Answer International Business Management Essay

1753 Words Aug 19th, 2012 8 Pages

Part One: Multiple Choice
Ans.1 B. Location
Ans.2. D . All of the above
Ans.3. B. Price
Ans.4. A. 1958
Ans.5.C. 1990
Ans.6. C. Culture
Ans.7. A. Product
Ans.8. C. Trademark
Ans.9. A. Global Market
Ans.10. C. Evaluative process

1. What do you understand by “ Inward-oriented Policies”?

Ans. An inward- oriented policy, usually , means over protection. What is less obvious is that sheltering domestic industries puts exports at a great disadvantage because it raises the cost of the foreign inputs used in their production. Moreover, an increase in the relative costs of domestic inputs may also occur through inflation or because of appreciation of the exchange rate as import restrictions are
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Societies ruled by a pressure clique- political, economic or military or by a dictator, plus most oligarchies and monarchies-belong to this category. The doctrines of fascism and erstwhile communism are example of Totalitarianism.
During the first and second world wars the authoritarian governments began to appear in most mature economies. Even after the Second World War, the totalitarian system became most common in newly independent nations. Administrative efficiency of the dictators was often cited as an advantage for coping with the problems of new born states. Surprisingly many nations are ruled by dictators or monarchies even today.

4. Write about ‘Persistent dumping’?

Ans. Persistent Dumping: This involves selling at a lower price in one market than in others. Japan is able to keep prices high at home, especially for consumer electronics, because it has no foreign competition there. But it is more than willing to lower prices in the US market in order to gain or maintain market share. Japanese consumers, as a result, must sacrifice by paying higher prices for Japanese products that are priced much lower in other market.

Caselet 1
1. Is gross domestic product per capital a useful indicator of international competitiveness in the EU ?
Ans The international competitiveness is the ability of the national economy to achieve sustained high rates of

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