(Software). (Description)
(a) Web browser (i) Prepare written documents
(b) Word processor (ii) Create and edit web pages
(c) Spreadsheet. (iii) Connect to websites and display web pages
(d) Web authoring (iv) Analyze and summarize numerical data
Choose the correct answer from the options given below
(1) (a) - (ii); (b) - (iv); (c) - (i); (d) - (iii)
(2) (a) - (iii); (b) - (i); (c) - (iv); (d) - (ii)
(3) (a) - (iii); (b) - (i); (c) - (ii); (d) - (iv)
(4) (a) - (ii); (b) - (i); (c) - (iv); (d) - (iii)
Read the given passage and answer the questions that follow (2 to 6)
The motives for direct investments abroad are generally the same as earning higher returns, possibly resulting from higher growth rates abroad, more favorable tax treatment or greater availability of infrastructure and diversifing risks. Indeed, it has been found that firms with a strong international orientation, either through exports or through foreign production and/or sales facilities, are more profitable, and have a much smaller variability in profits than purely domestic firms. Although these reasons are sufficient to explain international investments they leave one basic question unanswered with regard to direct
foreign investments. That is, they cannot explain why the residents of a nation do not
borrow from other nations and themselves make real investments in their own nation rather than accept direct investments from abroad. After all, the residents of a nation can be expected to be more familiar with local conditions, and thus to be at a competitive advantage with respect to foreign investors. There are several explanations for this. The most important is that many large corporations, usually in monopolistic and oligopolistic markets, often have some unique production knowledge or managerial skill that could easily and profitably be utilized abroad and over which the corporation wants to retain direct control. In such a situation, the firm will make direct investments abroad. This involves horizontal integration or the production abroad of a differentiated product that is also produced at home. This helps serve the foreign market better by adapting to local conditions than through exports.
2. The passage focuses on the aspects mainly related to
(1) Indirect control over investments
(2) International orientation of investment (3) Sales facilities
(4) Risks involved in integration of production
3. The possible reasons for direct foreign investment can be
(a) Higher returns
(b) getter tax regimes
(c) Availability of infrastructure
(d) Risk mitigation
(e) Financial support from local investors
Choose the correct answer from the options given below
(1) (a), (d) and (e) only
(2) (b), (c) and d) only
(3) (a), (b) and (c) only
(4) (d), (e) and f) only
4. Purely domestic firms are affected by
(1) Law interest rates
(2) Small variability of profits
(3) Larger variability of profits
(4) Export controls
5. What advantage do large corporations have in oligopolistic markets?
(1) Direct control over profitability
(2) Large production of undifferentiated products
(3) Localization of managerial skills
(4) Eliminating barriers to higher profits
6. In the case of direct foreign investments, what factor remains unaddressed?
(1) Acceptance of foreign investment
(2) Non-acceptance of foreign investment
(3) Absence of competitive edge
(4) Role of monopolistic corporations
Answers:
1. B
2. B
3. C
4. C
5. A
6. B
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