QUESTION Capricorn Creative Inc., a U.S.-based advertising firm, was the first in the advertising industry to identify the growth potential of Brazil and to make huge investments in its economy. As a result, the firm was able to build brand loyalty and gain experience in that country’s business practices. In the language of business strategy, […]
QUESTION Rituals and symbols are the most visible manifestations of a culture and constitute the outward expression of deeper values. Indicate whether the statement is true or false. ANSWER TRUE Rituals and symbols are the most visible manifestations of a culture and constitute the outward expression of deeper values.
QUESTION Although China and India are very large markets when measured by number of consumers, they are relatively small markets when measured in economic terms due to their: A. orientation toward democracy. B. small share in the world output. C. high living standards. D. limited purchasing power. E. commitment to a free market system. […]
QUESTION In economic terms, the long-run monetary benefits of doing business in a country are most likely to be a function of the: A. gender ratio of the country. B. latitudinal and the longitudinal location of the country. C. natural resources available in the country. D. present wealth (purchasing power) of consumers of the country. […]
QUESTION Which of the following best exemplifies a first-mover advantage? A. Venus Inc. has more than 50 percent market share in the telecom industry, because no other company had invested in this industry before Venus Inc. B. Maya won a cash discount of 75 percent on the latest NewY phone as she was the winner […]
QUESTION When Galaxy Ventures, a real estate company, entered the low cost housing business, the market was already saturated with other players. Thus, the company was forced to exit the market due to lack of customer loyalty and substantial dividends. Which of the following is a term used to described the situation faced by the […]
QUESTION In the context of cost, which of the following can be considered as the most attractive market or investment site? A. A country that has adopted a closed totalitarian state B. A country that has a well-developed body of business contract law C. A country with a command-based economic system D. A country with […]
QUESTION The government of Greenland Republic protects its newly privatized firms from foreign competition by imposing stringent barriers to international trade and foreign direct investment. As a result of this, the newly privatized firms will: A. continue acting like state monopolies. B. operate at their maximum efficiency. C. pay huge taxes. D. import raw materials […]
QUESTION How does privatization help stimulate gains in economic efficiency? A. It allows newly privatized firms to gain monopoly position in a particular industry. B. It provides incentives to new private owners to search for increases in productivity and to enter new markets. C. It encourages state control over price and production output. D. It […]
QUESTION The absence of a legal system that protects property rights and the lack of machinery to enforce that system in a market economy usually results in: A. an improvement in the operating efficiency of newly privatized firms. B. reduced barriers to foreign direct investment and international trade. C. an increase in the incentives to […]
