McqMate
| 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 | |
| 26. |
Rise in prices due imbalance between demand and supply is called as |
| A. | GDP |
| B. | Inflation |
| C. | Deflation |
| D. | None of the above |
| Answer» B. Inflation | |
| 27. |
Culture spreads from one place to another and such transmission is called as ________. |
| A. | difference. |
| B. | reputation. |
| C. | adoption. |
| D. | heritage. |
| Answer» A. difference. | |
| 28. |
What are the elements of business ethics? |
| A. | Values rights and duties. |
| B. | attitudes pressure and environment. |
| C. | value environment and attitude. |
| D. | Responsibilities. |
| Answer» A. Values rights and duties. | |
| 29. |
India follows the ________political system |
| A. | Authoritarian |
| B. | Parliamentary |
| C. | Absolutist system |
| D. | Military dictatorship |
| Answer» B. Parliamentary | |
| 30. |
The _______ is being driven by the demand and supply of products and services. |
| A. | Market economy |
| B. | Capitalist economy |
| C. | Both a & B |
| D. | Socialist Economy |
| Answer» C. Both a & B | |
| 31. |
India is the best example of |
| A. | Market Economy |
| B. | Capitalist economy |
| C. | Mixed Economy |
| D. | Socialist Economy |
| Answer» C. Mixed Economy | |
| 32. |
Which of the following is not only a part of ethics but statutory compliance? |
| A. | Preserving Natural resources |
| B. | Development of Roads |
| C. | Fair Product & Prices |
| D. | Disclosure of Financial Statement |
| Answer» D. Disclosure of Financial Statement | |
| 33. |
Which of the following attitude is result of religion? |
| A. | Attitude towards work |
| B. | Purchasing Behaviour |
| C. | None of the both |
| D. | Both A & B |
| Answer» D. Both A & B | |
| 34. |
Commitment, competence and consistency are three distinct characteristics that result in ______________ |
| A. | Culture building |
| B. | Values |
| C. | Organizational socialization |
| D. | Attitudes |
| Answer» A. Culture building | |
| 35. |
The practices of a company for which it is accountable in relation to other parties is called ____________ |
| A. | Social responsibility |
| B. | Code of Ethics |
| C. | Values |
| D. | Culture |
| Answer» A. Social responsibility | |
| 36. |
National culture is based on ______________ |
| A. | Language |
| B. | The territory of the state |
| C. | The sense of belonging of a people |
| D. | The nation-state. |
| Answer» C. The sense of belonging of a people | |
| 37. |
Corporate governance is a form of |
| A. | External regulation |
| B. | Self regulation |
| C. | Government control |
| D. | Charitable action |
| Answer» B. Self regulation | |
| 38. |
CSR & corporate governance represent a -------- between business and society. |
| A. | Social climate |
| B. | Special contract |
| C. | Special climate |
| D. | Social contract |
| Answer» D. Social contract | |
| 39. |
Corporate governance is concerned with the formation of …………… term objective |
| A. | Very short |
| B. | Short |
| C. | Medium |
| D. | Long |
| Answer» D. Long | |
| 40. |
The Current System of International Finance is a |
| A. | gold standard |
| B. | Fixed Exchange rate system |
| C. | Floating exchange rate system |
| D. | Managed Float Exchange rate system |
| Answer» D. Managed Float Exchange rate system | |
| 41. |
More expansion of foreign direct investment can boost __________ . |
| A. | Money circulation |
| B. | Demand |
| C. | Employment |
| D. | Unemployment |
| Answer» C. Employment | |
| 42. |
More expansion of foreign direct investment can boost |
| A. | Money Circulation |
| B. | Demand |
| C. | Employment |
| D. | Unemployment |
| Answer» C. Employment | |
| 43. |
The union government adopted new definition of FDI and FPI in 2014. Which of the given below is incorrect in this regard |
| A. | The new definition considers 5% investment in capital of an unlisted company as FPI. |
| B. | The new definition considers 5% investment in capital of an unlisted company as FDI. |
| C. | The new definition considers 5% investment in capital of an listed company as FPI. |
| D. | None of the above |
| Answer» A. The new definition considers 5% investment in capital of an unlisted company as FPI. | |
| 44. |
Government has raised FDI level in Brownfield pharma to what percent under the automatic route to attract capital and technologies in the pharmaceutical sector? |
| A. | 74 |
| B. | 49 |
| C. | 50 |
| D. | 56 |
| Answer» A. 74 | |
| 45. |
OLI Theory is also known as |
| A. | The transaction cost approach |
| B. | The Eclectic Paradigm |
| C. | The strategic linkage theory |
| D. | Perfect market hypothesis |
| Answer» B. The Eclectic Paradigm | |
| 46. |
Which country leads the inflow of FDI in India? |
| A. | Mauritius |
| B. | France |
| C. | USA |
| D. | UK |
| Answer» A. Mauritius | |
| 47. |
In which of the following sectors does the Government of India allow more than 50% FDI? |
| A. | Insurance |
| B. | Print media |
| C. | Telecommunications |
| D. | Both A & C |
| Answer» D. Both A & C | |
| 48. |
In which of the following sectors does the Government of India allow more than 50% FDI? |
| A. | Joint venture |
| B. | Strategic alliance |
| C. | Acquisition |
| D. | Merger |
| Answer» B. Strategic alliance | |
| 49. |
Which of the following theories explains the behaviour of late entrants to catch up with the competition? |
| A. | OLI theory |
| B. | Transition Cost approach |
| C. | The Leapfrogging theory |
| D. | The perfect market Hypothesis |
| Answer» C. The Leapfrogging theory | |
| 50. |
Which of the following types of FDI includes creation of new assets and production facilities in the host country? |
| A. | Brownfield investment |
| B. | Mergers & Acquisition |
| C. | Strategic Alliance |
| D. | Greenfield investment |
| Answer» D. Greenfield investment | |
| 51. |
Both foreign direct investment (FDI) and foreign institutional investment (FII) are related to investment in a country. Which of the following is incorrect regarding FDI and FII? |
| A. | Both FII and FDI bring capital into the economy. |
| B. | FII invests in technology-oriented enterprises, whereas FDI invests in traditional business set ups. |
| C. | The restrictions on the entry of FDI are lower than that on FII. |
| D. | FDI is considered to be more stable thna FII. FII can be withdrawn even at a short notice. |
| Answer» B. FII invests in technology-oriented enterprises, whereas FDI invests in traditional business set ups. | |
| 52. |
: Which of the following statements is/are correct regarding FDI under automatic route?
|
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» C. Both 1 and 2 | |
| 53. |
Which of the following are the components of foreign capital?
|
| A. | 1, 2, 3, and 4 |
| B. | 1, 2, and 4 only |
| C. | 1 and 2 only |
| D. | 3 and 4 only |
| Answer» A. 1, 2, 3, and 4 | |
| 54. |
The value of Special Drawing Right (SDR) is determined by the basket of ......currencies. |
| A. | 4 |
| B. | 5 |
| C. | 6 |
| D. | 7 |
| Answer» B. 5 | |
| 55. |
Which of the following is not the objective of the IMF? |
| A. | To promote international monetary cooperation |
| B. | To ensure balanced international trade |
| C. | To ensure exchange rate stability |
| D. | To provide loan to private sectors |
| Answer» D. To provide loan to private sectors | |
| 56. |
If the Balance of Payment of a country is adverse, then which institution will help that country? |
| A. | World Bank |
| B. | World Trade Organization |
| C. | International Monetary Fund |
| D. | Asian Development Bank |
| Answer» C. International Monetary Fund | |
| 57. |
Which of the following is known as the Paper Gold? |
| A. | US Dollar |
| B. | Pound |
| C. | Demand draft |
| D. | Special Drawing Right |
| Answer» D. Special Drawing Right | |
| 58. |
Why the World Bank was established? |
| A. | To promote the International Trade |
| B. | To reconstruct the economies damaged during the Second World War |
| C. | To improve the adverse Balance of Payment situation of the nonmember countries |
| D. | None of the above |
| Answer» B. To reconstruct the economies damaged during the Second World War | |
| 59. |
Which of the following statement is correct? |
| A. | Every member country of the IMF automatically becomes the member of the World Bank |
| B. | The World Bank has 45 founder members |
| C. | India is not the founding member of the World Bank |
| D. | IMF is the part of World Bank group |
| Answer» A. Every member country of the IMF automatically becomes the member of the World Bank | |
| 60. |
Which of the following institutions is not part of the World Bank community? |
| A. | IBRD |
| B. | WTO |
| C. | IDA |
| D. | IFC |
| Answer» B. WTO | |
| 61. |
The main focus of IBRD and IDA is on ___________: |
| A. | Developed Countries |
| B. | Developing Countries |
| C. | Both of The Above |
| D. | None of The Above |
| Answer» B. Developing Countries | |
| 62. |
The president is selected by the board of executive directors for a ____year, renewable term: |
| A. | 5 Year |
| B. | 3 Year |
| C. | 4 Year |
| D. | None of The Above |
| Answer» A. 5 Year | |
| 63. |
Which of the following does not form part of current account under balance of payments? |
| A. | Export and import of goods |
| B. | Export and import of services |
| C. | Income receipts and payments |
| D. | Capital receipts and payments |
| Answer» D. Capital receipts and payments | |
| 64. |
Which of the following pairs is not correctly matched with regard to balance of payment accounts? |
| A. | Import of goods and services – Debit in the current account |
| B. | Receipts of transfer payments – Credit in the current account |
| C. | Direct investment receipt – Credit in the capital account |
| D. | Portfolio investment payments – Debit in the current account |
| Answer» D. Portfolio investment payments – Debit in the current account | |
| 65. |
A country is said to be in debt trap if |
| A. | It has to abide by the conditionality imposed by the International Monetary Fund |
| B. | It is required to borrow money to make interest payments on outstanding loans |
| C. | It has been refused loans or aid by creditors |
| D. | The World Bank charges a very high rate of interest on outstanding as well as new loans |
| Answer» B. It is required to borrow money to make interest payments on outstanding loans | |
| 66. |
Balance in capital account refer to the |
| A. | Nation’s net exports of goods and services |
| B. | Nation’s net exports of financial claims |
| C. | Nation’s net exports of international official reserve assets |
| D. | Nation’s sum of net exports of goods, services and financial claims |
| Answer» B. Nation’s net exports of financial claims | |
| 67. |
Where is the headquarter of the WTO? |
| A. | . New York |
| B. | . Washington DC |
| C. | . Geneva |
| D. | . Austria |
| Answer» C. . Geneva | |
| 68. |
Which of the following statement is not true about the WTO? |
| A. | . WTO is a permanent organisation |
| B. | . Uruguay round gave the birth to the WTO |
| C. | .Ministerial Conference is the highest policy making body of the WTO |
| D. | .WTO was officially constituted on 1 January 1991. |
| Answer» D. .WTO was officially constituted on 1 January 1991. | |
| 69. |
Which of the following is not the objective of the WTO? |
| A. | . To improve the standard of living of peoples of the member countries |
| B. | . To enlarge production and trade of goods |
| C. | . To protect environment |
| D. | . To improve the Balance of Payment situation of the member countries |
| Answer» D. . To improve the Balance of Payment situation of the member countries | |
| 70. |
Which of the following body is not related to the WTO? |
| A. | . Dispute Settlement Body |
| B. | .Trade Policy Review Body |
| C. | . Council of trade in goods |
| D. | . Exchange Rate Management Body |
| Answer» D. . Exchange Rate Management Body | |
| 71. |
Which of the followings are called Brettonwoods Twins? |
| A. | IMF & International Bank for Reconstruction and Development (IBRD) |
| B. | IMF & World Trade Organisation |
| C. | IBRD & World Trade Organisation |
| D. | None of the above |
| Answer» A. IMF & International Bank for Reconstruction and Development (IBRD) | |
| 72. |
Which of the following institution is associated with Dunkel Proposals? |
| A. | World Bank |
| B. | International Monetary Fund |
| C. | World Trade Organization |
| D. | United Nations Organization |
| Answer» C. World Trade Organization | |
| 73. |
As per Indian GAAP Financial statements are prepared at : |
| A. | Market value |
| B. | Fair value |
| C. | Cost |
| D. | All of the above |
| Answer» B. Fair value | |
| 74. |
total no. Of IFRS is |
| A. | 14 |
| B. | 16 |
| C. | 17 |
| D. | 18 |
| Answer» C. 17 | |
| 75. |
How many Ind As are there in India |
| A. | 21 |
| B. | 39 |
| C. | 41 |
| D. | 32 |
| Answer» C. 41 | |
| 76. |
The accounting standards are mandatory for |
| A. | Sole proprietor |
| B. | Companies |
| C. | Firms |
| D. | societies |
| Answer» B. Companies | |
| 77. |
what is the Impact of Pandemic COVID-19 on international trade. |
| A. | Long term |
| B. | Short term |
| C. | Both a& b |
| D. | Only a |
| Answer» C. Both a& b | |
| 78. |
Outsourcing has been raising – |
| A. | Nationally |
| B. | Internationally |
| C. | Both a & b |
| D. | Only a |
| Answer» C. Both a & b | |
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