Business Environment
351. The economic growth rate of a nation is not affected by.
- business cycle
- sporadic events
- government policies
- none of the above
Correct answer: (D)
none of the above
352. The following factor does not differentiate international business from domestic business
- different currencies
- product quality
- product mobility
- trade policies.
Correct answer: (B)
product quality
353. The disadvantages of Greenfield FDI as compared to acquisition is
- Profit will be less
- Size of investment will be high
- Lesser control in management
- Delay in establishment
Correct answer: (D)
Delay in establishment
354. According to economic growth model of Rostow, passage of a country through the stages is
- in the order specified
- in any order
- in the order specified, but certain stages may be skipped
- automatic
Correct answer: (A)
in the order specified
355. All societal factors that affect values, actions and beliefs of different groups of people are together called
- Expatriation
- Repatriation
- Culture
- Economy
Correct answer: (C)
Culture
356. The threat of substitutes may be high if
- Switching costs are of concern to the customer
- The substitute product provides a higher perceived value or benefit
- The substitute product does not provide enhanced functionality, reduced cost and better quality
- Customers have strong existing brand loyalty
Correct answer: (B)
The substitute product provides a higher perceived value or benefit
357. According to the World Bank classification which of the following is not a high income economy?
- Qatar
- Romania
- Austria
- Canada
Correct answer: (B)
Romania
358. The European Union is an example of
- monetary union
- free trade area
- common market
- economic union
Correct answer: (D)
economic union
359. The operating risk in the host country does not include the risk of
- Change in government policies
- Exchange control
- Price controls
- Sanctions
Correct answer: (D)
Sanctions
360. Ownership of intellectual property is recognized in law by granting
- Licenses
- Patents
- Copyrights
- Patent, copyright or trademark as appropriate
Correct answer: (D)
Patent, copyright or trademark as appropriate