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For 1 Mark each: Total 5

1. Full form of GDP and what is the difference between GDP and GDP per

 GDP is a measure of a nation as economic health while GDP per capita

takes into account the reaction of such economic health into an
individual citizen as perspective.
 GDP measures the nation as wealth while GDP per capita roughly
determines the standard of living in a particular country.
 GDP normally increases as the population increase while GDP per capita
may decrease when population increases.
GDP takes into account all of the goods produced and services made available
in a country over a specific period of time& is obtained quarterly and
annually. GDP is a number that will ultimately indicate the overall economic
health of the country.
GDP per capita is a measure that results from GDP divided by the size of the
nation’s overall population. It is theoretically the amount of money that each
individual gets in that particular country. The GDP per capita provides a much
better determination of living standards as compared to GDP alone.

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.

The relative version of PPP is calculated as S= P1/P2Where:"S" represents

exchange rate ofcurrency1 to currency 2"P1" represents the cost of good "x"
in currency 1"P2" represents the cost of good "x" in currency 2

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

3. Which of these are Formal Institutions and Informal Institutions

a. Laws
b. Ethics
c. Culture
d. Regulations
e. Norms
f. Rules
a. Laws- Formal
b. Ethics-Informal
c. Culture- Informal
d. Regulations-Formal
e. Norms-Informal
F. Rules-Formal
4. Name two countries under Theocratic Laws
Answer----Afghanistan& Sudan

5. Name at least two of the three kinds of economies

Answer: Pure Market, Command Economic System& Mixed Market Economy
1. Pure Market: This form of economy is based on followings:

a. What to Produce: Determined by consumer’s preferences.

b. How to Produce: Determined by producers seeking high profit
c. For whom to produce: Determined by purchasing power

2. Command Market Economy:

a. What to produce: Determined by government preferences

b. How to produce: Determined by government & their employees
c. For whom to produce: Determined by government preferences

3. Mixed Market Economy:

a. What to produce: Determined partly by consumer preferences and
partly by government preferences
b. How to produce: Determined partly by producers seeking profits &
partly by government
c. For whom to produce: Determined partly by purchasing power & partly
by government preferences
B. For two marks each: Total 10

Name two characteristics each of Low Context and High Context cultures
Ans: High Context Cultures are
 Value traditions.
 Foster long-lasting relationships.

Low Context Cultures are

 Tend to make many shallower, short-term relationships.
 Require explicit communication since they lack additional context.

Expand SWOT and VRIO

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
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

ANS: Spot Foreign Exchange

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.

Forward Foreign Exchange

A forward foreign exchange is a contract to purchase or sell a set amount of a

foreign currency at a specified price for settlement at a predetermined future
date (closed forward) or within a range of dates in the future (open forward).
Contracts can be used to lock in a currency rate in anticipation of its increase
at some point in the future. The contract is binding for both parties.

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
Explain the role of informal institutions in the growth of business in any country