MB0053_Model QP

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

MB0053_Model QP

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

Tariff for Processed Materials 12. Treaty for Private Management D. Transfer Pricing Manipulation C. International capital markets C. bond and equities? A. Liquidity risk B. 3 . Legal risk 13. Geneva Agreement of Tariff and Trade D. What is the type of risk that occurs due to the requirement of available counterpart to take the other side of trade? A. Double taxation D.MB0053_Model QP C. International security markets D. Credit risk C. The comparison of a nation’s obligations to service and repay foreign debt with its FOREX earnings shows its ability to remain _____________________. Taxation 10. The principle of ______________ states that all equally positioned tax payers should contribute in the cost of operating the government according to the equal rules. Tax equity B. Which among the following international financial markets includes private placements. General Agreement of Trade and Tariffs 9. Market risk D. A. International money markets 11. Transfer Process Methodology B. Tax neutrality C. Foreign currency markets B. TPM refers to A.

Openness of the economy 17. International Accounting Standards (IAS) B. Business C. Which of the following refers to the process of settlement of disputes by having independent referees. A. Insolvent B. A. and reduce costs which in turn helps to create world-class ___________________. Standing Interpretations Committee (SIC) C. Market growth B. What is the other name for C2C model? 4 . who are agreeable to both sides. Litigation C. adjudicate the matter? A. Solvent 14. Passive C.MB0053_Model QP A. Competitors B. International Financial Reporting Standards (IFRS) are followed by the _______________. Active D. Arbitration D. Market D. Income levels C. Economic environment 15. ________ is measured in terms of local currency and adjusted for inflation. Mercantilism B. improve quality. Code law 16. International Accounting Standards Board (IASB) D. International Accounting Standards Committee (IASC) 18. Domestic rivalry creates pressure to innovate. A. Sector wise trends D.

Countries of operation D. Peer to Peer exchanges B. ethics. Presence D. Structural components B. Management style C. ________________ of an international business plays a very important role in realising the goals of the company. United Nations (UN) D. What indicates the differences between Domestic Accounting Standards (DAS) and International Accounting Standards (IAS) based on different rules on the same accounting issue? A. European Union (EU) B. education and management accounting? A. Care to Customer model C. Accounting C.MB0053_Model QP A. Organisation for Economic Cooperation and Development (OECD) 20. Time zone C. Employee expense B. Divergence 21. Customer to Client interchanges D. Which of these has parallel responsibility of IASC’s objective of developing international guidelines for auditing. Legal factors related to workforce 22. Community to Community interactions 19. Business structure 5 . Indulgence B. Which of the following is one of the main dimensions of international human resource management? A. A. International Federation of Accountants (IFA) C.

A. National business B. International business D. Employee relations B. A. Eastern Freight Trading Agency C. In a _____________________ competitive industry. _________________________ are from the parent country. A. Organisational structure 23. A. Engineers D. Multinational C. International Business Management (IBM) 25. Technical workforce C.MB0053_Model QP D. European Free Trade Association B. Risk management is an integral part of the _________________ policies. In ethnocentric approach. Local 6 . Human Resource Management (HRM) D. Key managers B. International Human Resource Management (IHRM) C. a company’s business gets affected by the changing environments in different countries. Domestic D. Global B. Programmers 24. Legal framework 27. East-Asian Foreign Trade Agreement D. Expand EFTA. What is the term used when a company exports services or goods to other countries? A. Globalisation C. Emerging Foreign Trading Alliances 26.

IDH D. Outstanding Economic and Cultural Directives C. India 32. Which of these bodies have categorised country risk assessment methods into four types? A. Strategic alliance C. A business deals with ____________________ culture in its domestic market. Trade blocs 29. Exogenous D.MB0053_Model QP 28. This country is an active member of OPEC A. Homogenous B. NABARD C. Indigenous 31. A. Foreign direct investment B. Organisation for Economic Cooperation and Development 30. World Trade Organisation 7 . Open Environmental and Cultural Disputes B. Expand OECD. US EXIM Bank B. Heterogeneous C. A. United Kingdom C. Exports strategy D. Portugal B. Operations in Eastern Community Development D. What term is used for a joint venture done with an existing competitor? A. Saudi Arabia D.

Strategic analysis C. Delphi 37. Location risk 36. _______________ analysis is used to survey countries where the firm is engaged in international business and avoids countries with excessive risk. WTO D. Economist Intelligence unit C. Country risk analysis regulates the estimated ____________ and explores the main techniques used to measure a country’s overall riskiness. Checklist C. Policies D. Strategic planning D. The term ________________ refers to the complete range of strategic decision-making activity in an organisation. Transfer risk D. Gross Domestic Product (GDP) B. A. A.MB0053_Model QP 33. Exchange risk B. Basel Committee B. A. Cash flows 35. Fully qualitative D. Country risk C. Economic factors C. A. NAFTA 34. The ________________ method uses a uniform format with predetermined scope. Structured qualitative B. Strategic management B. Which one of the following is an example of a rating agency? A. Strategic competitiveness 8 .

Strategic formulation is the _________________ phase in the strategic management process. Power Distance Index PART B (Two marks questions) 41. Second D. A. Final B. Intermediate planning B. The ratio of a country’s______________ and _____________ to its Gross National Product (GNP) indicates its vulnerability to fluctuations in international trade. Long-term Orientation D. This is referred to as A. Degree of urbanisation. Long-term planning 39. Imports. exports C. balance of payments B. international debt D. income levels 42. Initial C. This focuses on the level of equality or inequality that exists between individuals in the society of a country. Strategic planning C. International Chamber of Commerce and WTO 9 .MB0053_Model QP 38. Which among these are considered as arbitration bodies? A. Openness of the economy. Uncertainty Avoidance Index B. Individualistic control C. Market growth. Which of the following planning processes is for six months to two years? A. Intermediate 40. A. Short-term planning D.

Most developed countries face challenges in sourcing workforce as the average age of the population is getting older. Sweden. India. International Court of Justice and United Nations 43. France. 2T 46. American Arbitration Association and American Government C. Germany. Micro B. India D. 1F. 1. Down-playing the importance of cultural diversity A. Major. India B. Macro. Minor C. external 44.MB0053_Model QP B. A. 1T. Heterogeneous D. 2F D. Sony Ericsson has its headquarters in ____________ and research and development setup in USA and ______________. Respecting and sharing each other's skills b. Australia C. 1F. ICSID and London Court of Arbitration D. Establishing and applying formal structures c. There are two types of political risks namely ___________ and __________ risks. Identifying the importance of informal structures d. Internal. Which among the following are the skills that have to be possessed by a MNC manager? a. Statements a and d only 10 . 2F C. 2. A. 2T B. A subsidiary of a company cannot be formed from scratch. 1T. A. Identify the true (T) and false (F) statements. China 45. Homogeneous.

behaviour C. Religion. religions agree on the _____________________ and ______________. corruption B. A. standards B. cultures C. ethics 50.MB0053_Model QP B. bribery C. Racism. A. Despite the differences in religious teachings. standards D. Values. 1960 at GAAP final meeting D. Corporate goals. 1956 at International Accounting Standards committee C. Statements c and d only D. culture D. The most prominent issues that managers in MNCs operating in foreign countries face are _____________ and ______________. Fundamental principles. 1944 at Bretton Woods International conference B. Fundamental principles. which are the two factors that influence the ethics of a business and its managers? A. Theft. Statements a and b only 47. Religion. When and where was IMF created? A. Bribery. Fundamental principles. Statements b and c only C. 1949 at International Standards of Accounting and Reporting Council 11 . climate 48. Religions. corruption D. Apart from law. Racism and gender bias 49. culture B.

1 and 2 only B. 2. A. external environment C. 1 and 3 only C. global marketing 55. 12 . geocentric approach 52. Operating in ___________________ depends on the level of control on the operations in the foreign country and it also depends on the ___________________________. Internal environment.MB0053_Model QP 51. The association of firms with local firms. Regional structure. The consideration on the price of capital around the world. A. product differentiation D. Foreign market. Region-centric approach. Reporting hierarchy. Product marketing. international matrix structure D. which can be done through ____________ and _____________. Price competition. capital expenditure D. capital expenditure B. international approval C. 2 and 3 only D. Product marketing. A. A. product support B. The differences in legal rules. product marketing 54. The aim of business is to attract and retain a customer. 2 and 4 only 53. The assessment of investments in order to raise the markets. Cost discounts. product differentiation C. Establishment of ______________ and _____________ is one of the objectives of a well designed organisational structure. 3. Global marketing. Divergence. Identify the true and false statements. accountability B. Foreign market. 4. Which of the following aspects are covered under cross-border valuation and financing? 1.

Customs charges B. 2. Export subsidies 58. A. global sourcing B. Corporate governance. 2 True C. the pre-shipment credit is mainly used for which of the following two purposes? A. Globalisation. Encourage cooperation of private sector. 2 and 4 only 57. 1 True. competitiveness C. 3. Apart from packaging. Top-down planning helps to maintain the decision-making process at the senior level. Macroscopic. Production. ITES D. 1 True. A GAP analysis is a simple tool that helps the planning team to allocate resources to firms. Processing D. 2. A. Formulate scientific research centres. A. 4.MB0053_Model QP 1. microscopic 13 . Transport C. 2 False D. 1 and 2 only B. Regional understanding is a strategy that has __________________ and __________________ forms. Processing. 1 False. Strengthen business liberalisation. Which of the following are the objectives of Gulf Cooperation Council? 1. 2 False 56. 2 True B. Improve the levels of productivity and quality. Profit Analysis. 1 and 3 only C. 1 False. Telecom. 2 and 3 only D. Production.

Modernising and upgrading the test houses and laboratories 3. a credit rating of ‘BBB’ and ‘CCC’ respectively indicates A. Dedicated B2C model. Direct B2C model. Vulnerable to default B. Dedicated B2C model B. Forfaiting c. Vulnerable to default. In payment default C. Factoring Part B 1. Quality b. d-1 D. c-3. a-4. b-2. Sharpen the competitive edge A. According to Standard and Poor’s credit rating system. Online B2C model D. c-1. b-3. Online B2C model PART C (Four marks questions) 61. In payment default 60. Export production d. Uncertainties leading to inadequate capacity to pay. The two implementation models related to the business to consumer (B2C) are _____________ and _____________. b-1. d-2 C. Match the following: Part A a. a-2. Vulnerable to default D. b-4. Direct B2C model C. A. a-3. To realise cash immediately 4. Purchase of an exporter’s receivables 2. Generic B2C model. d-4 14 . a-1. Adequate capacity to pay. Strong capacity to pay. c-4.MB0053_Model QP 59. c-2. d-3 B. Generic B2C model.

It is important to set the globalisation parameters after setting the localisation and regionalisation parameters. b-2. The mission statement describes what the leaders of an organisation see in the future. a-1. 3. a-3. b-4. Minimum residual life of five years 4. b-1. Identify the true (T) and false (F) statements: 1. 4F 64. 2T. Credit instrument developed by the non-financial firm and guaranteed by a bank for payment 2. The customers select the product by seeing all the information about the product on the internet. A. Identify the true (T) and false (F) statements. 1F. a-2. 3T. Cash-in-Advance b. The micro factors determine the environment in which the organisation functions.MB0053_Model QP 62. 2. c-2. Import of second hand capital goods Part B 1. 3F. c-4. 1F. Removing the risks of credit by the exporter 3. 3T. Paid for the shipper A. c-3. 3F. 4T B. Match the following: Part A a. Freight prepaid c. 4. 1T. 4F D. 2F. d-1 D. a-4. Banker’s acceptance d. 1T. 2T. 15 . 4T C. d-4 63. d-3 C. b-3. c-1. d-2 B. 2F.

Political risk A. 4. Regional integration reflects a country's willingness to share or unify as a whole. 3T. thereby earning profits from the difference. 1T. 5. 4T 65. Regional integration provides some sort of reduction on tariffs and prohibitions. This type of transaction can also be called as A. 3. A. 6 only 66. Which of the following risks associated with a country help in country risk analysis? 1. 6 only D. 1T. 4. 4. Location risk 3. 2T. 2. 2. 2. 3. 3. Equity B. 2F. Policy makers make use of the wealth of knowledge that is made possible by the rise of global economy. Sovereign risk 5. Arbitrage 16 . 4T D. The level of integration of a country with other countries is determined by what it shares and how it shares. 2. 1F. Lakhan is a realty broker and deals with purchase and sale of properties especially for middle-east clients. 2T. 5 only B. 4F B. Transfer risk 2. 3F. 1. Attitude risk 4. He also engages in purchase of securities in Dubai and would immediately sell them in Indian market. 4. Liquidity D. Historical risk 6. Mr.MB0053_Model QP 1. Hedging C. 3F. 4T C. 3T. 4 only C. 1. 1F. 2T.

6 only D. 2T. 1T. 4. Regression tree method 5. Delphi technique 4. 4 only C. 2. Data sourcing 3. 3F. Franchising 2. in which of the following ways could ABC Company make foreign direct investments? 1. 4. 2. 4. 1. 5 only 68. 3T. 1F. 4. 2T. Joint Ventures 5. 2. 4T C. 1. 5 only B. Inspection visits 6. ERP method A. From the following. Exporting 6. 1. 4T D. 4F B. 5 only 17 . 3F. 2F. 3. 2. identify the country risk assessment methods that are classified by the US EXIM bank 1. 1F. Licensing 3. Whole owned subsidiary A. A. 3T. If ABC Company is interested to invest in its foreign business operations. 3. 1T. Checklist method 2. WTO was established on 1st January 1996. Green room negotiations are informal negotiation meetings at the WTO. 1. 3. 2. ILO is another name for WTO. Identify the true (T) and false (F) statements. 1.MB0053_Model QP 67. WTO is regarded as the predecessor of GATT. Acquisition 4. 2T. 4F 69.

c-2. Simultaneous sale and purchase of identical amounts of currency for different maturities 3. d-2 D. a-4. right strategy and an appetite to take risk 2. International business b. d-4 B. c-1. a-3. 4 only C. d-3 C. Involves cross-border transactions A. 3. Buying or selling a definite amount of foreign currency at the existing market 18 . a-1. 6 only 70. Forward contract Part B 1. c-2. Foreign exchange currency deals take places on the date of deal 2. b-4. 4. Swap c. Country’s market needs treated as self contained 3. Trading blocs Part B 1. 5. Good product. 1. Match the following: Part A a. b-1. a-2. Multinational strategies d. Global marketplace c. Match the following: Part A a. Spot contract d. 2. 6 only D. b-3.MB0053_Model QP B. c-4. d-3 71. b-1. 3. Outright cash b. Eliminates investment barriers 4. 3.

There will be non-availability of highly skilled employees at the subsidiaries. a-4. d-1 C. 5. Ambitious mangers will try to move to other multi-national companies after global experience. 2. World War I 5. British East India company A. c-2. d-2 B. c-3. 3. 3. d-3 72. 1. b-2. 4. 1. 5 D. 1. 1 and 2 only B. 3 19 . Only 4 73. 4. A. 5. 2 B. c-3. d-4 D. b-4. a-3. Host country employees will not be in good terms with their foreign managers. 2 and 3 only C. 3. 1. Geocentric approach of international business is based upon which of the following assumptions? 1. b-2. 1. a-1. 4. 2. a-1. 5. WTO 3. IBRD 4.MB0053_Model QP 4. Mangers will adapt themselves to different countries after international exposure over a period of time. 2 and 3 only D. b-1. 3. 2 C. Buying and selling foreign currency amounts at the pre-agreed rate of exchange on or before a certain date A. c-4. 2. 4. 4. Arrange the following in ascending order of their formation/occurrence 1. GATT 2.

2. Grade BB 75.MB0053_Model QP 74. What is the rating given by the agency? A. 6 only D. 2. Grade B B. 5 only **************************** 20 . 3. 3. 1. Identify the benefits of international business from the following: 1. 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. Low cost of production 3. 4. Large customer base 6. 2. Grade C D. 6 only C. 4. Grade D C. Hampers domestic business growth A. A developing country has taken huge amounts of loans and funds from IMF. 5. Exploitation of labour 2. 3 only B. 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. Diversifies risk 5. 4. Utilisation of valuable resources 4.

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