International Business Management Set 1

On This Page

This set of International Business Management (IBM) Multiple Choice Questions & Answers (MCQs) focuses on International Business Management Set 1

Q1 | Trade between two countries can be useful if cost ratios of goods are:
  • Undetermined
  • Decreasing
  • Equal
  • Different
Q2 | The term Euro Currency market refers to
  • The international foreign exchange market
  • The market where the borrowing and lending of currencies take place outside the country of issue
  • The countries which have adopted Euro as their currency
  • The market in which Euro is exchanged for other currencies
Q3 | Which of the following theories suggests that firms seek to penetrate new markets over time?
  • Imperfect Market Theory
  • Product cycle theory
  • Theory of Comparative Advantage
  • None of the above
Q4 | Dumping refers to:
  • Reducing tariffs
  • Sale of goods abroad at low a price, below their cost and price in home market
  • Buying goods at low prices abroad and selling at higher prices locally
  • Expensive goods selling for low prices
Q5 | International trade and domestic trade differ because of:
  • Different government policies
  • Immobility of factors
  • Trade restrictions
  • All of the above
Q6 | The margin for a currency future should be maintained with the clearing house by
  • The seller
  • The buyer
  • Either the buyer or the seller as per the agreement between them
  • Both the buyer and the seller
Q7 | The following statement with respect to currency option is wrong
  • Foreign currency- Rupee option is available in India
  • An American option can be executed on any day during its currency
  • Put option gives the buyer the right to sell the foreign currency
  • Call option will be used by exporters
Q8 | Govt. policy about exports and imports is called:
  • Commercial policy
  • Fiscal policy
  • Monetary policy
  • Finance policy
Q9 | Which of the following is international trade:
  • Trade between countries
  • Trade between regions
  • Trade between provinces
  • Both (b) and (c)
Q10 | Market in which currencies buy and sell and their prices settle on is called the
  • International bond market
  • International capital market
  • Foreign exchange market
  • Eurocurrency market
Q11 | ___ Companies are registered in one country, doing business in others.
  • Transnational
  • Multinational
  • Off-shore
  • International
Q12 | The difference between interest rates in Russia and Switzerland stands for about ___per annum.
  • 10%
  • 5%
  • 28%
  • 40%
Q13 | It refers to the assumptions, values, and practices of people in the West and some elites in Non-Western cultures.
  • Universal Culture
  • Global culture
  • Organizational culture
  • All of the above
Q14 | ___ means the high adaptation of managerial practices to a given culture, and, therefore, high effectiveness.
  • Fitness for use
  • High fit
  • Fit and Fine
  • Substitution
Q15 | Erez and Gati proposed that the general model of multi-level analysis could be adopted for understanding the dynamics of ___.
  • Culture
  • Cultural Change
  • Multi-Level analysis
  • Both a and b
Q16 | State whether it is true or not: “Around the World, wherever you are, get what you want-fast from our family of Web sites.”
  • FALSE
  • TRUE
  • Incomplete
  • Cannot say
Q17 | ___ has become a world-leading marketer of toys.
  • California
  • UAE
  • Japan
  • China
Q18 | The main benefits for industrial countries would come from the liberalization of their___ market.
  • Mine
  • Agriculture
  • Domestic
  • National
Q19 | The non-tariff barriers are:
  • Product standards
  • Proliferation
  • Both a and b
  • Product adaptation
Q20 | What is meant by the phrase CSR?
  • Corporate Social Responsibility
  • Company Social Responsibility
  • Corporate Society Responsibility
  • Company Society Responsibility
Q21 | What does Milton Friedman believe to be the sole responsibility of business?
  • The only social responsibility of business is to its shareholders
  • Managers should act in ways that balance the interest of society and shareholders
  • The primary responsibility organizations have is to its employees
  • The primary responsibility organizations have is to its stakeholder
Q22 | What is the enlightened self-interest model of CSR?
  • That it is in an organization's own best interest to put itself first rather than its ethics
  • That it is in an organization's best interest to consider what a shareholder would want
  • That it is in an organization's own best interest to act in an ethical way
  • That it is in an organization's own best interest to follow the legislation and abide by the law.
Q23 | What does the importance of ethical behaviour, integrity and trust call into question?
  • The extent to which managers should attempt to change the underlying beliefs and values of individual followers
  • Who does what
  • What we do next
  • None of these
Q24 | Which of the following would most effectively act as the primary objective of a business organisation?
  • To make a profit
  • To procure resources
  • To communicate with shareholders
  • To mediate between the organisation and the environment
Q25 | Which of the following does the term Corporate Social Responsibility relate to?
  • Ethical conduct
  • Environmental practice
  • Community investment
  • All of the above