Socio-cultural factors and their influence on business MCQ Quiz in தமிழ் - Objective Question with Answer for Socio-cultural factors and their influence on business - இலவச PDF ஐப் பதிவிறக்கவும்

The correct answer is It opens up new market opportunities.

Key Points

• Globalisation is beneficial for firms because it opens up new market opportunities.
• Benefits of Globalization:
  • Access to new cultures.
  • The spread of Technology and Innovation.
  • Lower costs for products.
  • Higher standards of living across the globe.
  • Access to new markets.
  • Access to new talent.
• Global markets can reduce marketing costs, create new market opportunities abroad, and level income streams.

Additional Information

• Liberalization - It refers to a relaxation of government restrictions in the areas of social, political, and economic policies. 
• Privatization - It means different things including moving something from the public sector into the private sector.

The correct answer is Certificate of origin.

An autonomous commercial policy instrument, directed to promote and sustain mutual trade and to develop economic co-operation among countries is termed as Certificate of origin.

 Key Points

• It is based on the most classical commercial policy instrument of all the tariffs.
• It is a new online platform for the issuance of a Preferential Certificate of Origin (CC).
• It has been developed by DGFT (Directorate General of Foreign Trade).

Additional Information

• Certificate of clearance: It is the document issued by the commission to an individual or business operator who has fulfilled all the requirements to import their products in a particular region. The best example is Food Import Clearance System.
• Certificate of authenticity: This certificate is for determining an artwork's provenance i.e. you are the creator of a particular work.
• Certificate of assurance: It is the document that contains a written and signed list of performance requirements and business conditions to which the potential vendors agree to be bound.

Uppasala model for internationalisation of business operations is not valid for Services organiations.

• The Uppsala model is one of the theories describing the internationalization process of firms. The model states that firms first choose to enter nearby markets with low market commitment. 
• The Uppsala model is based on four core concepts: market commitment, market knowledge, current activities and commitment decisions. 
• The 1977 model is grounded in the broader research program on international business, led by Professor Sune Carlson, which was launched following the establishment of the Institute of Business Studies at the University of Uppsala in the late 1950s.

Drivers of Globalization:

1. Economic globalization stands for the economic interconnectedness of countries with the global economy as a whole.
2. This interdependence relates both to the exchange of factors of production (labor, capital, technologies, know-how) and the exchange of products (material goods and services, finished and unfinished products, consumer and capital goods).

Therefore, population mobility especially of labor and Financial flows are important drivers of globalization.

In my opinion, there are three main drivers for economic globalization and its different characteristics such as trade, international capital markets, currency markets, migration, and more:

The correct answer is Glocalization.

Key Points

• In India, McDonald's becoming a pure vegetarian at the festival of Navratri is an Example of Glocalization.
• Glocalization is a combination of the words "globalization" and "localization" which refers to mixing of global with the local.
• The term Glocalization is used to describe a product or service that is developed and distributed globally but is also adjusted to meet the local community's wants.
• McDonald sells only vegetarian and chicken products in India and not its beef products is another example of glocalization.​

Additional Information

• Secularism:
  • ​It means the separation of religion from civic affairs and the state and religion being treated as a purely personal matter.
• ​Universality:
  • ​It is the quality or state of being universal (applicable to all members of a specified class).

The Correct answer is Skilled labour and scientific knowledge

Key Points

The Competitive Advantage Of Nations by Michael Porter:

• The Competitive Advantage of Nations is an economics book written by American author Michael E. Porter, a Harvard Business School professor and expert in corporate competitive strategy whose work is regularly quoted in business and economics.
• For Porter, the concept of national productivity is not a meaningful term because countries don’t compete like businesses do.

Important Points A four-factor system is used in Porter's Diamond model to forecast or evaluate cluster activities:

1. Firm Strategy, Structure, and Rivalry:

A company's structure and business strategy must align with the local business climate in order for it to grow. Direct rivalry with other businesses should encourage each company to use its skills and resources to boost innovation and productivity—and to outperform its local competitors.

2. Demand Conditions:

When customers in a local market expect high-quality, differentiated products, companies trying to meet those demands will be obliged to innovate in order to survive. As a result, a company that succeeds in a competitive and aggressively demanding local market will also succeed in the global market since its products have been fine-tuned.

3.  Related and Supporting Industries:

All organizations rely on suppliers for parts, raw materials, and information exchange to some extent, and most companies engage in this cycle as both customers and providers. When a company's supply chain firms are productive, high-quality enterprises with the potential to prosper in both the local and global market, the company's efficiency, productivity, and innovation will improve as well.

4. Factor Conditions:

​Factor conditions in Michael Porter's competitive advantage of Nations include Skilled labour and scientific knowledge. This is a country's situation in terms of production elements such as knowledge and infrastructure. These are important considerations in determining industry competitiveness. Material resources, people resources (labour expenses, credentials, and dedication), knowledge resources, and infrastructure are all elements to consider.

Corporate Social Responsibility refers to a business’s behavior, that it’s economically profitable, complies with the law, is ethical, and is socially supportive. Profitability and compliance with the law are the most important conditions for corporate social responsibility and when discussing the company’s ethics, and the level to which it supports the society it’s part of with money, time, and talent.

1. Carroll’s CSR pyramid is a framework that explains how and why organizations should take social responsibility.
2. The pyramid was developed by Archie Carroll and highlights the four most important types of responsibility of organizations.
3. Carroll’s four-part definition of CSR was originally stated as follows: “Corporate social responsibility encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations at a given point in time.”
4. The pyramid’s base is profit. This foundation is necessary for a company to meet all laws and regulations, as well as the demands of shareholders. Before a company can and should then take its philanthropic responsibility or discretionary responsibility, it must also meet its ethical responsibilities.

Thus, option 3 is the correct answer.

The theory suggesting that the patterns of international trade are determined by factor endowment rather than productivity was propounded by Heckscher and Bertil Ohlin.

Explanation:

1. Heckscher-Ohlin theory, in economics, a theory of comparative advantage in international trade, according to which countries in which capital is relatively plentiful and labour relatively scarce will tend to export capital-intensive products and import labour-intensive products, while countries in which labour is relatively plentiful and capital relatively scarce will tend to export labor-intensive products and import capital-intensive products.
2. The theory was developed by the Swedish economist Bertil Ohlin (1899–1979) on the basis of work by his teacher the Swedish economist Eli Filip Heckscher (1879–1952).
3. For his work on the theory, Ohlin was awarded the Nobel Prize for Economics (the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel) in 1977.

1. Heckscher and Bertil Ohlin theorem - according to which trade should originate among nations that have different factor endowments.
2. Adam Smith has given Absolute advantage theory.
3. David Ricardo - comparative advantage
4. Michael porter - porter’s national competitive advantage

The correct answer is 1-C, 2-A, 3-D, 4-B

Key Points The correct match is:

• Quotas are the financial contributions that member countries make to the IMF. Quotas determine a country's voting power in the IMF and its access to IMF financing. Therefore, the correct match is III. Financial contributions from the member countries, determining their voting power in the IMF and their access to financing.
• Special Drawing Rights (SDRs) are an international reserve asset created by the IMF. SDRs can be used to settle international payments and to obtain foreign currency from other IMF members. Therefore, the correct match is I. IMF's unit of account and a potential claim on the freely usable currencies of IMF members.
• Article IV Consultations are regular reviews conducted by the IMF to monitor the economic health of member countries. These consultations are designed to help member countries identify and address their economic challenges. Therefore, the correct match is IV. Regular reviews conducted by the IMF to monitor the economic health of member countries.
• Conditionality refers to the policies that borrowing countries must follow to obtain IMF financing. These policies are designed to help the borrowing country address its economic problems and to ensure that the IMF's resources are repaid. Therefore, the correct match is II. Policies that borrowing countries must follow to obtain IMF financing and to ensure that the IMF's resources are repaid.

Hence, the correct answer is 1-C, 2-A, 3-D, 4-B

The correct answer is Domestic producers are able to sell exportable goods at a premium to the domestic market.

Key Points

• Tariffs are used to restrict imports.
• Simply put, they increase the price of goods and services purchased from another country, making them less attractive to domestic consumers.
• Governments impose tariffs to raise revenue, protect domestic industries, or exert political leverage over another country.
• Tariffs often result in unwanted side effects, such as higher consumer prices.
• Tariffs have a long and contentious history and the debate over whether they represent good or bad policy rages on to this day.

Therefore, a direct consequence can be seen on the domestic producers who will find it easier to sell their products in the domestic market at a premium.