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Test: Global and Comparative Management - 1 - B Com MCQ


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10 Questions MCQ Test - Test: Global and Comparative Management - 1

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Test: Global and Comparative Management - 1 - Question 1

Why do countries engage in international trade, according to the text?

Detailed Solution for Test: Global and Comparative Management - 1 - Question 1
Countries engage in international trade primarily to meet the demands for goods and services that they can't produce efficiently. This is driven by differences in resources, expertise, and costs among nations. For example, some countries may have a comparative advantage in producing certain products due to lower production costs or superior technology.
Test: Global and Comparative Management - 1 - Question 2

What is the concept of comparative advantage?

Detailed Solution for Test: Global and Comparative Management - 1 - Question 2
Comparative advantage exists when a country can produce a product at a lower opportunity cost compared to another nation. It means the country can make more products using the same amount of resources or fewer resources than other countries, making it more efficient in that particular industry.
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Test: Global and Comparative Management - 1 - Question 3

Which stage of structural change is characterized by the establishment of a separate international division?

Detailed Solution for Test: Global and Comparative Management - 1 - Question 3
The stage characterized by the establishment of a separate international division is the "International division stage." During this phase, companies establish a distinct division to manage international operations as they expand into foreign markets.
Test: Global and Comparative Management - 1 - Question 4
Why might a multinational company prefer hiring local talent in foreign markets rather than using expatriates?
Detailed Solution for Test: Global and Comparative Management - 1 - Question 4
Multinational companies may prefer hiring local talent in foreign markets because it helps minimize cultural and language barriers. Local employees are often more familiar with the local culture and language, making it easier to conduct business effectively in foreign markets.
Test: Global and Comparative Management - 1 - Question 5
What is the significance of controlling in international management?
Detailed Solution for Test: Global and Comparative Management - 1 - Question 5
Controlling in international management is significant because it ensures compliance with legal restrictions. In various countries, laws and regulations can differ significantly, and multinational companies need to monitor and ensure that their operations adhere to these regulations to avoid legal issues.
Test: Global and Comparative Management - 1 - Question 6
Which measure indicates that a country has a trade surplus?
Detailed Solution for Test: Global and Comparative Management - 1 - Question 6
A trade surplus occurs when the value of exports exceeds the value of imports. This means that a country is selling more products to other nations than it is buying, resulting in a surplus of trade.
Test: Global and Comparative Management - 1 - Question 7
Why do some experts express concerns about a country having a continuously growing trade deficit?
Detailed Solution for Test: Global and Comparative Management - 1 - Question 7
Some experts express concerns about a continuously growing trade deficit because it may lead to a decrease in the country's national income. When a country consistently buys more goods from other nations than it sells, it can negatively impact its economic stability and result in lower national income.
Test: Global and Comparative Management - 1 - Question 8
What does the balance of payments measure?
Detailed Solution for Test: Global and Comparative Management - 1 - Question 8
The balance of payments measures the difference between a country's total income and total expenditures over a period of time. It includes not only the balance of trade but also other financial flows such as foreign investment, tourism, and foreign aid.
Test: Global and Comparative Management - 1 - Question 9
Which of the following factors contributes to the complexity of the controlling function in international management?
Detailed Solution for Test: Global and Comparative Management - 1 - Question 9
Language barriers and cultural differences contribute to the complexity of the controlling function in international management. These differences can affect communication, employee attitudes, and how businesses operate in foreign markets.
Test: Global and Comparative Management - 1 - Question 10
In the context of international management, what does the term "expatriates" refer to?
Detailed Solution for Test: Global and Comparative Management - 1 - Question 10
In the context of international management, "expatriates" refer to employees who live and work in another country, typically for a multinational company. They are often assigned to foreign positions for a specified period and can be from the company's home country.
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