McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Master of Commerce (M.com) .
Chapters
| 1. |
Theory of Mercantilism propagates |
| A. | encourage exports and imports |
| B. | encourage exports and discourage imports |
| C. | discourage exports and imports |
| D. | discourage exports and encourage imports |
| Answer» B. encourage exports and discourage imports | |
| 2. |
Free international trade maximizes world output through |
| A. | countries specializing in production of goods they are best suited for. |
| B. | reduction in taxes. |
| C. | increased factor income. |
| D. | encouraging competition. |
| Answer» A. countries specializing in production of goods they are best suited for. | |
| 3. |
International business does not result in the following |
| A. | innovation is encouraged. |
| B. | international cooperation is encouraged. |
| C. | imports are rendered cheap. |
| D. | consumption is minimized. |
| Answer» D. consumption is minimized. | |
| 4. |
By having business in different countries, a firm reduces |
| A. | credit risk. |
| B. | political risk. |
| C. | financial risk. |
| D. | business risk. |
| Answer» B. political risk. | |
| 5. |
Which of the following is an advantage of turnkey projects? |
| A. | can earn a return on knowledge asset |
| B. | will not create a competitor |
| C. | tight control of operations |
| D. | all the above |
| Answer» A. can earn a return on knowledge asset | |
| 6. |
The country that attracts the largest FDI inflow is |
| A. | india |
| B. | china |
| C. | usa |
| D. | brazil |
| Answer» B. china | |
| 7. |
Firm that operates internationally is able to |
| A. | earn a greater return from their skills and core competencies |
| B. | realize location economies where they can be performed most efficiently |
| C. | realize greater experience curve economies, which reduces the cost of production |
| D. | all the above |
| Answer» D. all the above | |
| 8. |
Trade Related Investment Measures (TRIMS) doesn’t apply for |
| A. | Measures that affect trade in goods. |
| B. | Measures that lead to restrictions on quantities. |
| C. | Discouraging measures that limit a company’s imports. |
| D. | Discouraging measures that limit a company’s exports. |
| Answer» B. Measures that lead to restrictions on quantities. | |
| 9. |
General Agreement on Trade in Services will not be applicable to |
| A. | Services supplied from one country to another – cross border supply |
| B. | Transaction of goods across the border – Export Import |
| C. | Individuals traveling from own country to supply services in another – presence of natural persons. |
| D. | Consumers/firms making use of a service in another country – consumption abroad. |
| Answer» B. Transaction of goods across the border – Export Import | |
| 10. |
As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn’t consider |
| A. | Direct payments to farmers are permitted. |
| B. | Indirect assistance and support to farmers including R & D support by govt. are not permitted. |
| C. | Domestic policies which directly effect on production and trade have to be cut back. |
| D. | Least developed countries do not need to make any cuts. |
| Answer» B. Indirect assistance and support to farmers including R & D support by govt. are not permitted. | |
| 11. |
Quantitative restrictions refer to limit set by countries to curb |
| A. | Imports |
| B. | Exports |
| C. | Imports & exports |
| D. | None of the above |
| Answer» C. Imports & exports | |
| 12. |
A Most Favoured nation status doesn’t necessarily refer to |
| A. | Same and equal economic treatment |
| B. | Non-discriminatory treatment |
| C. | Same tariff rates applicable |
| D. | Uniform civil code |
| Answer» D. Uniform civil code | |
| 13. |
The world trade organization was formed in the year _________ with GATT as it basis. |
| A. | 1993 |
| B. | 1994 |
| C. | 1995 |
| D. | 1996 |
| Answer» C. 1995 | |
| 14. |
Power distance Index (PDI) of 77 compared to a world average of 56.5 for India indicates |
| A. | High level of inequality of power and wealth within the society |
| B. | Low level of inequality of power and wealth within the society |
| C. | High level of Political corruption |
| D. | Low level of Human development Index |
| Answer» A. High level of inequality of power and wealth within the society | |
| 15. |
Specific cultural dimensions that does not have a significant impact on cross-national business interactions is |
| A. | Hofstede’s five cultural dimensions |
| B. | Monochromatic vs polychromatic tune |
| C. | Communication |
| D. | Geography |
| Answer» D. Geography | |
| 16. |
Professional culture refers to |
| A. | Shared belief of top managers about how they should manage themselves and their employees |
| B. | Shared code of ethics and other commonalities shared by members of a given group |
| C. | Both (a) and (c) |
| D. | None of the above |
| Answer» B. Shared code of ethics and other commonalities shared by members of a given group | |
| 17. |
An attribute that doesn’t contribute to Porters Diamond model is |
| A. | Government |
| B. | Organized Trade union |
| C. | Factor Conditions |
| D. | Demand Conditions |
| Answer» B. Organized Trade union | |
| 18. |
_______ theory states that, lack of resources often helps countries to become competitive |
| A. | Competitive theory |
| B. | Porters Diamond Model |
| C. | Theory of Mercantilism |
| D. | Product life cycle theory |
| Answer» D. Product life cycle theory | |
| 19. |
Identify a factor that doesn’t play an important role in attracting FDI |
| A. | Laws, rule sand regulations |
| B. | Administrative procedures and efficiency |
| C. | Infrastructure related factors |
| D. | Language |
| Answer» D. Language | |
| 20. |
B2B sector specific policy of Indian Government is |
| A. | FDI up to 100% subject to condition that they invest 26 % in favour of Indian Public within 5 yrs |
| B. | FDI up to 100% |
| C. | FDI up to 100% subject to condition that they invest 26 % in favor of Indian Public within 10 yrs |
| D. | FDI up to 49% |
| Answer» A. FDI up to 100% subject to condition that they invest 26 % in favour of Indian Public within 5 yrs | |
| 21. |
General electric follows ___________ as its international operational strategy |
| A. | Global |
| B. | International |
| C. | Multi-domestic |
| D. | Transnational |
| Answer» B. International | |
| 22. |
Factor of Interdependence in Multi-domestic strategy is |
| A. | Low |
| B. | Moderate |
| C. | High |
| D. | Very High |
| Answer» A. Low | |
| 23. |
In 90’s the global management perception was based on |
| A. | Standardization v/s adaptation |
| B. | Globalization v/s localization |
| C. | Global integration v/s Local Responsiveness |
| D. | Local responsiveness |
| Answer» C. Global integration v/s Local Responsiveness | |
| 24. |
The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year 1999 is an example of |
| A. | Subsidiary |
| B. | Joint venture |
| C. | Strategic International Alliance |
| D. | License agreement |
| Answer» C. Strategic International Alliance | |
| 25. |
CISF pricing includes the following |
| A. | Commission is paid to the agent involved in the transaction |
| B. | Cost of the goods exported |
| C. | Freight & Insurance charges for the goods exported |
| D. | All of the above |
| Answer» D. All of the above | |
| 26. |
When the transaction is of high value, complex In nature and more technical __________ method of the export sales contract is used. |
| A. | Performa invoice |
| B. | Purchase order |
| C. | Sales contact |
| D. | None of the above |
| Answer» C. Sales contact | |
| 27. |
Which one of the following is a method for an exporter to get a contract |
| A. | Proforma invoice |
| B. | Purchase order |
| C. | Sales contract |
| D. | All the above |
| Answer» D. All the above | |
| 28. |
Credits transferable by original beneficiary in favor of secondary beneficiary are known as |
| A. | Deferred credits |
| B. | Transit credits |
| C. | Instalment credits |
| D. | Transferable credits |
| Answer» A. Deferred credits | |
| 29. |
When the exporter, expects the importer, to make the payment immediately upon the draft being presented to him is called. |
| A. | Sight Draft. |
| B. | Usance Draft |
| C. | Demand draft |
| D. | Pay Note |
| Answer» A. Sight Draft. | |
| 30. |
The basic objective of export Promotion Council is to promote and develop the Exports of the |
| A. | Particular products of country |
| B. | Only attractive projects of the country |
| C. | Only services industry products of the country |
| D. | Overall exports of the country. |
| Answer» D. Overall exports of the country. | |
| 31. |
The theory of Comparative cost advantage is given by |
| A. | Porter |
| B. | Adam Smith |
| C. | Varnoon |
| D. | Richardo |
| Answer» D. Richardo | |
| 32. |
Trade Related Investment Measures (TRIMS) doesn’t apply for |
| A. | Measures that lead to restrictions in quantities. |
| B. | Discouraging measures that limit a company’s imports |
| C. | Discouraging measures that limit a company’s exports. |
| D. | ALL OF THE ABOVE |
| Answer» A. Measures that lead to restrictions in quantities. | |
| 33. |
As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn’t consider |
| A. | Direct payments to farmers are permitted. |
| B. | Indirect assistance and support to farmers including R & D support by govt. are not permitted |
| C. | Domestic policies which directly effect on production and trade have to be cut back. |
| D. | Least developed countries do not need to make any cuts. |
| Answer» B. Indirect assistance and support to farmers including R & D support by govt. are not permitted | |
| 34. |
Power distance Index (PDI) of 77 compared to a world average of 56.5 for India indicates |
| A. | High level of inequality of power and wealth within the society |
| B. | Normal Power and Wealth |
| C. | High level of political corruption |
| D. | Low level of Human Development Index |
| Answer» A. High level of inequality of power and wealth within the society | |
| 35. |
Identify a factor that doesn’t play an important role in attracting FDI |
| A. | Language |
| B. | Laws, rules and regulations |
| C. | Cost of resources |
| D. | Infrastructure related factors |
| Answer» A. Language | |
| 36. |
The first phase of globalization started around 1870 and ended with … |
| A. | The World War I |
| B. | The World War II |
| C. | The Establishment of GATT |
| D. | In 1913 when GDP was high |
| Answer» A. The World War I | |
| 37. |
Which of these is a characteristic of multinational corporations> |
| A. | At least one -third directors are foreign nationals |
| B. | The company does 40% of its business in foreign markets |
| C. | The overseas markets are larger than the domestic market |
| D. | The affiliates are responsive tio a number of important environmental forces |
| Answer» C. The overseas markets are larger than the domestic market | |
| 38. |
According to this theory the holdings of a country’s treasure primarily in the form of gold constituted its wealth. |
| A. | Gold Theory |
| B. | Ricardo Theory |
| C. | Mercantilism |
| D. | H .O. THEORY |
| Answer» C. Mercantilism | |
| 39. |
The Theory of Absolute Cost Advantage is given by |
| A. | Adam smith |
| B. | D. Richardo |
| C. | Raymond Varnoon |
| D. | Porter |
| Answer» A. Adam smith | |
| 40. |
The Theory of Relative Factor Endowments is given by |
| A. | Ohilin-Hecksher |
| B. | FY Taylor |
| C. | Richardo |
| D. | Porter |
| Answer» A. Ohilin-Hecksher | |
| 41. |
…………… is application of knowledge which redefine the boundaries of global business |
| A. | Cultural Values |
| B. | Society |
| C. | Technology |
| D. | Economy |
| Answer» C. Technology | |
| 42. |
Capitalistic, communistic and mixed are the types of |
| A. | Economic system |
| B. | Political system |
| C. | Social System |
| D. | Cultural Attitudes |
| Answer» A. Economic system | |
| 43. |
General Agreement on Trade in Services will not be applicable to |
| A. | Services supplied from one country to another – cross border supply |
| B. | Transaction of goods across the border – Export Import |
| C. | Individuals traveling from own country to supply services in another – presence of natural persons. |
| D. | Consumers/firms making use of a service in another country – consumption abroad |
| Answer» B. Transaction of goods across the border – Export Import | |
| 44. |
Quantitative restrictions refer to limit set by countries to curb |
| A. | Imports |
| B. | Exports |
| C. | Imports and Exports |
| D. | All of the above |
| Answer» C. Imports and Exports | |
| 45. |
India is an |
| A. | Emerging economy |
| B. | Developed economy |
| C. | Less developed economy |
| D. | None of these |
| Answer» A. Emerging economy | |
| 46. |
The world trade organization was formed in the year _________ with GATT as it basis. |
| A. | 1992 |
| B. | 1993 |
| C. | 1995 |
| D. | 1994 |
| Answer» C. 1995 | |
| 47. |
________theory states that, lack of resources often helps countries to become competitive |
| A. | Competitive theory |
| B. | Porters Diamond Model |
| C. | Theory of Mercantilism |
| D. | Product life cycle theory |
| Answer» D. Product life cycle theory | |
| 48. |
Theory of Mercantilism propagates |
| A. | Encourage imports and exports |
| B. | Encourage exports and discourage imports |
| C. | Discourage imports |
| D. | None of these |
| Answer» B. Encourage exports and discourage imports | |
| 49. |
The country that attract the largest FDI inflow is |
| A. | USA |
| B. | INDIA |
| C. | CHINA |
| D. | BRAZIL |
| Answer» C. CHINA | |
| 50. |
General electric follows ___________ as its international operational strategy |
| A. | GLOBAL |
| B. | TRANSNATIONAL |
| C. | INTERNATIONAL |
| D. | MULTI-DOMESTIC |
| Answer» B. TRANSNATIONAL | |
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