Domestic Business vs International Business

Q.

What Are the Major Components of Industry?

Q.

What is foreign exchange risk?

1. None of the above

2. Foreign exchange risk is a financial risk that exists when a financial transaction is denominated in a currency other than that of the base currency of the company.

3. Foreign exchange risk is an economic risk that exists when a financial transaction is denominated in a currency other than that of the base currency of the company.

4. Foreign exchange risk is a risk that arises out of exchange rate fluctuations.

Q.

Name the company which operates in more than one counry.

Q.

In Maruti Suzuki, a Japanese company, discipline is valued very highly. The employees are expected to report for work punctually. What characteristic trait of international business is highlighted in this example?

1. Customer heterogeneity across markets

2. Mobility of factors of production

3. Nationality of other stakeholders

4. Differences in business systems and practices

Q.

'Explain cultural invasion' as a diadvantage of international trade ?

Q.

Customers are not homogeneous in the international market due to the different religion, caste, languages and so on.

1. True

2. False

Q.

Define Business Risk.

Q.

In the era of globalisation and liberalisation, there are no legal, geographic, socio-cultural, and economic impediments to the free movement of the factors of production across countries.

1. True

2. False

Q.

In international business, customers are homogenous.

1. True

2. False

Q.

The values and aspirations of people belonging to different nations are bound to differ significantly because of cultural differences.

1. True

2. False

Q.

Selling Chinese phones works for Nikhil because his target market is India where consumers are price sensitive and most of their decisions are based on the amount of money they have to spend. What does 'price sensitivity' mean in this regard?

1. Price sensitivity is the degree to which the price of a product is sensitive to its demand

2. Price sensitivity is the degree to which the price of a product affects consumers' purchasing behaviors

3. Price sensitivity refers to the degree to which the price of a product is changed becuase of its supply

4. None of the above

Q.

Why was the example of difference in fuel prices taught in the segement?

1. To highlight the characteristic of business regualtion and policies

2. To explain how differences in the fuel prices arise

3. To explain the characteristic of currency used in business transactions

4. None of the above

Q.

Which one of these prevent movement of the factors of production across different countries?

1. Legal, geographic, and socio-economic impediments

2. None of the above

3. Legal, geographic, socio-cultural and economic impediments

4. Legal and geographic impediments

Q.

When you start a business in a foreign country, always be sure to take their culture and values into consideration.

1. False

2. True

Q. Globalisation is free flow of goods, services, capital, labour and _______.

1. culture
2. technology
3. social structure
4. none of the above

Q. Select the proper option from the options given below and rewrite the sentences.

Multinational company operates in ________.

(a) only one country
(b) developed countries
(c) all over the world

Q.

The vision to become international comes from the urge to gain strategic advantages of internationalisation.

1. False

2. True

Q. State with reasons whether the following statements are True or False.

Multinational companies help the host companies.

Q. Choose the word which best expresses the meaning of the italicized bold part of the sentence:
A conscientious worker is always admired by his employers.

1. obedient
2. punctilious
3. skillful
4. careful

Q. Write short answer of the following.

What are the similarities between management and profession?

Q. International trade facilitates international division of labour.

1. True
2. False