International Business – MCQ

This ppt contains MCQ of International Business.
Questions are sourced from SWAYAM Course International Business Co-ordinated by Dr. J. K. Nayak, faculty in the Department of Management Studies, IIT Roorkee.
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1. International business Multiple choice questions SUNDAR B. N.

2. Q. 1) Analyzing the business environment best assists in  Identifying key competitive forces; identifying competitive position; identifying key opportunities, threats, strengths and weaknesses.  Auditing macro environmental influences; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.  Auditing external and organizational factors; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.  Assessing historical trends; auditing environmental dangers; identifying strategic capabilities; identifying competitive position Answer: Auditing macro environmental influences; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.

3. Q. 2) Ultimately ………………was replaced by the …………….on 1st Jan 1995  GATS, WTO  WTO, GATT  GATT, WTO  IMF, GATT Answer: GATT, WTO

4. Q. 3) Which of the following best defines international business?  It includes all economic flows between two or more countries.  It includes all private economic flows between two or more countries.  It includes all business transactions involving two or more countries, whether the transactions are conducted by private or governmental organizations.  It includes all business transactions in countries other than your home country.  Answer:  It includes all business transactions involving two or more countries, whether the transactions are conducted by private or governmental organizations.

5. Q. 4) What is a Greenfield investment?  It is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.   Building new production facilities in the foreign country  A company purchases or leases an existing facility   Investment in a joint venture located in a foreign market Answer: Building new production facilities in the foreign country

6. Q. 5) Which of the following approaches is most appropriate for an organization with little experience in international markets?  Joint venture  Acquisition  Strategic alliance   Exporting Answer: Exporting

7. Q. 6) Ethnocentric orientation is a predisposition towards —   the home country  the global economy  regionalism  geographically proximate regions Answer: the home country

8. Q. 7) When an international firm follows a strategy of choosing only from the nationals of the parent country, it is called  polycentric approach  geocentric approach  ethnocentric approach  None of the above Answer: ethnocentric approach

9. Q. 8) When the firms adopt a strategy of limiting recruitment to the nationalities of the host country where the branch is located, it is called  polycentric approach  geocentric approach  ethnocentric approach  None of the above Answer: polycentric approach

10. Q. 9) Which is the right sequence of stages of Internationalization?  Domestic, Transnational, Global, International, Multinational  Domestic, International, Multinational, Global, Transnational  Domestic, Multinational, International, Transnational, Global  Domestic , International, Transnational, Multinational, Global Answer:  Domestic, International, Multinational, Global, Transnational

11. Q. 10) Which one is not the form of FDI?  Purchase of existing assets in foreign currency.  New Investment in Property, plant and equipment.  Making investment in the mutual funds  Transfer of many type of asset Answer: Making investment in the mutual funds

12. Q. 11) What is Entrepot ?  It refers to import of goods not for consumption in home country but for exporting them to another country.  It refers to selling goods or services to foreign countries.  It refers to buying goods or services from foreign countries  It refers to the expansion of business functions from domestic to any foreign country Answer:  It refers to import of goods not for consumption in home country but for exporting them to another country.

13. Q. 12) The companies globalize their operations through different means:  Exporting directly  Licensing/Franchising  Joint ventures   All the above Answer: All the above

14. Q. 13) The process of shifting production from a domestic to a foreign location is known as _____.  off-shoring   out-sourcing  service imports  a turnkey operation Answer: off-shoring  

15. Q. 14) Capital is available in large proportion and labour is less, then that economy is known as ……………..  Capital Intensive    Labour Intensive    Money economy  None of above Answer:   Capital Intensive

16. Q. 15) ________ are quotas that lead to a complete abolishment of trade  voluntary export restraints  embargoes  nontariff barriers  orderly marketing agreements Answer:  Embargoes

17. Q. 16) Similar to import tariffs, import quotas tend to result in  decreased producer surplus  increased consumer surplus  increased government revenue  higher prices and reduced imports Answer: higher prices and reduced imports

18. Q. 17) A tax of 20 cents per unit of imported cheese would be an example of:  Compound tariff  Effective tariff  Ad valorem tariff  Specific tariff Answer: Specific tariff

19. Q. 18) Nontariff trade barriers could include all of the following except  domestic content laws  government procurement policies  health, safety, and environmental standards  antidumping/countervailing duties applied to imports Answer: antidumping/countervailing duties applied to imports

20. Q. 19) Identify the odd one:  Ad valorem Duty  Compound duty  Domestic content requirement  Specific Duty Answer: Domestic content requirement

21. Q. 20) A case of international price discrimination in which an exporting firm sells at a lower price in a foreign market than it charges in other markets, is known as  Non-Dumping  Dumping  Anti-Dumping  None of the above Answer: Dumping

22. Q. 21) Developing nations often maintain that industrial countries permit raw materials to be imported at very low tariff rates while maintaining high tariff rates on manufactured imports. Which of the following refers to the above statement?  Tariff-quota effect  Nominal tariff effect  Tariff escalation effect  Protective tariff effect Answer: Tariff escalation effect

23. Q. 22) Among the ascribed group memberships is ________.  religion  national origin  profession  political affiliation Answer: national origin

24. Q. 23) Analyzing the business environment best assists in  Identifying key competitive forces; identifying competitive position; identifying key opportunities, threats, strengths and weaknesses.  Auditing macro environmental influences; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.  Auditing external and organisational factors; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.  Assessing historical trends; auditing environmental dangers; identifying strategic capabilities; identifying competitive position Answer: Auditing macro environmental influences; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.

25. Q. 24) _________ is the form of government in which one person or political part exercises absolute control whereas __________ refers to a political system in which government is by the people, exercised either directly or through elected representatives.  Individualism, collectivism  Totalitarianism, democracy  Democracy, totalitarianism  Socialism. Democracy Answer: Totalitarianism, democracy

26. Q. 25) Which of the following is true of cultures? Cultures are multifaceted  Cultures are stable and unchanging   Cultural knowledge is innate rather than learned  Cultures give us one, single identity rather than several overlapping identities Answer: Cultures are multifaceted

27. Q. 26) The following are examples of political risk actions  local-content laws and exchange controls.  import and labour restrictions  price and tax controls  all of the above Answer: all of the above

28. Q. 27) In relation to the PESTEL framework, which of the following statements is correct?  It assists in the assessment of organisational strengths and weaknesses.  It allows a detailed analysis of the structure of an industry.  It can be used as a checklist to understand the different environmental influences in the macro environment.  Takes an historical perspective on the main political, economic, socio-cultural, technological, environmental and legal factors Answer: It can be used as a checklist to understand the different environmental influences in the macro environment

29. Q. 28) The following is not a component of culture  Attitude  Beliefs  Education  Life expectancy Answer: Life expectancy

30. Q. 29) The term _________ refers to a political system that stresses the primacy of the rights and role of the community  Socialism  Democracy  Individualism   Collectivism Answer: Collectivism

31. Q. 30) Which of the variables is not used by marketers for demographic segmentation?  Age  Income  Gender   Poverty Answer: Poverty

32. Q. 31) Cultural homogeneity refers to —  inter-cultural movements  adaptation to the local culture  cross-cultural movements  cultural uniformity Answer: cultural uniformity

33. Q. 32) The international movement of production factors takes place primarily because of _______. governmental incentives  perceptions of earning higher returns  political (persecution and war dangers)  inadequate border controls to prevent the movements Answer: perceptions of earning higher returns

34. Q. 33) By design, the Human Development Index aims to capture _____ progress in human development  medium-term  long-term  Immediate   short-term Answer: long-term

35. Q. 34) Per capita GNI is determined by ____ the size of GNI of a nation by its total population  Dividing  Multiplying  Subtracting   Adding Answer: Dividing

36. Q. 35) A general, sustained rise in prices measured against a standard level of purchasing power is called _______.  cost of living  Hyperinflation  relative income   Inflation Answer: Inflation

37. Q. 36) The unemployment rate is a measure of:  all people who do not have employment.  all people who have been fired or laid-off.  all people who do not have a job but are actively looking for a job.  all people who do not make a living wage . Answer: all people who do not have a job but are actively looking for a job.

38. Q. 37) Key components of the balance of payments statements include which of the following pairs:  Concurrent account, capital account.  Current account, capital account.  Capital account, contemporary account.  Current account, cash account . Answer: Current account, capital account.

39. Q. 38) The three broad types of economic systems are:  market economy, command economy, mixed economy.  market economy, hybrid economy, and command economy.  market economy, collective economy, production economy.  individualist economy, mixed economy, and state-directed economy . Answer: market economy, command economy, mixed economy .

40. Q. 39) Which one of the following is true statement?  A balance of trade deals with export and import of invisible items only.  A balance of payment deals with both visible and invisible items.  The current account is not a component of balance of payment.  All the above. Answer: A balance of payment deals with both visible and invisible items.

41. Q. 40) Foreign Exchange and Foreign currencies in India are governed by  RBI  Banking Regulation Act  FEMA Act  SEBI Act Answer: FEMA Act

42. Q. 41) ______ is an umbrella term for economic policies, development interventions and private initiatives aimed at improving the trade performance of the country.   Economic development  Import promotion  Trade promotion  Trade area Answer: Trade promotion

43. Q. 42) At present (as on 31/06/2020) how many members are in the WTO?  160  164  189   193 Answer: 164

44. Q. 43) Who is the current (2020) President of the World Bank Group?  Robert Zoellick  David Malpass  Christine Lagarde  Jim Yong Kim Answer: David Malpass

45. Q. 44) Which of the following is not matched correctly?   IBRD:  1946  IFC:  1948  IDA:  1960  MIGA: 1988 Answer:  IFC:  1948

46. Q. 45) The main focus of IBRD and IDA is on ___________:  Developed Countries  Developing Countries   Both of The Above  None of The Above Answer: Developing Countries

47. Q. 46) The main function(s) of WTO is/are:  To handle trade disputes constructively.  To help promote peace among business community.  To provide rules that make life easier for all people involved in foreign trade.  All of the above Answer: All of the above

48. Q. 47) The main objective of International Monetary Fund (IMF) was to  Promote International trade  Help economically backward countries  Maintain stable exchange rates  Promote international liquidity Answer: Maintain stable exchange rates

49. Q. 48) The goal of _______________ is to promote domestic and international trade and reduce trade barriers while fostering conducive environment for the growth of trade and industry of India  Export Promotion Councils (EPCs)  Export Inspection Council (EIC)  Indian Institute of Foreign Trade (IIFT)  Associated Chambers of Commerce and Industry of India (ASSOCHAM)  Answer: Associated Chambers of Commerce and Industry of India (ASSOCHAM) 

50. Q. 49) Which of the following nations form the members of NAFTA?  the United Kingdom, France, and Italy  Canada, France, Britain, and Germany  the United States, Mexico, and Brazil  the United States, Canada, and Mexico Answer: the United States, Canada, and Mexico

51. Q. 50) Which of the following statements explains the advantages of the euro?  The euro has not been widely traded since its introduction.  Accounting records must still be reconciled to the home currency.  Companies still have difficulty establishing pricing policies.  The introduction of the euro has eliminated currency as a barrier to trade . Answer: The introduction of the euro has eliminated currency as a barrier to trade.

52. Q. 51) ________ refers to agreement between groups of countries in geographical region to the free flow of goods, services and factors of production between each other countries.  Regional Economic Integration  Trade creation  Trade diversion  Trade deflection Answer: Regional Economic Integration

53. Q. 52) The implementation of a common market involves all of the following except:  elimination of trade restrictions among member countries  a common tax system and monetary union  prohibition of restrictions on factor movements  a common tariff levied in imports from nonmembers Answer: a common tax system and monetary union

54. Q. 53) A situation where any advantage given by one member of the WTO to another member is extended to all WTO members is referred to as  Trade Diversion  Inter Regional Principle  Most Favoured Nation  Least Traded Nation Answer: Most Favoured Nation

55. Q. 54) Trade Related Investment Measures (TRIMS) doesn’t apply for  Measures that affect trade in goods.  Measures that lead to restrictions on quantities.  Discouraging measures that limit a company’s imports.  Discouraging measures that limit a company’s exports . Answer: Measures that lead to restrictions on quantities.

56. Q. 55) Which of the following sets of initials refers to a major international agreement seeking to protect 'knowledge-based' aspects of international trade?  TRIMS  OECD  TRIPS   UNESCO Answer: TRIPS

57. Q. 56) TRIPS (Trade-Related Aspects of Intellectual Property Rights) agreement is administered by:  World Bank (WB)  United Nations Organization (UNO)   World Trade Organization (WTO)  United Nations Conference on Trade and Development (UNCTAD ) Answer: World Trade Organization (WTO)

58. Q. 57) Psychographic segmentation is based on:  the quantitative side of consumer demographic analysis.  the quantitative side of consumer geographic analysis.  individuals' residential patterns and life-cycle preferences.  grouping people according to their psychological characteristics, values, and lifestyles . Answer: grouping people according to their psychological characteristics, values, and lifestyles

59. Q. 58) Income and population are two variables that can be used in _______________ segmentation:  psychographic   behavioural  lifestyle   demographic Answer: demographic

60. Reference Questions are sourced from SWAYAM Course International Business Co- ordinated by Dr. J. K. Nayak , faculty in the Department of Management Studies, IIT Roorkee .