UGC NET Management Previous Year Solved Papers - December 2019
- Option : D
- Explanation : Strategic Issues in Retailing: To enter
retailing is easy and still easier to fail. To
survive and be successful in retailing needs
catering to customers. Their costs and profits
depend on their type of operation, product
lines, and level of service. Personal consumers
make purchases for a variety of reasons.
Sometimes the reasons seem to be obvious,
and at times seem to be non-rational, vague
and maybe just social or psychological in
nature, such as to escape boredom, to
socialize, to kill time, or to learn if there is
anything interesting or new. Retailers
particularly consider target market and retail
store location; merchandise variety and
assortment; store image and atmospherics;
services, price level, and promotion.
Strategic Decisions in Retail: Having understood the difference between retail and “wholesale”, let us now focus on the strategic issues which a retailing firm has to necessarily respond to. These include:
(a) Location Decision
(b) Target Market Selection
(c) Business Model
(d) Merchandise Mix
(e) Positioning the Retail store.
- Option :
- Explanation : An asset denominated or valued in terms of
foreign-currency cash flows will lose value if
that foreign currency declines in value. It can
be said that such an asset is exposed to
exchange rate risk. However, this possible
the decline in asset value may be offset by the
the decline in value of any liability that is also
denominated or valued in terms of that foreign
currency. Thus, a firm would normally be
interested in its net exposed position (exposed assets—exposed liabilities) for each period
in each currency.
Although expected changes in exchange rates can often be included in the cost-benefit analysis relating to such transactions, in most cases, there is an unexpected component in exchange rate changes and often the cost-benefit analysis for such transactions does not fully capture even the expected change in the exchange rate. For example, price increases for the foreign operations of many MNCs often have to be less than those necessary to fully offset the exchange rate changes, owing to the competitive pressures generated by local businesses.
Three measures of foreign exchange exposure are translation exposure, transaction exposure, and economic exposure. Translation exposure arises because the foreign operations of MNCs have accounting statements denominated in the local currency of the country in which the operation is located. For U.S. MNCs, the reporting currency for its consolidated financial statements are the dollar, so the assets, liabilities, revenues, and expenses of the foreign operations must be translated into dollars. International transactions often require a payment to be made or received in foreign currency in the future, so these transactions are exposed to exchange rate risk. Economic exposure exists over the long term because the value of future cash flows in the reporting currency (that is, the dollar) from foreign operations is exposed to exchange rate risk. Indeed, the whole stream of future cash flows is exposed.
29. Match List-I with List-II:
| List-I (Theories of International Trade) | List-II (Propounder(s)) |
| (a) Theory of Absolute Advantage | (i) Raymond Vernon |
| (b) Factor Proportion Theory | (ii) Steffan Linder |
| (c) Country Similarity Theory | (iii) Heckscher Ohlin |
| (d) Product Life Cycle Theory | (iv) Adam Smith |
30. Concept testing, test marketing, and product testing are parts of which of the following?
- Option : C
- Explanation : Testing the Product: It is at this stage of
product testing that the new product manager
can check the feasibility and accuracy of
product performance. Thus, commercial
experiments are necessary to verify earlier
business judgments. The objective of this
the stage is to assess whether the product meets
the technical and commercial specifications
developed at various levels of concept
development for ascertaining product
acceptability. There are three types of tests
conducted at this stage as mentioned below:
Concept Testing
Product Prototype Testing
Test Marketing.
