International Business Set 7

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 7

Q1 | General electric follows ___________ as its international operational strategy
  • GLOBAL
  • TRANSNATIONAL
  • INTERNATIONAL
  • MULTI-DOMESTIC
Answer: TRANSNATIONAL
Q2 | Typically the last step in the internationalization process is:
  • Licensing
  • Exporting
  • Wholly owned subsidiaries
  • Foreign Direct Investment
Answer: Foreign Direct Investment
Q3 | Which of these is/are the characteristic of a licensing agreement
  • The licensor might provide access to some of its patents or trademarks
  • The licensor might provide access to technology
  • It might be used to avoid the risks of foreign involvement
  • All of the above
Answer: All of the above
Q4 | IBRD (International Bank for Reconstruction and Development) also known as
  • EXIM Bank
  • World Bank
  • IMF
  • International Financial Bank
Answer: World Bank
Q5 | Ultimately ……………… was replaced by the …………….on 1st Jan 1995
  • GATT/WTO
  • GATS/IMF
  • WTO/WORLD BANK
  • WORLD BANK/WIPO
Answer: GATT/WTO
Q6 | Which is the right sequence of a 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
Q7 | Subsidiaries consider regional environment for policy / Strategy formulation is known as
  • Polycentric Approach
  • Regiocentric Approach
  • Ethnocentric Approach
  • Geocentric Approach
Answer: Regiocentric Approach
Q8 | 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.
Answer: Any or all spheres of marketing, operation and finance.
Q9 | Uneven distribution of natural resources
  • is the only cause for international business.
  • is the major factor for international business.
  • is among the major factors for international business.
  • is not a cause for international business.
Answer: is among the major factors for international business.
Q10 | The following factor does not differentiate international business from domesticbusiness
  • different currencies
  • product quality
  • product mobility
  • trade policies
Answer: product quality
Q11 | Geographical indications specify
  • Place of origin of goods.
  • Special characteristics of the product associated with the place of origin.
  • Place and special characters of the product.
  • Place or special characters of the product.
Answer: Place and special characters of the product.
Q12 | Business across several countries with some decentralization of management decisionmaking to subsidiaries is
  • Global business.
  • Multinational business.
  • Transnational business.
  • Multi-regional business.
Answer: Multinational business.
Q13 | Wholly owned subsidiary can be set up
  • as a Greenfield venture.
  • to acquire an existing firm.
  • to have products marketed overseas.
  • to have management is overseas.
Answer: as a Greenfield venture.
Q14 | The essential feature of FDI is
  • Investment of a very high value.
  • Investment in shares.
  • Investor’s influence on the management of the enterprise.
  • Investment of low value.
Answer: Investor’s influence on the management of the enterprise.
Q15 | No new investment in the host country is created in the case of
  • Greenfield FDI.
  • Acquisition.
  • Horizontal FDI.
  • Vertical FDI.
Answer: Acquisition.
Q16 | A firm investing in a foreign country to distribute the products there in creation of
  • Asset seeking FDI.
  • Backward vertical FDI.
  • Forward vertical FDI.
  • Distribution FDI.
Answer: Forward vertical FDI.
Q17 | The disadvantages of Greenfield FDI as compared to acquisition is
  • Profit will be less.
  • Size of investment will be high.
  • Lesser control in management.
  • Delay in establishment.
Answer: Delay in establishment.
Q18 | Conglomerate FDI refers to
  • FDI made by a group of firms.
  • FDI made in subsidiaries.
  • FDI made in similar products.
  • FDI made in unrelated products.
Answer: FDI made in unrelated products.
Q19 | Countries/ regions with huge market size will attract
  • Market seeking FDI.
  • Efficiency seeking FDI.
  • Vertical FDI.
  • Created assets seeking FDI.
Answer: Market seeking FDI.
Q20 | The following statement with respect to culture is false
  • Culture is enduring.
  • Culture is changing.
  • Culture is evolved among the members of a society.
  • Culture is determined by national boundaries.
Answer: Culture is determined by national boundaries.
Q21 | The following is not a component of culture
  • Attitudes.
  • Beliefs.
  • Education.
  • Life expectancy.
Answer: Life expectancy.
Q22 | Non- verbal communication
  • includes written communication.
  • has no place in international business.
  • includes body language.
  • should be learnt by business managers to communicate with foreigners.
Answer: includes body language.
Q23 | Religion of a person affects his/her
  • attitude towards entrepreneurship.
  • gifting practices.
  • use of products.
  • all of the above.
Answer: all of the above.
Q24 | For the society, religion has no influence on
  • holidays.
  • language.
  • role of women.
  • marketing practices.
Answer: language.
Q25 | The role of women is restricted in
  • Eastern countries.
  • Middle East countries.
  • Traditional Islamic countries.
  • India.
Answer: Traditional Islamic countries.
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