IBM QuiZ (1)sdmimd.pptx

7/28/2019 IBM QuiZ (1)sdmimd.pptx

1/43

IBM QuiZ (1)

SDMIMD


2/43

Instructions

1. Each question carries ONE Mark for a rightanswer.

2. No negative marks for wrong answer.3. MAX time : 20 mins

All questions compulsory.


3/43

1. The first theory to explain why unrestrictedfree trade is beneficial to a country was _______.

a) David Ricardos theory of relative advantage b) Hecksher-Ohlin theory of national factor

endowmentsc) Adam Smiths theory of absolute advantage d) The mercantilist Thomas Muns writing in

1630.

Dr. Mohan Monteiro


4/43

2.Norms that are seen as central to thefunctioning of a society and to its social life,

violation of which can bring seriousretribution is called ________

a) Social structureb) Folkwaysc) Cultured) Mores

Dr. Mohan Monteiro


5/43

3. A set of moral principles, or values, that areused to guide and shape behavior is referred

to as ________

a) Religion

b) Ethical systemsc) Confucianismd) Guanxi

Dr. Mohan Monteiro


6/43

4. World Trade Organization came into force on _______________

A. 1st January, 1994

B. 1st January, 1995

C. May 31 st , 1993

D. May 31 st , 1994

Dr. Mohan Monteiro


7/43

5. Under WTO , members are granted Patentrights for _____ years.

a. 100b. 50c. 14d. 20

Dr. Mohan Monteiro


8/43

6. when a firm wants to enter a market where thereare already well-established incumbentcompanies, and where global competitors arealso interested in establishing a presence, thefirm should consider: .

A. joint ventures.

B. turnkey projects.

C. acquisitions .

D. greenfield investments.

Dr. Mohan Monteiro


9/43

7. Beggar than neighbor is associatedwith : ..

a. Theory of absolute advantageb. Product life cycle theoryc. Mercantilismd. Hescher Ohlin theory

Dr. Mohan Monteiro


10/43

8. It took China _______ number of years tobecome a WTO member after applying formembership.

a. Five yearsb. Less than five yearsc. 10 Yearsd. More than 10 years .

Dr. Mohan Monteiro


11/43

9. Globalization has _____ the opportunities for afirm to expand its revenues by selling around theworld and _____ its costs by producing in nationswhere key inputs are cheap.

A. reduced, reduced

B. increased, increased

C. increased, reduced

D. reduced, increased


12/43

10. When a company "exports jobs" overseas, thecompany is: .

A. helping domestic workers by pushing upwage rates.

B. increasing the demand of qualified domesticworkers.

C. taking advantage of lower wages in foreignmarkets.

D. deceiving the supporters of globalization.


13/43


14/43

12.The institution, created in 1944 at BrettonWoods, responsible for maintaining order in

the international monetary system is the -----

A. IMF.

B. WTO.

C. UN.

D. UNESCO.


15/43

13. The growing integration of the worldeconomy is: ..

A. Increasing the intensity of competition in a wide rangeof manufacturing and service industries.

B. Decreasing the intensity of competition inmanufacturing industries, and increasing theintensity of competition in services.

C. Increasing the intensity of competition inmanufacturing industries, and decreasing theintensity of competition in services.

D. Narrowing the scope of competition in a wide rangeof service, commodity, and manufacturing industries.


16/43

14. Which of the following statement pertaining to changes inthe global economy of the 21 st century is not true?

A. Barriers to the free flow of goods, services, and capitalhave been coming down.

B. Volume of cross-border trade and investment has beengrowing more rapidly than global output.

C. National economies are becoming moreindependent and moving away from the global

economic system.

D. As economies advance, more nations are joining theranks of the developed world.


17/43

15. Identify the incorrect statement pertainingto a country's political economy.

A. It is independent of the culture of a nation .B. It is a combination of interdependent

political, economic, and legal systems.C. Its various systems interact and influence

each other.

D. Its interacting systems affect the level of economic well-being.


18/43

16. The Cold War was essentially a war between _____, championed by the now-defunctSoviet Union, and _____, championed by theUnited States.

A. collectivism; individualism B. democracy; socialismC. totalitarianism; socialism

D. individualism; collectivism


19/43

17. Which system of government generallypermits some individual economic freedom

but restricts individual political freedom,frequently on the grounds that it would leadto the rise of communism?

A. Tribal totalitarianismB. Right-wing totalitarianism C. Left wing totalitarianismD. Theocratic totalitarianism


20/43

18. Antitrust laws in the United States aredesigned to:

A. Encourage business practices designed tomonopolize a market.

B. Discourage private ownership.C. Restrict privatization.D. Outlaw monopolies.


21/43

19. A _____ system is based on a very detailedset of laws organized into codes.

A. democratic lawB. theocratic law

C. civil law D. common law


22/43

20. The benefits of doing business in a countryare a function of all of the following

except: ..

A. the size of the market.

B. its past growth. C. its present wealth.D. its future growth prospects.


23/43

21. The system of values and norms that areshared among a group of people and that

when taken together constitute a design forliving best defines:

A. society.B. value systems.C. principles.D. culture.


24/43

22. An act, as simple as shaking hands whenmeeting new people is an example of:..

A. values.B. symbolic behavior.

C. mores.D. social stratification.


25/43

23. A Japanese executive's ritual of presenting abusiness card to a foreign business executive

is an example of:

A. mores.

B. values.C. attitudes.D. folkways.


26/43

24. Which Islamic banking method is the mostwidely used among the world's Islamic banks,

primarily because it is the easiest toimplement?

A. MudaribB. Murabaha C. MaysirD. Mudarabah


27/43

25. Three values central to the Confucian systemof ethics have very important economic

implications. Which of the following is not oneamong them?

A. LoyaltyB. Rule-based law C. Reciprocal obligationsD. Honesty in dealings with others


28/43

26. A class system : ----------------

A. is the same as a caste system.B. is a rigid form of social stratification thatdoes not permit social mobility.

C. allows an individual to change his/herposition via personal achievements. D. is more rigid than the caste system.


29/43

27. Ethical systems are: ..

A. a set of moral principles, or values, that areused to guide and shape behavior.

B. shared beliefs and rituals that are

concerned with the realm of the sacred.C. routine conventions of everyday life.D. social rules that govern peoples' actions

toward each other.


30/43

28. Which of the following observations is correct?

A. None of the economic principles establishedin the Koran are pro-free enterprise.

B. The Koran speaks approvingly of freeenterprise.

C. The Koran speaks disapprovingly of earninglegitimate profit through trade andcommerce.

D. Protection of the right to private property isnot embedded within Islam.


31/43

29. If a high-tech firm sets up operations in aforeign country to profit from a core

competency in technological know-how, whichof the following entry strategy is best?

A. Joint ventures

B. Licensing

C. Wholly owned subsidiaries

D. Turnkey contacts


32/43

30. According to Max Weber:

A. Principles embedded in Hinduism encouragehigh levels of entrepreneurial activity.

B. Hindu values emphasize that individualsshould be judged by their materialachievements.

C. Pursuit of material well-being makes theattainment of nirvana easier.

D. Devout Hindus would be less likely to


33/43

31. The _____ dimension of Hofstede's studyexplores how a society deals with the fact that

people are unequal in physical and intellectualcapabilities.

A. power distance

B. individualism vs. collectivism

C. uncertainty avoidance

D. masculinity vs. femininity


34/43

32. This theory explains the observed patterns of international trade by emphasizing the

interplay between the proportions in whichthe factors of production are available indifferent countries and the proportions inwhich they are needed for producingparticular goods.A. MercantilismB. Absolute advantageC. Heckscher-Ohlin D. Comparative advantage


35/43

33. The different combinations of two goodsthat an economy could efficiently produce

with limited productive resources can bereferred to as a country's: .

A. economic output.B. efficiency graph.C. productivity curve.D. production possibility frontier.


36/43

34. According to Heckscher and Ohlin, _____meant the extent to which a country is

provided with such resources as land, labor,and capital.

A. factors of productionB. economic facilitatorsC. factor endowments D. manufacturing factors


37/43

35. Raymond Vernon argued that new productswere developed by U.S. firms and first sold in

the U.S. market because: .. A. European competitors were not active inproduct R&D.

B. American firms were able to takeadvantage of tax credits for product R&D.

C. The wealth and size of the U.S. market gavethe firms an incentive to develop newproducts.

D. The low cost of U.S. labor gave U.S. firmsan incentive to develop costly process

innovations.


38/43

36. Which of the following is not an advantageassociated with entering a foreign market

before other international businesses?

A. Ability to preempt rivals and capture

demand by establishing a strong brandname.B. Ability to ride down the experience curve

ahead of rivals.C. Ability to create switching costs.D. Ability to avoid pioneering costs.


39/43

37. All of the following are examples of pioneering costs except the costs of:

A. business failure.

B. educating consumers.

C. promoting and establishing a product

offering.

D. learning from the mistakes of early

entrants.


40/43

38. If a firm can realize location economies bymoving production elsewhere, it should

avoid: .

A. exporting.

B. turnkey contracts.C. licensing.D. wholly owned subsidiaries.


41/43

39. An arrangement whereby a firm grants theright of intangible property to another entityfor a specified time period in exchange forroyalties is a(n) _____ agreement.

A. wholly owned subsidiary

B. turnkey

C. licensing

D. exporting


42/43

40. If a service firm wants to build a globalpresence quickly and at a relatively low cost

and risk, _____ makes sense.

A. licencing

B. exportingC. a turnkey projectD. franchising


43/43

Thank You

Documents

IBM QuiZ (1)sdmimd.pptx