| 1. |
Nations conduct international trade because: |
| A. | Some nations prefer to produce one thing while others produce other things. |
| B. | Resources are not equally distributed among all trading nations. |
| C. | Trade enhances opportunities to accumulate profits. |
| D. | Interest rates are not identical in all trading nations |
| Answer» B. Resources are not equally distributed among all trading nations. | |
| 2. |
International Trade is most likely to generate short-term unemployment in: |
| A. | Industries in which there are neither imports nor exports |
| B. | Import-competing industries |
| C. | Industries that sell to domestic and foreign buyers. |
| D. | Industries that sell to only foreign buyers |
| Answer» B. Import-competing industries | |
| 3. |
Globalization refers to: |
| A. | Lower incomes worldwide |
| B. | Less foreign trade and investment |
| C. | Global warming and their effects |
| D. | A more integrated and interdependent world |
| Answer» D. A more integrated and interdependent world | |
| 4. |
Increased foreign competition tend to |
| A. | Intensify inflationary pressure at home |
| B. | Induce falling output per worker-hour for domestic workers |
| C. | Place constraints on the wages of domestic workers |
| D. | Increase profits of domestic import-competing industries |
| Answer» C. Place constraints on the wages of domestic workers | |
| 5. |
The movement to free international trade is most likely to generate short-term unemployment in which industries |
| A. | Industries in which there are neither imports nor exports |
| B. | Import-competing industries. |
| C. | Industries that sell to domestic and foreign buyers |
| D. | Industries that sell to only foreign buyers |
| Answer» B. Import-competing industries. | |
| 6. |
International trade forces domestic firms to become more competitive in terms of |
| A. | The introduction of new products |
| B. | Product design and quality |
| C. | Product price |
| D. | All of the above |
| Answer» D. All of the above | |
| 7. |
If a nation has an open economy it means that the nation: |
| A. | Allows private ownership of capital. |
| B. | Has flexible exchange rates |
| C. | Has fixed exchange rates |
| D. | Conducts trade with other countries |
| Answer» D. Conducts trade with other countries | |
| 8. |
According to Adam Smith, the trade between countries should happen _____. |
| A. | Naturally according to the market forces |
| B. | Under government regulation |
| C. | Using factors that are available |
| D. | Only when a country has an absolute advantage |
| Answer» D. Only when a country has an absolute advantage | |
| 9. |
Mercantilists believed that a country could increase the amount of wealth it had by _____. |
| A. | Promoting exports and discouraging imports |
| B. | Discouraging exports and promoting imports |
| C. | Controlling imports and exports |
| D. | Increasing both imports and exports |
| Answer» A. Promoting exports and discouraging imports | |
| 10. |
Investment in Plant & machinery is termed as |
| A. | FDI |
| B. | FII |
| C. | Portfolio Investment |
| D. | Capital Investment |
| Answer» D. Capital Investment | |
| 11. |
The traditional mode of entering into international business is |
| A. | Licensing |
| B. | Exporting |
| C. | Joint venture |
| D. | Subsidiary |
| Answer» B. Exporting | |
| 12. |
Which type of following stage of internationalization has Decentralized decision making? |
| A. | Subsidiary |
| B. | Multinational Corporation |
| C. | Transnational corporation |
| D. | Domestic Company |
| Answer» C. Transnational corporation | |
| 13. |
Agreement between two parties where in one gives rights to use their intangible property to another entity is called as |
| A. | Direct Exporting |
| B. | Turnkey project |
| C. | Strategic alliance |
| D. | Licensing |
| Answer» D. Licensing | |
| 14. |
Only manufacturing and exporting as per the requirement of importer is called |
| A. | Direct Export |
| B. | Sales |
| C. | Import |
| D. | Indirect Export |
| Answer» D. Indirect Export | |
| 15. |
Complex projects involving creation of an asset as per the requirement of the client is called _________. |
| A. | Joint venture |
| B. | Strategic alliance |
| C. | Turnkey Project |
| D. | Subsidiary |
| Answer» C. Turnkey Project | |
| 16. |
Rapid integration or interconnection between countries is known as: |
| A. | Globalisation |
| B. | Liberalisation |
| C. | Socialisation |
| D. | Privatisation |
| Answer» A. Globalisation | |
| 17. |
Globalisation has improved in the living structure of |
| A. | All the people |
| B. | Workers in Developing Countries |
| C. | People in developed Countries |
| D. | None of the above |
| Answer» C. People in developed Countries | |
| 18. |
The main reason behind MNCs investments are |
| A. | To benefit foreign countries |
| B. | To provide financial support to the country’s Government |
| C. | For the welfare of underprivileged people |
| D. | To increase assets & earn profits |
| Answer» D. To increase assets & earn profits | |
| 19. |
Which institute supports investments and foreign trade in India? |
| A. | IMF |
| B. | WTO |
| C. | World Bank |
| D. | International labour Organisation ( ILO) |
| Answer» B. WTO | |
| 20. |
Which of the following is not a feature of a Multi-National Company? |
| A. | It owns/ control production in more than one nation |
| B. | It set up factories where it is close to the market |
| C. | It organises production in complex ways. |
| D. | It employs labour only from its own country |
| Answer» D. It employs labour only from its own country | |
| 21. |
An MNC is a company that owns or controls production in |
| A. | One country |
| B. | More than one country |
| C. | Only developing countries |
| D. | Only developed countries |
| Answer» B. More than one country | |
| 22. |
Which is the right sequence of stages of Internationalization |
| A. | Domestic, Transnational, Global, International, Multinational |
| B. | Domestic, International, Multinational, Global, Transnational |
| C. | Domestic, Multinational, International, Transnational, Global |
| D. | Domestic, International, Transnational, Multinational, Global |
| Answer» B. Domestic, International, Multinational, Global, Transnational | |
| 23. |
Which of the following business environment are known and controllable? |
| A. | Domestic business Environment |
| B. | Foreign business Environment |
| C. | International business Environment |
| D. | None |
| Answer» A. Domestic business Environment | |
| 24. |
Forces that impacts business environment due to change in government is type of |
| A. | Legal |
| B. | Cultural |
| C. | Social |
| D. | Political |
| Answer» D. Political | |
| 25. |
Which of the following is not cultural factor? |
| A. | Language |
| B. | Income |
| C. | Beliefs |
| D. | Customs |
| Answer» B. Income | |