Regional Economic Grouping
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This set of International Business Multiple Choice Questions & Answers (MCQs) focuses on Regional Economic Grouping
Q1 | Which one of the following is renowned for its high-quality databases on economic and social data?
- wto
- eu
- oecd
- world bank
Q2 | 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 the assets and earn profits.
Q3 | Which institute supports investments and foreign trade in India?
- international monetary fund (imf)
- world trade organisation (wto)
- world bank
- international labour organisation (ilo)
Q4 | Within an international context, what are 'economies of scope' synonymous with?
- decreased cost per unit of output.
- buying components in bulk.
- reusing a resource from one business/country in additional businesses/countries.
- all of the above.
Q5 | According to the concept of the value chain, of an international firm is profitable if:
- the value it commands exceeds the costs involved in creating the product
- the value it commands is lower than the costs involved in creating the product
- it operates in global industries
- the value it commands equals the costs involved in creating the product.
Q6 | When Safeway supermarkets in the United States buys strawberries from Mexico,
- it must use dollars to pay mexican farmers.
- it may use any currency it chooses.
- it must use pesos to pay mexican farmers.
- the transaction shows up in the u.s. capital account.
Q7 | A country records its international finance accounts in it’s
- balance of payments accounts.
- import/export log accounts.
- trade payments accounts.
- net exports payments account.
Q8 | Which organisations strain on the liberalisation of foreign investment and foreign trade?
- international monetary fund
- world health organisation
- world trade organisation
- international labour organisation
Q9 | Trade Related Investment Measures (TRIMS) doesn’t apply for
- Measures that affect trade in goods.
- Measures that lead to restrictions on quantities.
- Discouraging measures that limit a company’s imports.
- Discouraging measures that limit a company’s exports.
Q10 | 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.
Q11 | 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.
Q12 | Quantitative restrictions refer to limit set by countries to curb
- Imports
- Exports
- Imports & exports
- None of the above
Q13 | A Most Favoured nation status doesn’t necessarily refer to
- Same and equal economic treatment
- Non-discriminatory treatment
- Same tariff rates applicable
- Uniform civil code
Q14 | The world trade organization was formed in the year _________ with GATT as it basis.
- 1993
- 1994
- 1995
- 1996
Q15 | 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
- Low level of inequality of power and wealth within the society
- High level of Political corruption
- Low level of Human development Index
Q16 | Specific cultural dimensions that does not have a significant impact on cross-national businessinteractions is
- Hofstede’s five cultural dimensions
- Monochromatic vs polychromatic tune
- Communication
- Geography
Q17 | Professional culture refers to
- Shared belief of top managers about how they should manage themselves and their employees
- Shared code of ethics and other commonalities shared by members of a given group
- Both (a) and (c)
- None of the above
Q18 | An attribute that doesn’t contribute to Porters Diamond model is
- Government
- Organized Trade union
- Factor Conditions
- Demand Conditions
Q19 | _______ theory states that, lack of resources often helps countries to become competitive
- Competitive theory
- Porters Diamond Model
- Theory of Mercantilism
- Product life cycle theory
Q20 | Identify a factor that doesn’t play an important role in attracting FDI
- Laws, rule sand regulations
- Administrative procedures and efficiency
- Infrastructure related factors
- Language
Q21 | B2B sector specific policy of Indian Government is
- FDI up to 100% subject to condition that they invest 26 % in favour of Indian Public within 5 yrs
- FDI up to 100%
- FDI up to 100% subject to condition that they invest 26 % in favor of Indian Public within 10 yrs
- FDI up to 49%
Q22 | General electric follows ___________ as its international operational strategy
- Global
- International
- Multi-domestic
- Transnational
Q23 | Factor of Interdependence in Multi-domestic strategy is
- Low
- Moderate
- High
- Very High
Q24 | In 90’s the global management perception was based on
- Standardization v/s adaptation
- Globalization v/s localization
- Global integration v/s Local Responsiveness
- Local responsiveness
Q25 | The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year 1999 is an example of
- Subsidiary
- Joint venture
- Strategic International Alliance
- License agreement