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web.groovymark@gmail.com
- December 7, 2024
Question 41
Which organization provides low-interest loans and grants to help developing countries improve infrastructure and reduce poverty?
a) International Monetary Fund
b) World Bank
c) World Trade Organization
d) European Union
Answer: b) World Bank
Explanation:
The World Bank provides financial and technical assistance to developing countries for projects aimed at reducing poverty and improving infrastructure.
Question 42
Which strategy involves a company setting up production facilities in a foreign market to be closer to customers and reduce transportation costs?
a) Outsourcing
b) Exporting
c) Licensing
d) Foreign direct investment
Answer: d) Foreign direct investment
Explanation:
Foreign direct investment (FDI) involves establishing production facilities or operations in a foreign market, allowing companies to be closer to customers and reduce logistics costs.
Question 43
Which pricing strategy is aimed at gaining market share by offering products at lower prices than competitors?
a) Premium pricing
b) Market penetration
c) Price skimming
d) Cost-plus pricing
Answer: b) Market penetration
Explanation:
Market penetration involves setting lower prices to attract customers and gain market share quickly, especially in competitive markets with established players.
Question 44
What is the primary purpose of trade sanctions imposed by governments?
a) Encourage foreign investment
b) Punish or pressure foreign governments
c) Reduce domestic production costs
d) Promote international trade
Answer: b) Punish or pressure foreign governments
Explanation:
Trade sanctions are typically imposed by governments to pressure or punish foreign governments for political or economic reasons, often by restricting trade or economic transactions.
Question 45
Which investment strategy involves purchasing a company’s shares on the stock exchange?
a) Foreign direct investment
b) Venture capital
c) Private equity
d) Portfolio investment
Answer: d) Portfolio investment
Explanation:
Portfolio investment refers to the purchase of securities, such as stocks or bonds, on the stock exchange, without the intention of obtaining a controlling interest in the company.
Question 46
Which type of organizational structure combines elements of both functional and divisional structures?
a) Matrix structure
b) Team-based structure
c) Product structure
d) Bureaucratic structure
Answer: a) Matrix structure
Explanation:
A matrix structure integrates both functional and divisional structures, allowing employees to report to multiple managers and work on different projects or functions simultaneously.
Question 47
Which term describes the complete sequence of activities and processes required to bring a product from raw material to the customer?
a) Supply chain
b) Value chain
c) Logistics network
d) Distribution channel
Answer: a) Supply chain
Explanation:
The supply chain encompasses all processes involved in the production, transportation, and distribution of goods from raw materials to the final consumer.
Question 48
What is a benefit of using hedging strategies in international business?
a) Reduces marketing costs
b) Increases production efficiency
c) Minimizes exchange rate risks
d) Enhances brand recognition
Answer: c) Minimizes exchange rate risks
Explanation:
Hedging strategies, such as forward contracts and options, help businesses minimize the risks associated with fluctuations in exchange rates when operating in international markets.
Question 49
Which international agreement focuses on the protection of intellectual property rights across member countries?
a) TRIPS Agreement
b) Paris Agreement
c) Kyoto Protocol
d) CITES Agreement
Answer: a) TRIPS Agreement
Explanation:
The TRIPS (Trade-Related Aspects of Intellectual Property Rights) Agreement, overseen by the World Trade Organization, establishes standards for the protection of intellectual property rights globally.
Question 50
What is a key feature of globalization in the modern world?
a) Decreased mobility of labor
b) Increased flow of goods, services, and capital across borders
c) Reduced technological innovation
d) Decrease in international cooperation
Answer: b) Increased flow of goods, services, and capital across borders
Explanation:
Globalization involves the increased integration of economies, with greater movement of goods, services, capital, and labor across international borders, supported by advancements in technology and communication.
