McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 151. |
Economic globalization is characterized by — |
| A. | cross-cultural flows of ideas |
| B. | rise of regionalism |
| C. | international migration |
| D. | international trade and investment flows |
| Answer» D. international trade and investment flows | |
| 152. |
Ethnocentric orientation is a predisposition towards — |
| A. | the global economy |
| B. | geographically proximate regions |
| C. | the home country |
| D. | regionalism |
| Answer» C. the home country | |
| 153. |
Business entities engaged in international business activity are commonly known as — |
| A. | State-trading corporations |
| B. | EOUs |
| C. | TNCs |
| D. | NGOs |
| Answer» C. TNCs | |
| 154. |
Who founded Facebook in 2004? |
| A. | Mark Zuckerberg |
| B. | Sean Fanning |
| C. | Jack Dorsy |
| D. | Steve Jobs |
| Answer» A. Mark Zuckerberg | |
| 155. |
International orientation refers to — |
| A. | a gradual process of internationalization |
| B. | an attitude or strategic predisposition of a TNC towards internationalization |
| C. | a firm’s modes of entry into international business |
| D. | the stage theory of internationalization |
| Answer» B. an attitude or strategic predisposition of a TNC towards internationalization | |
| 156. |
____ is a systematic record of all the economic transaction between one country and rest of the would: |
| A. | Balance of Trade |
| B. | Balance of Transaction |
| C. | Budget |
| D. | Balance of payments |
| Answer» D. Balance of payments | |
| 157. |
As per IMF balance of payment manual, import export of goods should be presented on: |
| A. | FOB basis |
| B. | FOR basis |
| C. | CIF basis |
| D. | All of these |
| Answer» A. FOB basis | |
| 158. |
OECD stands for: |
| A. | Organization for export co-operation & development |
| B. | Organization for economic commission & development |
| C. | Organization for export commission & development |
| D. | Organization for economic co-operation & development |
| Answer» D. Organization for economic co-operation & development | |
| 159. |
India has witnessed a surplus for the third successive year in which account of the balance of payment? |
| A. | Trade account of BOP |
| B. | Current account of BOP |
| C. | Both (a) and (b) |
| D. | None of these |
| Answer» B. Current account of BOP | |
| 160. |
In India which authority takes the purview of import & export: |
| A. | EXIM |
| B. | RBI |
| C. | Ministry of Finance |
| D. | Ministry of commerce |
| Answer» D. Ministry of commerce | |
| 161. |
Devaluation means: |
| A. | To reduce the value of home currency in other currency |
| B. | To appreciate the value of home currency |
| C. | To increase the value of home currency in other currency. |
| D. | To constant the value of home currency. |
| Answer» A. To reduce the value of home currency in other currency | |
| 162. |
_______ is a systematic record of all transactions of a country in a year. |
| A. | Balance of payment |
| B. | Balance of Trade |
| C. | Current Account of Balance of Payment |
| D. | None. |
| Answer» A. Balance of payment | |
| 163. |
The current account of Balance of Payment includes trade balance and _______. |
| A. | Settlement account |
| B. | Capital account |
| C. | Invisibles |
| D. | Errors and omissions. |
| Answer» C. Invisibles | |
| 164. |
Balance of payment deficit can be removed through: |
| A. | Devaluation of currency |
| B. | Vigorous export promotion |
| C. | Import substitution |
| D. | All of the above. |
| Answer» A. Devaluation of currency | |
| 165. |
The difference between the value of a nations visible exports and visible import is. |
| A. | Balance of trade. |
| B. | Balance of payments. |
| C. | Balance of current Account. |
| D. | Balance of Capital Account. |
| Answer» A. Balance of trade. | |
| 166. |
Which of the following is NOT a restriction to international trade? |
| A. | Quotas. |
| B. | GATT. |
| C. | Subsidies. |
| D. | Exchange controls. |
| Answer» B. GATT. | |
| 167. |
FDI stands for: |
| A. | foreign direct investment. |
| B. | foreign domestic investment. |
| C. | foreign direct intervention. |
| D. | foreign direct intermediation |
| Answer» A. foreign direct investment. | |
| 168. |
The balance of payments of a country records flows of money from: |
| A. | imports and exports and investment flows. |
| B. | imports and exports and investments flow and speculative flows. |
| C. | imports and exports. |
| D. | imports and exports and domestic demand. |
| Answer» B. imports and exports and investments flow and speculative flows. | |
| 169. |
Trade between two countries can be useful if cost ratios of goods are: |
| A. | Undetermined |
| B. | Decreasing |
| C. | Equal |
| D. | Different |
| Answer» D. Different | |
| 170. |
The term Euro Currency market refers to |
| A. | The international foreign exchange market |
| B. | The market where the borrowing and lending of currencies take place outside the country of issue |
| C. | The countries which have adopted Euro as their currency |
| D. | The market in which Euro is exchanged for other currencies |
| Answer» B. The market where the borrowing and lending of currencies take place outside the country of issue | |
| 171. |
Which of the following theories suggests that firms seek to penetrate new markets over time? |
| A. | Imperfect Market Theory |
| B. | Product cycle theory |
| C. | Theory of Comparative Advantage |
| D. | None of the above |
| Answer» B. Product cycle theory | |
| 172. |
Dumping refers to: |
| A. | Reducing tariffs |
| B. | Sale of goods abroad at low a price, below their cost and price in home market |
| C. | Buying goods at low prices abroad and selling at higher prices locally |
| D. | Expensive goods selling for low prices |
| Answer» B. Sale of goods abroad at low a price, below their cost and price in home market | |
| 173. |
International trade and domestic trade differ because of: |
| A. | Different government policies |
| B. | Immobility of factors |
| C. | Trade restrictions |
| D. | All of the above |
| Answer» D. All of the above | |
| 174. |
The margin for a currency future should be maintained with the clearing house by |
| A. | The seller |
| B. | The buyer |
| C. | Either the buyer or the seller as per the agreement between them |
| D. | Both the buyer and the seller |
| Answer» D. Both the buyer and the seller | |
| 175. |
The following statement with respect to currency option is wrong |
| A. | Foreign currency- Rupee option is available in India |
| B. | An American option can be executed on any day during its currency |
| C. | Put option gives the buyer the right to sell the foreign currency |
| D. | Call option will be used by exporters |
| Answer» D. Call option will be used by exporters | |
| 176. |
Govt. policy about exports and imports is called: |
| A. | Commercial policy |
| B. | Fiscal policy |
| C. | Monetary policy |
| D. | Finance policy |
| Answer» A. Commercial policy | |
| 177. |
Which of the following is international trade? |
| A. | Trade between countries |
| B. | Trade between regions |
| C. | Trade between provinces |
| D. | Both (b) and (c) |
| Answer» A. Trade between countries | |
| 178. |
Market in which currencies buy and sell and their prices settle on is called the |
| A. | International bond market International capital market |
| B. | Foreign exchange market |
| C. | Eurocurrency market |
| D. | none |
| Answer» C. Eurocurrency market | |
| 179. |
_______________ is an important reason for economic integration. |
| A. | Geographic proximity |
| B. | Democracy |
| C. | Totalitarianism |
| D. | Common law practice |
| Answer» A. Geographic proximity | |
| 180. |
Neighboring countries tend to collaborate for all of the following reasons EXCEPT: |
| A. | the distance that goods need to travel between such countries is short |
| B. | neighboring countries tend to be in similar economic situations and therefore are able to better control currency exchange rates |
| C. | consumers’ tastes are likely to be similar, and distribution channels can be easily established in adjacent countries |
| D. | neighboring countries may have a common history and interests, and may be more willing to coordinate their policies |
| Answer» B. neighboring countries tend to be in similar economic situations and therefore are able to better control currency exchange rates | |
| 181. |
Geographic proximity is an important reason for economic integration because consumer tastes are likely to be: |
| A. | different. |
| B. | opposite. |
| C. | similar. |
| D. | strange. |
| Answer» C. similar. | |
| 182. |
Which of the following types of regional economic integration focuses only on eliminating internal tariffs? |
| A. | customs union |
| B. | common market |
| C. | complete economic integration |
| D. | free trade area |
| Answer» D. free trade area | |
| 183. |
In which of the following types of regional economic integration are internal tariffs eliminated with member countries levying a common external tariff on goods being |
| A. | customs union |
| B. | free trade area |
| C. | common market |
| D. | complete economic integration |
| Answer» A. customs union | |
| 184. |
A _______________ focuses on eliminating internal tariffs with member countries levying a common external tariff on goods being imported from nonmembers. Additionally, this type of regional economic integration allows free mobility of production factors such as labor and capital. |
| A. | free trade area |
| B. | common market |
| C. | customs union |
| D. | complete economic integration |
| Answer» B. common market | |
| 185. |
In _______________, countries focus on eliminating internal tariffs among member countries, have a common external trading policy among nonmembers, allow free mobility of productions factors within member countries, and adopt common economic policies. |
| A. | free trade area |
| B. | customs union |
| C. | complete economic integration |
| D. | common market |
| Answer» C. complete economic integration | |
| 186. |
_______________ occurs when production shifts to more efficient producers for reasons of comparative advantage, allowing consumers access to more goods at a lower price than would have been possible without integration. |
| A. | Trade diversion |
| B. | Divestment |
| C. | Trade creation |
| D. | Retrenchment |
| Answer» C. Trade creation | |
| 187. |
Which of the following was developed with the rationale that the U.S.-Canadian trade was the largest bilateral trade in the world and that the United States is Mexico’s and Canada’s largest trading partner? |
| A. | CEFTA (the Central European Free Trade Agreement) |
| B. | NAFTA (the North American Free Trade Agreement) |
| C. | ASEAN (Association of South East Asian Nations) |
| D. | EU (the European Union) |
| Answer» B. NAFTA (the North American Free Trade Agreement) | |
| 188. |
_______________ occurs when trade shifts to countries in the group at the expense of trade with countries not in the group, even though the nonmember country might be more efficient in the absence of trade barriers. |
| A. | Trade creation |
| B. | Divestment |
| C. | Retrenchment |
| D. | Trade diversion |
| Answer» D. Trade diversion | |
| 189. |
NAFTA calls for all of the following EXCEPT: |
| A. | the harmonization of trade rules |
| B. | the liberalization of restrictions on services |
| C. | the implementation of a common currency |
| D. | the liberalization of restrictions on foreign investment |
| Answer» C. the implementation of a common currency | |
| 190. |
NAFTA is a good example of: |
| A. | trade erosion. |
| B. | divestment. |
| C. | retrenchment. |
| D. | trade diversion. |
| Answer» D. trade diversion. | |
| 191. |
The _______________ is a political organization comprised of 185 countries, and it is headquartered in New York City. This organization deals with a variety of political issues, such as security and world peace, but it also deals in humanitarian and economic issues. |
| A. | World Trade Organization |
| B. | World Bank |
| C. | European Union |
| D. | United Nations |
| Answer» D. United Nations | |
| 192. |
Where is the headquarters of the EU? |
| A. | Belgium |
| B. | Netherlands |
| C. | Luxembourg |
| D. | Greece |
| Answer» A. Belgium | |
| 193. |
Where is the headquarters of the SAARC? |
| A. | Manila |
| B. | Kathmandu |
| C. | New Delhi |
| D. | Jakarta |
| Answer» B. Kathmandu | |
| 194. |
Apart from India, Pakistan and Bangladesh who are the other member countries of SAARC? |
| A. | Nepal, Bhutan, Thailand and Singapore |
| B. | Nepal, Bhutan, Malaysia and Maldives |
| C. | Nepal, Bhutan, Maldives, Sri Lanka and Afghanistan |
| D. | None of The Above |
| Answer» C. Nepal, Bhutan, Maldives, Sri Lanka and Afghanistan | |
| 195. |
Which of the following is not the main purpose for formation of SAARC |
| A. | To Combat Terrorism |
| B. | To Promote the Welfare of the people of South Asia |
| C. | To form mutual Defence against foreign aggression |
| D. | None of The Above |
| Answer» C. To form mutual Defence against foreign aggression | |
| 196. |
SAPTA is a trade agreement by _________________ |
| A. | ASEAN Nations |
| B. | APEC Nations |
| C. | SAARC Nations |
| D. | EU Nations |
| Answer» C. SAARC Nations | |
| 197. |
What is the full form of ASEAN? |
| A. | Association of South East Asian Nations |
| B. | Administration of South East Asian Nations |
| C. | Administration of Southern Eastern Asian Nations |
| D. | Organisation of South East Asian Nations |
| Answer» A. Association of South East Asian Nations | |
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