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Sikkim Manipal University
MBA 4th semester – Model Question Paper International Business Management – MB0053 Total marks: 140 marks
Note: 1. Question paper has three parts i.e. Part A, Part B and Part C (Totally 75 questions) 2. Part A consist 40 questions of 1 mark each 3. Part B consist 20 questions of 2 marks each 4. Part C consist 15 questions of 4 marks each 5. All questions have multiple choices 6. All questions are compulsory
PART A (One mark questions)
1. _________ analysis is the evaluation of possible risks and rewards from business experiences in a country. A. Transfer risk B. Location risk C. Country risk D. Exchange risk
2. Which one of the following splits the countries according to the observed performance and an automatic rating system can be applied to similar countries? A. Exposure limit B. Peer analysis C. External environment D. Dependency level
3. ___________ risk is based on a government’s inability to meet its loan obligations. A. Sovereign B. Political C. Economic D. Exchange
4. Which type of marketing is complex when a firm engages in marketing operations with many countries? A. International marketing B. Domestic marketing C. Global marketing D. Multinational marketing
5. When a car manufacturer manufactures cars in the home country and directly ships them to a foreign country can be an example for _____________. A. Joint venture B. Direct exporting C. Predictable trading D. Indirect exporting
6. The level of risk in ____________________ is more when compared with exporting as the company has limited control. A. Direct investment B. Joint venture C. Transfer pricing D. International advertising
7. A firm should carefully look at their ________________________ and global marketing strategy in order to succeed. A. Product positioning B. Liability C. Geographic expansion D. Diversifying markets
8. Expand GATT. A. Global Agreement of Trade and Tariffs B. Government Acceptance Test Team
International money markets 11. International capital markets C. Legal risk 13. 3 . Market risk D. Tax neutrality C. International security markets D. Transfer Process Methodology B. Taxation 10. Treaty for Private Management D. A. Double taxation D. What is the type of risk that occurs due to the requirement of available counterpart to take the other side of trade? A. General Agreement of Trade and Tariffs 9. The principle of ______________ states that all equally positioned tax payers should contribute in the cost of operating the government according to the equal rules. The comparison of a nation’s obligations to service and repay foreign debt with its FOREX earnings shows its ability to remain _____________________. Liquidity risk B. Foreign currency markets B. TPM refers to A. Credit risk C. Tax equity B. Geneva Agreement of Tariff and Trade D. Tariff for Processed Materials 12. Which among the following international financial markets includes private placements. bond and equities? A. Transfer Pricing Manipulation C.MB0053_Model QP C.
A. Domestic rivalry creates pressure to innovate. Openness of the economy 17. A. Market D. ________ is measured in terms of local currency and adjusted for inflation. Arbitration D. Active D. Code law 16.MB0053_Model QP A. International Accounting Standards (IAS) B. International Accounting Standards Board (IASB) D. improve quality. Economic environment 15. A. Passive C. and reduce costs which in turn helps to create world-class ___________________. International Accounting Standards Committee (IASC) 18. Income levels C. International Financial Reporting Standards (IFRS) are followed by the _______________. adjudicate the matter? A. What is the other name for C2C model? 4 . Which of the following refers to the process of settlement of disputes by having independent referees. Standing Interpretations Committee (SIC) C. Market growth B. Competitors B. Business C. Insolvent B. Solvent 14. who are agreeable to both sides. Litigation C. Sector wise trends D. Mercantilism B.
Which of the following is one of the main dimensions of international human resource management? A. European Union (EU) B. Community to Community interactions 19. ________________ of an international business plays a very important role in realising the goals of the company. education and management accounting? A. Presence D. Organisation for Economic Cooperation and Development (OECD) 20. Peer to Peer exchanges B. Legal factors related to workforce 22. International Federation of Accountants (IFA) C. Employee expense B. A. Countries of operation D. Customer to Client interchanges D. Indulgence B. Which of these has parallel responsibility of IASC’s objective of developing international guidelines for auditing. Care to Customer model C. ethics. United Nations (UN) D. Accounting C. What indicates the differences between Domestic Accounting Standards (DAS) and International Accounting Standards (IAS) based on different rules on the same accounting issue? A. Structural components B. Time zone C. Divergence 21.MB0053_Model QP A. Management style C. Business structure 5 .
In a _____________________ competitive industry. Organisational structure 23. Technical workforce C. Expand EFTA. In ethnocentric approach. a company’s business gets affected by the changing environments in different countries. International Human Resource Management (IHRM) C. What is the term used when a company exports services or goods to other countries? A. A. Global B. Emerging Foreign Trading Alliances 26. International Business Management (IBM) 25. A. A. Human Resource Management (HRM) D. Key managers B. Legal framework 27. Eastern Freight Trading Agency C.MB0053_Model QP D. Programmers 24. Risk management is an integral part of the _________________ policies. Domestic D. Multinational C. Engineers D. European Free Trade Association B. East-Asian Foreign Trade Agreement D. Employee relations B. _________________________ are from the parent country. Local 6 . Globalisation C. National business B. A. International business D.
Which of these bodies have categorised country risk assessment methods into four types? A. Open Environmental and Cultural Disputes B. Heterogeneous C. Outstanding Economic and Cultural Directives C. A business deals with ____________________ culture in its domestic market. Saudi Arabia D. World Trade Organisation 7 . Expand OECD. United Kingdom C. India 32. Exports strategy D.MB0053_Model QP 28. NABARD C. Exogenous D. Operations in Eastern Community Development D. Organisation for Economic Cooperation and Development 30. Trade blocs 29. US EXIM Bank B. IDH D. What term is used for a joint venture done with an existing competitor? A. Portugal B. Indigenous 31. Homogenous B. This country is an active member of OPEC A. A. Foreign direct investment B. A. Strategic alliance C.
Location risk 36. Checklist C. Basel Committee B. Which one of the following is an example of a rating agency? A. Strategic analysis C. A. Delphi 37. Structured qualitative B. The ________________ method uses a uniform format with predetermined scope. WTO D. A. Strategic competitiveness 8 . Strategic management B. NAFTA 34. Economic factors C. Country risk analysis regulates the estimated ____________ and explores the main techniques used to measure a country’s overall riskiness. The term ________________ refers to the complete range of strategic decision-making activity in an organisation. Economist Intelligence unit C. A. Country risk C. Cash flows 35. _______________ analysis is used to survey countries where the firm is engaged in international business and avoids countries with excessive risk.MB0053_Model QP 33. Fully qualitative D. A. Gross Domestic Product (GDP) B. Transfer risk D. Policies D. Strategic planning D. Exchange risk B.
balance of payments B. Intermediate 40. Long-term Orientation D. Strategic planning C. This focuses on the level of equality or inequality that exists between individuals in the society of a country. exports C. This is referred to as A.MB0053_Model QP 38. international debt D. Which among these are considered as arbitration bodies? A. Power Distance Index PART B (Two marks questions) 41. Which of the following planning processes is for six months to two years? A. Market growth. Long-term planning 39. Second D. The ratio of a country’s______________ and _____________ to its Gross National Product (GNP) indicates its vulnerability to fluctuations in international trade. Strategic formulation is the _________________ phase in the strategic management process. Imports. A. Individualistic control C. International Chamber of Commerce and WTO 9 . Final B. Openness of the economy. Degree of urbanisation. Uncertainty Avoidance Index B. Intermediate planning B. A. Short-term planning D. Initial C. income levels 42.
Down-playing the importance of cultural diversity A. Sony Ericsson has its headquarters in ____________ and research and development setup in USA and ______________. Macro. India D. 2F D. Identify the true (T) and false (F) statements. Minor C. 1F. India. Most developed countries face challenges in sourcing workforce as the average age of the population is getting older. Germany. Micro B. International Court of Justice and United Nations 43.MB0053_Model QP B. American Arbitration Association and American Government C. Which among the following are the skills that have to be possessed by a MNC manager? a. 1. Statements a and d only 10 . China 45. France. external 44. 1T. Respecting and sharing each other's skills b. 1F. 2T 46. 2T B. ICSID and London Court of Arbitration D. Identifying the importance of informal structures d. Homogeneous. There are two types of political risks namely ___________ and __________ risks. A. A subsidiary of a company cannot be formed from scratch. 2. 2F C. A. Internal. Establishing and applying formal structures c. Sweden. 1T. Australia C. Heterogeneous D. India B. Major. A.
standards D. behaviour C. Bribery. standards B. Fundamental principles. Religion. 1944 at Bretton Woods International conference B. ethics 50. Statements b and c only C. Theft. climate 48. 1949 at International Standards of Accounting and Reporting Council 11 . When and where was IMF created? A. 1960 at GAAP final meeting D. Statements c and d only D. Statements a and b only 47. Despite the differences in religious teachings. Corporate goals. which are the two factors that influence the ethics of a business and its managers? A. 1956 at International Accounting Standards committee C. Racism and gender bias 49. corruption B. Racism. Religion.MB0053_Model QP B. culture D. cultures C. A. The most prominent issues that managers in MNCs operating in foreign countries face are _____________ and ______________. culture B. Religions. Fundamental principles. Fundamental principles. religions agree on the _____________________ and ______________. Values. A. bribery C. Apart from law. corruption D.
product support B. The consideration on the price of capital around the world. Regional structure. A. Divergence. 1 and 3 only C. Product marketing. A. accountability B. which can be done through ____________ and _____________. international approval C. Foreign market. 3. Operating in ___________________ depends on the level of control on the operations in the foreign country and it also depends on the ___________________________. 4. Foreign market. product differentiation D. The differences in legal rules. Identify the true and false statements. A. Global marketing. 2 and 3 only D. Which of the following aspects are covered under cross-border valuation and financing? 1.MB0053_Model QP 51. capital expenditure D. A. 1 and 2 only B. 2. international matrix structure D. Price competition. Product marketing. Cost discounts. external environment C. The association of firms with local firms. product marketing 54. product differentiation C. global marketing 55. geocentric approach 52. Internal environment. Reporting hierarchy. The assessment of investments in order to raise the markets. 2 and 4 only 53. Region-centric approach. Establishment of ______________ and _____________ is one of the objectives of a well designed organisational structure. capital expenditure B. The aim of business is to attract and retain a customer. 12 .
microscopic 13 . 1 True. 1 and 2 only B. A. Encourage cooperation of private sector. 4.MB0053_Model QP 1. 1 True. Macroscopic. competitiveness C. 2 False 56. 1 False. 2. Regional understanding is a strategy that has __________________ and __________________ forms. Improve the levels of productivity and quality. Which of the following are the objectives of Gulf Cooperation Council? 1. A. the pre-shipment credit is mainly used for which of the following two purposes? A. Apart from packaging. A. Processing. Formulate scientific research centres. 2. 3. Export subsidies 58. 1 and 3 only C. Production. A GAP analysis is a simple tool that helps the planning team to allocate resources to firms. 2 and 3 only D. Top-down planning helps to maintain the decision-making process at the senior level. Globalisation. 1 False. Strengthen business liberalisation. Processing D. 2 True B. 2 False D. Transport C. 2 and 4 only 57. Telecom. Customs charges B. ITES D. Profit Analysis. Production. 2 True C. Corporate governance. global sourcing B.
a-4. Sharpen the competitive edge A. Vulnerable to default B. In payment default 60. c-3. Vulnerable to default D. Forfaiting c. a-3.MB0053_Model QP 59. a credit rating of ‘BBB’ and ‘CCC’ respectively indicates A. d-4 14 . Match the following: Part A a. To realise cash immediately 4. The two implementation models related to the business to consumer (B2C) are _____________ and _____________. Quality b. c-4. b-3. b-1. Purchase of an exporter’s receivables 2. d-3 B. a-1. Dedicated B2C model. Modernising and upgrading the test houses and laboratories 3. b-4. Factoring Part B 1. Direct B2C model. c-2. Generic B2C model. Dedicated B2C model B. c-1. Export production d. d-2 C. Online B2C model D. b-2. A. Strong capacity to pay. According to Standard and Poor’s credit rating system. Generic B2C model. Direct B2C model C. In payment default C. Uncertainties leading to inadequate capacity to pay. d-1 D. Vulnerable to default. a-2. Online B2C model PART C (Four marks questions) 61. Adequate capacity to pay.
Minimum residual life of five years 4. Removing the risks of credit by the exporter 3. c-3. 3T. 3F. 4F 64. The mission statement describes what the leaders of an organisation see in the future. a-2. c-2. Paid for the shipper A. Banker’s acceptance d. a-4. b-4. Identify the true (T) and false (F) statements: 1. The customers select the product by seeing all the information about the product on the internet. Credit instrument developed by the non-financial firm and guaranteed by a bank for payment 2. 2T. b-1. b-2. It is important to set the globalisation parameters after setting the localisation and regionalisation parameters. 1F. 1T. The micro factors determine the environment in which the organisation functions. Match the following: Part A a. 2. a-3. 3. Cash-in-Advance b. 2F. c-1. c-4. 15 . 3F. 2T. 4T C. 4. Import of second hand capital goods Part B 1. 1T. d-1 D. 4F D. Identify the true (T) and false (F) statements. 4T B. 1F. d-4 63. Freight prepaid c. d-3 C. 2F. d-2 B.MB0053_Model QP 62. a-1. A. b-3. 3T.
3T. Which of the following risks associated with a country help in country risk analysis? 1. Hedging C. 1T. 3. Equity B. 2. 4F B. 2. Liquidity D. Location risk 3. 4. 6 only 66. 3. 4T D. 5. 2T. He also engages in purchase of securities in Dubai and would immediately sell them in Indian market.MB0053_Model QP 1. 4 only C. Regional integration reflects a country's willingness to share or unify as a whole. This type of transaction can also be called as A. 4. Historical risk 6. Sovereign risk 5. 2F. 6 only D. A. Attitude risk 4. 5 only B. 4T 65. 2T. Lakhan is a realty broker and deals with purchase and sale of properties especially for middle-east clients. The level of integration of a country with other countries is determined by what it shares and how it shares. Regional integration provides some sort of reduction on tariffs and prohibitions. 3F. 4. Mr. Transfer risk 2. Policy makers make use of the wealth of knowledge that is made possible by the rise of global economy. 1. 3F. 2. Political risk A. 1F. 1F. 3. 4. 1. 2T. Arbitrage 16 . 2. 1T. thereby earning profits from the difference. 4T C. 3T.
2. 2T. Delphi technique 4. 1T. Joint Ventures 5. Inspection visits 6. 1F. Acquisition 4. 2T. 4T C. A. 4T D. 1. 2T. 4F B. 4. ILO is another name for WTO. From the following. Licensing 3. 4. 4. Data sourcing 3. 3. 5 only 17 . 1. Franchising 2. ERP method A. WTO was established on 1st January 1996. 1. 6 only D. If ABC Company is interested to invest in its foreign business operations. 3F. identify the country risk assessment methods that are classified by the US EXIM bank 1. 3. WTO is regarded as the predecessor of GATT. Exporting 6. 2. 3T.MB0053_Model QP 67. 2F. 1. 5 only 68. Green room negotiations are informal negotiation meetings at the WTO. in which of the following ways could ABC Company make foreign direct investments? 1. 1F. 4 only C. Identify the true (T) and false (F) statements. 5 only B. 3. Whole owned subsidiary A. 4F 69. 1T. 4. Regression tree method 5. 3F. 3T. 2. 2. Checklist method 2. 1. 2.
a-1.MB0053_Model QP B. 6 only D. 6 only 70. d-2 D. b-1. Match the following: Part A a. Good product. Match the following: Part A a. Involves cross-border transactions A. a-2. 3. International business b. b-3. right strategy and an appetite to take risk 2. c-4. c-2. Simultaneous sale and purchase of identical amounts of currency for different maturities 3. Eliminates investment barriers 4. Foreign exchange currency deals take places on the date of deal 2. 5. c-1. 1. 4 only C. 4. 2. Multinational strategies d. Trading blocs Part B 1. d-3 C. Swap c. Outright cash b. 3. 3. c-2. Spot contract d. d-3 71. Buying or selling a definite amount of foreign currency at the existing market 18 . a-4. Global marketplace c. Forward contract Part B 1. b-1. Country’s market needs treated as self contained 3. a-3. d-4 B. b-4.
5 D. 2. 5. 2 C. Buying and selling foreign currency amounts at the pre-agreed rate of exchange on or before a certain date A.MB0053_Model QP 4. a-3. 4. 1. World War I 5. Only 4 73. 5. b-2. Geocentric approach of international business is based upon which of the following assumptions? 1. a-1. a-4. b-4. a-1. 2 and 3 only D. c-3. d-1 C. Ambitious mangers will try to move to other multi-national companies after global experience. 2. Arrange the following in ascending order of their formation/occurrence 1. 5. Host country employees will not be in good terms with their foreign managers. WTO 3. 4. There will be non-availability of highly skilled employees at the subsidiaries. b-1. d-2 B. 1. d-4 D. 3 19 . 2 and 3 only C. 1. 4. c-2. A. 2. b-2. 3. 3. 4. c-4. c-3. 3. Mangers will adapt themselves to different countries after international exposure over a period of time. 1. 2 B. d-3 72. GATT 2. 4. IBRD 4. 1. 1 and 2 only B. British East India company A. 3.
1. 2. Grade B B. Large customer base 6. Diversifies risk 5. 4. Exploitation of labour 2. 4. 5. 6 only C. 2. Hampers domestic business growth A. Standard and Poor’s rating of the country’s credit worthiness is that the country has the capacity to pay in the current situations but it has greater vulnerability to default. Grade BB 75. 3 only B. 3. What is the rating given by the agency? A.MB0053_Model QP 74. Grade C D. 3. Grade D C. Low cost of production 3. 4. Utilisation of valuable resources 4. 6 only D. 5 only **************************** 20 . 2. The country has done well in the past years but presently its position is critical due to the instability in the political and economic conditions. A developing country has taken huge amounts of loans and funds from IMF. Identify the benefits of international business from the following: 1.
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