McqMate
Chapters
| 101. |
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» C. world trade organisation | |
| 102. |
Theory of Mercantilism propagates |
| A. | encourage exports and imports |
| B. | encourage exports and discourage imports |
| C. | discourage exports and imports |
| D. | discourage exports and encourage imports |
| Answer» B. encourage exports and discourage imports | |
| 103. |
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» A. countries specializing in production of goods they are best suited for. | |
| 104. |
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» D. consumption is minimized. | |
| 105. |
By having business in different countries, a firm reduces |
| A. | credit risk. |
| B. | political risk. |
| C. | financial risk. |
| D. | business risk. |
| Answer» B. political risk. | |
| 106. |
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 |
| Answer» A. can earn a return on knowledge asset | |
| 107. |
The country that attracts the largest FDI inflow is |
| A. | india |
| B. | china |
| C. | usa |
| D. | brazil |
| Answer» B. china | |
| 108. |
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 |
| Answer» D. all the above | |
| 109. |
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. |
| Answer» B. Measures that lead to restrictions on quantities. | |
| 110. |
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. |
| Answer» B. Transaction of goods across the border – Export Import | |
| 111. |
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. |
| Answer» B. Indirect assistance and support to farmers including R & D support by govt. are not permitted. | |
| 112. |
Quantitative restrictions refer to limit set by countries to curb |
| A. | Imports |
| B. | Exports |
| C. | Imports & exports |
| D. | None of the above |
| Answer» C. Imports & exports | |
| 113. |
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 |
| Answer» D. Uniform civil code | |
| 114. |
The world trade organization was formed in the year _________ with GATT as it basis. |
| A. | 1993 |
| B. | 1994 |
| C. | 1995 |
| D. | 1996 |
| Answer» C. 1995 | |
| 115. |
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 |
| Answer» A. High level of inequality of power and wealth within the society | |
| 116. |
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 |
| Answer» D. Geography | |
| 117. |
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 |
| Answer» B. Shared code of ethics and other commonalities shared by members of a given group | |
| 118. |
An attribute that doesn’t contribute to Porters Diamond model is |
| A. | Government |
| B. | Organized Trade union |
| C. | Factor Conditions |
| D. | Demand Conditions |
| Answer» B. Organized Trade union | |
| 119. |
_______ 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 |
| Answer» D. Product life cycle theory | |
| 120. |
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 |
| Answer» D. Language | |
| 121. |
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% |
| Answer» A. FDI up to 100% subject to condition that they invest 26 % in favour of Indian Public within 5 yrs | |
| 122. |
General electric follows ___________ as its international operational strategy |
| A. | Global |
| B. | International |
| C. | Multi-domestic |
| D. | Transnational |
| Answer» B. International | |
| 123. |
Factor of Interdependence in Multi-domestic strategy is |
| A. | Low |
| B. | Moderate |
| C. | High |
| D. | Very High |
| Answer» A. Low | |
| 124. |
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 |
| Answer» C. Global integration v/s Local Responsiveness | |
| 125. |
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 |
| Answer» C. Strategic International Alliance | |
| 126. |
CISF pricing includes the following |
| A. | Commission is paid to the agent involved in the transaction |
| B. | Cost of the goods exported |
| C. | Freight & Insurance charges for the goods exported |
| D. | All of the above |
| Answer» D. All of the above | |
| 127. |
When the transaction is of high value, complex In nature and more technical __________ method of the export sales contract is used. |
| A. | Performa invoice |
| B. | Purchase order |
| C. | Sales contact |
| D. | None of the above |
| Answer» C. Sales contact | |
| 128. |
Which one of the following is a method for an exporter to get a contract |
| A. | Proforma invoice |
| B. | Purchase order |
| C. | Sales contract |
| D. | All the above |
| Answer» D. All the above | |
| 129. |
Credits transferable by original beneficiary in favor of secondary beneficiary are known as |
| A. | Deferred credits |
| B. | Transit credits |
| C. | Instalment credits |
| D. | Transferable credits |
| Answer» A. Deferred credits | |
| 130. |
When the exporter, expects the importer, to make the payment immediately upon the draft being presented to him is called. |
| A. | Sight Draft. |
| B. | Usance Draft |
| C. | Demand draft |
| D. | Pay Note |
| Answer» A. Sight Draft. | |
| 131. |
The basic objective of export Promotion Council is to promote and develop the Exports of the |
| A. | Particular products of country |
| B. | Only attractive projects of the country |
| C. | Only services industry products of the country |
| D. | Overall exports of the country. |
| Answer» D. Overall exports of the country. | |
| 132. |
The theory of Comparative cost advantage is given by |
| A. | Porter |
| B. | Adam Smith |
| C. | Varnoon |
| D. | Richardo |
| Answer» D. Richardo | |
| 133. |
Trade Related Investment Measures (TRIMS) doesn’t apply for |
| A. | Measures that lead to restrictions in quantities. |
| B. | Discouraging measures that limit a company’s imports |
| C. | Discouraging measures that limit a company’s exports. |
| D. | ALL OF THE ABOVE |
| Answer» A. Measures that lead to restrictions in quantities. | |
| 134. |
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. |
| Answer» B. Indirect assistance and support to farmers including R & D support by govt. are not permitted | |
| 135. |
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. | Normal Power and Wealth |
| C. | High level of political corruption |
| D. | Low level of Human Development Index |
| Answer» A. High level of inequality of power and wealth within the society | |
| 136. |
Identify a factor that doesn’t play an important role in attracting FDI |
| A. | Language |
| B. | Laws, rules and regulations |
| C. | Cost of resources |
| D. | Infrastructure related factors |
| Answer» A. Language | |
| 137. |
The first phase of globalization started around 1870 and ended with … |
| A. | The World War I |
| B. | The World War II |
| C. | The Establishment of GATT |
| D. | In 1913 when GDP was high |
| Answer» A. The World War I | |
| 138. |
Which of these is a characteristic of multinational corporations> |
| A. | At least one -third directors are foreign nationals |
| B. | The company does 40% of its business in foreign markets |
| C. | The overseas markets are larger than the domestic market |
| D. | The affiliates are responsive tio a number of important environmental forces |
| Answer» C. The overseas markets are larger than the domestic market | |
| 139. |
According to this theory the holdings of a country’s treasure primarily in the form of gold constituted its wealth. |
| A. | Gold Theory |
| B. | Ricardo Theory |
| C. | Mercantilism |
| D. | H .O. THEORY |
| Answer» C. Mercantilism | |
| 140. |
The Theory of Absolute Cost Advantage is given by |
| A. | Adam smith |
| B. | D. Richardo |
| C. | Raymond Varnoon |
| D. | Porter |
| Answer» A. Adam smith | |
| 141. |
The Theory of Relative Factor Endowments is given by |
| A. | Ohilin-Hecksher |
| B. | FY Taylor |
| C. | Richardo |
| D. | Porter |
| Answer» A. Ohilin-Hecksher | |
| 142. |
…………… is application of knowledge which redefine the boundaries of global business |
| A. | Cultural Values |
| B. | Society |
| C. | Technology |
| D. | Economy |
| Answer» C. Technology | |
| 143. |
Capitalistic, communistic and mixed are the types of |
| A. | Economic system |
| B. | Political system |
| C. | Social System |
| D. | Cultural Attitudes |
| Answer» A. Economic system | |
| 144. |
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 |
| Answer» B. Transaction of goods across the border – Export Import | |
| 145. |
Quantitative restrictions refer to limit set by countries to curb |
| A. | Imports |
| B. | Exports |
| C. | Imports and Exports |
| D. | All of the above |
| Answer» C. Imports and Exports | |
| 146. |
India is an |
| A. | Emerging economy |
| B. | Developed economy |
| C. | Less developed economy |
| D. | None of these |
| Answer» A. Emerging economy | |
| 147. |
The world trade organization was formed in the year _________ with GATT as it basis. |
| A. | 1992 |
| B. | 1993 |
| C. | 1995 |
| D. | 1994 |
| Answer» C. 1995 | |
| 148. |
________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 |
| Answer» D. Product life cycle theory | |
| 149. |
Theory of Mercantilism propagates |
| A. | Encourage imports and exports |
| B. | Encourage exports and discourage imports |
| C. | Discourage imports |
| D. | None of these |
| Answer» B. Encourage exports and discourage imports | |
| 150. |
The country that attract the largest FDI inflow is |
| A. | USA |
| B. | INDIA |
| C. | CHINA |
| D. | BRAZIL |
| Answer» C. CHINA | |
| 151. |
General electric follows ___________ as its international operational strategy |
| A. | GLOBAL |
| B. | TRANSNATIONAL |
| C. | INTERNATIONAL |
| D. | MULTI-DOMESTIC |
| Answer» B. TRANSNATIONAL | |
| 152. |
Typically the last step in the internationalization process is: |
| A. | Licensing |
| B. | Exporting |
| C. | Wholly owned subsidiaries |
| D. | Foreign Direct Investment |
| Answer» D. Foreign Direct Investment | |
| 153. |
Which of these is/are the characteristic of a licensing agreement |
| 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 above |
| Answer» D. All of the above | |
| 154. |
IBRD (International Bank for Reconstruction and Development) also known as |
| A. | EXIM Bank |
| B. | World Bank |
| C. | IMF |
| D. | International Financial Bank |
| Answer» B. World Bank | |
| 155. |
Ultimately ……………… was replaced by the …………….on 1st Jan 1995 |
| A. | GATT/WTO |
| B. | GATS/IMF |
| C. | WTO/WORLD BANK |
| D. | WORLD BANK/WIPO |
| Answer» A. GATT/WTO | |
| 156. |
Which is the right sequence of a stages of Internationalization |
| A. | Domestic, Transnational, Global, International, Multinational |
| B. | Domestic, International, Multinational, Global, Transnational |
| C. | Domestic, Multinational, International, Transnational, Global |
| D. | Domestic, International, Transnational, Multinational, Global |
| Answer» B. Domestic, International, Multinational, Global, Transnational | |
| 157. |
Subsidiaries consider regional environment for policy / Strategy formulation is known as |
| A. | Polycentric Approach |
| B. | Regiocentric Approach |
| C. | Ethnocentric Approach |
| D. | Geocentric Approach |
| Answer» B. Regiocentric Approach | |
| 158. |
By entering into international business, a firm expects improvement in |
| A. | Marketing. |
| B. | All spheres of marketing, operation and finance simultaneously. |
| C. | Any or all spheres of marketing, operation and finance. |
| D. | Finance only. |
| Answer» C. Any or all spheres of marketing, operation and finance. | |
| 159. |
Uneven distribution of natural resources |
| 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. |
| Answer» C. is among the major factors for international business. | |
| 160. |
The following factor does not differentiate international business from domestic business |
| A. | different currencies |
| B. | product quality |
| C. | product mobility |
| D. | trade policies |
| Answer» B. product quality | |
| 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 decision making 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 the stages 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 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. |
| 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. | |
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