International Business Set 6

Bachelor of Business Administration (BBA),

Master of Commerce (M.com)

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This set of International Business Multiple Choice Questions & Answers (MCQs) focuses on International Business Set 6

Q1 | CISF pricing includes the following
  • Commission is paid to the agent involved in the transaction
  • Cost of the goods exported
  • Freight & Insurance charges for the goods exported
  • All of the above
Answer: All of the above
Q2 | When the transaction is of high value, complex In nature and more technical __________method of the export sales contract is used.
  • Performa invoice
  • Purchase order
  • Sales contact
  • None of the above
Answer: Sales contact
Q3 | Which one of the following is a method for an exporter to get a contract
  • Proforma invoice
  • Purchase order
  • Sales contract
  • All the above
Answer: All the above
Q4 | Credits transferable by original beneficiary in favor of secondary beneficiary are known as
  • Deferred credits
  • Transit credits
  • Instalment credits
  • Transferable credits
Answer: Deferred credits
Q5 | When the exporter, expects the importer, to make the payment immediately upon the draftbeing presented to him is called.
  • Sight Draft.
  • Usance Draft
  • Demand draft
  • Pay Note
Answer: Sight Draft.
Q6 | The basic objective of export Promotion Council is to promote and develop the Exports of the
  • Particular products of country
  • Only attractive projects of the country
  • Only services industry products of the country
  • Overall exports of the country.
Answer: Overall exports of the country.
Q7 | The theory of Comparative cost advantage is given by
  • Porter
  • Adam Smith
  • Varnoon
  • D.Richardo
Answer: D.Richardo
Q8 | Trade Related Investment Measures (TRIMS) doesn’t apply for
  • Measures that lead to restrictions in quantities.
  • Discouraging measures that limit a company’s imports
  • Discouraging measures that limit a company’s exports.
  • ALL OF THE ABOVE
Answer: Measures that lead to restrictions in quantities.
Q9 | As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn’t consider
  • Direct payments to farmers are permitted.
  • Indirect assistance and support to farmers including R & D support by govt. are not permitted
  • Domestic policies which directly effect on production and trade have to be cut back.
  • Least developed countries do not need to make any cuts.
Answer: Indirect assistance and support to farmers including R & D support by govt. are not permitted
Q10 | Power distance Index (PDI) of 77 compared to a world average of 56.5 for India indicates
  • High level of inequality of power and wealth within the society
  • Normal Power and Wealth
  • High level of political corruption
  • Low level of Human Development Index
Answer: High level of inequality of power and wealth within the society
Q11 | Identify a factor that doesn’t play an important role in attracting FDI
  • Language
  • Laws, rules and regulations
  • Cost of resources
  • Infrastructure related factors
Answer: Language
Q12 | The first phase of globalization started around 1870 and ended with …
  • The World War I
  • The World War II
  • The Establishment of GATT
  • In 1913 when GDP was high
Answer: The World War I
Q13 | Which of these is a characteristic of multinational corporations>
  • At least one -third directors are foreign nationals
  • The company does 40% of its business in foreign markets
  • The overseas markets are larger than the domestic market
  • The affiliates are responsive tio a number of important environmental forces
Answer: The overseas markets are larger than the domestic market
Q14 | According to this theory the holdings of a country’s treasure primarily in the form of goldconstituted its wealth.
  • Gold Theory
  • Ricardo Theory
  • Mercantilism
  • H .O. THEORY
Answer: Mercantilism
Q15 | The Theory of Absolute Cost Advantage is given by
  • Adam smith
  • D. Richardo
  • Raymond Varnoon
  • Porter
Answer: Adam smith
Q16 | The Theory of Relative Factor Endowments is given by
  • Ohilin-Hecksher
  • FY Taylor
  • Richardo
  • Porter
Answer: Ohilin-Hecksher
Q17 | …………… is application of knowledge which redefine the boundaries of global business
  • Cultural Values
  • Society
  • Technology
  • Economy
Answer: Technology
Q18 | Capitalistic, communistic and mixed are the types of
  • Economic system
  • Political system
  • Social System
  • Cultural Attitudes
Answer: Economic system
Q19 | General Agreement on Trade in Services will not be applicable to
  • Services supplied from one country to another – cross border supply
  • Transaction of goods across the border – Export Import
  • Individuals traveling from own country to supply services in another – presence of natural persons.
  • Consumers/firms making use of a service in another country – consumption abroad
Answer: Transaction of goods across the border – Export Import
Q20 | Quantitative restrictions refer to limit set by countries to curb
  • Imports
  • Exports
  • Imports and Exports
  • All of the above
Answer: Imports and Exports
Q21 | India is an
  • Emerging economy
  • Developed economy
  • Less developed economy
  • None of these
Answer: Emerging economy
Q22 | The world trade organization was formed in the year _________ with GATT as it basis.
  • 1992
  • 1993
  • 1995
  • 1994
Answer: 1995
Q23 | ________theory states that, lack of resources often helps countries to become competitive
  • Competitive theory
  • Porters Diamond Model
  • Theory of Mercantilism
  • Product life cycle theory
Answer: Product life cycle theory
Q24 | Theory of Mercantilism propagates
  • Encourage imports and exports
  • Encourage exports and discourage imports
  • Discourage imports
  • None of these
Answer: Encourage exports and discourage imports
Q25 | The country that attract the largest FDI inflow is
  • USA
  • INDIA
  • CHINA
  • BRAZIL
Answer: CHINA
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