Business Environment
271. Free international trade maximizes world output through
- Countries specializing in production of goods they are best suited for
- Reduction in taxes
- Increased factor income
- Encouraging competition
Correct answer: (A)
Countries specializing in production of goods they are best suited for
272. No new investment in the host country is created in the case of
- Greenfield FDI
- Acquisition
- Horizontal FDI
- Vertical FDI
Correct answer: (B)
Acquisition
273. Non- verbal communication
- includes written communication
- has no place in international business
- includes body language
- should be learnt by business managers to communicate with foreigners
Correct answer: (C)
includes body language
274. Lower power distance countries are characterized by
- relationships based on equality and informality
- authority being accepted without question
- managers being paternalistic
- tall organizations structure
Correct answer: (A)
relationships based on equality and informality
275. The income level of residents in a country is indicated by
- gross national income
- gross domestic product
- per capita gross national income
- per capita gross domestic product
Correct answer: (C)
per capita gross national income
276. Which of the following statements in relation to the Five Forces framework is correct?
- The framework assists in developing a broad perspective on the environment within which an organisation is operating
- It is not appropriate in public sector management
- The framework is a means of identifying the forces which affect the level of competition in an industry or sector
- The framework identifies the major stakeholders of an organisation
Correct answer: (C)
The framework is a means of identifying the forces which affect the level of competition in an industry or sector
277. Market segmentation aims to
- Identify the similarities and differences between groups of customers or users
- Identify the similarities between groups of customers or users
- Identify the differences between organisations and their competitors
- Identify the needs and wants of all customers or users
Correct answer: (A)
Identify the similarities and differences between groups of customers or users
278. The following represent major reactive motives for initiating export
- ended sales of seasonal products
- competitive pressures
- overproduction/excess capacity and unsolicited foreign orders
- all of the above
Correct answer: (D)
all of the above
279. Among the factors that affect the balance of trade figures are
- exchange rates, taxes, tariffs and trade measures
- the business cycle at home or abroad
- trade barriers and agreements
- non tariff barriers
Correct answer: (A)
exchange rates, taxes, tariffs and trade measures
280. The legal system in India is based on
- Common law
- Civil law
- Theocratic law
- Hindu law
Correct answer: (D)
Hindu law