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This set of International Business Environment Multiple Choice Questions & Answers (MCQs) focuses on International Business Environment Set 1
Q1 | Nations conduct international trade because:
- Some nations prefer to produce one thing while others produce other things.
- Resources are not equally distributed among all trading nations.
- Trade enhances opportunities to accumulate profits.
- Interest rates are not identical in all trading nations
Q2 | International Trade is most likely to generate short-term unemployment in:
- Industries in which there are neither imports nor exports
- Import-competing industries
- Industries that sell to domestic and foreign buyers.
- Industries that sell to only foreign buyers
Q3 | Globalization refers to:
- Lower incomes worldwide
- Less foreign trade and investment
- Global warming and their effects
- A more integrated and interdependent world
Q4 | Increased foreign competition tend to
- Intensify inflationary pressure at home
- Induce falling output per worker-hour for domestic workers
- Place constraints on the wages of domestic workers
- Increase profits of domestic import-competing industries
Q5 | The movement to free international trade is most likely to generate short-termunemployment in which industries
- Industries in which there are neither imports nor exports
- Import-competing industries.
- Industries that sell to domestic and foreign buyers
- Industries that sell to only foreign buyers
Q6 | International trade forces domestic firms to become more competitive in terms of
- The introduction of new products
- Product design and quality
- Product price
- All of the above
Q7 | If a nation has an open economy it means that the nation:
- Allows private ownership of capital.
- Has flexible exchange rates
- Has fixed exchange rates
- Conducts trade with other countries
Q8 | According to Adam Smith, the trade between countries should happen _____.
- Naturally according to the market forces
- Under government regulation
- Using factors that are available
- Only when a country has an absolute advantage
Q9 | Mercantilists believed that a country could increase the amount of wealth it had by_____.
- Promoting exports and discouraging imports
- Discouraging exports and promoting imports
- Controlling imports and exports
- Increasing both imports and exports
Q10 | Investment in Plant & machinery is termed as
- FDI
- FII
- Portfolio Investment
- Capital Investment
Q11 | The traditional mode of entering into international business is
- Licensing
- Exporting
- Joint venture
- Subsidiary
Q12 | Which type of following stage of internationalization has Decentralized decisionmaking?
- Subsidiary
- Multinational Corporation
- Transnational corporation
- Domestic Company
Q13 | Agreement between two parties where in one gives rights to use their intangibleproperty to another entity is called as
- Direct Exporting
- Turnkey project
- Strategic alliance
- Licensing
Q14 | Only manufacturing and exporting as per the requirement of importer is called
- Direct Export
- Sales
- Import
- Indirect Export
Q15 | Complex projects involving creation of an asset as per the requirement of the client iscalled _________.
- Joint venture
- Strategic alliance
- Turnkey Project
- Subsidiary
Q16 | Rapid integration or interconnection between countries is known as:
- Globalisation
- Liberalisation
- Socialisation
- Privatisation
Q17 | Globalisation has improved in the living structure of
- All the people
- Workers in Developing Countries
- People in developed Countries
- None of the above
Q18 | The main reason behind MNCs investments are
- To benefit foreign countries
- To provide financial support to the country’s Government
- For the welfare of underprivileged people
- To increase assets & earn profits
Q19 | Which institute supports investments and foreign trade in India?
- IMF
- WTO
- World Bank
- International labour Organisation ( ILO)
Q20 | Which of the following is not a feature of a Multi-National Company?
- It owns/ control production in more than one nation
- It set up factories where it is close to the market
- It organises production in complex ways.
- It employs labour only from its own country
Q21 | An MNC is a company that owns or controls production in
- One country
- More than one country
- Only developing countries
- Only developed countries
Q22 | 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
Q23 | Which of the following business environment are known and controllable?
- Domestic business Environment
- Foreign business Environment
- International business Environment
- None
Q24 | Forces that impacts business environment due to change in government is type of
- Legal
- Cultural
- Social
- Political
Q25 | Which of the following is not cultural factor?
- Language
- Income
- Beliefs
- Customs