Business Environment

301. A country in the stage of traditional society is characterized by

  1. existence of traditional rule
  2. non existence of industries
  3. predominance of agriculture
  4. complete absence of literacy
Correct answer: (C)
predominance of agriculture

302. The five forces that affect the level of competition in an industry are

  1. Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry
  2. Threat of buyers; power of entry; power of substitutes; threat of suppliers; threat of recession
  3. Threat of recession; power of buyers; power of suppliers; threat of management failure; competitive rivalry
  4. 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

  1. Statute law
  2. Code law
  3. Civil law
  4. Common law
Correct answer: (D)
Common law

304. Approximately what per cent of the world income is found outside the United States of America?

  1. 30 per cent
  2. 40 per cent
  3. 75 per cent
  4. 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?

  1. from economic area to customs union to common market to free trade area
  2. from customs union to economic union to free trade area to common market
  3. from free trade area to customs union to common market to economic union
  4. 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

  1. Conciliation
  2. Arbitration
  3. Negotiations
  4. Conciliation and arbitration
Correct answer: (D)
Conciliation and arbitration

307. Import tariff benefits

  1. the consumers
  2. domestic producers
  3. overseas suppliers
  4. the overseas producers
Correct answer: (B)
domestic producers

308. Outsourcing of components is an example of globalisation of

  1. Production
  2. Marketing
  3. Purchase
  4. Production and marketing
Correct answer: (A)
Production

309. Which of the following is not true about high- context cultures?

  1. lawyers are less important
  2. Negotiations are lengthy
  3. People make a big deal out of private space
  4. Competitive bidding is less important
Correct answer: (C)
People make a big deal out of private space

310. Strong exchange rates can

  1. help predict change in lifestyle across Europe
  2. predict the evolution of sales for particular brands
  3. help estimate consumer purchasing power
  4. drive imports to become cheaper
Correct answer: (D)
help estimate consumer purchasing power
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