More MCQs
1.

Geographical indication specifies:

A. Place of origin of goods only
B. Special characteristics of product associated with place of origin.
C. Both (a) and (b)
D. none
Answer» A. Place of origin of goods only
2.

Strategic alliance cannot be between:

A. Manufacturer and supplier
B. Competitors
C. Non- competitors
D. None of the above
Answer» C. Non- competitors
3.

The mode of entry into international business with least risk to the firm is

A. Export house
B. Trading house
C. A manufacturing exporter
D. Merchant exporter.
Answer» D. Merchant exporter.
4.

A global company can----------- its experience to expand its global operations

A. Contract
B. Expand
C. Minimize
D. Leverage
Answer» A. Contract
5.

Governmental regulations can affect the viability & ----------- of a company using the internet as a foreign market entry mode.

A. Effectiveness
B. Association
C. Performance
D. None of the above
Answer» C. Performance
6.

______ typically offer more flexibility in international markets.

A. SMEs
B. LSEs
C. MNEs
D. None of the above
Answer» D. None of the above
7.

Which of the following is not a driver of globalization?

A. The fragmentation of consumer tastes between countries.
B. The competitive process.
C. Multinational companies successfully persuading governments to lower trading barriers.
D. The need to gain economies of scale.
Answer» C. Multinational companies successfully persuading governments to lower trading barriers.
8.

Globalization is beneficial for firms because:

A. It protects them against foreign competition.
B. It cushions them from the effects of events in other countries.
C. It opens up new market opportunities.
D. It increases the risk and uncertainty of operating in a globalizing world economy.
Answer» B. It cushions them from the effects of events in other countries.
9.

The internet facilitates globalization by:

A. Making it more difficult to contact potential customers abroad.
B. Cutting the cost for firms of communicating across borders.
C. Making it harder to send money from one country to another.
D. Making it easier for governments to censor the information received by their citizens from abroad.
Answer» A. Making it more difficult to contact potential customers abroad.
10.

Globalization can create problems for business because:

A. It can result in more competition.
B. It increases vulnerability to political risk and uncertainty when operating abroad.
C. It means that they can increase prices.
D. All of the options given are correct.
Answer» B. It increases vulnerability to political risk and uncertainty when operating abroad.
11.

How does international law facilitate international trade and investment?

A. It makes it easier to resolve contract disputes for firms involved in international trade and investment.
B. It allows business to choose the most favorable national legal system to institute proceedings.
C. The terms used in international conventions are open to differing interpretations.
D. The Uniform Commercial Code favors big US multinationals.
Answer» C. The terms used in international conventions are open to differing interpretations.
12.

Laws relating to The Single Market Program allow EU-based companies to:

A. Move goods and services from any member state to another.
B. Transfer managers to any member state.
C. Invest anywhere in the EU.
D. All of the options given.
Answer» A. Move goods and services from any member state to another.
13.

Competition Law in the EU means that firms:

A. Are free to set up international cartels.
B. May be refused permission to take over a US competitor.
C. Can not be made to repay government financial assistance.
D. Can cross-subsidise loss-making services from profitable activities.
Answer» C. Can not be made to repay government financial assistance.
14.

The existence of different currencies is beneficial to private financial institutions because:

A. Each country has its own currency.
B. The exchange rate of each currency is fixed by the International Monetary Fund.
C. A collapse in the exchange rate of a currency can cause economic disruption.
D. Profits can be made from arbitrage.
Answer» A. Each country has its own currency.
15.

The International Monetary Fund is important because:

A. It has sufficient financial resources to deal with a major global financial crisis.
B. It has sufficient financial resources to help individual countries facing balance of payments problems.
C. Emerging economies can exercise significant influence on it.
D. It fixes exchange rates.
Answer» A. It has sufficient financial resources to deal with a major global financial crisis.
16.

What functions do financial institutions traditionally perform?

A. They immobilise savings.
B. They concentrate risk.
C. They spread risk.
D. They offer only short-term finance.
Answer» A. They immobilise savings.
17.

Ethnocentric views concentrate on their

A. home country
B. host country
C. world orientation
D. Raci al orientation
Answer» A. home country
18.

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
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