A-AS Level (CIE) Business Studies Paper-1: Specimen Questions with Answers 47 - 48 of 50

Question 47

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Describe in Detail

Essay▾

Explain the uses of non-random sampling

Explanation

In this system of sampling, one selects a desired number of sampling units which he thinks ‘representative’ of the population according to his own criterion and will. However, purposive sample may be selected according to the following four procedures:

  • Select only those units which have average characteristics. The extreme units are left.
  • Select only those units which he thinks are relevant to the purpose and no important unit is left.
  • Select the units from groups in the same proportion as they are in the population.
  • Select the units according to his convenience.

Utility

The Method of Purposive Sampling is Useful in the Following Situations

  • When the number of units in the population is very small and there is a possibility of neglecting important units.
  • When the sample size is small.
  • When import units are to be studied thoroughly.
  • When investigator knows the method of selecting sample and has some experiences in this field.
  • This method is also used to have a pilot investigation.

Question 48

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Essay▾

What are the drivers of International Business?

Explanation

  • High Rate of Profits: The fundamental objective of a business is to earn profits. When the domestic markets don՚t give higher rate of profits, business firms look for foreign markets where there is a scope for greater profits. Therefore, the objective of profit affects and motivates the business to expand operations to the foreign countries.
  • Limited Home Market: When a size of the home market is limited either due to the smaller size of the population or due to the lower purchasing power of all people or both, the companies internationalize their operations. For example, most of the Japanese automobiles and electronics firms entered the USA, Europe, and even African markets due to the smaller size of the home market.
  • Political Stability vs. Political Instability: The Political stability doesn՚t imply the continuation of the same party in position, but it refers to continuation of the same policies of the Government for a longer period. It is viewed that the USA is a politically stable country; countries like the UK, France, Germany, Italy, and Japan are also politically stable. Most of the African countries and some of the Asian countries are politically unstable countries.

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