Business Environment
301. A country in the stage of traditional society is characterized by
- existence of traditional rule
- non existence of industries
- predominance of agriculture
- complete absence of literacy
Correct answer: (C)
predominance of agriculture
302. The five forces that affect the level of competition in an industry are
- Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry
- Threat of buyers; power of entry; power of substitutes; threat of suppliers; threat of recession
- Threat of recession; power of buyers; power of suppliers; threat of management failure; competitive rivalry
- Threat of entry; power of buyers; power of suppliers; threat of substitutes; government action
Correct answer: (A)
Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry
303. This legal system relies on precedent and conventions
- Statute law
- Code law
- Civil law
- Common law
Correct answer: (D)
Common law
304. Approximately what per cent of the world income is found outside the United States of America?
- 30 per cent
- 40 per cent
- 75 per cent
- 90 per cent
Correct answer: (C)
75 per cent
305. Which of the following options contains the correct order from the lowest to highest level of economic integration?
- from economic area to customs union to common market to free trade area
- from customs union to economic union to free trade area to common market
- from free trade area to customs union to common market to economic union
- from common market to free trade area to economic union to customs union
Correct answer: (D)
from common market to free trade area to economic union to customs union
306. In international business cheaper alternatives to litigation is/ are
- Conciliation
- Arbitration
- Negotiations
- Conciliation and arbitration
Correct answer: (D)
Conciliation and arbitration
307. Import tariff benefits
- the consumers
- domestic producers
- overseas suppliers
- the overseas producers
Correct answer: (B)
domestic producers
308. Outsourcing of components is an example of globalisation of
- Production
- Marketing
- Purchase
- Production and marketing
Correct answer: (A)
Production
309. Which of the following is not true about high- context cultures?
- lawyers are less important
- Negotiations are lengthy
- People make a big deal out of private space
- Competitive bidding is less important
Correct answer: (C)
People make a big deal out of private space
310. Strong exchange rates can
- help predict change in lifestyle across Europe
- predict the evolution of sales for particular brands
- help estimate consumer purchasing power
- drive imports to become cheaper
Correct answer: (D)
help estimate consumer purchasing power