GOBAL DIMENSION TO INTERNATIONAL BUSINESS

ASSIGMEMENT 1
SUBMISSION 12th AUG 2016
1) Full form of GDP and what is the difference between GDP per
Capital .
Answer
GDPs , full form is Gross Domestic Product.
GDP means gross domestic product , that is the net value of all goods
and services produced within a countries boundaries over a specified
period of time. Its a nomimal value , thereby meaning GDP per
person or per citizen.
2)Define or explain Purchase power parity .
Ans) Purchase power parity means the total adjustment that must be
made on currency exchange rates between countries that allows the
exchange to be equal to the purchasing power of each countrys
currency .
3)Which of these are formal institutions or informal institutions?
Laws - Informal institution
Ethnic - Informal institution
Culture- Informal institution
Regulation Formal institution
Norms-Informal institution
Rules- Formal institution
4)Name 2 countries under Theocratic laws.
Answer.
These countries are ruled or have laws considered to have divine
authority.

Eg : Vatican .Here Pope is supreme power in the country and leads the
executive , legislative and judicial branches of the Vatican government.
Saudi Arabia has Islamic theocratic laws and has the most tightly
controlled government in the world.
5)Name at least 2 of the 3 kinds of economies.
Pure economyHere what to produce is determined by consumers preferances
How to produce is determined by producer seeking profits.
For Whom to produce is determined by purchasing power.
Command market economyHere what to produce is determined by government preferances.
How to produce is determined by government and their employees.
Whom to produce is determined by government preferances
6) Name two characteristics of low context and high context cultures.
Low context culture- Business outlook is competitive .
Work ethic is task oriented.
High context cultures-Employees desire is team achieved.
Work style is team oriented.
7) Expand SWOT and VIRO.