Chapter: India’s foreign Trade
1.

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 the assets and earn profits.
Answer» D. to increase the assets and earn profits.
2.

Which institute supports investments and foreign trade in India?

A. international monetary fund (imf)
B. world trade organisation (wto)
C. world bank
D. international labour organisation (ilo)
Answer» B. world trade organisation (wto)
3.

Within an international context, what are 'economies of scope' synonymous with?

A. decreased cost per unit of output.
B. buying components in bulk.
C. reusing a resource from one business/country in additional businesses/countries.
D. all of the above.
Answer» D. all of the above.
4.

According to the concept of the value chain, of an international firm is profitable if:

A. the value it commands exceeds the costs involved in creating the product
B. the value it commands is lower than the costs involved in creating the product
C. it operates in global industries
D. the value it commands equals the costs involved in creating the product.
Answer» A. the value it commands exceeds the costs involved in creating the product
5.

When Safeway supermarkets in the United States buys strawberries from Mexico,

A. it must use dollars to pay mexican farmers.
B. it may use any currency it chooses.
C. it must use pesos to pay mexican farmers.
D. the transaction shows up in the u.s. capital account.
Answer» C. it must use pesos to pay mexican farmers.
6.

A country records its international finance accounts in it’s

A. balance of payments accounts.
B. import/export log accounts.
C. trade payments accounts.
D. net exports payments account.
Answer» A. balance of payments accounts.
7.

Which organisations strain on the liberalisation of foreign investment and foreign trade?

A. international monetary fund
B. world health organisation
C. world trade organisation
D. international labour organisation
Answer» C. world trade organisation
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