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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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