Question 1

Identify a factor that doesn't play an important role in attracting FDI

Accepted Answer

A)  Language
B)  Laws, rules and regulations
C)  Cost of resources
D)  Infrastructure related factors A

Question 2

________theory states that, lack of resources often helps countries to become competitive

Accepted Answer

A)  Competitive theory
B)  Porters Diamond Model
C)  Theory of Mercantilism
D)  Product life cycle theory D

Question 3

CISF pricing includes the following

Accepted Answer

A)  Commission is paid to the agent involved in the transaction
B)  Cost of the goods exported
C)  Freight & Insurance charges for the goods exported
D)  All of the above D

Question 4

The basic objective of export Promotion Council is to promote and develop the Exports of the

Accepted Answer

A)  Particular products of country
B)  Only attractive projects of the country
C)  Only services industry products of the country
D)  Overall exports of the country.

Question 5

The Theory of Relative Factor Endowments is given by

Accepted Answer

A)  Ohilin-Hecksher
B)  FY Taylor
C)  Richardo
D)  Porter

Question 6

Credits transferable by original beneficiary in favor of secondary beneficiary are known as

Accepted Answer

A)  Deferred credits
B)  Transit credits
C)  Instalment credits
D)  Transferable credits

Question 7

…………… is application of knowledge which redefine the boundaries of global business

Accepted Answer

A)  Cultural Values
B)  Society
C)  Technology
D)  Economy

Question 8

India is an

Accepted Answer

A)  Emerging economy
B)  Developed economy
C)  Less developed economy
D)  None of these

Question 9

According to this theory the holdings of a country's treasure primarily in the form of gold constituted its wealth.

Accepted Answer

A)  Gold Theory
B)  Ricardo Theory
C)  Mercantilism
D)  H .O. THEORY

Question 10

When the transaction is of high value, complex In nature and more technical __________ method of the export sales contract is used.

Accepted Answer

A)  Performa invoice
B)  Purchase order
C)  Sales contact
D)  None of the above

Question 11

Trade Related Investment Measures (TRIMS) doesn't apply for

Accepted Answer

A)  Measures that lead to restrictions in quantities.
B)  Discouraging measures that limit a company's imports
C)  Discouraging measures that limit a company's exports.
D)   all of the above

Question 12

General Agreement on Trade in Services will not be applicable to

Accepted Answer

A)  Services supplied from one country to another - cross border supply
B)  Transaction of goods across the border - Export Import
C)  Individuals traveling from own country to supply services in another - presence of natural persons.
D)  Consumers/firms making use of a service in another country - consumption abroad

Question 13

The country that attract the largest FDI inflow is

Accepted Answer

A)  USA
B)  INDIA
C)  CHINA
D)  BRAZIL

Question 14

Which of these is a characteristic of multinational corporations>

Accepted Answer

A)  At least one -third directors are foreign nationals
B)  The company does 40% of its business in foreign markets
C)  The overseas markets are larger than the domestic market
D)  The affiliates are responsive tio a number of important environmental forces

Question 15

Which one of the following is a method for an exporter to get a contract

Accepted Answer

A)  Proforma invoice
B)  Purchase order
C)  Sales contract
D)  All the above

Question 16

When the exporter, expects the importer, to make the payment immediately upon the draft being presented to him is called.

Accepted Answer

A)  Sight Draft.
B)  Usance Draft
C)  Demand draft
D)  Pay Note

Question 17

Capitalistic, communistic and mixed are the types of

Accepted Answer

A)  Economic system
B)  Political system
C)  Social System
D)  Cultural Attitudes

Question 18

The first phase of globalization started around 1870 and ended with …

Accepted Answer

A)  The World War I
B)  The World War II
C)  The Establishment of GATT
D)  In 1913 when GDP was high

Question 19

The theory of Comparative cost advantage is given by

Accepted Answer

A)  Porter
B)  Adam Smith
C)  Varnoon
D)  Richardo

Question 20

Power distance Index (PDI) of 77 compared to a world average of 56.5 for India indicates

Accepted Answer

A)  High level of inequality of power and wealth within the society
B)  Normal Power and Wealth
C)  High level of political corruption
D)  Low level of Human Development Index

Exam 6: Export Sales Contracts and Global Business Theories