IBE MCQ PDF

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1) The broadening set of interdependent relationships among people from different parts of the world is known as ____.A) globalizationB) offshoringC) franchisingD) outsourcing2) The broadening set of interdependent relationships among people from different parts of the world is known as ____.A) glob...

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JSPM’S MBA GROUP OF INSTITUTIONS, WAGHOLI, PUNE 1) The broadening set of interdependent relationships among people from different parts of the world is known as ________. A) globalization B) offshoring C) franchising D) outsourcing 2) The broadening set of interdependent relationships among people from different parts of the world is known as ________. A) globalization B) offshoring C) franchising D) outsourcing 3) Which of the following is NOT a likely reason to study international business? A) Global events affect almost all companies. B) Differences among countries in physical, social, and competitive conditions may cause companies to alter their operating methods from country to country. C) Business conducted outside the confines of any one country is inexplicably on the decline. D) Firms may be better able to obtain better or less expensive resources by operating internationally. 4) In terms of international business, it is most accurate to say that ________. A) there is a universal "best way" to conduct business B) global competition affects large companies but not small ones C) most firms depend either on foreign markets and supplies or compete against companies that do D) government regulation of international business has little effect on a company's profits 5) Devon, an accounts manager at a large electronics firm, does not have any direct international responsibilities. However, Devon would most likely benefit from studying international business issues so that he can ________. A) conduct better job interviews B) better understand how foreign operations affect the company's competitive position C) supervise and evaluate subordinates who have global assignments D) understand the legalities of importing and exporting products overseas

6) Which is the right sequence of stages of Internationalization? a. Domestic, Transnational, Global, International, Multinational b. Domestic, International, Multinational, Global, Transnational

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c. Domestic, Multinational, International, Transnational, Global d. Domestic, International, Transnational, Multinational, Global 7) Ultimately ______ was replaced by the ______ on 1st Jan 1995. a. GATS, WTO b. WTO, GATT c. GATT, WTO d. IMF, GATT 8) ______ is the application of knowledge which redefines the boundaries of global business. a. Cultural Values b. Society c. Technology d. Economy 9) Subsidiaries consider the regional environment for policy or Strategy formulation is known as _____. a. Polycentric Approach b. Regiocentric Approach c. Ethnocentric Approach d. Geocentric Approach 10) According to ______ the holdings of a country’s treasure primarily in the form of gold constituted its wealth. a. Gold Theory b. Ricardo Theory c. Mercantilism Theory d. Hecksher Theory 11) Globalization refers to ______. a) Lower incomes worldwide b) Less foreign trade and investment 2|Page

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c) Global warming and their effects d) A more integrated and interdependent world 12) Capitalistic, communistic and Mixed are the types of ______. a. Economic System b. Social System c. Cultural Attitudes d. Political System 13) ______ is not an Indian Multinational Company. a. Unilever b. Asian Paints c. Piramal d. Wipro 14) Which of the following is not a force in the Porter Five Forces model? a. Buyers b. Suppliers c. Complementary products d. Industry rivalry 15) Key controllable factors in global marketing are ______. a. Government policy and legislation b. social and technical changes c. marketing activities and plans d. all of the above. 16) ________ corporation produces in the home country or in a single country and focuses on marketing these products globally or vice a versa. a. Global b. International c. Transnational 3|Page

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d. None of the above 17) The ___________ company produces, markets, invests and operates across the world. a. Global b. International c. Transnational d. Multinational 18) MNC Stands for ______. a. Multi-National Cooperation b. Multi-National Corporation c. Multi-National Company d. Multi-National Collaboration 19) ________ is the first step in the internationalization process. a. License b. Foreign Investment c. Sales d. Export 20) SMEs stands for ______. a. Small and Medium Entrepreneurs b. Small Management of Enterprises c. Small and Medium-sized Enterprises. d. Societies for Managing Exports 21) The OECD stands for _______. a. Organization for Economic Co-operation and Development b. Organization for Economic Coordination and Development c. Organization for Environmental Cooperation and Development. d. Organization for Environmental Control and Development 4|Page

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22) The Theory of Absolute Cost Advantage is given by ______ a. David Ricardo b. Adam Smith c. F W Taylor d. Ohlin and Heckscher 23) The Theory of Relative Factor Endowments is given by ______. a. David Ricardo b. Adam Smith c. F W Taussig d. Ohlin and Hecksher 24) The theory of comparative cost advantage is given by ______. a. David Ricardo b. Adam Smith c. F W Taussig d. Ohlin and Hecksher 25) Comparative Cost Trade Theory is given by ______ a. Adam Smith b. David Ricardo c. Gottfried Haberler d. Heckscher Ohlin 26) ________ is the payment method most often used in International Trade which offers the exporter best assurance of being paid for the products sold internationally. a. Bill of Lading b. Letter of Credit c. Open Account d. Drafts

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27) This is only a legal agreement and it is not an institution, but ______ is a permanent institution. a. GATT, WTO b. WTO, GATT c.WTO, IMF d. IMF, GATT 28) The WTO was established to implement the final act of Uruguay Round agreement of _______ a. MFA b. GATT c. TRIP’s d. UNO 29) WTO stands for ______ a. World technology association b. World time organization c. World trade organization d. World tourism organization 30) NAFTA stands for ______ a. North African trade association b. North American free trade agreement c. Northern Atlantic trade agreement d. Northern association for trade 31) The main promoter of trade liberalization was ______. a. GATT b. NAFTA c. CEPTA d. CISA 6|Page

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32) Select an example of Indian Multinational Company. a. Hindusthan Unilever b. Videocon c. Cargill d. Tesco 33) International trade contributes and increases the world _________ A. Population B. Inflation C. Economy D. Trade Barriers 34) The ratio of trade to GDP was as high as _________ in 1913. A. 22.1 B. 11.2 C. 26.3 D. 33.2 35) Free international trade maximizes world output through________. A. Countries reducing various taxes imposed. B. Countries specializing in production of goods they are best suited for. C. Perfect competition between countries and other special regions D. The diluting the international business laws & conditions between countries. 36) Domestic company limits it’s operations to ___________ political boundaries. A. International B. National C. Transnational D. Global 37) Trade between two or more than two countries is known as ________. A. Internal Business 7|Page

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B. External Trade C. International Trade D. Unilateral Trade 38) _____refers to the tax imposed on imports. A. Imported Tax B. Tariffs C. Subsidies D. Import Quotas 39) ____ means selling the products at a price less than on going price in the market. A. Quota B. Tariff C. Subsidy D. Dumping 40) _______is the oldest International Trade theory. A. Country Similarity Theory B. Theory of Absolute Cost advantage C. Product Life Cycle Theory D. Mercantilism Theory 41) A voluntary export restraint is the opposite form of _____. A. Import quotas B. International tariffs C. Subsidies D. Dumping 42) The international trade between ___________ is like a vast game of beggar my neighbor. A. Exporter & Importer B. Two Countries 8|Page

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C. Two world wars D. Country’s allies and enemies 43) An import tariff is a tax or duty levied on ___________ commodities. A. Imported B. Exported C. Transported D. Both A & B 44) An _____________ is a tax or duty levied on exported commodities. A. Import Tariff B. Export Tariff C. Transport Tariff D. Free Trade Tariff (FTT) 45) __________refers to purchase of goods from a foreign country. A. Foreign Trade B. Export Trade C. Import Trade D. EXIM Trade 46) _______is a fixed percentage on the value of the traded commodity. A. Anti dumping duty B. Specific tariff C. Ad Valorem tariff D. A compound tariff 47) In most countries, foreign trade represents a significant share of ______ A. EXIM B. FDI C. Income Per Capita 9|Page

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D. GDP 48) ________is a combination of an ad valorem and specific tariff. A. Anti dumping tariff B. Specified Valorem Tariff C. EXIM Tariff D. A compound tariff 49) Foreign trade is an exchange of capital, goods, and services across _________ borders or territories A. Intranational B. National C. International D. Both A & C 50) _______ refers to goods imported from one country and are exported to another country. A. Third Party Trade B. Entrepot trade C. Export Trade D. EXIM Trade 51) IBRD stands for _____. a. International Board for Research and Development b. International Bank for Reconstruction and Development c. International Bank for Research Development d. International Barrier For Reconstruction and Development 52) IBRD also known as _____. a. Exim Bank b. World Bank c. International Monetary fund

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d. International Bank International Business MCQ for NET Exam with Answers also useful for the students of MBA BBA exams of distance and regular courses. 1. ___ can be defined as any business that crosses the national borders of the country of its establishment. Ans. International business 2. Exports and imports do not constitute an international business. (True/False) Ans. False 3. ___ is considered the first MNC in the world. Ans. British East India Company 4. Bretton Woods conference led to the formation of ___. a) World Trade Organisation b) International monetary fund c) United Nations Organisation d) General Agreement on Trade and Tariffs Ans. b) International monetary fund 5. Domestic businesses need to comply with the accounting and taxation standards prevailing in that country. (True/False) Ans. True 6. ___ is not an advantage of international business. a) Low-cost production b) Market forces c) Large customer base d) Diversified risk Ans. b) Market forces 7. Franchising and licensing are barriers to international business. (True/False) Ans. False 8. Technological innovations and diminishing trade barriers are ___ of international business. Ans. Drivers 9. Companies, which invest in other countries for business and also operate from other countries, are considered as ___. Ans. Global companies 10. International and global business is different. (True/False) Ans. True 11. Globalisation improves the living standards of people in developing countries. (True/False) Ans. True 11 | P a g e

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12. ___ can be defined as the worldwide trend of businesses expanding beyond their domestic boundaries. Ans. Globalization 13. Trade theories help forecasts and diagnose country trade patterns & trends. (True or False) Ans. True 14. Opportunity cost and efficiency in production do not vary from country to country. (True or False) Ans. False 15. Trade occurs as a result of: a. Choice differential. b. Habit differential. c. Taste differential. d. Resource differential. Ans. Resource differential 16. Name any two international trade theories? Ans. Mercantilist and Comparative Cost Theory 17. What are the inherent weaknesses of Mercantilism theory? Ans. Too much focus on exports only 18. What are the assumptions of the Heckscher-Ohlin Theory? Ans. Factor endowment 19. What is the main assumption of Absolute Cost Advantage Theory? Ans. Labour is the only factor of production 20. The two objectives of National economic policies are ___ and ___. Ans. Full employment, a high economic growth rate. 21. FDI policy is dictated by the government of the host country. (True/False) Ans. True. 22. Balance of payment is an indicator of a country’s ___. Ans. Economic health. 23. Political factors define the economic and legal environment in a business environment. (True/False) Ans. True. 24. ___ refers to the absolute power of the state to coerce and control its citizens. a) Sovereignty b) National interest c) Political stability

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d) Political risk Ans. a) Sovereignty 25. The two types of political risks are ___ and ___. Ans. Macro and micro risk. 26. Three of the most used legal systems are ___, ___ and ___. Ans. Common law, code law, and Islamic law. 27. Scanning of demography provides specific information about different consumer groups (True/ False) Ans. True. 28. Few of the international arbitration bodies are ___, ___, __ and ___. Ans. International Chamber of Commerce, the American Arbitration Association, the London Court of Arbitration and the International Centre for the Settlement of Investment Disputes (ICSID). 29. ___ is defined as the art and other signs or demonstrations of human customs, civilization, and the way of life of a specific society or group. Ans. Culture 30. The consumer tastes and preferences across countries are similar. (True/False) Ans. False 31. Match the following: a) PDI 1) tolerance for uncertainty and ambiguity. b) Individualism 2) pragmatic future-oriented perspective. c) Masculinity 3) equality or inequality between individuals. d) UAI 4) individual or collective achievement. e) LTO 5) support or does not support male dominance Ans. (a) – 3, (b) – 4, (c) – 5, (d) – 1, (e) – 2 32. The most important cultural components of a country that relate to business transactions are ___, ___, and ___. Ans. Language, religion, conflicting attitudes 33. The combination of Japanese vagueness and lack of understanding results in problems that make decision-making very twisted. (True/False) Ans. True 34. Coded speech and verbosity are considered a waste of time and in time-pressured corporate ___, it is a crime. a) Brazil. b) China. c) the USA d) France. Ans. c) the USA

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35. The ability to demonstrate a series of behaviour is called ___. Ans. Skill 36. Diverse groups do not require time to solve issues of working together. (True/False) Ans. False 37. In international management, where people are from different cultures, you have to develop and apply your knowledge about cultures and not use a standard process for everyone. This is called ___. Ans. Cross-cultural management. 38. Foreign investment is the investment by a foreign companies/ individual in an Indian company/industry/sector. (True/False) Ans. True 39. Foreign Investment is of two types – direct and portfolio investment. (True/False) Ans. True 40. Identify the correct answer. Which of the following is not the result of foreign investment ___? a) Improvement in human development skills. b) Increased competition improved productivity. c) Grants/donations to Indian companies. d) Easier integration into the global economy. Ans. C 41. Portfolio Investment is better for a country in the long run. (True/False) Ans. False 42. India does not allow Greenfield investment in India? (True/False) Ans. False 43. Which of the following is not the route for portfolio investment in a country? a) Foreign Institutional Investor. b) Joint Venture. c) Depository Receipts. d) Foreign Currency Convertible Bonds. Ans. B 44. Regional integration can be defined as the unification of countries. (True/False) Ans. True 45. Promoting ___ is a need of regional integration. Ans. Economic diversification 46. Identify the correct answer. Regional integration should not ___. a) Build environmental programs at the regional level b) Strengthen trade integration in the region c) Contribute to the peace and security of the region 14 | P a g e

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d) Break ties with other countries Ans. d) Break ties with other countries 47. Countries under a political union do not have a common government. (True/False) Ans. False 48. Countries under a Common External Tariff on imports from non-members are known as Common Market. (True/ False) Ans. True 49. The purpose of an economic union is to promote closer ___ and ___ ties. Ans. Cultural and political 50. Identify the factor of production. a) Capital. b) Consumers. c) Market. d) Policymaker. Ans. a) Capital 51. The European Free Trade Association (EFTA) was established in the year: a) 1950. b) 1960. c) 1970. d) 1980. Ans. b) 1960 52. ___ is a trade pact between Argentina, Brazil, Paraguay and Uruguay. Ans. MERCOSUR 53. The EU comprises of ___ member states Ans. 27 54. SAFTA agreement was initiated at the 12th SAARC summit held in Bangladesh. (True/False) Ans. False 55. The Gulf Cooperation Council (GCC) is also known as the Cooperation Council for the Arab States of the Gulf (CCASG). (True/False) Ans. True 56. India and MERCOSUR signed a Framework Agreement on ___. Ans. 17th June 2003 57. The association of India and ASEAN started in the year 1991. (True/False) Ans. True 58. ___ is the process of conducting business in multiple countries. Ans. International business. 15 | P a g e

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59. IMF stands for: a) International Monetary Fund. b) International Management Foundation. c) Indian Monetary Fund. d) Indian Management Foundation. Ans. a) International Monetary Fund. 60. NAFTA is major support for international business. (True/False) Ans. False. 61. The WTO is the successor to the ___. Ans. GATT. 62. Majority of the WTO members belong to developed countries. (True/False) Ans. False. 63. The main objective of ___ agreement is to establish the framework for liberalising trade in services. a) GATT. b) NAFTA. c) TRIPS. d) GATS. Ans. d) GATS. 64. The WTO agreements are a set of rules that are followed by the governments while formulating policies and practices in the area of international trade. (True/False) Ans. True. 65. The highest authority of WTO is the ___. Ans. Ministerial Conference. 66. The ___ establishes and implements international labour standards. Ans. International Labour Conference. 67. The Governing Body meets once a year in Geneva and takes decisions on the ILO policies. (True/False) Ans. False. 68. The ILO was created in: a) 1920. b) 1919. c) 1929. d) 1991. Ans. b) 1919. 69. The body of ILO Conventions and Recommendations is commonly known as the International Labour Conference. (True/False) Ans. False.

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70. The executive council of the ILO is known as the ___. Ans. Governing body. 71. International financial management started with ___. Ans. Liberalization 72. The management of finance in domestic and international business is considerably different. (True/False) Ans. True 73. The ___ may include any changes that will impact the economic environment of the country. a) Foreign exchange b) Political risks c) Market imperfection d) Enhance opportunity set Ans. Political risks 74. A ___ needs a more complex calculation. Ans. Forward market 75. The greater part of the world’s deal in foreign currencies is still taking place in the cities where the international financial activity is centered. (True/False) Ans. True 76. Culture of a country influences the marketing strategy of the firm. (true/false) Ans. True 77. ___ involves a firm, shipping goods directly to a foreign market. Ans. Exporting 78. Direct investment involves ___ in the overseas market. Ans. Manufacturing ...