Question 1

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.

Accepted Answer

Russian negotiation styles are often characterized by initial aggressiveness followed by significant concessions as negotiations progress, reflecting a strategic approach to bargaining.

Question 2

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.

Accepted Answer

Social mobility refers to the ability of individuals to move within or between social strata in a society, reflecting changes in their social status, typically through changes in occupation, wealth, or education.

Question 3

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.

Accepted Answer

Lower power distance countries are characterized by relationships based on equality and informality, where hierarchy is downplayed, and individuals are more likely to be seen as equals regardless of their position in an organization.

Question 4

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.

Accepted Answer

Countries with high uncertainty avoidance tend to have a culture where decision-making is often the result of group consensus. This is because there is a collective effort to minimize the uncertainty and risks involved in decision-making processes. In such cultures, there is a higher reliance on rules, structured activities, and clear guidelines to reduce ambiguity and uncertainty.

Question 5

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.

Accepted Answer

Hofstede's dimension of masculinity refers to a society's preference for achievement, heroism, assertiveness, and material rewards for success. It contrasts with a feminine society, which values cooperation, modesty, caring for the weak, and quality of life. This dimension does not relate to the physical presence of males or war but rather to cultural values and behaviors.

Question 6

According to economic growth model of Rostow, passage of a country through the stages is
A)in the order specified.
B)in any order.
C)in the order specified, but certain stages may be skip

Accepted Answer

Rostow's model of economic growth suggests that countries pass through five stages of economic development in a specific order, starting from a traditional society to a high mass consumption society.

Question 7

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.

Accepted Answer

A country in the stage of traditional society is primarily characterized by the predominance of agriculture, where the economy is heavily dependent on farming and related activities.

Question 8

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.

Accepted Answer

The stage indicating the highest level of economic growth according to Rostow's stages of economic growth is the "age of mass consumption," where economies shift towards consumer goods and services.

Question 9

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.

Accepted Answer

Purchasing Power Parity (PPP) adjusts for differences in price levels between countries, allowing for a more accurate comparison of economic indicators. In a country with a lower cost of living, PPP per capita GNI will be higher than nominal per capita GNI because it reflects the increased purchasing power of income in that country.

Question 10

In a business cycle, the phase preceding prosperity is
A)recession.
B)depression.
C)recovery.
D)recession or depression.

Accepted Answer

The phase preceding prosperity in a business cycle is recovery. During recovery, economic activity starts to pick up following a period of recession or depression, leading into the prosperity phase where the economy is at its peak.

Question 11

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.

Accepted Answer

Monetary policy involves managing the money supply, interest rates, and exchange rates to influence economic activity.

Question 12

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.

Accepted Answer

Analysing the business environment involves auditing macro environmental influences and identifying key competitive forces, competitive position, and key opportunities and threats.

Question 13

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,

Accepted Answer

The PESTEL framework is designed to help organizations scan the external macro-environment in which they operate. This tool is used to identify the Political, Economic, Social, Technological, Environmental, and Legal factors that may affect the organization. It does not directly assess an organization's strengths and weaknesses (that's more aligned with a SWOT analysis), nor does it focus on the structure of an industry (which might be more the domain of Porter's Five Forces). It also does not inherently take a historical perspective but is used to understand current and future trends in the external environment.

Question 14

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.

Accepted Answer

Scenarios are used to understand environments with high uncertainty, explore different potential futures, and inform long-term strategic planning.

Question 15

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.

Accepted Answer

Porter's Diamond model explains national competitive advantage through four broad attributes: factor conditions (such as skilled labor and infrastructure), demand conditions (the nature of home-market demand), related and supporting industries (presence of supplier industries and related industries that are internationally competitive), and firm strategy, structure, and rivalry (conditions governing how companies are created, organized, and managed, as well as the nature of domestic rivalry).

Question 16

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.

Accepted Answer

The correct answer is A) Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry. These are the five forces model developed by Michael Porter to analyze the competitive environment of an industry.

Question 17

In international business cheaper alternatives to litigation is/ are
A)Conciliation.
B)Arbitration.
C)Negotiations.
D)Conciliation and arbitration.

Accepted Answer

Conciliation and arbitration are both recognized as cheaper alternatives to litigation in the context of international business. These methods are preferred for their ability to provide a less formal, more flexible, and generally faster resolution to disputes compared to the traditional court system. Conciliation involves a third party who helps the disputing parties to reach a mutually acceptable agreement, while arbitration involves a neutral third party or panel making a decision on the dispute, which is usually binding. Both methods are cost-effective compared to litigation.

Question 18

A contract drafted under civil law differs from that drafted under common law in the following 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.

Accepted Answer

Contracts under civil law are typically shorter and less specific because civil law systems rely more on codified statutes and less on detailed contractual terms compared to common law systems.

Question 19

Ownership of intellectual property is recognized in law by granting
A)Licenses.
B)Patents.
C)Copyrights.
D)Patent, copyright or trademark as appropriate.

Accepted Answer

Ownership of intellectual property is recognized in law by granting patents, copyrights, or trademarks, depending on the type of intellectual property. Patents protect inventions, copyrights protect original works of authorship, and trademarks protect brand names and logos.

Quiz 8: Business, Culture, and Globalization

The following nationals would be aggressive at the beginning of business negotiations, but offer large concessions in the end

Social mobility is measured by

Lower power distance countries are characterized by

A country with high uncertainty avoidance will witness

As per cultural dimensions of Hofstede, masculinity refers to

According to economic growth model of Rostow, passage of a country through the stages is

A country in the stage of traditional society is characterized by

The stage indicating highest level of economic growth is

For a country with relatively lower level of cost of living PPP per capita GNI will be

In a business cycle, the phase preceding prosperity is

Monetary policy relates to controlling

Analysing the business environment best assists in

In relation to the PESTEL framework, which of the following statements is correct?

Scenarios are used to

Porter suggests the following reasons for one nation being more competitive than another

The five forces that affect the level of competition in an industry are

In international business cheaper alternatives to litigation is/ are

A contract drafted under civil law differs from that drafted under common law in the following respect

Ownership of intellectual property is recognized in law by granting