Deck 7: International Business Operations and Strategies

Question 1

General electric follows ___________ as its international operational strategy

A)GLOBAL
B)TRANSNATIONAL
C)INTERNATIONAL
D)MULTI-DOMESTIC

Answer 1

TRANSNATIONAL

Question 2

Typically the last step in the internationalization process is:

A)Licensing
B)Exporting
C)Wholly owned subsidiaries
D)Foreign Direct Investment

Answer 2

Foreign Direct Investment

Question 3

Which of these is/are the characteristic of a licensing agreement

A)The licensor might provide access to some of its patents or trademarks
B)The licensor might provide access to technology
C)It might be used to avoid the risks of foreign involvement
D)All of the above

Answer 3

All of the above

Question 4

Ultimately ……………… was replaced by the …………….on 1st Jan 1995

A)GATT/WTO
B)GATS/IMF
C)WTO/WORLD BANK
D)WORLD BANK/WIPO

Question 5

Subsidiaries consider regional environment for policy / Strategy formulation is known as

A)Polycentric Approach
B)Regiocentric Approach
C)Ethnocentric Approach
D)Geocentric Approach

Question 6

By entering into international business, a firm expects improvement in

A)Marketing.
B)All spheres of marketing, operation and finance simultaneously.
C)Any or all spheres of marketing, operation and finance.
D)Finance only.

Question 7

Uneven distribution of natural resources

A)is the only cause for international business.
B)is the major factor for international business.
C)is among the major factors for international business.
D)is not a cause for international business.

Question 8

The following factor does not differentiate international business from domestic business

A)different currencies
B)product quality
C)product mobility
D)trade policies

Question 9

Geographical indications specify

A)Place of origin of goods.
B)Special characteristics of the product associated with the place of origin.
C)Place and special characters of the product.
D)Place or special characters of the product.

Question 10

Business across several countries with some decentralization of management decision making to subsidiaries is

A)Global business.
B)Multinational business.
C)Transnational business.
D)Multi-regional business.

Question 11

Wholly owned subsidiary can be set up

A)as a Greenfield venture.
B)to acquire an existing firm.
C)to have products marketed overseas.
D)to have management is overseas.

Question 12

The essential feature of FDI is

A)Investment of a very high value.
B)Investment in shares.
C)Investor's influence on the management of the enterprise.
D)Investment of low value.

Question 13

No new investment in the host country is created in the case of

A)Greenfield FDI.
B)Acquisition.
C)Horizontal FDI.
D)Vertical FDI.

Question 14

A firm investing in a foreign country to distribute the products there in creation of

A)Asset seeking FDI.
B)Backward vertical FDI.
C)Forward vertical FDI.
D)Distribution FDI.

Question 15

The disadvantages of Greenfield FDI as compared to acquisition is

A)Profit will be less.
B)Size of investment will be high.
C)Lesser control in management.
D)Delay in establishment.

Question 16

Conglomerate FDI refers to

A)FDI made by a group of firms.
B)FDI made in subsidiaries.
C)FDI made in similar products.
D)FDI made in unrelated products.

Question 17

Countries/ regions with huge market size will attract

A)Market seeking FDI.
B)Efficiency seeking FDI.
C)Vertical FDI.
D)Created assets seeking FDI.

Question 18

Non- verbal communication

A)includes written communication.
B)has no place in international business.
C)includes body language.
D)should be learnt by business managers to communicate with foreigners.

Question 19

Religion of a person affects his/her

A)attitude towards entrepreneurship.
B) gifting practices.
C)use of products.
D)all of the above.

Question 20

The role of women is restricted in

A)Eastern countries.
B)Middle East countries.
C)Traditional Islamic countries.
D)India.