Question Papers

ICFAI University – MBA International Business Environment Question Papers, April 2008

International Business Environment (MB331IB) : April 2008

Section A : Basic Concepts (30 Marks)
i• This section consists of questions with serial number 1 – 30.
• Answer all questions.
• Each question carries one mark.
• Maximum time for answering Section A is 30 Minutes.

1. Which of the following were the objectives of GATT?
I. To allow full use of resources.
II. To expand world trade.
III. To ensure full employment.
IV. To remove non-trade barriers.
(a) Both (I) and (II) above
(b) Both (I) and (III) above
(c) (I), (II) and (III) above
(d) (I), (II) and (IV) above
(e) (II), (III) and (IV) above.

2. According to Michael Porter which of the following factors determines a
nation‘s ability to compete globally?
I. Factor Conditions.
II. Demand Conditions.
III. Related and Supporting Industries.
IV. Firm Structure, Strategy and Rivalry.
(a) Both (I) and (II) above
(b) Both (I) and (III) above
(c) Both (I) and (IV) above
(d) Both (II) and (III) above
(e) All (I), (II), (III) and (IV) above.

3. The value of all the goods and services produced in an economy excluding net
income earned from abroad is termed as
(a) Gross Domestic Product
(b) Net National Product
(c) Gross National Product
(d) Per capita Gross Domestic Product
(e) Per capita Gross National Product.

4. What is the ultimate objective of antidumping policies?
(a) To protect consumers from predatory pricing
(b) To protect host governments from the loss of legitimate tax revenue
(c) To protect national pride
(d) To protect foreign producers from —unfair“ local competition
(e) To protect domestic producers from —unfair“ foreign competition.

5. Which of the following are not direct taxes?
I. Wealth tax.
II. Income tax.
III. Sales tax.
IV. Excise duty.
(a) Both (I) and (II) above
(b) Both (I) and (III) above
(c) Both (II) and (III) above
(d) Both (II) and (IV) above
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(e) Both (III) and (IV) above.

6. Which of the following is the level of economic integration, characterized by
absence of trade barriers among member countries, with a common external
trade policy that allows mobility of factors of production among member
countries?
(a) Political union
(b) Customs union
(c) Economic union
(d) Free trade area
(e) Common market.

7. ”Social class categories are ranked vertically, ranging from higher status to
lower status.‘ Then the social class is said to be
(a) Restrictive
(b) Homogeneous
(c) Dynamic
(d) Hierarchical
(e) Multidimensional.

8. Which of the following is not a Regional Trade Agreements?
(a) NAFTA
(b) ECO
(c) WTO
(d) CAN
(e) LAIA.

9. MNCs adopt different strategies to minimize political risks. Changing the
corporate name of an MNC to appear as less of a foreign company, is known as
(a) Integrative technique
(b) Protective technique
(c) Proactive technique
(d) Defensive technique
(e) Reactive technique.

10. Which of the following INCO terms are commonly used for any mode of
transportation?
I. EXW.
II. CIP.
III. FAS.
IV. DES.
V. DDP.
(a) (I), (II) and (III) above
(b) (I), (II) and (V) above
(c) (I), (II), (III) and (IV) above
(d) (I), (II), (III) and (V) above
(e) (II), (III), (IV) and (V) above.

11. Which of the following is an area designed or zoned for manufacturing and
associated activities by the local government or an industry managed
organization?
(a) R&D Consortia
(b) Industrial Cluster
(c) Portals
(d) Industrial Park
(e) Common Market.

12. When the host government takes over a foreign business and does not
compensate the owners for their losses it is known as
(a) Expropriation
(b) Nationalization
(c) Confiscation
(d) Domestication
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(d) Domestication
(e) Redemption.

13. According to Max Weber‘s classification of people, there are three dimensions
of social position. They are
I. Class.
II. Status.
III. Tastes.
IV. Power.
V. Culture.
(a) (I), (II) and (III) above
(b) (I), (II) and (IV) above
(c) (II), (III) and (IV) above
(d) (I), (II) and (V) above
(e) (II), (III) and (V) above.

14. Legislative power in India rests with
(a) The Parliament and the State Legislatures
(b) The Parliament and the President
(c) The President and the State Legislatures
(d) The Parliament and the Supreme court
(e) The Supreme court and the State high court.

15. The democratic party of Japan is known as
(a) Jijuminshuto
(b) Minshuto
(c) Komeito
(d) Kyosanto
(e) Jiyuto.

16. Which of the following is not a dimension of Hofstede‘s cultural analysis?
(a) Power distance
(b) Uncertainty avoidance
(c) Masculinity vs. femininity
(d) Cultural uncertainty
(e) Long term orientation.

17. Which of the following benefits is offered in the form of cash installments to an
employee who is injured in the course of his employment?
(a) Disablement benefit
(b) Sickness benefit
(c) Maternity benefit
(d) Gratuity benefit
(e) Pension benefit.

18. Technical abilities allow a firm to gain an advantage over its competitors. Here
technical abilities include
I. Research and development strength.
II. Core competencies.
III. Business specific capabilities.
IV. Manufacturing strengths.
(a) Both (I) and (II) above
(b) Both (II) and (IV) above
(c) (I), (II) and (III) above
(d) (I), (II) and (IV) above
(e) All (I), (II), (III) and (IV) above.

19. When a country considers its own culture as superior to that of other countries,
it is called as
(a) Culturalism
(b) Symbolism
(c) Authoritarianism
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(c) Authoritarianism
(d) Ethnocentrism
(e) Conservatism.

20. Which of the following is true about knowledge in a transnational
organization?
(a) Knowledge is developed and retained by subsidiaries
(b) Knowledge is developed by headquarters and passed on to subsidiaries
(c) Knowledge is developed and retained by parent company
(d) Knowledge is developed jointly and shared across the subsidiaries
(e) Knowledge is developed by subsidiaries and passed on to headquarters.

21. Which of the following groups of consumer is not related to marketers?
(a) Friendship groups
(b) Formal social groups
(c) Work groups
(d) Symbolic groups
(e) Political groups.

22. Business managers should understand cultural differences in terms of which of
the following in order to be successful in the foreign markets?
I. Values.
II. Religion.
III. Custom.
IV. Education.
(a) Both (I) and (II) above
(b) Both (I) and (III) above
(c) (I), (II) and (III) above
(d) (I), (II) and (IV) above
(e) All (I), (II), (III) and (IV) above.

23. Which of the following is an advantage of technology transfer to the host
country?
(a) Technology diffusion
(b) Technology expertise
(c) Technology transaction
(d) Technology cooperation
(e) Technology up gradation.

24. Which of the following is an example of a market maker in the business-to-
customer segment?
(a) Yahoo
(b) Netscape browser
(c) eBay
(d) AOL
(e) ZDnet.

25. The process of adopting US Dollars as official currency by the developing
countries is known as
(a) Money trading
(b) Dollarization
(c) Customs union
(d) Green money
(e) Globalization.

26. __________ the process of communication using eye.
(a) Kinesics
(b) Proxemics
(c) Oculesics
(d) Paralanguage
(e) Symbolism.
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27. The act of selling products by a firm at a low price in foreign markets than
selling it in domestic market is called as
(a) Skimming
(b) Penetrating
(c) Import substitution
(d) Dumping
(e) Liberalization.

28. Which of the following type of government exists in India?
(a) Single party – Presidential
(b) Multi party – Parliamentary
(c) Bi party – Presidential
(d) Single party – Parliamentary
(e) Multi party – Presidential.

29. Which of the following consists of two or more people who interact to
accomplish either individual or mutual goals?
(a) Class
(b) Group
(c) Family
(d) Society
(e) Strata.

30. Economic, political or social groups formed primarily to accomplish goals are
referred as
(a) Formal groups
(b) Primary groups
(c) Ad-hoc groups
(d) Secondary groups
(e) Informal groups.

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