International Business Set 7
On This Page
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
Q2 | Typically the last step in the internationalization process is:
- Licensing
- Exporting
- Wholly owned subsidiaries
- 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
Q4 | IBRD (International Bank for Reconstruction and Development) also known as
- EXIM Bank
- World Bank
- IMF
- International Financial Bank
Q5 | Ultimately ……………… was replaced by the …………….on 1st Jan 1995
- GATT/WTO
- GATS/IMF
- WTO/WORLD BANK
- WORLD BANK/WIPO
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
Q7 | Subsidiaries consider regional environment for policy / Strategy formulation is known as
- Polycentric Approach
- Regiocentric Approach
- Ethnocentric Approach
- Geocentric 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.
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.
Q10 | The following factor does not differentiate international business from domesticbusiness
- different currencies
- product quality
- product mobility
- trade policies
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.
Q12 | Business across several countries with some decentralization of management decisionmaking to subsidiaries is
- Global business.
- Multinational business.
- Transnational business.
- Multi-regional 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.
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.
Q15 | No new investment in the host country is created in the case of
- Greenfield FDI.
- Acquisition.
- Horizontal FDI.
- Vertical FDI.
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.
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.
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.
Q19 | Countries/ regions with huge market size will attract
- Market seeking FDI.
- Efficiency seeking FDI.
- Vertical FDI.
- Created assets 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.
Q21 | The following is not a component of culture
- Attitudes.
- Beliefs.
- Education.
- 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.
Q23 | Religion of a person affects his/her
- attitude towards entrepreneurship.
- gifting practices.
- use of products.
- all of the above.
Q24 | For the society, religion has no influence on
- holidays.
- language.
- role of women.
- marketing practices.
Q25 | The role of women is restricted in
- Eastern countries.
- Middle East countries.
- Traditional Islamic countries.
- India.