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web.groovymark@gmail.com
- December 7, 2024
Question 41
What is the key feature of a fixed exchange rate system?
a) Currency values fluctuate based on supply and demand
b) Currency values are set by market forces
c) Currency values are tied to another currency or commodity
d) Currency values are regulated by international organizations
Answer: c) Currency values are tied to another currency or commodity
Explanation:
In a fixed exchange rate system, a country’s currency value is pegged or tied to another currency or a commodity like gold, providing greater stability in international transactions.
Question 42
What is the main benefit of a matrix organizational structure?
a) Increased control over decision-making
b) Simplified reporting relationships
c) Flexibility in resource allocation across multiple projects
d) Reduced operational costs
Answer: c) Flexibility in resource allocation across multiple projects
Explanation:
A matrix structure allows employees to work on multiple projects across different departments, increasing flexibility and collaboration.
Question 43
What is the purpose of transfer pricing regulations?
a) To encourage free trade between countries
b) To ensure that multinational corporations pay fair taxes
c) To reduce the cost of exporting goods
d) To facilitate currency exchanges
Answer: b) To ensure that multinational corporations pay fair taxes
Explanation:
Transfer pricing regulations aim to prevent multinational corporations from manipulating prices to reduce taxable income in high-tax countries and shift profits to low-tax jurisdictions.
Question 44
Which form of risk involves sudden political changes that affect all companies operating in a country?
a) Micro risk
b) Legal risk
c) Macro risk
d) Cultural risk
Answer: c) Macro risk
Explanation:
Macro risk refers to political changes or instability that affect the overall business environment in a country, impacting all industries and companies operating there.
Question 45
Which globalization driver is focused on reducing production costs through economies of scale and outsourcing?
a) Market
b) Competition
c) Government
d) Cost
Answer: d) Cost
Explanation:
The cost driver of globalization focuses on reducing production costs by leveraging economies of scale, outsourcing, and utilizing cheaper labor and resources in foreign markets.
Question 46
What is the main advantage of crowdfunding for start-up businesses?
a) Securing loans from private investors
b) Access to a large number of investors contributing small amounts
c) Receiving tax incentives from local governments
d) Establishing international business partnerships
Answer: b) Access to a large number of investors contributing small amounts
Explanation:
Crowdfunding allows businesses to raise capital by receiving small contributions from a large pool of individual investors, often through online platforms.
Question 47
What is the primary focus of the World Intellectual Property Organization (WIPO)?
a) Protecting global labor rights
b) Overseeing global trade agreements
c) Enforcing international environmental laws
d) Promoting and protecting intellectual property rights
Answer: d) Promoting and protecting intellectual property rights
Explanation:
WIPO is responsible for developing and enforcing international standards and policies related to intellectual property rights, ensuring global protection of inventions, trademarks, and copyrights.
Question 48
What is the main purpose of the General Data Protection Regulation (GDPR)?
a) To promote free trade among European Union countries
b) To protect consumer data and privacy
c) To regulate cross-border e-commerce transactions
d) To encourage global investments in digital infrastructure
Answer: b) To protect consumer data and privacy
Explanation:
The GDPR is a regulation enacted by the European Union to protect individuals’ personal data and privacy, requiring companies to obtain explicit consent before collecting or processing personal information.
Question 49
Which term refers to the inequality between countries in terms of access to digital technologies and the internet?
a) Technological gap
b) Digital divide
c) Information imbalance
d) Cyber exclusion
Answer: b) Digital divide
Explanation:
The digital divide refers to the gap between countries or groups in terms of access to and use of digital technologies, such as the internet, which can hinder economic and social development.
Question 50
What is the primary function of management information systems (MIS) in a global business environment?
a) To manage employee relations across different countries
b) To collect and analyze data on all aspects of business operations
c) To facilitate international trade agreements
d) To oversee currency exchange rates
Answer: b) To collect and analyze data on all aspects of business operations
Explanation:
Management Information Systems (MIS) provide the tools and technologies that enable a company to collect, process, and analyze data, facilitating better decision-making across global operations.
