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 […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
QUESTION Star Volans Inc. is planning on expanding its business globally. In terms of the costs involved in conducting business in a country, it will be most economical for the company if it chooses a country: A. with a closed totalitarian political system. B. where the company will have to provide its own infrastructure and […]
Date: September 3rd, 2020
QUESTION When social unrest and disorder in a country causes drastic changes in its business environment that adversely affect the profit and other goals of a business enterprise, the business enterprise is said to be facing which of the following type of risk? A. Political B. Demographic C. Ethical D. Technological E. Physiological ANSWER […]
Date: September 3rd, 2020
QUESTION Which of the following factors in a country is most likely to cause political risk for an international business? A. The presence of more than one ethnic nationality B. Infrequent changes in government and government policy C. Low inflation rate D. Low level of government debt E. High living standards ANSWER A Political […]
Date: September 3rd, 2020
QUESTION MedPlus Incorporated, based in the United States, hesitates to enter into a joint venture with Azpak Limited, a Sri Lankan company, due to inadequate protection of intellectual property rights. MedPlus is trying to avoid what type of risk? A. Political B. Legal C. Ethical D. Economic E. Ethnographic ANSWER B When legal risks […]
Date: September 3rd, 2020
QUESTION Which of the following statements is true about the late influential political scientist Samuel Huntington’s vision of the new world? A. Samuel Huntington maintained that as societies continue modernizing they will also become more Western. B. Samuel Huntington theorized that modernization in non-Western societies can result in a retreat toward the traditional. C. Samuel […]
Date: September 3rd, 2020
QUESTION Which of the following statements is true about the global changes in political and economic systems? A. The West lost the Cold War, and East European communist ideology is now widespread. B. A lack of deregulation has been the cause for the global financial crisis of 2008-2009, and the recession that followed. C. It […]
Date: September 3rd, 2020
QUESTION Which of the following is most likely to prove detrimental to democracy and international business? A. Emergence of increasingly prosperous middle and working classes B. Development of new information and communication technologies C. Dominance of a universal civilization which leads to the establishment of a more harmonious world D. Transformation of nations from centrally […]
Date: September 3rd, 2020
