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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