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70+ International Business Environment Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .

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

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