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Documente Cultură
A country with high GDP but with an overwhelmingly large population will
result in a low GDP per capita; thus indicating a not so favourable standard of
living since each citizen would only get a very small amount when wealth is
being equally distributed. A high GDP per capita, on the other hand, simply
means that a nation has a more efficient economy.
2. Define or explain Purchase Power Parity in two lines
Answer: An economic theory that estimates the amount of adjustment needed
on the exchange rate between countries in order for the exchange to be
equivalent to each currency's purchasing power.
For example, a chocolate bar that sells for USD 1.00 in USA should cost INR
68.00 in India when the exchange rate between USA and India is 1 USD=68
INR
Name two characteristics each of Low Context and High Context cultures
Ans: High Context Cultures are
Value traditions.
Foster long-lasting relationships.
Ans: SWOT-Strength-Weakness-Opportunities-Threats
VRIO- Value- Rarity- Imitability- Organization
Name at least two out of 3 each of the Classic Based Theories and Firm Based
Theories
Difference between Horizontal and Vertical FDI
Answer: Horizontal FDI refers to the type of direct investment between
industrialized countries as ways to avoid trade barriers, gain better access to
the local economy, or draw on technical expertise in the area by locating near
other established firms. Vertical FDI, by contrast, occurs when a firm in an
industrialized country lowers cost by relocating the production process to
low-wage countries.
In foreign exchange terminology what is spot and forward
A spot foreign exchange rate is the rate of a foreign exchange contract for
immediate delivery (usually within two days). The spot rate represents the
price that a buyer expects to pay for a foreign currency in another currency.
These contracts are typically used for immediate requirements, such as
property purchases and deposits, deposits on cards, etc. You can buy a spot
contract to lock in an exchange rate through a specific future date. Or, for a
modest fee, you can purchase a forward contract to lock in a future rate.
C. For Total 15
Draw a 5 point VRIO chart for Swiggy
Explain the impact both negative and positive on a strong rupee on Indian
Economy
Explain the role of informal institutions in the growth of business in any country