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IBM QuiZ (1)
SDMIMD
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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.
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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
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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
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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
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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
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5. Under WTO , members are granted Patentrights for _____ years.
a. 100b. 50c. 14d. 20
Dr. Mohan Monteiro
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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
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7. Beggar than neighbor is associatedwith : ..
a. Theory of absolute advantageb. Product life cycle theoryc. Mercantilismd. Hescher Ohlin theory
Dr. Mohan Monteiro
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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
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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
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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.
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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.
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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.
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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.
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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.
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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
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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
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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.
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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
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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.
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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.
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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.
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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.
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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
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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
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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.
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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.
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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.
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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
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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
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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
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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
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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.
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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
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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.
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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.
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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.
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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.
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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
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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
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Thank You