Multinational Enterprises
On This Page
This set of International Business Multiple Choice Questions & Answers (MCQs) focuses on Multinational Enterprises
Q1 | If a German manufacturer of household appliances wants to take advantage of the cheaper labor availablein the Czech Republic, which of the following actions will not serve that purpose?
- build a manufacturing subsidiary there and employ czech workers.
- build a plant in the czech republic and send all german workers to operate it.
- license a czech firm to produce its products under its own label.
- contract for a czech firm to do some of the processing for it.
Q2 | Which of the following was created in an effort to promote free trade?
- world trade organization
- the sarbanes-oxley act
- multilateral development banks
- the organization for economic cooperation and development
Q3 | . Removing barriers or restrictions set by the government is called:
- liberalisation
- investment
- favorable trade
- free trade
Q4 | 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
Q5 | Subsidiaries consider the regional environment for policy / Strategy formulation is known as
- polycentric approach
- regionocentric approach
- ethnocentric approach
- geocentric approach
Q6 | . Which is not an Indian Multinational Company?
- unilever
- asian paints
- piramal
- wipro
Q7 | 18. Select example of Indian Multinational Company
- hindustan unilever
- videocon
- cargill
- tesco
Q8 | …………………corporation produces in the home country or in a single country and focuses on marketingthese products globally or vice a versa.
- global
- international
- transnational
- none of the above
Q9 | The —————-company produces, markets, invests and operates across the world
- global
- international
- transnational
- multinational
Q10 | Business across several countries with some decentralization of management decision making tosubsidiaries is
- global business.
- multinational business.
- transnational business.
- multi-regional business.
Q11 | Immobility of labor among nations is
- absolute.
- relatively of a higher degree than among regions in the same country.
- relatively easier than movement within the country.
- of the same degree as within the country.
Q12 | The following factor does not differentiate international business from domestic business
- different currencies
- product quality
- product mobility
- trade policies
Q13 | By entering into international business, a firm expects improvement in
- marketing.
- all spheres of marketing, operation and finance simultaneously.
- any or all spheres of marketing, operation and finance.
- finance only
Q14 | Theory of Mercantilism propagates
- encourage exports and imports
- encourage exports and discourage imports
- discourage exports and imports
- discourage exports and encourage imports
Q15 | Free international trade maximizes world output through
- countries specializing in production of goods they are best suited for.
- reduction in taxes.
- increased factor income.
- encouraging competition.
Q16 | International business does not result in the following
- innovation is encouraged.
- international cooperation is encouraged.
- imports are rendered cheap.
- consumption is minimized.
Q17 | By having business in different countries, a firm reduces
- credit risk.
- political risk.
- financial risk.
- business risk.
Q18 | Ultimately ………………was replaced by the …………….on 1st Jan 1995
- gats, wto
- wto, gatt
- gatt, wto
- imf, gatt
Q19 | _______ is the first step in the internationalization process.
- license
- foreign investment
- sales
- export
Q20 | In the foreign exchange market, the ________ of one country is traded for the ________ of anothercountry.
- currency; currency
- currency; financial instruments
- currency; goods
- goods; goods
Q21 | By definition, currency appreciation occurs when
- the value of all currencies falls relative to gold.
- the value of all currencies rises relative to gold.
- the value of one currency rises relative to another currency.
- the value of one currency falls relative to another currency
Q22 | Hedging is used by companies to:
- decrease the variability of tax paid
- decrease the spread between spot and forward market quotes
- increase the variability of expected cash flows
- decrease the variability of expected cash flows
Q23 | Exchange rates
- are always fixed
- fluctuate to equate the quantity of foreign exchange demanded with the quantity supplied
- fluctuate to equate imports and exports
- fluctuate to equate rates of interest in various countries
Q24 | If the U.S. dollar appreciates relative to the British pound,
- it will take fewer dollars to purchase a pound
- it will take more dollars to purchase a pound
- it is called a weakening of the dollar
- both a & c
Q25 | A floating exchange rate
- is determined by the national governments involved
- remains extremely stable over long periods of time
- is determined by the actions of central banks
- is allowed to vary according to market forces