specializing in production of goods they are best suited for.
B)reduction in taxes.
C)increased factor income.
D)encouraging competition.

Answer 2

countries specializing in production of goods they are best suited for.

Question 3

International business does not result in the following

A)innovation is encouraged.
B)international cooperation is encouraged.
C)imports are rendered cheap.
D)consumption is minimized.

Answer 3

consumption is minimized.

Question 4

By having business in different countries, a firm reduces

A)credit risk.
B)political risk.
C)financial risk.
D)business risk.

Question 5

Which of the following is an advantage of turnkey projects?

A)can earn a return on knowledge asset
B)will not create a competitor
C)tight control of operations
D)all the above

Question 6

The country that attracts the largest FDI inflow is

A)india
B)china
C)usa
D)brazil

Question 7

Firm that operates internationally is able to

A)earn a greater return from their skills and core competencies
B)realize location economies where they can be performed most efficiently
C)realize greater experience curve economies, which reduces the cost of production
D)all the above

Question 8

Trade Related Investment Measures (TRIMS) doesn't apply for

A)Measures that affect trade in goods.
B)Measures that lead to restrictions on quantities.
C)Discouraging measures that limit a company's imports.
D)Discouraging measures that limit a company's exports.

Question 9

General Agreement on Trade in Services will not be applicable to

A)Services supplied from one country to another - cross border supply
B)Transaction of goods across the border - Export Import
C)Individuals traveling from own country to supply services in another - presence of natural persons.
D)Consumers/firms making use of a service in another country - consumption abroad.

Question 10

As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn't consider

A)Direct payments to farmers are permitted.
B)Indirect assistance and support to farmers including R & D support by govt. are not permitted.
C)Domestic policies which directly effect on production and trade have to be cut back.
D)Least developed countries do not need to make any cuts.

Question 11

Quantitative restrictions refer to limit set by countries to curb

A)Imports
B)Exports
C)Imports & exports
D)None of the above

Question 12

A Most Favoured nation status doesn't necessarily refer to

A)Same and equal economic treatment
B)Non-discriminatory treatment
C)Same tariff rates applicable
D)Uniform civil code

Question 13

Power distance Index (PDI) of 77 compared to a world average of 56.5 for India indicates

A)High level of inequality of power and wealth within the society
B)Low level of inequality of power and wealth within the society
C)High level of Political corruption
D)Low level of Human development Index

Question 14

Specific cultural dimensions that does not have a significant impact on cross-national business interactions is

A)Hofstede's five cultural dimensions
B)Monochromatic vs polychromatic tune
C)Communication
D)Geography

Question 15

Professional culture refers to

A)Shared belief of top managers about how they should manage themselves and their employees
B)Shared code of ethics and other commonalities shared by members of a given group
C)Both (a) and (c)
D)None of the above

Question 16

An attribute that doesn't contribute to Porters Diamond model is

A)Government
B)Organized Trade union
C)Factor Conditions
D)Demand Conditions

Question 17

_______ theory states that, lack of resources often helps countries to become competitive

A)Competitive theory
B)Porters Diamond Model
C)Theory of Mercantilism
D)Product life cycle theory

Question 18

Identify a factor that doesn't play an important role in attracting FDI

A)Laws, rule sand regulations
B)Administrative procedures and efficiency
C)Infrastructure related factors
D)Language

Question 19

B2B sector specific policy of Indian Government is

A)FDI up to 100% subject to condition that they invest 26 % in favour of Indian Public within 5 yrs
B)FDI up to 100%
C)FDI up to 100% subject to condition that they invest 26 % in favor of Indian Public within 10 yrs
D)FDI up to 49%

Question 20

General electric follows ___________ as its international operational strategy

A)Global
B)International
C)Multi-domestic
D)Transnational

Question 21

Factor of Interdependence in Multi-domestic strategy is

A)Low
B)Moderate
C)High
D)Very High

Question 22

In 90's the global management perception was based on

A)Standardization v/s adaptation
B)Globalization v/s localization
C)Global integration v/s Local Responsiveness
D)Local responsiveness

Question 23

The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year 1999 is an example of

A)Subsidiary
B)Joint venture
C)Strategic International Alliance
D)License agreement