Question 1

Non- verbal communication

Accepted Answer

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.E) A) and D)
F) B) and D)

Question 2

A firm investing in a foreign country to distribute the products there in creation of

Accepted Answer

A)  Asset seeking FDI.
B)  Backward vertical FDI.
C)  Forward vertical FDI.
D)  Distribution FDI.E) A) and B)
F) B) and D)

Question 3

Business across several countries with some decentralization of management decision making to subsidiaries is

Accepted Answer

A)  Global business.
B)  Multinational business.
C)  Transnational business.
D)  Multi-regional business.E) A) and B)
F) B) and C) B

Question 4

Typically the last step in the internationalization process is:

Accepted Answer

A)  Licensing
B)  Exporting
C)  Wholly owned subsidiaries
D)  Foreign Direct InvestmentE) A) and D)
F) B) and C)

Question 5

General electric follows ___________ as its international operational strategy

Accepted Answer

A)  GLOBAL
B)  TRANSNATIONAL
C)  INTERNATIONAL
D)  MULTI-DOMESTICE) All of the above
F) A) and B) B

Question 6

The essential feature of FDI is

Accepted Answer

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.E) A) and B)
F) All of the above

Question 7

Wholly owned subsidiary can be set up

Accepted Answer

A)  as a Greenfield venture.
B)  to acquire an existing firm.
C)  to have products marketed overseas.
D)  to have management is overseas.E) A) and B)
F) A) and C)

Question 8

The disadvantages of Greenfield FDI as compared to acquisition is

Accepted Answer

A)  Profit will be less.
B)  Size of investment will be high.
C)  Lesser control in management.
D)  Delay in establishment.E) B) and C)
F) A) and D)

Question 9

By entering into international business, a firm expects improvement in

Accepted Answer

A)  Marketing.
B)  All spheres of marketing, operation and finance simultaneously.
C)  Any or all spheres of marketing, operation and finance.
D)  Finance only.E) A) and B)
F) A) and D) C

Question 10

Subsidiaries consider regional environment for policy / Strategy formulation is known as

Accepted Answer

A)  Polycentric Approach
B)  Regiocentric Approach
C)  Ethnocentric Approach
D)  Geocentric ApproachE) All of the above
F) C) and D)

Question 11

No new investment in the host country is created in the case of

Accepted Answer

A)  Greenfield FDI.
B)  Acquisition.
C)  Horizontal FDI.
D)  Vertical FDI.E) A) and B)
F) None of the above

Question 12

The role of women is restricted in

Accepted Answer

A)  Eastern countries.
B)  Middle East countries.
C)  Traditional Islamic countries.
D)  India.E) A) and B)
F) A) and C)

Question 13

Countries/ regions with huge market size will attract

Accepted Answer

A)  Market seeking FDI.
B)  Efficiency seeking FDI.
C)  Vertical FDI.
D)  Created assets seeking FDI.E) None of the above
F) A) and D)

Question 14

Conglomerate FDI refers to

Accepted Answer

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.E) A) and B)
F) B) and D)

Question 15

The following factor does not differentiate international business from domestic business

Accepted Answer

A)  different currencies
B)  product quality
C)  product mobility
D)  trade policiesE) A) and B)
F) A) and C)

Question 16

Which of these is/are the characteristic of a licensing agreement

Accepted Answer

A)  The licensor might provide access to some of its patents or trademarks
B)  The licensor might provide access to technology
C)  It might be used to avoid the risks of foreign involvement
D)  All of the aboveE) A) and B)
F) A) and C)

Question 17

Geographical indications specify

Accepted Answer

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.E) All of the above
F) A) and C)

Question 18

Religion of a person affects his/her

Accepted Answer

A)  attitude towards entrepreneurship.
B)   gifting practices.
C)  use of products.
D)  all of the above.E) B) and C)
F) C) and D)

Question 19

Uneven distribution of natural resources

Accepted Answer

A)  is the only cause for international business.
B)  is the major factor for international business.
C)  is among the major factors for international business.
D)  is not a cause for international business.E) All of the above
F) None of the above

Question 20

Ultimately ……………… was replaced by the …………….on 1st Jan 1995

Accepted Answer

A)  GATT/WTO
B)  GATS/IMF
C)  WTO/WORLD BANK
D)  WORLD BANK/WIPOE) A) and C)
F) None of the above

Exam 7: International Business Operations and Strategies

Non- verbal communication

Correct AnswerverifiedShow Answer

A firm investing in a foreign country to distribute the products there in creation of

Correct AnswerverifiedShow Answer

Business across several countries with some decentralization of management decision making to subsidiaries is

Correct AnswerverifiedB

Typically the last step in the internationalization process is:

Correct AnswerverifiedShow Answer

General electric follows ___________ as its international operational strategy

Correct AnswerverifiedB

The essential feature of FDI is

Correct AnswerverifiedShow Answer

Wholly owned subsidiary can be set up

Correct AnswerverifiedShow Answer

The disadvantages of Greenfield FDI as compared to acquisition is

Correct AnswerverifiedShow Answer

By entering into international business, a firm expects improvement in

Correct AnswerverifiedC

Subsidiaries consider regional environment for policy / Strategy formulation is known as

Correct AnswerverifiedShow Answer

No new investment in the host country is created in the case of

Correct AnswerverifiedShow Answer

The role of women is restricted in

Correct AnswerverifiedShow Answer

Countries/ regions with huge market size will attract

Correct AnswerverifiedShow Answer

Conglomerate FDI refers to

Correct AnswerverifiedShow Answer

The following factor does not differentiate international business from domestic business

Correct AnswerverifiedShow Answer

Which of these is/are the characteristic of a licensing agreement

Correct AnswerverifiedShow Answer

Geographical indications specify

Correct AnswerverifiedShow Answer

Religion of a person affects his/her

Correct AnswerverifiedShow Answer

Uneven distribution of natural resources

Correct AnswerverifiedShow Answer

Ultimately ……………… was replaced by the …………….on 1st Jan 1995

Correct AnswerverifiedShow Answer

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C

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