Business Environment

351. The economic growth rate of a nation is not affected by.

  1. business cycle
  2. sporadic events
  3. government policies
  4. none of the above
Correct answer: (D)
none of the above

352. The following factor does not differentiate international business from domestic business

  1. different currencies
  2. product quality
  3. product mobility
  4. trade policies.
Correct answer: (B)
product quality

353. The disadvantages of Greenfield FDI as compared to acquisition is

  1. Profit will be less
  2. Size of investment will be high
  3. Lesser control in management
  4. 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

  1. in the order specified
  2. in any order
  3. in the order specified, but certain stages may be skipped
  4. 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

  1. Expatriation
  2. Repatriation
  3. Culture
  4. Economy
Correct answer: (C)
Culture

356. The threat of substitutes may be high if

  1. Switching costs are of concern to the customer
  2. The substitute product provides a higher perceived value or benefit
  3. The substitute product does not provide enhanced functionality, reduced cost and better quality
  4. 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?

  1. Qatar
  2. Romania
  3. Austria
  4. Canada
Correct answer: (B)
Romania

358. The European Union is an example of

  1. monetary union
  2. free trade area
  3. common market
  4. economic union
Correct answer: (D)
economic union

359. The operating risk in the host country does not include the risk of

  1. Change in government policies
  2. Exchange control
  3. Price controls
  4. Sanctions
Correct answer: (D)
Sanctions

360. Ownership of intellectual property is recognized in law by granting

  1. Licenses
  2. Patents
  3. Copyrights
  4. Patent, copyright or trademark as appropriate
Correct answer: (D)
Patent, copyright or trademark as appropriate
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