AIMA Online Assignments
International Business (IB06)
NOTE: The answers are boldly marked.
Question 1:- The theory of Comparative cost advantage is
given by
a) Porter
b) Adam Smith
c) Varnoon
d)
D.Richardo
Question 2:- Trade Related Investment Measures (TRIMS)
doesn’t apply for
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 3:- As a part of WTO guidelines, Agreement on
Agriculture (AOA) doesn’t consider
a) Direct payments
to farmers are permitted.
b) Indirect
assistance and support to farmers including R & D support by govt. are not
permitted
c) Domestic policies
which directly effect on production and trade have to be cut back.
d) Least developed
countries do not need to make any cuts.
Question 4:- A Most Favored nation status doesn’t
necessarily refers to
a) Same and Equal
Treatment
b)
Non-discriminatory Treatment
c) Same tariff rates
applicable
d) Uniform civil
code
Question 5:- Power distance Index (PDI) of 77 compared to a
world average of 56.5 for India indicates
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
Question 6:- Identify a factor that doesn’t play an
important role in attracting FDI
a) Language
b) Laws, rules and
regulations
c) Cost of
resources
d) Infrastructure
related factors
Question 7:- Factor of Interdependence in Multi-domestic
strategy is
a) LOW
b) MODERATE
c) HIGH
d) VERY HIGH
Question 8:- The first phase of globalization started around
1870 and ended with …
a) The World War
I
b) The World War
II
c) The Establishment
of GATT
d) In 1913 when GDP
was high
Question 9:- An attribute that doesn’t contribute to Porters
Diamond model is
a) Government
b) Organized
Trade union
c) Factor
Conditions
d) Demand
Conditions
Question 10:- Which of these is a characteristic of
multinational corporations>
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 11:- According to this theory the holdings of a
country’s treasure primarily in the form of gold constituted its wealth.
a) Gold Theory
b) Ricardo
Theory
c)
Mercantilism
d) H .O. THEORY
Question 12:- The Theory of Absolute Cost Advantage is given
by
a) Adam
smith
b) D. Richardo
c) Raymond
Varnoon
d) Porter
Question 13:- The Theory of Relative Factor Endowments is given
by
a)
Ohilin-Hecksher
b) FY Taylor
c) Richardo
d) Porter
Question 14:- …………… is application of knowledge which
redefine the boundaries of global business
a) Cultural
Values
b) Society
c)
Technology
d) Economy
Question 15:- Capitalistic, communistic and mixed are the
types of
a) Economic system
b) Political
system
c) Social
System
d) Cultural
Attitudes
Question 16:- General Agreement on Trade in Services will
not be applicable to
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 17:- Quantitative restrictions refer to limit set
by countries to curb
a) Imports
b) Exports
c) Imports and
Exports
d) All of the
above
Question 18:- India is an
a) Emerging
economy
b) Developed
economy
c) Less developed
economy
d) None of
these
Question 19:- The world trade organization was formed in the
year _________ with GATT as it basis.
a) 1992
b) 1993
c) 1995
d) 1994
Question 20:- ________theory states that, lack of resources
often helps countries to become competitive
a) Competitive
theory
b) Porters Diamond
Model
c) Theory of
Mercantilism
d) Product life
cycle theory
Question 21:- Theory of Mercantilism propagates
a) Encourage imports
and exports
b) Encourage
exports and discourage imports
c) Discourage
imports
d) None of
these
Question 22:- The country that attract the largest FDI
inflow is
a) USA
b) INDIA
c) CHINA
d) BRAZIL
Question 23:- General electric follows ___________ as its
international operational strategy
a) GLOBAL
b) TRANSNATIONAL
c)
INTERNATIONAL
d)
MULTI-DOMESTIC
Question 24:- Typically the last step in the
internationalization process is:
a) Licensing
b) Exporting
c) Wholly owned
subsidiaries
d) Foreign Direct
Investment
Question 25:- Which of the following is an advantage of
turnkey projects?
a) Can earn a
return on knowledge asset
b) Will not create a
competitor
c) Tight control of
operations
d) All the
above
Question 26:- 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
Question 27:- IBRD (International Bank for Reconstruction
and Development) also known as
a) EXIM Bank
b) World
Bank
c) IMF
d) International
Financial Bank
Question 28:- Ultimately ……………… was replaced by the …………….on
1st Jan 1995
a) GATT/WTO
b) GATS/IMF
c) WTO/WORLD
BANK
d) WORLD
BANK/WIPO
Question 29:- Which is the right sequence of a stages of
Internationalization
a) Domestic,
Transnational, Global, International, Multinational
b) Domestic,
International, Multinational, Global, Transnational
c) Domestic,
Multinational, International, Transnational, Global
d) Domestic,
International, Transnational, Multinational, Global
Question 30:- Subsidiaries consider regional environment for
policy / Strategy formulation is known as
a) Polycentric
Approach
b) Regiocentric
Approach
c) Ethnocentric
Approach
d) Geocentric
Approach
