50+ International Business Management (IBM) Solved MCQs

1.

Trade between two countries can be useful if cost ratios of goods are:

A. Undetermined
B. Decreasing
C. Equal
D. Different
Answer» D. Different
2.

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
3.

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
4.

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
5.

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
6.

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
7.

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
8.

Govt. policy about exports and imports is called:

A. Commercial policy
B. Fiscal policy
C. Monetary policy
D. Finance policy
Answer» A. Commercial policy
9.

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
10.

Market in which currencies buy and sell and their prices settle on is called the

A. International bond market
B. International capital market
C. Foreign exchange market
D. Eurocurrency market
Answer» C. Foreign exchange market
11.

___ Companies are registered in one country, doing business in others.

A. Transnational
B. Multinational
C. Off-shore
D. International
Answer» C. Off-shore
12.

The difference between interest rates in Russia and Switzerland stands for about ___ per annum.

A. 10%
B. 5%
C. 28%
D. 40%
Answer» B. 5%
13.

It refers to the assumptions, values, and practices of people in the West and some elites in Non-Western cultures.

A. Universal Culture
B. Global culture
C. Organizational culture
D. All of the above
Answer» A. Universal Culture
14.

___ means the high adaptation of managerial practices to a given culture, and, therefore, high effectiveness.

A. Fitness for use
B. High fit
C. Fit and Fine
D. Substitution
Answer» B. High fit
15.

Erez and Gati proposed that the general model of multi-level analysis could be adopted for understanding the dynamics of ___.

A. Culture
B. Cultural Change
C. Multi-Level analysis
D. Both a and b
Answer» D. Both a and b
16.

State whether it is true or not: “Around the World, wherever you are, get what you want-fast from our family of Web sites.”

A. False
B. True
C. Incomplete
D. Cannot say
Answer» B. True
17.

___ has become a world-leading marketer of toys.

A. California
B. UAE
C. Japan
D. China
Answer» A. California
18.

The main benefits for industrial countries would come from the liberalization of their ___ market.

A. Mine
B. Agriculture
C. Domestic
D. National
Answer» B. Agriculture
19.

The non-tariff barriers are:

A. Product standards
B. Proliferation
C. Both a and b
D. Product adaptation
Answer» C. Both a and b
20.

What is meant by the phrase CSR?

A. Corporate Social Responsibility
B. Company Social Responsibility
C. Corporate Society Responsibility
D. Company Society Responsibility
Answer» A. Corporate Social Responsibility
21.

What does Milton Friedman believe to be the sole responsibility of business?

A. The only social responsibility of business is to its shareholders
B. Managers should act in ways that balance the interest of society and shareholders
C. The primary responsibility organizations have is to its employees
D. The primary responsibility organizations have is to its stakeholder
Answer» A. The only social responsibility of business is to its shareholders
22.

What is the enlightened self-interest model of CSR?

A. That it is in an organization's own best interest to put itself first rather than its ethics
B. That it is in an organization's best interest to consider what a shareholder would want
C. That it is in an organization's own best interest to act in an ethical way
D. That it is in an organization's own best interest to follow the legislation and abide by the law.
Answer» A. That it is in an organization's own best interest to put itself first rather than its ethics
23.

What does the importance of ethical behaviour, integrity and trust call into question?

A. The extent to which managers should attempt to change the underlying beliefs and values of individual followers
B. Who does what
C. What we do next
D. None of these
Answer» A. The extent to which managers should attempt to change the underlying beliefs and values of individual followers
24.

Which of the following would most effectively act as the primary objective of a business organisation?

A. To make a profit
B. To procure resources
C. To communicate with shareholders
D. To mediate between the organisation and the environment
Answer» A. To make a profit
25.

Which of the following does the term Corporate Social Responsibility relate to?

A. Ethical conduct
B. Environmental practice
C. Community investment
D. All of the above
Answer» D. All of the above
26.

What is Ethics to do with?

A. The wider community
B. Business
C. Right and wrong
D. Nothing
Answer» C. Right and wrong
27.

Which legislation relates to the concept of business ethics?

A. Freedom of Information Act
B. Food Act
C. Building regulations
D. All of these
Answer» A. Freedom of Information Act
28.

A stakeholder orientation includes all of the following activities except:

A. Generating Data About Stakeholder Groups
B. Assessing The Firm's Effects On Stakeholder Groups
C. Distributing Stakeholder Information Throughout The Firm
D. Minimizing The Influence Of Stakeholder Information On The Firm
Answer» D. Minimizing The Influence Of Stakeholder Information On The Firm
29.

A (n) ________ is a problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong.

A. Crisis
B. Ethical Issue
C. Indictment
D. Fraud
Answer» B. Ethical Issue
30.

What type of justice exists if employees are being open, honest, and truthful in their communications at work?

A. Procedural
B. Distributive
C. Ethical
D. Interactional
Answer» D. Interactional
31.

Better access to certain markets, differentiation of products, and the sale of pollution-control technology are ways in which better environmental performance can:

A. Increase Revenue
B. Increase Costs
C. Decrease Revenue
D. Decrease Costs
Answer» A. Increase Revenue
32.

Atmospheric issues include all of the following except:

A. Acid Rain
B. Global Warming
C. Air Pollution
D. Water Quantity
Answer» D. Water Quantity
33.

Most companies begin the process of establishing organizational ethics programs by developing:

A. Ethics Training Programs
B. Codes Of Conduct
C. Ethics Enforcement Mechanisms
D. Hidden Agendas
Answer» B. Codes Of Conduct
34.

When a firm charges different prices to different groups of customers, it may be accused of:

A. Cultural Relativism
B. Money Laundering
C. Facilitating Payments
D. Price Discrimination
Answer» A. Cultural Relativism
35.

Successful global initiatives addressing standards for business must begin and end with:

A. the role of corporate governance and shareholder power in corporate decision making
B. social activism
C. the implementation of standardized ethics programs
D. the consolidation of economic and environmental efforts
Answer» A. the role of corporate governance and shareholder power in corporate decision making
36.

The social economy partnership philosophy emphasizes:

A. Cooperation And Assistance
B. Profit Maximization
C. Competition
D. Restricting Resources And Support
Answer» A. Cooperation And Assistance
37.

Which of the following is a problem presented by ethics audits?

A. They may be used to reallocate resources
B. They identify practices that need improvement
C. Selecting auditors may be difficult
D. They may pinpoint problems with stakeholder relationships
Answer» C. Selecting auditors may be difficult
38.

The first step in the auditing process should be to secure the commitment of:

A. Employees
B. Top Executives And Directors
C. Stockholders
D. Customers
Answer» B. Top Executives And Directors
39.

____________ refers to a strategic process involving stakeholder assessment to create longterm relationships with customers, while maintaining, supporting, and enhancing the natural environment.

A. Eco-strategy
B. Green marketing
C. Superfund reauthorization
D. Recycle and reprocess management
Answer» B. Green marketing
40.

A ________ _________ sets out the purpose and general direction for the organisation?

A. Vision
B. Purpose statement
C. Mission statement
D. Profit statement
Answer» C. Mission statement
41.

Which of the following would most effectively act as the primary objective of a business organization?

A. To communicate with shareholders.
B. To make a profit.
C. To mediate between the organization and the environment.
D. All of the above.
Answer» B. To make a profit.
42.

What is the purpose of a balanced scorecard?

A. To relate business performance to financial measures.
B. To measure contribution of people to business growth.
C. To relate business performance to customer satisfaction.
D. To combine a range of qualitative and quantitative indicators of performance.
Answer» D. To combine a range of qualitative and quantitative indicators of performance.
43.

Which of the following does the term Corporate Social Responsibility relate to?

A. Environmental practice.
B. Ethical conduct.
C. Human rights and employee relations.
D. All of the above.
Answer» D. All of the above.
44.

Who are organisational stakeholders?

A. Employees
B. Government
C. Customers
D. All of the above.
Answer» D. All of the above.
45.

What is Ethics to do with?

A. The wider community.
B. Right and wrong.
C. Business!
D. None of the above.
Answer» B. Right and wrong.
46.

'Ethics deals with the right actions of Individuals' Who said?

A. C S Rao
B. P F Drucker
C. J R Betty
D. DC Zane
Answer» B. P F Drucker
47.

Which of the following word refers to 'doing business with your grandchildren's interests at heart'?

A. Responsibility
B. Sustainability
C. Agility
D. Integrity
Answer» B. Sustainability
48.

Which is the element of business ethics?

A. discipline.
B. It is an art & science both.
C. Good intention.
D. All of the above.
Answer» D. All of the above.
49.

'Social responsibility is to pursue those policies & decisions or to follow lines of actions which are desirable in terms of the objective & value of our society' who said??

A. H R Bowen
B. P F Deucker
C. G A Steiner
D. All of the above
Answer» A. H R Bowen
50.

Which is the principle of corporate responsibility?

A. Trusteeship principle
B. Principle of stewardship
C. Principle of charity
D. All of the above
Answer» D. All of the above
51.

Which is the element of social responsibility?

A. Universal concept.
B. Supremancy of public interest.
C. It is related to business organization.
D. All of the above
Answer» D. All of the above
52.

Which one of the following is not principle of business ethics?

A. Principle of universality.
B. Principle of humanity.
C. Principle of autonomy.
D. Principle of dissatisfaction.
Answer» D. Principle of dissatisfaction.
53.

Business ethics is a dynamic philosophy of ---- economic adjustment whose field is widening day-by-day

A. Socio
B. Political
C. Historical
D. Traditional
Answer» A. Socio
54.

The social responsibility of business towards the owners of business includes

A. Maximum ROI.
B. Report about progress.
C. Report of Profit.
D. All of the above.
Answer» D. All of the above.
55.

CSR that extends beyond legal mandates can help meet social expectations in the absence of:

A. Statutory devices.
B. Social tool
C. Cost tool & technique
D. Science tool
Answer» A. Statutory devices.
56.

The relationship between standards of CSR & potential legal requirements governing corporate operation lies at the heart of the

A. The business community.
B. Unattaniable
C. Formulation
D. The social activity.
Answer» A. The business community.
57.

The argument for CSR involves

A. Recognition of moral obligations by business.
B. Need to balance power with responsibility.
C. Voluntary actions would prevent government regulations.
D. All of the above
Answer» D. All of the above
58.

The spending on CSR activity is mandatory in India for following organisations:

A. 3% spending for above 5 cr profit organisations.
B. 2% spending for above 5 cr profit organisations.
C. 1% spending for above 5 cr profit organizations.
D. Some spending on above 5cr profit organizations
Answer» B. 2% spending for above 5 cr profit organisations.
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