QP-GBM 2020

ROLL NUMBER: MS19A016 NAME: KARANDEEP SINGH
MS 6910 GLOBAL BUSINESS MANAGEMENT

End Exam (September 2020)
I. Multiple Choice Questions (only ONE choice is correct: Type “A” / “B” / “C” / “D”)
S.No. Question A/B/C/D

Countries can be clustered into 4 categories.
Which one below is NOT one of these? C
i.
(A) Emerging Countries (B) Third World Countries
(C) Newly-Industrialized Economies (D) Developing Countries
A country that is characterized by an acceptance of unequally distributed
authority and influence would measure high on: B
ii.
(A) Uncertainty avoidance (B) Power Distance
(C) Masculinity (D) Universalism
The most difficult marketing mix elements to standardize:
iii. (A) Products (B) Relationship Development A
(C) Sales and Distribution (D) Procurement
In terms of cross-cultural beliefs, what does Protestantism encourage?
(A) Belief in authority and responsibility
iv. (B) A pious, serious attitude B
(C) Individual achievement leading to free enterprise
(D) None of these
Which of the following is NOT part of the “Standard Economic Model”?
v. (A) Unified national market (B) Mass education C
(C) Tariff reduction to promote imports (D) Chartering of banks
Which one is NOT a pillar of the Global Competitiveness Index 4.0?
vi. (A) Health (B) Infrastructure C
(C) ICT Adoption (D) Industrial Structure
A firm that exploits differences between regions by continually adapting its
value chain to take advantage of those differences is said to be dealing in: D
vii.
(A) Aggregation (B) Adaptation
(C) Assimilation (D) Arbitrage
Why might a low cost country be an unsuitable location to site a R&D facility?
(A) They are located at a distance from key customers
viii. (B) They have low costs D
(C) They have good legal safeguards
(D) They may lack a suitable resource and infrastructure base
Worker skills that have developed in a particular country are (in terms of
Porter’s Diamond) a: A
ix. (A) Factor condition (B) Related and supporting industry condition
(C) Demand condition (D) Firm structure, strategy and rivalry condition
“Knowledge-based Approach to Strategy” was proposed by:

x. (A) Ikujiro Nonaka (B) Michael Porter A
(C) Pankaj Ghemawat (D) Geert Hofstede
Time: 60 minutes - Answer All The Questions - Marks: 40 (1 of 5)

II. Answer TRUE or FALSE (Type “T” or “F”)
S.No. Statement T or F
i. Global pricing leads to sub-optimization in markets T
ii. Cultures have a widespread effect on political/economic institutions and on T

competitive behavior.
iii. Outpost Factory is close to competition and key suppliers to learn about T
technological developments.
iv. Volatility of the stock in one stock market can affect the volatility of the same T
stock selling in another stock market due to cross-listing.
v. “Translation exposure” is the short-term cash flow resulting from existing T
financial or commercial commitments can be affected positively or negatively
vi. “Arbitrage” refers to achieving economies of scale and scope through F
international standardization.
vii. Trademarks are altered as part of counterfeiting (international product forgery) F
viii. “Globaloney” refers to misgivings about globalization. T
ix. In Dual Concern model the negotiation style which represents a low level of T
concern for both self and other known as Inaction/Avoiding.
x. Truly global strategies rarely exist in practice. T

III. What are the relative merits and demerits of having a high proportion of global
managers to local ones?
Global Managers Local Managers

Merits (i) Have superior international (i) Knowledge of the local culture
capabilities (e.g. language, and business practices
negotiation)
(ii) Highly motivated and can sync (ii) Less costly as compared to
company’s global goals with global managers
team goals.
Demerits (I) Possess lack of information (i) The pool of people with the
About unusual risks in necessary job skills could be
Host country limited.
(ii) Attracted to other firms and (ii) Locals may not understand the
may leave with little or no company's values or prospectus
warning

IV. Assume you are in charge of developing the strategy for a multinational company
selling products in 50 different countries around the world. One of the issues you face is
whether to employ a multidomestic (multicountry) strategy or a global strategy.
A. If your company’s product is personal computers, do you think it would make

better business sense to employ a multidomestic strategy or a global strategy?
Why? Provide an illustrative case of a company.
B. If your company’s product is dry soup mixes and canned soups, would a
multicountry strategy seem to be more advisable than a global strategy? Why?
Provide an illustrative case of a company.
Ans A. A global strategy refers to the strategy, which sells the same products under the
same brand names everywhere, uses much of the same distribution channels in all countries,
and competes based on the same capabilities and marketing approaches worldwide. Global
strategy would be better to use for selling the PCs because a standardized product like
computer, can be delivered to every customer under the same name with same features,
design and colour in the market around the world. For example, Dell sells computers around
the world with the brand name “Dell” on it. The features in the PCs remains the same, come
with the MS-office, same specifications etc. The major theme of global strategy is to integrate
and coordinate the company’s strategic moves worldwide and to expand into most, where
there is significant buyer demand. Hence, global strategy would better for selling the personal
computer.
Ans B. The taste of dry soup mixes and canned soups may not be same in all country as well
as the people’s taste and preferences differ from one country to other. Multi- country
strategy seems to be more advisable than global strategy for company's product dry soup
mixes and canned soups because each country’s local needs should be addressed when
dealing with soup or any other food in general. For example, Nestle Maggi soups with beef is
popular in U.S.A. but people in India may not prefer them and thus they do not sell those in
India. Choosing to do this allows the customer to better receive the company’s product
instead of seeing it as something produced by a foreign company. Hence, the bigger the
differences in buyer tastes cultural traditions, and marker conditions in different countries, the
stronger to use the multidomestic strategy

V. India now has pockets of strengths in key high-technology industries such as
software and pharmaceuticals. Why do you think India is developing strength in these
areas? How might success in these industries help to generate growth in the other
sectors of the Indian economy? (300 words)
India has emerged with strengths in areas such as pharmaceuticals due to their ability to
produce them at a low cost- therefore creating high profit. With such a large and growing
population, it is a no brainer that these areas have become so important.
India’s gain in technology and pharmaceuticals are impressive. As India is developing

strength in the key of high technology industries such as software and pharmaceutical since
they have such a large amount of resources and inexpensive labour.
The country has emerged as a vibrant global centre for software development, and India's
pharmaceuticals companies have taken a strong global position by selling low cost of patent
in the developed world.
In India, great potential exists for increasing productivity by shifting labour from low
productivity and subsistence activities to more productive modern sectors, as well as to new
knowledge-based activities. As the industries continue to prosper, other sectors of the
economy should also see the benefit of spill over effects.
Success in these industries will help generate growth in other areas of the Indian economy by
encouraging business owners to open up internationally. The revenue from the taxes from the
telecommunications and pharmaceutical industries are helping to develop all other areas of
the Indian economy. These industries are high rollers. The pharmaceuticals that are just off
patent can be produced at a much lower cost and this brings a great deal of income in for
India's economy.

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ROLL NUMBER: MS19A016 NAME: KARANDEEP SINGH

MS 6910 GLOBAL BUSINESS MANAGEMENT

S.No. Question A/B/C/D

“Knowledge-based Approach to Strategy” was proposed by:

Time: 60 minutes - Answer All The Questions - Marks: 40 (1 of 5)

ii. Cultures have a widespread effect on political/economic institutions and on T

viii. “Globaloney” refers to misgivings about globalization. T

Time: 60 minutes - Answer All The Questions - Marks: 40 (2 of 5)

Global Managers Local Managers

Time: 60 minutes - Answer All The Questions - Marks: 40 (3 of 5)

A. If your company’s product is personal computers, do you think it would make

Time: 60 minutes - Answer All The Questions - Marks: 40 (4 of 5)

India’s gain in technology and pharmaceuticals are impressive. As India is developing

Time: 60 minutes - Answer All The Questions - Marks: 40 (5 of 5)

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