Multinational Enterprises MCQs

Q1 | If a German manufacturer of household appliances wants to take advantage of the cheaper labor availablein the Czech Republic, which of the following actions will not serve that purpose?

build a manufacturing subsidiary there and employ czech workers.

build a plant in the czech republic and send all german workers to operate it.

license a czech firm to produce its products under its own label.

contract for a czech firm to do some of the processing for it.

Q2 | Which of the following was created in an effort to promote free trade?

world trade organization

the sarbanes-oxley act

multilateral development banks

the organization for economic cooperation and development

Q3 | . Removing barriers or restrictions set by the government is called:

liberalisation

investment

favorable trade

free trade

Q4 | 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

Q5 | Subsidiaries consider the regional environment for policy / Strategy formulation is known as

polycentric approach

regionocentric approach

ethnocentric approach

geocentric approach

Q6 | . Which is not an Indian Multinational Company?

unilever

asian paints

piramal

wipro

Q7 | 18. Select example of Indian Multinational Company

hindustan unilever

videocon

cargill

tesco

Q8 | …………………corporation produces in the home country or in a single country and focuses on marketingthese products globally or vice a versa.

global

international

transnational

none of the above

Q9 | The —————-company produces, markets, invests and operates across the world

global

international

transnational

multinational

Q10 | Business across several countries with some decentralization of management decision making tosubsidiaries is

global business.

multinational business.

transnational business.

multi-regional business.

Q11 | Immobility of labor among nations is

absolute.

relatively of a higher degree than among regions in the same country.

relatively easier than movement within the country.

of the same degree as within the country.

Q12 | The following factor does not differentiate international business from domestic business

different currencies

product quality

product mobility

trade policies

Q13 | 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

Q14 | Theory of Mercantilism propagates

encourage exports and imports

encourage exports and discourage imports

discourage exports and imports

discourage exports and encourage imports

Q15 | Free international trade maximizes world output through

countries specializing in production of goods they are best suited for.

reduction in taxes.

increased factor income.

encouraging competition.

Q16 | International business does not result in the following

innovation is encouraged.

international cooperation is encouraged.

imports are rendered cheap.

consumption is minimized.

Q17 | By having business in different countries, a firm reduces

credit risk.

political risk.

financial risk.

business risk.

Q18 | Ultimately ………………was replaced by the …………….on 1st Jan 1995

gats, wto

wto, gatt

gatt, wto

imf, gatt

Q19 | _______ is the first step in the internationalization process.

license

foreign investment

sales

export

Q20 | In the foreign exchange market, the ________ of one country is traded for the ________ of anothercountry.

currency; currency

currency; financial instruments

currency; goods

goods; goods

Q21 | By definition, currency appreciation occurs when

the value of all currencies falls relative to gold.

the value of all currencies rises relative to gold.

the value of one currency rises relative to another currency.

the value of one currency falls relative to another currency

Q22 | Hedging is used by companies to:

decrease the variability of tax paid

decrease the spread between spot and forward market quotes

increase the variability of expected cash flows

decrease the variability of expected cash flows

Q23 | Exchange rates

are always fixed

fluctuate to equate the quantity of foreign exchange demanded with the quantity supplied

fluctuate to equate imports and exports

fluctuate to equate rates of interest in various countries

Q24 | If the U.S. dollar appreciates relative to the British pound,

it will take fewer dollars to purchase a pound

it will take more dollars to purchase a pound

it is called a weakening of the dollar

both a & c

Q25 | A floating exchange rate

is determined by the national governments involved

remains extremely stable over long periods of time

is determined by the actions of central banks

is allowed to vary according to market forces