ABBSOFT COMPUTERS

International Business Environment

1-MARK

  1. ______has grown to be one of the most important features of the world’s economy.
  2. International Business
  3. Globalization
  4. Liberalization
  5. All of the above

Ans: A

  1. Many US information technology companies are turning to International locations to remain-
  2. Leader
  3. Competitor
  4. Stable
  5. Master

Ans: B

  1. Salaries and fringe costs for well trained software engineers in Northern Ireland approximately ______lower than costs for US engineers.
  2. 50%
  3. 80%
  4. 47%
  5. 69%

Ans: A

  1. ______is a process that is beneficial – a key to future world economic development- and also inevitable and irreversible.
  2. Privatization
  3. Globalization
  4. Liberalization
  5. Economist

Ans: B

  1. Economic globalization is a historical process, the result of ______.
  2. Human innovation
  3. Technological Progress
  4. Both a and b
  5. Knowledge

Ans: C

  1. True/False:

‘Globalization means that world trade and financial markets are becoming more integrated.’

  1. True
  2. False
  3. Incomplete
  4. Can’t say

Ans: A

  1. ______is at least as important for long-term development as financial transfers.
  2. Economic stability
  3. Institution building
  4. Structural reform
  5. All of the above

Ans: D

  1. Supporters of democratic globalization are sometimes called
  2. Globalists
  3. Pro-globalists
  4. Libertarians
  5. None of the above

Ans: B

  1. ______has made great advances in areas such as Bangladesh through economically liberating and empowering women with jobs.
  2. Democratic
  3. Feminism
  4. Globalization
  5. Liberalization

Ans: B

  1. In 2002, ______was the third largest exporter of cultural goods, after UK and the US.
  2. China
  3. India
  4. Kuwait
  5. Korea

Ans: A

  1. ______Companies are registered in one country, doing business in others.
  1. Transnational
  2. Multinational
  3. Off-shore
  4. International

Ans: C

  1. The difference between interest rates in Russia and Switzerland stands for about ______per annum.
  1. 10%
  2. 5%
  3. 28%
  4. 40%

Ans: B

  1. Globalization refers to a growing economic interdependence among countries, as reflected in the increased cross-border flow of :
  2. goods & services
  3. capital
  4. know-how
  5. World economy
  6. All of the above

Ans: E

  1. It refers to the assumptions, values, and practices or people in the West and some elites in Non-Western cultures.
  2. Universal Culture
  3. Global culture
  4. Organizational culture
  5. All of the above

Ans: A

  1. ______means high adaptation of managerial practices to a given culture, and, therefore, high effectiveness.
  2. Fitness for use
  3. High fit
  4. Fit and Fine
  5. Substitution

Ans: B

  1. Erez and Gati proposed that the general model of multi-level analysis could be adopted for understanding the dynamics of ______.
  2. Culture
  3. Cultural Change
  4. Multi-Level analysis
  5. Both a and b

Ans: D

  1. State whether it is true or not:

“Around the World, wherever you are, get what you want-fast from our family of Web sites.”

  1. False
  2. True
  3. Incomplete
  4. Cannot say

Ans: B

  1. ______has become a world leading marketer of toys.
  1. California
  2. UAE
  3. Japan
  4. China

Ans: A

  1. The main benefits for industrial countries would come from the liberalization of their ______market.
  2. Mine
  3. Agriculture
  4. Domestic
  5. National

And: B

  1. The non-tariff barriers is:
  2. Product standards
  3. Proliferation
  4. Both a and b
  5. Product adaptation

Ans: C

  1. The ______step in determining your license requirements is to classify your product using the Commerce Control List (CCL).
  1. First
  2. Second
  3. Third
  4. Last

Ans: A

  1. Life Cycle Theory has been used since the ______to describe the behavior of a product or service from design to obsolescence.
  2. 1986
  3. 1970
  4. 1982
  5. 1975

Ans: B

  1. Here the firm may continue to market the product hoping that competitors will discontinue their products.
  2. Maturity stage
  3. Growing Stage
  4. Decline Stage
  5. Saturation Stage

Ans: C

  1. ______specify the type of system, equipment, tooling, layout, and flow used in manufacturing or service operations.
  1. Process engineering
  2. Design engineering
  3. Life cycle engineering
  4. All of the above

Ans: A

  1. ______claims that knowledge is being applied faster, resulting in increasing levels of new product introductions.
  2. Slater (1993)
  3. Bayus (1994)
  4. Vesey (1992)
  5. None of the above

Ans: B

  1. The five-element product wave, or FPW, uses trigger points, rather than ______, as the horizon over which the element curves vary.
  2. Cost
  3. Price
  4. Time
  5. All of the above

Ans: C

  1. A financial services deal covering more than 95% of trade in banking and ______.
  2. Insurance
  3. Securities
  4. Financial Information
  5. All of the above

Ans: D

  1. The seeds of the Uruguay Round were sown in ______, at the Ministerial Meeting of GATT members in Geneva.
  2. November 1982
  3. January 1970
  4. March 2005
  5. July 1985

Ans: A

  1. Numerous specialized ______reports to the General Council.
  2. Committees
  3. Working groups
  4. Working parties
  5. All of the above

Ans: D

  1. Day-to-day work in between the ministerial conferences is handled by:
  1. The General Council
  2. The Dispute Settlement Body
  3. The Trade Policy Review Body
  4. All of the above

Ans: D

  1. TRIPS Council is for:
  2. Goods Council
  3. The council for trade related aspects of Intellectual Property Rights
  4. Services Council
  5. Both a and c

Ans: B

  1. ______Subsidiary bodies deal with financial services, domestic regulations, GATS rules and specific commitments.
  1. Goods Council
  2. The council for trade related aspects of Intellectual Property Rights
  3. Services Council
  4. Both a and c

Ans: A

  1. An Industry composed of a limited number of large firms.
  2. OECD
  3. Oligopoly
  4. MNE
  5. MAI

Ans: B

  1. MITI is the ______Ministry of International Trade and Industry.
  1. Japan
  2. China
  3. India
  4. American

Ans: A

  1. Maastricht Treaty ratified in
  2. January 1991
  3. January 1994
  4. January 1995
  5. January 1992

Ans: B

  1. Products adapted to the perceived unique characteristics of national market.
  2. Local Products
  3. International Products
  4. Multinational Products
  5. Global products

Ans: C

  1. ______in Seller’s country, forwards letter of credit to Seller informing about the terms and conditions of credit.
  2. Advising Bank
  3. Service Bank
  4. Advisory Commission
  5. None of the above

Ans: A

  1. The term ______is also used in the RO/RO (roll on/roll off) services.
  2. FOB
  3. FCA
  4. FAS
  5. EXW

Ans: B

  1. A commonly used measure of inequality is the ______coefficient for income, which takes on values between zero and one, a value of zero would indicate perfect equality of incomes.
  2. Transition
  3. Transmission
  4. Gini
  5. Labor earning coefficient

Ans: C

  1. UNCITRAL texts are initiated, drafted, and adopted by the ______on International Trade Law.
  2. United States Commission
  3. United Nations Commission
  4. G-20 Group
  5. None of the above

Ans: B

2-MARK

  1. The IMR Company also operates two separate software development plants in ______and ______, India.
  2. Bangalore, Delhi
  3. Delhi, Mumbai
  4. Bangalore, Mumbai
  5. All of the above

Ans: C

  1. Globalization refers to the movement of (people), ______and (knowledge) ______, across International borders.
  1. Labor, Technology
  2. Human innovation, Technological progress
  3. Easier, quicker
  4. Financial, Competition

Ans: A

  1. Growth in living standards springs from the accumulation of physical (capital) ______and (human capital) ______, and through advances in technology.
  1. Productivity, labor
  2. Investment, labor
  3. Investment, Productivity
  4. All of the above

Ans: B

  1. Government Policy should focus on the ______important areas:
  2. Educational and vocational training, to make sure that workers have the opportunity to acquire the right skills in dynamic changing economies.
  3. Well-targeted social safety nets to assist people who are displaced.
  4. Both a and b
  5. Capital, Investment

Ans: C

  1. Globalization as the beneficial spread of ______and ______.
  2. Liberty, Capitalism
  3. Society, Economy
  4. Both a and b
  5. Capitalism, economy

Ans: A

  1. The ______are likely to work for a single Company for a lifetime, moreover, to work overtime and favor their chief with great respect but the ______employees change jobs quite more often.
  2. Japanese, US
  3. Japanese, Britain
  4. Both a and b
  5. None of the above

Ans: C

  1. ______and ______are increasing in organizations today because of changing demographics, the desire by organizations to improve their workforce, legal pressures & increased globalization.
  2. Diversity, Multiculturalism
  3. Variety, Diversity
  4. Variation, Diversification
  5. All of the above

Ans: A

  1. The ______ideology suggests that each cultural group loses some of its dominant characteristics in order to become the mainstream.
  2. Multiculturalism
  3. Melting Pot
  4. Universal culture
  5. Magna Mac

Ans: B

  1. The assumption of cultural stability is valid as long as there are no ______changes that precipitate adaptation and ______.
  2. Environmental changes, Cultural Changes
  3. Management, Organizational changes
  4. Organizational changes, Cultural changes
  5. None of the above

Ans: A

  1. ______Approach, viewing culture as a multi-level construct that consists of various levels nested within each other from the most ______of a global culture, through national cultures, group cultures.

a. Micro-level, micro-layer

b. Multi-level, macro-level

c. Multi-level, multi-layer

d. Both a and c

Ans: B

  1. Both ______and ______processes reflect the dynamic nature of culture.
  2. Top-down, Bottom-up
  3. Upward, Downward
  4. Vertical, horizontal
  5. None of the above

Ans: A

  1. A recent study by Erez and Gati (2004) examined the effects of various factors on the change process and its outcomes:
  2. The cultural value of individualism- collectivism
  3. The reward structure and its congruence with the underlying cultural values
  4. The degree of ambiguity in the reward structure
  5. All of the above

Ans: D

  1. Policies that make an economy open to ______and ______with the rest of the world are needed for sustained economic growth.
  2. Trade, Investment
  3. Trade, labor
  4. Capital, Investment
  5. Capital, labor

Ans: A

  1. The failure to start a new round of multilateral trade negotiations at WTO conference in ______in ______was a setback for the international trading system.
  2. US, 1997
  3. Seattle, 1999
  4. China, 2005
  5. Africa, 1998

Ans: B

  1. The ______and ______have allowed globalization outsourcers to develop new models for process-rich, cost effective repeatable globalization methodology.
  2. Internet, technology
  3. Internet, intranet
  4. Internet, Global communications
  5. Internet, Electronic media

Ans: C

  1. Intellectual property Rights refer to the legal system that protects:
  1. Patents
  2. Trademarks
  3. Copyrights
  4. Trade secrets
  1. 1, 3, 4
  2. 1, 2, 3
  3. 2, 3, 4
  4. 1, 2, 3, 4

Ans: D

  1. The duration of each stage of the cycle varies with the _____ and the type of ______supporting it.
  2. Product, management
  3. Product, Customer
  4. Product, market
  5. Product, location

Ans: A

  1. ______, in which the good or service is taken from concept and detail design to prototyping. Whereas in ______, technologies and production methods are evaluated as a system is set into motion.
  2. Product engineering, Design engineering
  3. Design engineering, Process engineering
  4. Product engineering, Process engineering
  5. All of the above

Ans: B

  1. Hecksher-Ohlin Model draws a sharp distinction between ______and ______factor mobility.
  2. Internal, external
  3. Domestic, external
  4. Organizational, external
  5. Initial, final

Ans: B

  1. CRS (Constant Returns to Scale):
  2. y = F(L, K) then y’ = F ( 2L, 2K) = 2y
  3. y = F (K, L) then y’ = F ( 2K, 2L)=y
  4. y’ = F (L, M) then y = F ( 2L, 2M)
  5. None of the above

Ans: A

4-MARKS

  1. Identify the four aspects of Globalization:
  1. Trade
  2. Product
  3. Capital movement
  4. EXIM Policies
  5. Movement of people
  6. Spread of knowledge (and technology).
  7. 1, 3, 4, 6
  8. 1, 3, 5, 6
  9. 2, 3, 4, 5, 6
  10. All of the above

Ans: B

  1. The whole package of policies, financial & technical assistance, and debt relief includes:
  1. Macroeconomic stability to create the right conditions for investment and saving
  2. Outward oriented policies to promote efficiency through increased trade & investment.
  3. Structural reform to encourage domestic competition
  4. External debt management to ensure adequate resources for sustainable development.
  5. Strong institutions and an effective government to foster good governance.
  1. 1, 3, 4, 5
  2. 1, 2, 3, 5
  3. 1, 2, 4, 5
  4. All of the above

Ans: D

  1. In line the view of culture:
  1. Changes very slowly
  2. It has been treated as a relatively stable characteristic
  3. Reflecting a shared knowledge structure that attenuates
  4. Behavioral norms
  5. Patterns of behavior
  6. 1, 2, 3, 4, 5
  7. 2, 3, 4, 5
  8. 1, 3, 4, 5
  9. 1, 2, 4, 5

Ans: A

  1. Write them in correct sequence:
  1. Global culture
  2. Group culture
  3. Individual culture
  4. National culture
  5. Organizational culture
  6. 1, 2, 3, 4, 5
  7. 3, 2, 5, 4, 1
  8. 3, 2, 4, 5, 1
  9. 1, 2, 4, 3, 5

Ans: B

  1. Match the following:

Common Expert MistakesSolutions

1. Failure to obtain qualified exporti. Avoid accidental exporting

Counseling and to develop a master

International marketing plan

  1. Insufficient commitment by top ii. Understand Agent/Distributor management to exporting Contracts
  2. Failure to have a solid agent/distributor’s iii. Determine Export Readiness

Agreement

  1. Blindly chasing “E-orders” from aroundiv. Obtain export counseling

The world.

  1. 1-iv, 2-iii, 3-ii, 4-I
  2. 1-I, 2-ii, 3-iii, 4-iv
  3. 1-iv, 2-ii, 3-I, 4-iii
  4. All of the above

Ans: A

  1. Match the following:

Common Expert MistakesSolutions

  1. Failure to understand intellectuali. Understand IPR

Property rights

  1. Insufficient attention to marketing &ii. Pay attention to Overseas Advertising requirements Marketing and Advertising
  2. Lack of attention to product preparation iii. Pay attention to Product

NeedsPreparation requirement

4. Failure to know the rules of tradeiv. Understand Export

Regulations

  1. 1-iv, 2-iii, 3-ii, 4-I
  2. 1-I, 2-ii, 3-iii, 4-iv
  3. 1-ii, 2-iii, 3-iv, 4-I
  4. None of the above

Ans: B

  1. CDIC provides the name and contact information for directories of:
  1. Importers
  2. Agents
  3. Trade associations
  4. Government agencies
  5. 1, 2, 3
  6. 1, 3, 4
  7. 1, 2, 3, 4
  8. 2, 3, 4

Ans: C

  1. Identify the advantages of International Trade:
  1. Increase sales & profits
  2. Wait long for payments
  3. Exploit international trade technology
  4. Sell excess production capacity
  5. Reduce dependence on existing market
  6. Incur added administrative costs
  1. 1, 3, 4, 5
  2. 1, 2, 4, 6
  3. 2, 3, 5, 6
  4. All of the above

Ans: A

  1. Identify the disadvantages of International trade:
  1. Hire staff to launch international trading
  2. sell excess production capacity
  3. Dedicate personnel for traveling
  4. Apply for additional financing
  5. Enhance your domestic competitiveness
  6. 1, 2, 3, 4
  7. 1, 3, 4, 5
  8. 2, 3, 4, 5
  9. 1, 2, 3, 4, 5

Ans: B

  1. Match the following:

1. Export counselingi. List your sources of counseling including your export legal counsel

2. Export Readinessii. Describe the economic reasons & justifications for your plan.

3. Evaluation of Country Riskiii. Explain the resources to be used in the country risk

4. Evaluate potential problemsiv. Its regarding product adaptation to standards & measuring.

  1. 1-I, 2-ii, 3-iii, 4-iv
  2. 1-iv, 2-iii, 3-ii, 4-I
  3. 1-iii, 2-iv, 3-I, 4-ii
  4. 1-iv, 2-I, 3-iii, 4-ii

Ans: A

  1. State whether the given statements are true or not:
  1. The firm may either build market share or profitability in the introduction phase.
  2. Marketing moves away from promotion through personal selling toward more mass media advertising.
  3. Conventional theory suggests that a product or service goes through distinct stages.
  4. Critical decision points trigger the waves during the life of a product.
  5. 1-T, 2-F, 3-T, 4-F
  6. 1-F, 2-T, 3-T, 4-T
  7. 1-F, 2-T, 3-T, 4-F
  8. 1-T, 2-T, 3-F, 4-F

Ans: B

  1. Write them in correct sequence:
  1. Idea validation
  2. Conceptual design
  3. Specification and design
  4. Prototype production and testing
  5. Manufacturing ramp
  6. 1, 2, 3, 4, 5
  7. 1, 2, 4, 5
  8. 2, 3, 4, 5
  9. 1, 3, 4, 5

Ans: A

  1. Identify the major components of the Heckscher- Ohlin Trade Model.
  1. Factor Price Equalization Theorem
  2. Stolper- Samuelson Theorem
  3. Rybczynski Theorem
  4. Heckscher- Ohlin Trade Theorem
  5. 1, 3, 4
  6. 1, 2, 3, 4
  7. 1, 2, 3
  8. 2, 3, 4

Ans: B

  1. The WTO’s overriding objective is to help trade smoothly, freely, fairly and predictably. T does this by:
  1. Administering trade agreements
  2. Acting as a forum for trade negotiations
  3. Settling trade disputes
  4. Reviewing national trade policies
  5. Assisting developing countries in trade policy issues
  6. Cooperating with other international organizations
  1. 1, 2, 4, 5, 6
  2. 2, 3, 4, 5
  3. 1, 2, 3, 4, 5, 6
  4. None of the above

Ans: C

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