Professional Documents
Culture Documents
Section A
ESSAY TYPE QUESTIONS (10 Marks each)
[Please answer Any Four essay type questions in a separate page answer sheet especially
provided for the purpose]
Bata's strength lies in its worldwide presence. While local companies are self-governing, each
one benefits from its link to the international organisation for back-office systems, product
innovations, and sourcing.
Research and development Bata operates six Shoe Innovation Centres (SICs). Research is
conducted in applying new technologies, materials, and designs for shoe comfort features.
Each SIC has a product focus to supply complete packages of services for the
manufacturing and marketing of innovative shoes.
Shoe making expertise Apart from being one of the world's leading footwear retailers,
Bata is also an expert in making shoes, with over 110 years of experience in manufacturing.
Currently, they operate 33 production facilities across 22 countries.
While most modern day manufacturers outsource to Asia, Bata manufactures predominantly
in their own manufacturing facilities across the world, guaranteeing quality and expertise.
Approximately half their factory outputs are destined for sale through Bata-owned retail
stores, and the balance is manufactured to the specifications of wholesale customers or under
contract to other footwear brands.
Bata innovations in footwear production techniques are being used by other competitors in
the industry even today.
In 2010, Bata served 1 million customers a day; employed more than 50,000 people; operated
more than 5,000 retail stores; and managed retail presence in more than 70 countries.
Discussion Questions
5. Identify the strategy that Bata uses for entry into new markets. (Hint: Own showrooms)
6. What are the factors that help Bata retain its global leadership position?
Section B
Multiple Choice Questions (MCQ)
[Please answer all the following questions]
a. Silk
b. IT
c. Cultural
d. Tourism
3. The tendency of companies to move beyond national borders gained momentum in 1940s
and was expedited with the establishment of ________________ in 1995.
a. Standards and Trade development facility (STDF)
b. E-business
c. World Trade Organisation
d. Fairtrade Labelling Organisations International (FLO)
4. Companies adopt this strategy when each countrys market needs to be treated as self
contained. What strategy is it?
a. Product-line
b. National
c. Global companies
d. Multinational
5. What can be defined as any business that crosses the national borders of a country?
a. Organised
b. Domestic
c. Multicultural
d. International
6. Any company can dilute its business risk by spreading its operations to a number of
different and _____________ countries.
a. Underdeveloped
b. Diverse
c. Homogeneous
d. Developing
7. Which country is rich in labour pool will specialise in rendering of information technology
services?
a. India
b. US
c. Thailand
d. Saudi Arabia
8. Who argued that national wealth and prosperity will increase with more and more inflow
of gold and silver?
a. Adam Smith
b. Profounder of mercantilism theory
c. David Ricardo
d. Raymond Vernon
9. Who pointed out the flaws and inconsistencies in mercantilism theory in the year 1752?
a. Heckscher-Ohlin
b. Thomas Mun
c. David Hume
d. Raymond Vernon
10. Which country has absolute cost advantage in cutting and polishing of diamond?
a. England
b. France
c. Switzerland
d. India
11. Which theory is based on the hypotheses that countries trade with each other as they
differ with respect to the availability of the factors of production i.e. land, labour and capital?
a. Product lifecycle theory
b. Heckscher-Ohlin Trade Theory
c. Michael Porter
d. Mercantilism theory
12. In which book/theory, Adam Smith attacked the mercantilism and argued that countries
differ in their ability to produce goods and services efficiently due to variety of reasons.
a. The Heckscher-Ohlin Trade Theory
b. Wealth of Nations'
13. One of the factors that determines the degree of urbanisation includes _______________.
a. Ratio of a country's imports and exports to its Gross National Product.
b. Local currency
c. Number of competing firms
d. Nature of goods bought
14. Which demographic aspect are we talking about when we say, 'Firm can do
generalisations after cross comparing its product with similar products in the markets and
devise corrective actions on time'?
a. Branding and strategy
b. Market trending
c. Segment selection
d. Assumption of country culture
15. As per which law, interest payments on financial dealings are forbidden since it is seen as
improper to reward those with excess funds while penalising those who need to borrow. ?
a. Common Law
b. Islamic Law
c. Code Law
d. Domestic Law
c. Adjudication
d. Negotiation
18. What do you call the power of state over its citizens and land?
a. Nationalisation
b. Litigation
c. Sovereignty
d. Accretion
19. The most important aspect to qualify as a manager for positions of international responsibility
is _________________ skills.
a. Training
b. Communication
c. Controlling
d. Motivation
21. From the following, which is the highest Hofstede dimension for culture in India?
a. Long-Term Orientation
b. Uncertainty Avoidance Index
c. Power Distance Index
d. Masculinity
28. An investment by a foreign investor in sick industrial unit which needs complete
restructuring known as _____________.
a. Green field investment
b. Foreign Direct investment
c. Brown field investment
d. Foreign portfolio investment
29. ___________ are negotiable certificates and are issued by a countrys bank against a certain
number of shares held in its custody.
a. Joint ventures
b. Depository receipts
c. Mergers
d. Acquisition
30. Countries, usually do not allow foreign investment mainly because of __________.
a. Competitive Motives
b. Power motives
c. Economic Motives
d. Political Motives
31. _________ is a type of trade bloc which can be considered as the second stage of economic
integration.
a. Custom union
b. Economic union
c. Single market
d. Free trade area
32. Which of the regional trading arrangements is an economic and political union established in
1993?
a. The European Union (EU)
b. European Free Trade Association (EFTA)
c. North American Free Trade Agreement (NAFTA)
d. Southern Common Market (MERCOSUR)
33. ___________is a trade pact between Argentina, Brazil, Paraguay and Uruguay.
a. North American Free Trade Agreement (NAFTA)
b. Southern Common Market (MERCOSUR)
c. ASEAN Free Trade Area (AFTA)
d. Asia-Pacific Economic Cooperation (APEC)
34. Which of the following agreement was also known as Bangkok Agreement ?
a. ASEAN Free Trade Area (AFTA) agreement
b. South Asian Free Trade Area (SAFTA) agreement
c. India-MERCOSUR Preferential Trade Agreement (PTA)
d. Asia-Pacific Trade Agreement (APTA)
35. The objective of _________ agreement is to encourage economic development gradually
through trade expansion among the developing member countries of ESCAP.
a. Gulf Cooperation Council (GCC)
37. The support system institutions for international business include WTO (World Trade
Organisation), ___________________ and International Monetary Fund (IMF).
a. International Labour Code
b. GATT
c. World Bank
d. Trade-Related Aspects of Intellectual Property Rights (TRIPS)
40. On behalf of the __________________ the General Council administers as the Dispute
Settlement Body to handle the dispute settlement procedures.
42. The _______________________ of 15th April 1994 was formed to strengthen the world
economy that would lead to better investment, trade, income growth and employment
throughout the world.
a. International Labour Organisation (ILO)
b. Marrakesh Declaration
c. WTO
d. International Labour Code
43. The ____________________ provides links among the capital markets of individual
countries.
a. International capital markets
b. International security markets
c. International money markets
d. Foreign currency markets
44. The principle of _______________ states that all equally positioned tax payers should
contribute in the cost of operating the government according to the equal rules.
a. Taxation
b. Tax equity
c. Tax neutrality
d. Avoidance of double taxation
47. In ______________, the value of the currency is fixed by the nations with respect to some
foreign currency but not with respect to gold.
a. International monetary systems
b. Gold-exchange system
c. Gold and gold bullion standards
d. Floating exchange rates
48. In which policy, the manager can increase the amount of liquidity in order to reduce the
risk of business.
50. Which underlying assumption in IFRS gets stated when we say, 'An entity for the
predictable future'?
a. Accrual basis
b. Going concern
c. Stable measuring unit assumption
d. Units of constant purchasing power
51. Consider the below mentioned statements with respect to joint ventures as a mode of
entering into foreign markets.
1. It is a good means for market entry in those markets where there are no entry barriers like
capital limit requirement.
2. In joint ventures, both the parties are supposed to provide capital and resources in the
agreed proportion.
State True or False:
a. 1-True, 2-True
b. 1-False, 2-False
c. 1-False, 2-True
d. 1-True, 2-False
52 . "Consider the following statements with respect to reasons for global sourcing:
1) If political or economic problems occur in any region, the company will be able to
continue its operations without disruption by fulfilling their needs from other global sourcing
location.
2) Companies want to evade their political and business risks by restricting their business
operations at various parts of the world."
State True or False:
a. 1- True, 2- False
b. 1- False, 2- True
c. 1- True, 2- True
d. 1- False, 2- False
54. Consider the below mentioned statements with respect to International advertising.
1. The purpose of international advertising is to reach and communicate to target
audiences in more than one country.
2. International advertising is not a part of business activity, it is merely a
communication process.
1. State True or False:
a. 1-False, 2-True
b. 1-True, 2-False
c. 1-True, 2-True
d. 1-False, 2-False
55. Consider the below mentioned statements with respect to branding for international
markets.
1. Brand value can be defined as the branding efforts that build customer confidence and
loyalty by adding unique advantages to the firms product or service.
2. In international branding, brand ideas, values and concepts have to vary to make them
familiar to customers.
2. State True or False:
a. 1-True, 2-False
b. 1-True, 2-True
c. 1-False, 2-True
d. 1-False, 2-False
56. "Consider the following statements with respect to Strategic Management:
1. Strategic management identifies and comprehends the environmental factors to
control the plans accordingly.
2. Most strategic alliances focus on generating greater profits and returns for the
business owners."
3. State True or False:
a. 1- True, 2- False
b. 1- False, 2- True
c. 1- True, 2- True
d. 1- False, 2- False
2. The benefit of talented employees with prior experience on definite aspects of the
project are not utilised based on the assumption that the management can plan and
perform a project better without the inputs from these employees."
5. State True or False:
a. 1- True, 2- False
b. 1- False, 2- True
c. 1- True, 2- True
d. 1- False, 2- False
70. 20. 1. If the document is submitted under the __________, the insured amount
should be in the currency as mentioned in the credit.
2. The ___________ is signed by the representatives of the carrying vessel and it
contains the details of type, quantity and destination of the goods.
a. Letter of credit, Packing List
b. Bill of lading, Letter of credit
c. Letter of credit, Bill of lading
d. Packing List, Bill of lading
74. 24. Consider the following statements with respect to reasons for global sourcing:
1) In times of economic recession, political environment encourages to
outsource as the country's employment remains unaffected.
2) The global sourcing industry is on a growth run as there are sound business
reasons in global sourcing.
State True or False:
a. 1- True, 2- False
b. 1- False, 2- True
c. 1- True, 2- True
d. 1- False, 2- False
75. 25. Consider the following statements with respect to reasons for global
outsourcing:
1) Layoff expenditure in US are far higher than in India, thus, companies outsource
their business operations to countries like India and China.
2) There is improved performance in developing countries as bottom of the
pyramid offers specialisation and dedicated expertise for the work.
State True or False:
a. 1- True, 2- False
b. 1- False, 2- True
c. 1- True, 2- True
d. 1- False, 2- False