International Business Environment MCQ

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International Business Environment Mcq
Mba (Savitribai Phule Pune University)
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List of International Business Multiple Choice Questions
The first phase of globalization started around 1870 and ended with …..
a. World War I
b. World War II
c. The Establishment of GATT
d. In 1913 when GDP was High
Ans: a
2. IBRD (International Bank for Reconstruction and Development) also known as
a. Exim Bank
b. World Bank
c. International Monetary fund
d. International Bank
Ans: b
3. Ultimately ………………was replaced by the …………….on 1st Jan 1995
a. GATS, WTO
b. WTO, GATT
c. GATT, WTO
d. IMF, GATT
Answer: c
4. 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
5. Subsidiaries consider the regional environment for policy / Strategy formulation is known
as
a. Polycentric Approach
b. Regiocentric Approach
c. Ethnocentric Approach
d. Geocentric Approach
Answer: b
6. According to this theory, the holdings of a country’s treasure primarily in the form of gold
constituted its wealth.

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a. Gold Theory
b. Ricardo Theory
c. Mercantilism
d. Hecksher Theory
Answer:c
7. The Theory of Absolute Cost Advantage is given by
a. David Ricardo
b. Adam Smith
c. F W Taylor
d. Ohlin and Heckscher
Answer:b
8. The Theory of Relative Factor Endowments is given by
a. David Ricardo
b. Adam Smith
c. F W Taussig
d. Ohlin and Hecksher
Answer: d
9. The theory of comparative cost advantage is given by
a. David Ricardo
b. Adam Smith
c. F W Taussig
d. Ohlin and Hecksher
Answer: a
10. ……………is the application of knowledge which redefines the boundaries of global
business
a. Cultural Values
b. Society
c. Technology
d. Economy
Answer:c
11. Capitalistic, communistic and Mixed are the types of
a. Economic System
b. Social System

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c. Cultural Attitudes
d. Political System
Answer:a
12. Which is not an Indian Multinational Company?
a. Unilever
b. Asian Paints
c. Piramal
d. Wipro
Answer: a
13. 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
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
Answer:c
15. Comparative Cost Trade Theory is given by
a. Adam Smith
b. David Ricardo
c. Gottfried Haberler
d. Heckscher Ohlin
Answer: b
16. …….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

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c. Open Account
d. Drafts
Answer: b

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Global Business Environment MCQs with Answers –

Set1
eguardian.co.in/global-business-environment/
By Eguardian India April 1, 2018
Global Business Environment MCQ Multiple Choice Questions with answers, these notes
are useful for the preparation of various competitive and academic exams like UGC, NET,
BCOM, MCOM, MBA, BBA and many other regular and distance education exams
Global Business Environment MCQ Multiple Choice Questions

Global Business Environment Multiple Choice Questions with answers are available
here:-
1. Geographical indications specify

A. Place of origin of goods.
B. Special characteristics of the product associated with the place of origin.
C. Place and special characters of the product.
D. Place or special characters of the product.
ANSWER: C
2. Business across several countries with some decentralization of management decision

making to subsidiaries is
A. Global business.
B. Multinational business.
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C. Transnational business.
D. Multi-regional business.
ANSWER: B
3. Land as a factor of production is immobile

A. Within the region.
B. Between the countries.
C. Within the nation.
D. In all cases.
ANSWER: D
4. Immobility of labour among nations is

A. Absolute.
B. Relatively of a higher degree than among regions in the same country.
C. Relatively easier than movement within the country.
D. Of the same degree as within the country.
ANSWER: B
5. Uneven distribution of natural resources

A. is the only cause for international business.
B. is the major factor for international business.
C. is among the major factors for international business.
D. is not a cause for international business.
ANSWER: C
6. The following factor does not differentiate the international business from domestic
business
A. different currencies
B. product quality
C. product mobility
D. trade policies
ANSWER: B
7. Free international trade maximizes world output through

A. Countries specializing in the production of goods they are best suited for.
B. Reduction in taxes.
C. Increased factor income.
D. Encouraging competition.
ANSWER: A
8. 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
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9. By entering into international business, a firm expects an improvement in

A. Marketing.
B. All spheres of marketing, operation and finance simultaneously.
C. Any or all spheres of marketing, operation and finance.
D. Finance only.
ANSWER: C
10. By having business in different countries, a firm reduces

A. credit risk.
B. political risk.
C. financial risk.
D. business risk.
ANSWER: B
11. Wholly owned subsidiary can be set up

A. as a Greenfield venture.
B. to acquire an existing firm.
C. to have products marketed overseas.
D. to have management is overseas.
ANSWER: A
12. The essential feature of FDI is

A. Investment of very high value.
B. Investment in shares.
C. Investor’s influence on the management of the enterprise.
D. Investment of low value.
ANSWER: C
13. No new investment in the host country is created in the case of

A. Greenfield FDI.
B. Acquisition.
C. Horizontal FDI.
D. Vertical FDI.
ANSWER: B
14. A firm investing in a foreign country to distribute the products therein creation of
A. Asset seeking FDI.
B. Backward vertical FDI.
C. Forward vertical FDI.
D. Distribution FDI.
ANSWER: C
15. The disadvantages of Greenfield FDI as compared to acquisition is

A. Profit will be less.
B. Size of investment will be high.
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C. Lesser control in management.

D. Delay in the establishment.
ANSWER: D
16. Conglomerate FDI refers to

A. FDI made by a group of firms.
B. FDI made in subsidiaries.
C. FDI made in similar products.
D. FDI made in unrelated products.
ANSWER: D
17. Countries/ regions with huge market size will attract

A. Market seeking FDI.
B. Efficiency seeking FDI.
C. Vertical FDI.
D. Created assets seeking FDI.
ANSWER: A
18. The following statement with respect to culture is false

A. Culture is enduring.
B. Culture is changing.
C. Culture is evolved among the members of society.
D. Culture is determined by national boundaries.
ANSWER: D
19. The following is not a component of culture

A. Attitudes.
B. Beliefs.
C. Education.
D. Life expectancy.
ANSWER: D
20. Non- verbal communication

A. includes written communication.
B. has no place in international business.
C. includes body language.
D. should be learnt by business managers to communicate with foreigners.
ANSWER: C
21. Religion of a person affects his/her

A. attitude towards entrepreneurship.
B. gifting practices.
C. use of products.
D. all of the above.
ANSWER: D
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22. For society, religion has no influence on

A. holidays.
B. language.
C. role of women.
D. marketing practices.
ANSWER: B
23. The role of women is restricted in

A. Eastern countries.
B. Middle East countries.
C. Traditional Islamic countries.
D. India.
ANSWER: C
24. The following nationals would be aggressive at the beginning of business negotiations
but offer large concessions in the end
A. American.
B. Russian.
C. German.
D. Japanese.
ANSWER: B
25. Social stratification is done on the basis of

A. Income level.
B. caste.
C. education.
D. any of the above.
ANSWER: D
26. Social mobility is measured by

A. The extent to which an individual can move the strata to which he/she belongs.
B. The promptness with which an individual accepts foreign assignments.
C. The extent to which inter-caste marriage is encouraged by society.
D. The extent to which the society as a whole shifts its habitat.
ANSWER: A
27. Lower power distance countries are characterized by

A. relationships based on equality and informality.
B. authority being accepted without question.
C. managers being paternalistic.
D. tall organizations structure.
ANSWER: A
28. A country with high uncertainty avoidance will witness

A. lower level of stress among people.
B. decision was taken as a result of group consensus.
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C. less dependence on rules and regulations.

D. people are serene.
ANSWER: B
29. As per cultural dimensions of Hofstede, masculinity refers to

A. Male- female ratio in the country.
B. Society dominated by male members.
C. Society characterized by aggressive and materialistic behaviour.
D. War- ridden societies.
ANSWER: C
30. According to the economic growth model of Rostow, the passage of a country through
the stages is
A. in the order specified.
B. in any order.
C. in the order specified, but certain stages may be skipped.
D. automatic.
ANSWER: A
31. A country in the stage of traditional society is characterized by

A. existence of the traditional rule.
B. non-existence of industries.
C. predominance of agriculture.
D. complete absence of literacy.
ANSWER: C
32. The stage indicating the highest level of economic growth is

A. age of mass consumption.
B. age of mass production.
C. maturity.
D. drive to maturity.
ANSWER: A
33. The income level of residents in a country is indicated by

A. gross national income.
B. gross domestic product.
C. per capita gross national income.
D. per capita gross domestic product.
ANSWER: C
34. For a country with a relatively lower level of cost of living PPP per capita GNI will be
A. lower than per capita GNI.
B. higher than per capita GNI.
C. same as per capita GNI.
D. may be lower or higher than per capita GNI.
ANSWER: B
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35. In a business cycle, the phase preceding prosperity is

A. recession.
B. depression.
C. recovery.
D. recession or depression.
ANSWER: C
36. Monetary policy relates to controlling

A. money supply.
B. money supply and interest rate.
C. money supply, interest rate and exchange rate.
D. credit creation by banks.
ANSWER: C
37. Analysing the business environment best assists in

A. Identifying key competitive forces; identifying competitive position; identifying key
opportunities, threats, strengths and weaknesses.
B. Auditing macro-environmental influences; identifying key competitive forces;
identifying competitive position; identifying key opportunities and threats.
C. Auditing external and organisational factors; identifying key competitive forces;
identifying competitive position; identifying key opportunities and threats.
D. Assessing historical trends; auditing environmental dangers; identifying strategic
capabilities; identifying competitive position.
ANSWER: B
38. In relation to the PESTEL framework, which of the following statements is correct?
A. It assists in the assessment of organisational strengths and weaknesses.
B. It allows a detailed analysis of the structure of an industry.
C. It can be used as a checklist to understand the different environmental influences in
the macro-environment.
D. Takes a historical perspective on the main political, economic, sociocultural,
technological, environmental and legal factors.
ANSWER: C
39. The following factors are key drivers of globalisation

A. Government action, exchange rates, competition and sociodemographic factors.
B. Market convergence, competition, exchange rates and cost advantages.
C. Cost advantages, government action, economic cycles and competition.
D. Market, cost, competition and government policies.
ANSWER: D
40. Scenarios are used to

A. Develop a long term view of strategy.
B. Build plausible views of different possible futures and develop a long term view of
strategy.
C. Identify key drivers of change.
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D. Develop a view of an environment which has a high degree of uncertainty, build

plausible views of different possible futures and take a long term view of strategy.
ANSWER: D
41. Porter suggests the following reasons for one nation being more competitive than
another
A. Ability to speak English; a developed network of supporting industries; absence of
competition; and low labour cost.
B. Abundant natural resources; skilled labour force; temperate climate; and democracy.
C. Factor conditions; demand conditions; related and supporting industries; and firm
strategy, industry strategy and rivalry.
D. Strong sporting ethos; emphasis on individual achievement; strong national party in
power; large home market.
ANSWER: C
42. The five forces that affect the level of competition in an industry are
A. Threat of entrants; the power of buyers; the power of suppliers; the threat of
substitutes; competitive rivalry.
B. Threat of buyers; the power of entry; the power of substitutes; the threat of suppliers;
the threat of recession.
C. Threat of recession; the power of buyers; the power of suppliers; the threat of
management failure; competitive rivalry.
D. Threat of entry; the power of buyers; the power of suppliers; the threat of substitutes;
government action.
ANSWER: A
43. Which of the following statements in relation to the Five Forces framework is correct?
A. The framework assists in developing a broad perspective on the environment within
which an organisation is operating.
B. It is not appropriate in public sector management.
C. The framework is a means of identifying the forces which affect the level of competition
in an industry or sector.
D. The framework identifies the major stakeholders of an organisation.
ANSWER: C
44. In the Five Forces framework, the threat of entrants means

A. The possibility of an existing competitor capturing the entire market.
B. The possibility of an existing competitor withdrawing from the market.
C. The possibility of a new competitor entering the market.
D. The possibility of a potential competitor entering a different market.
ANSWER: C
45. Which of the following could be effective in preventing a potential competitor from
entering the market?
A. High capital costs.
B. Differentiation.
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C. Retaliation.
D. Low switching costs for buyers.
ANSWER: A
46. The threat of substitutes may be high if

A. Switching costs are of concern to the customer.
B. The substitute product provides a higher perceived value or benefit.
C. The substitute product does not provide enhanced functionality, reduced cost and
better quality.
D. Customers have strong existing brand loyalty.
ANSWER: B
47. Buyers can exercise high bargaining power over their suppliers if
A. The volume they buy accounts for a large percentage of their suppliers’ sales.
B. There are few buyers in the market.
C. They have many suppliers to choose from.
D. There is a high concentration of suppliers.
ANSWER: A
48. Assessment of competitive rivalry does NOT include an understanding of

A. The extent to which competitors are in balance.
B. Market growth rates.
C. Fixed costs, exit barriers and operational efficiency.
D. The management structure of an organisation.
ANSWER: D
49. Strategic Groups are

A. A group of companies competing in the same industry.
B. Organisations in the same industry with similar characteristics and following similar
strategies.
C. Strategic Business Units (SBUs).
D. Organisations following similar strategies.
ANSWER: B
50. Market segmentation aims to

A. Identify the similarities and differences between groups of customers or users.
B. Identify the similarities between groups of customers or users.
C. Identify the differences between organisations and their competitors.
D. Identify the needs and wants of all customers or users.
ANSWER: A
51. What are the bases of market segmentation?

A. The business environment; the attractiveness of the market; the purchase/use
situation.
B. The strength of the competitors; the attractiveness of the market; the organisational
structure.
C. Strategic capabilities; organisational structure; organisational culture.
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D. The characteristics of the people/organisations; the purchase/use situation; users’

needs and preferences for product characteristics.
ANSWER: D
52. Strategic gaps are

A. weaknesses in a company’s resources or competences.
B. Opportunities in the business environment not being fully exploited by the
competition.
C. Opportunities in the same market segment.
D. Opportunities in new market segments.
ANSWER: B
53. PEST is an acronym which stands for

A. duct, Economy, Society, Technology
B. Political, Economic, Societal, Technological.
C. Political, Economic, Social, Technological.
D. People, Economy, Standards, Transport.
ANSWER: C
54. Which of the following is not a major reactive motif for initiating export?
A. proximity to international customers/psychological distance
B. Competitive pressures.
C. Foreign market opportunities/market information.
D. Unsolicited foreign orders.
ANSWER: C
55. One of the following does not represent a general market risk in the
internationalization process
A. petition from other organizations in foreign markets
B. lack of tax incentives for organizations that export
C. language and cultural differences
D. complexity of shipping services to overseas buyers
ANSWER: A
56. The following represent major reactive motives for initiating export
A. ended sales of seasonal products.
B. competitive pressures
C. overproduction/excess capacity and unsolicited foreign orders
ANSWER: D
57. In which way do Japanese firms typically exploit foreign market opportunities?
A. using perceived-value pricing strategies.
B. by using psychological pricing strategies.
C. by using penetration pricing strategies.
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D. through mass communication where their strengths in technological innovation are

emphasized.
ANSWER: C
58. According to the World Bank classification which of the following is not a high-income
economy?
A. Qatar.
B. Romania.
C. Austria.
D. Canada.
ANSWER: B
59. Which is the largest country within the EU by the size of the population?
A. Poland.
B. Germany.
C. United Kingdom.
D. France.
ANSWER: B
60. Approximately what per cent of the world income is found outside the United States
of America?
A. 30 per cent.
B. 40 per cent.
C. 75 per cent.
D. 90 per cent.
ANSWER: C
61. Which of the following is not a common form of tariffs?

A. Advalorem.
B. discriminatory.
C. specific.
D. quota.
ANSWER: B
62. A quick method that can help international marketers compare the relative value of
currencies is to check the price of a
A. Coke.
B. litre of petrol.
C. Snickers bar.
D. Big Mac.
ANSWER: D
63. An increase in the general level of prices, as measured against some baseline of
purchasing power is also known as
A. inflation.
B. recession.
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C. deflation.
D. depression.
ANSWER: A
64. The European Union is an example of

A. monetary union.
B. free trade area.
C. common market.
D. economic union.
ANSWER: D
65. The economic System whereby the state holds broad powers to serve the public
interest, it decides what goods and services are produced and in what quantities and
demand typically exceeds supply is
A. Market socialism.
B. Market capitalism.
C. Centrally- planned socialism.
D. Centrally- planned capitalism.
ANSWER: C
66. Islamic Law is a comprehensive code based in part on

A. Roman Law and the Napoleonic Law.
B. Anglo-Saxon common law.
C. EU law.
D. the Koran.
ANSWER: D
67. The following are examples of political risk actions

A. local-content laws and exchange controls.
B. import and labour restrictions.
C. price and tax controls.
ANSWER: D
68. Which of the following options contains the correct order from the lowest to highest
level of economic integration?
A. from economic area to a customs union to common market to free trade area.
B. from a customs union to economic union to free trade area to the common market.
C. from free trade area to a customs union to common market to economic union.
D. from a common market to free trade area to an economic union to the customs union.
ANSWER: D
69. Among the factors that affect the balance of trade figures are
A. exchange rates, taxes, tariffs and trade measures.
B. the business cycle at home or abroad.
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C. trade barriers and agreements.

D. non-tariff barriers.
ANSWER: A
70. Direct democracy is characterised by

A. citizens directly participating in the government of the state.
B. periodical elections for representatives.
C. police force in the private hands.
D. policy influenced by an individual.
ANSWER: A
71. The right of a citizen to freedom of expression and option is preserved in

A. representative democracy only.
B. all democracies.
C. direct democracy only.
D. democracy as well as totalitarianism.
ANSWER: B
72. Totalitarianism does not permit

A. practice of religion.
B. state worship of the land.
C. freedom of expression to citizens.
D. recognition of citizenship to residents.
ANSWER: C
73. Theocratic totalitarianism refers to rule by

A. tribals.
B. foreign missionaries.
C. the military.
D. religious leaders.
ANSWER: D
74. Sanctions and embargoes differ in the following respect

A. Sanctions are against the individuals, embargoes are against nations.
B. Sanctions are specific trade restrictions; embargoes prohibit all business deals with
another country.
C. Sanctions are general, embargoes are specific.
D. Sanctions are against a single country, embargoes are against all foreign countries.
ANSWER: B
75. Export control refers to restrictions on

A. Domestic firms from engaging in exports.
B. Items that can be exported from the country.
C. Foreign countries exporting to the country.
D. Domestic firms engaging in trade with the nation.
ANSWER: B
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76. Indirect regulations affecting international business does not include

A. Export licensing.
B. Antiboycott regulations.
C. Antitrust laws.
D. Anti-corruption laws.
ANSWER: A
77. Antiboycott regulations provide that

A. Domestic companies should not boycott any export order.
B. Foreign companies should not boycott exports from the country.
C. Domestic companies should not comply with boycott regulations imposed by the
importing country.
D. Trade should be liberal as provided under the WTO charter.
ANSWER: C
78. Transfer of assets of a foreign firm to a domestic firm affected by the government with
payment of compensation is
A. Expropriation.
B. Appropriation.
C. Confiscation.
D. Domestication.
ANSWER: A
79. The compensation is paid on expropriation

A. At market rate.
B. At corresponding value in the home country of the firm.
C. lower than market value.
D. On a non-repatriable basis.
ANSWER: C
80. Confiscation refers to the seizure of assets of a firm by

A. The government with adequate compensation.
B. The government without compensation.
C. Its rivals.
D. The people of the country.
ANSWER: B
81. Under domestication requirement

A. Only the owner of the firm is transferred to rivals.
B. The management of the firm is transferred to locals.
C. Both ownership and management of the firm are transferred to locals immediately.
D. Both ownership and management of the firm are transferred to locals gradually.
ANSWER: D
82. The operating risk in the host country does not include the risk of
A. Change in government policies.
B. Exchange control.
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C. Price controls.
D. Sanctions.
ANSWER: D
83. The political risk faced by a firm cannot be managed by

A. following ethical business practices.
B. partnership with local firms.
C. insurance.
D. none of the above.
ANSWER: D
84. The legal system in India is based on

A. Common law.
B. Civil law.
C. Theocratic law.
D. Hindu law.
ANSWER: D
85. Judgments are based on detailed codes, rather than precedents under
A. Common law.
B. Civil law.
C. Theocratic law.
D. English law.
ANSWER: B
86. Theocratic law refers to

A. Islamic law.
B. Military law.
C. Law based on religious precepts.
D. Tribal law.
ANSWER: C
87. The following statement relating to civil law is true

A. The role of judges to interpret the law.
B. The role of judges to apply the law.
C. It is based on established practised.
D. It is not applicable to criminal cases.
ANSWER: B
88. In international business cheaper alternatives to litigation is/ are

A. Conciliation.
B. Arbitration.
C. Negotiations.
D. Conciliation and arbitration.
ANSWER: D
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89. A contract drafted under civil law differs from that drafted under common law in the
following respect
A. It will be detailed.
B. It will be shorter and less specific.
C. It will provide less severe damages.
D. It will be in detail.
ANSWER: B
90. Ownership of intellectual property is recognized in law by granting

A. Licenses.
B. Patents.
C. Copyrights.
D. Patent, copyright or trademark as appropriate.
ANSWER: D
91. Product liability law relates to

A. Holding the manufacturer responsible for the damages caused to the genuine user of
the product.
B. Liability of the customer for illegitimate use of the product.
C. Liability of the seller for selling spurious goods.
D. Holding the manufacturer for advertising false information.
ANSWER: A
92. Voluntary export restraint is

A. Tariff barrier.
B. Non- tariff barrier.
C. Both tariff and non- tariff barrier.
D. Not a trade barrier.
ANSWER: B
93. The objectives of import duty is/are

A. To raise income for the government.
B. To restrict imports.
C. To encourage exports.
D. To raise income and restrict imports.
ANSWER: D
94. Import tariff benefits

A. the consumers.
B. domestic producers.
C. overseas suppliers.
D. the overseas producers.
ANSWER: B
95. Non- tariff trade barriers do not include

A. administrative regulations.
B. export subsidiaries.
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C. fiscal barriers.
D. quota.
ANSWER: B
96. The following is not a feature of globalisation

A. Similar strategies are adopted by a firm in all markets.
B. Only multinational firms engage in international business.
C. The convergence of ideas and culture.
D. Obliteration of national boundaries.
ANSWER: A
97. The globalisation of markets has brought about economies of

A. scale in production.
B. distribution and marketing.
C. management.
D. all business operations.
ANSWER: D
98. Outsourcing of components is an example of the globalisation of

A. Production.
B. Marketing.
C. Purchase.
D. Production and marketing.
ANSWER: A
99. The following benefit is not expected from globalisation

A. Reaping the benefits of free trade.
B. Better quality of life through choice of product.
C. Better knowledge through compulsory education.
D. Dissemination of information through new information technology.
ANSWER: C
100. Anti- globalisation has been voiced by

A. all developing countries.
B. only a few developing countries.
C. supporters from both developing and developed countries.
D. only developed countries.
ANSWER: C
Global Business Environment Quiz-1
0
Created on September 05, 2020 By Eguardian India
Quiz Test for Global Business Environment for preparation of various
competitive and academic exams like UGC, NET, BCOM, MCOM, MBA, BBA
and many other regular and distance education exams
17/20
lOMoARcPSD|8844301
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By having business in different countries, a firm reduces
2 / 25
By entering into international business, a firm expects an improvement in
3 / 25
International business does not result in the following
4 / 25
Free international trade maximizes world output through
5 / 25
The following factor does not differentiate the international business from
domestic business
6 / 25
Uneven distribution of natural resources
7 / 25
Immobility of labour among nations is
8 / 25
Land as a factor of production is immobile
9 / 25
Business across several countries with some decentralization of management

decision making to subsidiaries is
10 / 25
Geographical indications specify
11 / 25
Social stratification is done on the basis of
12 / 25
The following nationals would be aggressive at the beginning of business

negotiations but offer large concessions in the end
13 / 25
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The role of women is restricted in
14 / 25
For society, religion has no influence on
15 / 25
The religion of a person affects his/her
16 / 25
Non- verbal communication
17 / 25
The following is not a component of culture
18 / 25
The following statement with respect to culture is false
19 / 25
Countries/ regions with huge market size will attract
20 / 25
Conglomerate FDI refers to
21 / 25
The disadvantages of Greenfield FDI as compared to acquisition is
22 / 25
A firm investing in a foreign country to distribute the products therein

creation of
23 / 25
No new investment in the host country is created in the case of
24 / 25
The essential feature of FDI is
25 / 25
The wholly-owned subsidiary can be set up
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19/20
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DEPARTMENT OF BUSINESS ADMINISTRATION (BBA)
16UBM622-BUSINESS ENVIRONMENT-K1 Questions
Multiple Choice Questions

UNIT-I
1. In which of the following basic categories can business environment be divided?
A. Local and Regional
B. Regional and National.
C. Internal and External.
D. Financial and Nonfinancial.
ANSWER: C
2. ____ is a statement Which derives the role that an organization plays in a society.
A. Goals.
B. Mission.
C. Objective.
D. Success.
ANSWER: B
3. Economic environment refers to all forces which have a _____.
A. political.
B. natural
C. economic.
D. social.
ANSWER: C
4. ______environment is with in the control of the business.
A. Internal.

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B. External.
C. Micro.
D. Macro.
ANSWER: A
5____ environment is beyond the control of the business.
A. Internal.
B. External.
C. Micro.
D. Macro.
ANSWER: B
6. Micro environment is also called as ________.
A. general environment.
B. operating environment.
C. economics environment.
D. political environment.
ANSWER: B
7. Macro environment is also called as _______.
A. general environment.
B. operating environment.
C. economic environment.
D. political environment.
ANSWER: A
The environment which is close to business and affect its capacity to work is known as
___environment.
A. internal.

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B. external.
C. micro.
D. macro.
ANSWER: C
9. Factors that create opportunities and threats to business units is known as_______.
A. internal environment.
B. external environment.
C. micro environment.
D. macro environment.
ANSWER: D
10. Internal factors affecting a business environment also are referred to ____factors.
A. controllable.
B. uncontrollable factors.
C. relevant.
D. global.
ANSWER: A
External factors affecting a business environment also be referred to ___factors.
A. controllable.
B. uncontrollable.
C. relevant.
D. global
ANSWER: B
12. Study of human population is called as _____ environment.
A. political.
B. social.

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C. demographic.
D. economic
ANSWER: C
13. IN which year the essential commodities act introduced___.
A. 1954.
B. 1955.
C. 1956.
D. 1957.
ANSWER: B
14. Which is the one not included in national culture?
A. Language.
B. Internet.
C. Belief.
D. Attitude.
ANSWER: B
15. Culture spreads from one place to anther and such transmission is called as ________.
A. difference.
B. reputation.
C. adoption.
D. heritage.
ANSWER: A
16. An attitude composed of effect____.
A. flextime.
B. cognition.

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C. relationship.
D. culture.
ANSWER: B
17. What is the main occupation of Kshatriyas?
A. engage in cleaning.
B. engaged in trade.
C. engaged in army work.
D. none of the above
ANSWER: C
18. A systematic application of scientific knowledge to practical task is known as________.
A. technology.
B. culture.
C. demograpic.
D. legal.
ANSWER: A
19. ___ is defined as systematic assessment of the social impact of the activities of a business
firm.
A. Social audit.
B. Social responsibility.
C. Social interaction.
D. Social benefit.
ANSWER: A
20. What are the elements of business ethics?
A. Values rights and duties.
B. attitudes pressure and environment.

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C. value environment and attitude.
D. Responsibilities.
ANSWER: A
UNIT-II
21. Corporate values are the _______ of the corporate sector.
A. shared values.
B. moral beliefs.
C. customer satisfaction.
D. goodwill.
ANSWER: B
22.The economic system in which business units or factors of production are privately owned
and governed is called as______.
A. capitalism.
B. socialism.
C. democratic.
D. republic.
ANSWER: A
23. The economic system in which both public and private sectors co exist is known as
___economy.
A. capitalism.
B. socialism.
C. democratic.
D. republic.
ANSWER: B
24. One Reserve Bank of India introduced certificates of deposit in ____.

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A. 1964.
B. 1989.
C. 1986.
D. 1990
ANSWER: B
Fical policy refers to the policy of government regarding taxtation public expenditure and ____.
A. public debt.
B. budgets.
C. policies.
D. deposits.
ANSWER: B
26. The sixth plan mentions 17 criteria for determining the prevalence of ____.
A. poor.
B. academician.
C. backwardness.
D. business.
ANSWER: C
27. Fiscal policy is called as ______ policy.
A. monetary.
B. budgetary.
C. industrial.
D. economic.
ANSWER: B
28. One concept of culture determines the ___ of people.
A. experience.

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B. ethics.
C. education.
D. wealth.
ANSWER: B
29. Self fulfillment and immediate gratification are_____cultural values.
A. decreases.
B. rises.
C. diminishes.
D. corporte.
ANSWER: B
30. National stock exchange was set up a joint stock company by all indian financial institution
and banks on November 27 ____.
A. 1991.
B. 1992.
C. 1993.
D. 1994.
ANSWER: B
31. Which can be a method of privation?
A. Denationalization.
B. Purchasing shares.
C. Takeover.
D. Merger.
ANSWER: A
32. In India liberalization and privatization began from____.
A. 1991.

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B. 1971.
C. 1981.
D. 1947.
ANSWER: C
33. Industrial policy of 1948 aimed at ______.
A. industrialization
B. growth of agriculture.
C. development of infrastructure .
D. development of service sector.
ANSWER: A
34. _______ state can have an elected or hereditary head.
A. Democratic.
B. Autocratic.
C. Socialized.
D. Republic.
ANSWER: A
35. The era of deregulation / liberalization begin in ___.
A. 1950and51.
B. 1980.
C. 1991.
D. 1960.
ANSWER: A
36. ___________ occupies the central place in business.
A. People.
B. Raw material.

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C. Labour.
D. Finished goods.
ANSWER: B
37. India is good example for ________economy.
A. socialist.
B. mixed .
C. capitalist.
D. communist.
ANSWER: B
38. Business includes _____.
A. non-economic activities.
B. economic activities.
C. social activities.
D. production activities.
ANSWER: B
39. What is the single word that can best describe today s business?
A. Technology.
B. Profit Making.
C. Change.
D. People.
ANSWER: C
40. Is the modern business dynamic?
A. mass production.
B. mass marketing.

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C. mass sales.
D. mass purchase.
ANSWER: A
UNIT-III
41.A valid definition of a business purpose is to _______.
A. create a customer.
B. maximize profits.
C. serve the society.
D. increase the wealth in the firm.
ANSWER: A
42. Is todays business is not characterized by diversification?
A. Social relationship.
B. Profit.
C. Customers.
D. Assets.
ANSWER: B
43. Is interference of government in business is common in every country?
A. 1960.
B. 1970.
C. 1980.
D. 1990.
ANSWER: A
44. ____refers to the system of moral principles and rules of conduct applied to business.
A. Business culture.

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B. Business ethics.
C. Business.
D. Society.
ANSWER: B
45. Competition is beneficial to the competing firms besides benefiting the ______?
A. producers.
B. intermediaries.
C. finances.
D. consumers.
ANSWER: D
46. What are the main concepts concerning about business goals or objectives?
A. Mission, objectives.
B. Mission , targets.
C. Mission, objectives, target.
D. Target, objectives.
ANSWER: C
47. Goals realization continuously will lead to _______.
A. mission fulfillment.
B. maximize customers.
C. high revenue.
D. maximize suppliers.
ANSWER: A
48. _______is the primary motive for a business enterprise.
A. Profit.
B. Maximize customers.

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C. Human objective.
D. Maximize suppliers.
ANSWER: A
49. The following statement with respect to culture is false.
A. Culture is enduring.
B. Culture is changing.
C. Culture is evolved among the members of a society.
D. Culture is determined by national boundaries.
ANSWER: D
50. ________is the business through which new ideas and innovations are given a sharp and are
converted into useful products and services .
A. Market Leadership.
B. Challenge.
C. Joy of Creation.
D. Growth.
ANSWER: C
51. what is the nature of business environment?
A. Aggression.
B. Relative.
C. Uncertain.
D. Aggression, Relative and Uncertain.
ANSWER: D
52. What is the significance of business environment?
A. First Mover Advantage.
B. Competition.

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C. Information.
D. Globalization.
ANSWER: A
53. What are the elements of business environment?
A. Micro Environment.
B. Macro Environment.
C. Complex Environment.
D. Steeple factor
ANSWER: D
Macro environment is also known as _________?
A. direct environment .
B. indirect environment.
C. competitive environment.
D. social environment.
ANSWER: B
55. Macro environment consist of ______?
A. public.
B. political & legal.
C. suppliers.
D. customers.
ANSWER: B
56. The micro environment consists ______.
A. Technological Environment.
B. Political Environment.
C. Economic Environment.

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D. Public, middlemen, consumers & competitors.
ANSWER: D
57. _______ refers to all forces which have an economic impact.
A. Technological Environment.
B. Political Environment.
C. Economic Environment.
D. Legal environment
ANSWER: C
58. __________ decides on a particular course of action.
A. Legislature.
B. Executive.
C. Judiciary.
D. Public.
ANSWER: A
59. The first MNC came to India in _______.
A. 1920.
B. 1921.
C. 1919.
D. 1923
ANSWER: B
60. Economic growth can be measured by ___________.
A. the CPI.
B. the CBI.
C. GDP.
D. MPC.

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ANSWER: C
61. Porter s model represents the relationship between _______.
A. organizational and environment.
B. society and environment.
C. organization and society.
D. society and industry.
ANSWER: A
62. ________environment refers to all economic factors which have a bearing on the functioning
of a business.
A. Economic.
B. Technological.
C. Natural.
D. Social.
ANSWER: A
UNIT-IV
63.Capitalism stresses the philosophy of individualism believing in private Ownership comes

under ____.
A. legal planning.
B. soviet planning.
C. government planning.
D. agricultural planning.
ANSWER: A
64. In which year socialism the tools production are not managed by government?
A. 1952.
B. 1950.

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C. 1951.
D. 1953.
ANSWER: B
65. In capitalism ____ losses assumed by the customers.
A. economics.
B. technological.
C. natural.
D. social.
ANSWER: B
66. Depreciation is permitted in communism ________.
A. legal planning.
B. soviet planning.
C. government planning
D. agricultural planning.
67.In communism the state determines one s employer and employment ____.
A. socialism.
B. economics.
C. communism.
D. capitalism.
ANSWER: A
68. The _____ socialism seems to fall between capitalism and communism ____.
A. increased.
B. decreased.
C. lowlevel.
D. medium.

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ANSWER: A
69. Has the per capita income increased or decreased from 1980 to 2009 ___.
A. increased.
B. decreased.
C. medium.
D. narrow.
ANSWER: C
70. Population is a component of the total ______environment.
A. economic.
B. social.
C. natural.
D. technology.
ANSWER: A
71. Which plan gives priority for family planning?
A. State Policy.
B. Judicial Policy.
C. Industrial
D. Energy
ANSWER: B
72. Governments policy towards industries is called as ________.
A. economic policy.
B. industrial policy.
C. monetary policy.
D. work policy.

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73. Industrial policy was set up in the year _______.
A. 1955.
B. 1956.
C. 1957.
D. 1958.
ANSWER: B
74. One of the objectives of industrial policy is to accelerate the rate of economic Growth and
speed up industrialization___.
A. 1955.
B. 1956.
C. 1957.
D. 1958.
ANSWER: A
75. MRTP act was set up in the year _______.
A. 1950.
B. 1951.
C. 1952.
D. 1953.
ANSWER: A
76. The liberalization of the rules relating to FDI permitting _______% equity in wide range of
Industries.
A. 50.
B. 51.
C. 52.
D. 53.
ANSWER: B

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UNIT-V
77.In some circles, a multinational corporations is also referred to ____________.
A. multinational collaboration .
B. multinational entity.
C. multinational enterprises.
D. multinational development.
ANSWER: C
78. Multinational corporations is also referred to ____________.
A. multinational collaboration.
B. multinational entity.
C. transnational corporation.
D. multinational development.
ANSWER: C
79. FERA is foreign exchange regulation act for _________.
A. industries .
B. small scale .
C. labour.
D. owner.
ANSWER: A
80. GDP is ____.
A. Gross Domestic Product.
B. Gross Domestic Percentage.
C. Gross Domestic Personnel.
D. Gross Domestic Public.

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ANSWER: A
81. GNP stands for_____________________
A. Gross National Product
B. Gross negative product
C. Gross negotiable product
D. None of the above
ANSWER: A
82. SAOIL is ______.
A. Steel authority of India ltd .
B. School authority of India ltd.
C. State authority of India ltd.
D. Span authority of India ltd.
ANSWER: A
83. NDP is ____.
A. Net Domestic Product.
B. Net Domestic Percentage.
C. Net Domestic Personnel.
D. Net Domestic Public.
ANSWER: A
84. Who gave a practical shape to privatization?
A. MARGARAT THATCHER.
B. LOUIS PETER.
C. WILLIAMS.
D. FAYOL.
ANSWER: A

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85. In privatization SIP refers to _______.
A. Share issue privatization.
B. Shares in privatization.
C. Share industry privatization.
86. The techniques of privatization are contract _______and concession.
A. building.
B. free .
C. leases .
D. hire purchase.
ANSWER: C
87. There are _____sins of privatization.
A. 5.
B. 6.
C. 7.
D. 8.
ANSWER: C
88. The income level of residents in a country is indicated by _______.
A. gross national income.
B. gross domestic product.
C. per capita gross national income.
D. per capita gross domestic product.
ANSWER: C
89. --------is the process of analyzing the environment for the identification of factors which have
impact on or have implication for the business.

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A. Assessment
B. Forecasting
C. Scanning
D. None of these
ANSWER: C
90. PEST is an acronym which stands for ________.
A. Political, Environment, Societal, Technology. Share institution privatization.
B. Political, Economic, Societal, Technological.
C. Political, Economic, Social, Technological.
D. People, Economy, Standards, Transport.
ANSWER: C
91. The European Union is an example of ______.
A. monetary union.
B. free trade area.
C. common market.
D. economic union.
ANSWER: D
92. The major responsibility of RBI is __________.
A. healthy regulation.
B. monetary regulation.
C. work regulation .
D. industrial regulation.
93. The legal system in India is based on ______.
A. Common law.
B. Civil law.

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C. Theocratic law.
D. Hindu law.
ANSWER: D
94. A mixed economy is necessarily a _____.
A. controlled.
B. planned.
C. organised.
D. planned, organised and controlled.
ANSWER: D
95. The origin of Common law is in _____.
A. America.
B. England.
C. Russia.
D. India.
ANSWER: A
96. The focus on increasing profitability and profit growth by reaping the cost reduction that
come from economies of scale is ________.
A. global standardization strategy.
B. localization strategy.
C. transnational strategy
D. international strategy.
ANSWER: A
97. The total accumulated value of foreign- owned assets at a given period of time is __.
A. flow of FDI
B. stock of FDI

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C. inflow of FDI
D. outflow of FDI
ANSWER: B
98. The taking over of a private firm by the host country government to be run it as a government
unit is ______.
A. expropriation.
B. confiscation.
C. nationalisation.
D. domestication
ANSWER: C
99. Who is responsible for presenting the Union Budget before the Parliament?
A. Prime Minister
B. Finance Minister
C. RBI Governor
D. none of the above
ANSWER: B
100. The goods and the services produced, priced and distributed by the government is ___.
A. Market economy.
B. Secular economy.
C. Command economy.
D. Mixed economy.
ANSWER: C
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BUSINESS ENVIRONMENT
K2 QUESTIONS
UNIT-I
1. What is business environment?
2. .Point out the important characteristics of macro environment and distinguish it from
micro environment.
3. What are the objectives behind passing the Industries Development and Regulation
Act-1951?
4. What guidelines have been issued by SEBI for the protection of the interest of
debenture holders?
5. Write an explanatory note on the main provision of the Consumer Protection Act
1966.
6. What are the objectives of Monetary Policy in India?
7. .Describe briefly the changing role of public sector and private sector in the shaping
the economic destiny of India.
8. .-Describe the factors to be considered while selecting an appropriate technology and

also underline the problems associated with it. 1
9. What is social responsibility?
10. What necessitated the adoption of New Economic Policy in India?
UNIT-II
11. . What is Globalization?
12. What are the main drivers of globalization?
13. What do you understand by Business Environment? How does its study help in a
business organization?

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14. Define Unfair Trade Practice. Discuss the provisions in the MRTP act for controlling
Unfair Trade Practices.
15. Define Capitalism and describe its features.
16. What are the measures adopted by the Reserve Bank of India to control Credit?
17. What is meant by Micro Business Environment?
18. What is environment analysis?
19. Point out forces pertaining to economic environment.
20. Enumerate Socio-cultural forces to business environment.
UNIT-III
21. What demographic factors are relevant to business?
22. What is meant by mixed economy?
23. Enumerate some of the features of socialistic system.
24. What is Foreign Direct Investment?
25. Explain the rationale of technology adaptation and absorption.
26. How political environment affect business?
27. “Business Social responsibility is confined only up to balancing profit and social
goals”. Discuss
28. What do you mean by environment forecasting?
29. Discuss the salient features of India’s Fiscal Policy.
30. Discuss in brief instruments of monetary policy.
UNIT-IV

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31. Write a note on “Globalisation and Liberalization of India’s Foreign Investment

Policy.”
32. Explain objectives of Competition Law in india.
33. Give two suggestions to the problems of small scale industries
34. State any two features of business environment.
35. . Mention the different types of business environment.
36. List the various elements of non-economic environment of business.
37. State any two effects of liberalisation of Indian economy.
38. What is meant by the term ‘ethics’?
39. Describe the importance of business environment for the business firm.
40. Explain any two non-economic environment of business?
UNIT-V
41. State the responsibilities of business towards the community.
42. Describe in brief the economic environment of business.
43. . Explain the social responsibility of business towards different groups.
44. What do you mean by monetary policy?
45. What is counter trade?
46. What do you mean by sectoral imbalances?
47. What do you mean by monetary policy?
48. What is technical unemployment?
49. What do you understand by unfavorable balance of payment?
50. What do you mean by creeping inflation?

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DEPARTMENT OF BUSINESS ADMINISTRATION

16UBM622-BUSINESS ENVIRONMENT
SECTION –B
UNIT-I
1. What is meant by Micro Business Environment?
2. What is environment analysis?
3. Point out forces pertaining to economic environment.
4. Enumerate Socio-cultural forces to business environment.
6. What is meant by mixed economy?
7. Enumerate some of the features of socialistic system.
8. What is Foreign Direct Investment?
9. Explain the rationale of technology adaptation and absorption.
10. How political environment affect business?

UNIT-II
11. “Business Social responsibility is confined only up to balancing profit and social
goals”. Discuss
12. What do you mean by environment forecasting?
13. Discuss the salient features of India’s Fiscal Policy.
14. Discuss in brief instruments of monetary policy.
15. Write a note on “Globalisation and Liberalization of India’s Foreign Investment

Policy.”
16. Explain objectives of Competition Law in india.
17. Explain in detail significance and need to study business environment.
18. How far the new Economic Policy of India has been helpful in the country’s
economic development? Point out its defects and give suggestions to remove them.

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19. Discuss disinvestment policy of Government of India. Do you feel that this policy is
contributing desired results?
20. Write a detailed note on International Business Environment and its impact on India
UNIT-III
21. What is business environment? How is the study of business environment relevant to
a manager?
22. Environment scanning should provide input to strategic decision making” Elaborate.
23. Point out the important characteristics of macro environment and distinguish it from
micro environment.
24. What are the objectives behind passing the Industries Development and Regulation
Act-1951?How far have these objectives fulfilled?
25. What guidelines have been issued by SEBI for the protection of the interest of
debenture holders?
26. Write an explanatory note on the main provision of the Consumer Protection Act
1966.
27. What are the objectives of Monetary Policy in India? Also examine critically the
working of monetary system in India.
28. Describe briefly the changing role of public sector and private sector in the shaping
the economic
29. destiny of India.
30. Critically examine the role of financial institutions in the growth and development of
industries in India.
UNIT-IV
31. Describe the factors to be considered while selecting an appropriate technology and
also underline the problems associated with it.
32. What are the important feature of Indian culture and value system? How does the
culture effect the business?
33. What is social responsibility? How can business combine its social responsibility with
that of profit making objective?
34. What necessitated the adoption of New Economic Policy in India? What were the
objective and how far these objectives have been fulfilled?

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35. Bring out the redeeming features of India’s FDI Policy? Assess whether the policy
has been able to
36. Serve the basic purpose of attracting foreign direct investment in India.
37. What is Globalization? What are the main drivers of globalization? Discuss them in
brief.
38. What do you mean by demarketing?
39. What is environmental Diagnois?
40. What do you mean by business environment and economic environment respectively?
UNIT-V
41. Why are Internal factors of a business enterprise regarded as controllable factors?
42. What kind of external factors influence the process of business enterprises?
43. What do you mean by Micro environment?
44. What do you understand by free market economy
45. Mention some important determinants of business strategies
46. What do you understand by free market economy?
47. What Factors show that “the freedom of private enterprises is greatest in the free
market economy”?
48. . Mention the socio-cultural fabric as an important environmental factor that should be
analysed while formulating business strategies
50. Describe the advantages and disadvantages of Foreign capital in the industrial
development of a country
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DEPARTMENT OF BUSINESS ADMINISTRATION
18UBM622-BUSINESS ENVIRONMENT
SECTION C
UNIT-I
1. Explain the structure and functions of WTO?

2. What are the differences between planning commission and NITI Ayog?
3. Explain the features of MNC?
4. Write a short note on FDI in retail trade?
5. Write a short note on fiscal & monetary policy?
UNIT-II
6. What do you mean by investment climate? How does it influence the working of private
sector in India
7. Explain various types of unemployment in India. Discuss the causes and consequences
ofunemployment.
8. Explain the features of new economic & industrial policy?
9. What do you mean by regional imbalances? How it can be rectified?. Write a short note
on: - BRICS, SAARC
10. Write a detailed note on Socialism.
UNIT-III
11. Discuss in detail the political institutions in India.
12. “Joint sector helps in growth of Economy”. Explain.

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13. What is social audit? Explain its importance for Business.
14. What are the basic factors influencing corporate governance?
15. Explain the impact of technology on business.
UNIT-IV
16. Discuss competitive strategies that firms usually apply to stay in business.
17. Discuss the various dangers of MNCs to developing country
18. Explain the functions of FDI in developing countries
19. . What is meant by Business environment? Explain its concepts
20. Write down the various constituents of business environment
UNIT-V
21. . explain the various characteristics of business environment in India
22. Enumerate the significance of business environment in detail
23. Write down the need of environmental analysis in business
24. What is meant by SWOT analysis? Explain
25. Explain the limitations of business environment
*******************************%%%***************************************

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MULTI CHOICE QUESTIONS
INTERNATIONAL BUSINESS
1. ___________ is consists of the totality of all factors within or outside the control of individual business firms.
a) Business b) Environment
c) Business environment d) organization
2. Environment is always changing constraining and ____________
a) Competing b) Uncertain
c) dynamic d) Specific
3. Environment is a __________ process
a) Dynamic b) Complex
c) interactive d) All of the above
4. _______________ is the product of environment.
a) Opportunity b) Threads
c) Business d) Factors
5. There are two sets of factors which influence the business of an enterprise is____________
a) Internal and External b) Micro and Macro
c) Political and Legal d) Social, Cultural & Technological
6. ___________ plays a vital role in running the business enterprise.
a) Customers b) Labor
c) Product d) Competitors
Ans. D
7. ___________ Consists of the actors in the company's immediate environment
that affect the performance of the company.
a) Macro environment b) Micro environment
c) Internal environment d) External environment
Ans. B
8. Macro environment is also known as __________
a) Outside environment b) Indirect environment
c) General environment d) Social environment
Ans. C
9. Remote environment is an another name of __________
a) Micro environment b) Macro environment
c) Internal environment d) External environment
Ans. B
10. ____________ is environment covers those factors which give shape and form
to the dept. of economic activities.
a) Technological b) Demographic
c) Social and cultural d) Economic
Ans. D
11. A stable, honest and efficient political system is a primary factor for the growth
of ______________
a) Business b) General environment
c) Economic conditions d) Natural environment
Ans. A
12. When the rate of change in is insignificant, it is termed as ________
environment
a) General or specific b) Stable or static
c) Dynamic or certain d) Simple of complex

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Ans. B
13. When some sudden and unpredictable changes take place in the organisation is
said to ___________
a) Technological environment b) Natural environment
c) Turbulent environment d) Changing environment
Ans. C
14. ___________ is an open form of government.
a) Parliamentary System b) Government environment
c) Legal environment d) Political environment
Ans. A
15. China is the biggest example _________
a) Capitalism b) Mixed economy
c) Laissez Faire d) Socialism
Ans. D
16. The term _________ relates to patent, trademarks, copyrights and trade secrets.
a) Priority right b) Intellectual property right
c) Tariff & Trade Act d) Madrid agreement
Ans. B
17. ____________ is also called the International convention for the protection of
industrial property.
a) Paris Union b) National Treatment
c) Industrial Policy Act d) Intellectual property Right
Ans. A.
18. ____________ means that if an investor registers a patent in one member
country, he can file an application for registration in other member countries
within one year from the date of filing return,
a) Patent cooperation Treaty b) Paris Union
c) Priority Right d) National Treatment
Ans. C
19. The international registration of Trade Marks aims at the international
registration is ________
a) Trade Mark Registration Treat b) Independent of patents
c) Patent Cooperation Treaty d) The Madrid Agreement
Ans. D
20. International Bureau of World Intellectual Property Organisation is ________
a) U.S.A. b) Geneva
c) Switzerland d) Canada
Ans. B
21. _________ Involves infringement of a patent or trade mark.
a) Counter feiting b) Unauthorised product
c) Illegal goods d) Low quality products
Ans. A
22. _______ is an unintented channel of distribution that runs parallel to the planned
channel.
a) Bribery b) Counter feiting
c) Gray Market d) Black Market

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Ans. C
23. ___________ concentrates on the analysis of market, competition and financial
strength of a company.
a) Risk Reward analysis b) Cost benefit analysis
c) Break even analysis d) None of the above
Ans. B
24. _________ analysis studies the impact of various environmental factors on the
marketing mix.
a) Break even analysis b) Risk reward analysis
c) Cost - benefit analysis d) Product Analysis
Ans. B
25. __________ is subjective in nature
a) Social interaction b) Political factors
c) Natural factors d) Cultural
Ans. D
26. __________ is a set of traditional beliefs and values which are passed and shared
among different societies
a) Cultural environment b) Social environment
c) Socio - cultural environment d) Economic
Ans. C
27. __________ is the foundation of culture
a) Language b) Customs
c) Education d) Religion
Ans. A
28. E.E.C stands for
a) European Economics Control b) European Economic Community
c) European Economic centre d) European Economic Committee
Ans. B
29. E.E.C. is also known as ________
a) Economic Common Market b) NFTA
c) IPA d) European Common Market
Ans. D
30. ECM was brought into being __________
a) 31 Dec. 1957 b) 15 Jan, 1958
c) 1 Jan, 1958 d) 24 March 1957
Ans. C
31. World's largest trading Block is ______
a) NAFTA b) SAARC
c) CEC d) ECM
Ans. D
32. NAFTA mean __________
a) North American Free Trade Agreement
b) North American Foreign Trade Agreement
c) North Asian Free Trade Agreement
d) North Asian Foreign Trade Agreement.
Ans. B

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33. NAFTA is a series of bilateral agreement between America, Canada and
_________
a) Geneva b) Mexico
c) UK d) Ireland
Ans. B
34. SAARC association brings together __________ countries of South Asia for
regional co-operation.
a) 9 b) 8
c) 7 d) 14
Ans. C
35. The head quarters of SAARC in _______
a) Bangladesh b) Maldives
c) Sri Lanka d) Kathmandu
Ans. D
36. ________ was commenced on January 1, 1994
a) NAFTA b) ECM
c) SAARC d) CEC
Ans. A
37. ______________ is a bilateral trade agreement between two countries.
a) Tie in Agreement b) Counter trade
c) MNC d) Gray Market
Ans. B
38. _______ is the process of convincing the various powerful elements of the
environment to act in the favour of the organisations.
a) Coalescing b) Cooptation
c) Lobbying d) Procurement
Ans. C
39. Two or more organisations may merger their organisations to have better control
over the environment as various resources are pooled together is __________
a) Cooptation b) Lobbying
c)Agreement d) Coalescing
Ans. D
40. _________ was a Multilateral treaty encompassing rules and disciples for an
orderly world trading system.
a) GATT b) ITO
c) ECM d) SAARC
Ans. A
41. __________ means each nation shall be treated as well, as the most favoured
nation.
a) GATT b) MFN
c) FTZ d) TRRM
Ans. B
42. Trade in Textile was restricted by _________
a) MFN b) GATT
c) MFA d) ITO
Ans. C

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43. __________ is known a neo-liberalism
a) Globaluation b) Liberalisation
c) Privatization d) None of the above
Ans. A
44. ________ refers to a process of increasing economic integration and growing
economic interdependence between countries in the world economy.
a) MNC b) TNC
c) Globalisation d) WTO
Ans. C
45. _________ means acceptance of an outward looking policy of economic
development in place of an inward – looking one.
a) Liberalization b) Privatisation
c) Globalisatiion d) All of the above
Ans. C
46. ESCAP stands for _______
a) Economic and Social Commission for Asia and the Pacific
b) Economic and Social Centre for Asia and the Pacific
c) Economic and Social Commission for the Asia and Privatisation
d) Economic and Social Culture for Asia and Public
Ans: A
47. __________ is a method of doing business by which a franchisee is granted the
right to offer, sell or distribute goods or service under a system created by the
Franchisee.
a) Agreement b) Dealership
c) Patent d) Franchising
Ans. D
48. ________ means setting a products a company to its affiliated company in host
country.
a) Direct exporting b) Intra corporate transfer
c) indirect exporting d) Exporting
Ans. B
49. BOT means ____________
a) Business Outsourcing Trade
b) Balance on Trade
c) Build, operation and Transfer
d) Business Outsourcing Transaction
Ans: C
50. FERA was replaced by _______
a) FEMA b) GATT
c) WTO d) ITO
Ans. A
51. WTO was setup in ______
a) 1995 b) 1992
c) 1996 d) 1994
Ans. D
52. ________ is the process of contracting with foreign firms granting them

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proprietary right to use technology, copyrights, trade marks, brand names etc.
a) Franchising b) Licensing
c) Contract d) None of the above
Ans. B
53. __________ arrangement is also known as cross licensing
a) Licensing b) Franchising
c) Intra corporate transfers d) Contracts
Ans. A
54. A company doing international marketing contracts with a foreign producer to
manufacture or assemble the products for a sale in the foreign market is ________
a) Management contract b) Contract Manufacturing
c) Turnkey Contract d) Licensing
Ans. B
55. _________ are therefore arrangement where by for a fee, one company provides
personnel to perform general specialised management functions for another
company.
a) Lisensing b) Franchising
c) Contract Manufacturing d) Management contract
Ans. D
56. _________ is a contract under which a firm agrees to fully design, construct and
equip a manufacturing or business or service facility and turn the project to the
purchaser ready for operation for a remuneration.
a) Manufacturing contract b) Management contract
c)Turnkey contracts d) Joint venture
Ans. C
57. __________ is part of the parent corporation and simply an extension of domestic
operation.
a) Foreign Subsidiary b) Overseas branch
c) Third country location d) Assembly operation
Ans. B
58. _________ is a separate company organised under a foreign nations legal code
with accountability distinct from the parent company.
a) Foreign subsidiary b) Oversees branch
c) Assembly operation d) Fully owned manufacturing
Ans. A
59. _________ is a peculiar form of international trade that encompasses more than
an exchange of goods services or idea for money.
a) Turnkey contract b) Licensing
c) Counter Trade d) Buy back
Ans. C
60. __________ of economic policy is intended to promote the integration of Indian
economy with the global economy.
a) Globalisatioin b) Liberalisation
c) Privatisation d) None of the above
Ans. B
61. _________ is an enterprise which allocates company resources without regards to

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national frontiers, but is nationally based in terms of ownership and top
management.
a) MNC b) Globalisation
c) Liberalisation d) TNC
Ans. A
62. __________ conference of 1944 suggested institutional arrangements to undertake
post wear reconstruction of global economy.
a) Urugay Round Agreement b) Narasimham Committee
c) Brotton woods d) Hilton Young Commission
Ans. C
63. The GATT agreement had been signed by governments known as _____
a) Member countries b) Trade members
c) MFN d) Contracting Parties
Ans. D
64. Article XIX of the GATT provided ________
a) General prohibition of QRs
b) Emergency safeguard code
c) Schedule of Tariff Concessions
d) MFN Clause
Ans. B
65. GATT agreements as modified by the _______agreement
a) WTO b) ITO
c) Uruguay Round d) Bretton wood
Ans. C
66. _____________ is in fact, policeman of global trade.
a) GATT b) ITO
c) TRIMS d) WTO
Ans. D
67. _______ is the Supreme Authority of the WTO
a) General Council b) Ministerial conference
c) Council for Trade in Goods d) Council for TRIPS
Ans. B
68. Council for Trade in Goods, Services and Intellectual property Rights, Council for
Trade Related intellectual property Rights are the three council in General council
of _________
a) WTO b) GATT
c) TRIMS d) GATS
Ans. A
69. The Secretariat of the WTO is headed by the _______
a) General Council b) Ministerial conference
c) Director General d) Council for TRIPS
Ans. C
70. ____________ is a permanent institution with its own Secretariat.
a) WTO b) GATT
c) GAT d) ITO
Ans. A

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71. GATT was applied on a _________
a) Permanent basis b) Provisional basis
c) Both a and b d) None of the above
` Ans. B
72. Initial registration and each renewal of registration, of a trade mark is for a term of
not less than ______
a) 5 years b) 4 years
c) 6 years d) 7 years
And. D
73. The agreement of patent protection for _______
a) 20 years b) 15 years
c) 10 years d) 7 years
Ans. A
74. Plurilateral Trade Agreement was done at Ganeva in ______
a) March 1979 b) April 1979
c) January 1994 d) August 1984
Ans. B
75. NIEO means_________
a) New International Economic Order
b) New Industrial Economic Order
c) New Industrial Economic Organisation
d) New International Economic Organisation
Ans. A
76. __________ is the effect International Trade has a detrimental effect on under
developed countries
a) Lop - sided development b) Deterioration
c) Demonstration effect d) None of the above
Ans. C
77. The manor attributes of international financial system are knowledge, certainty
and _________
a) Flexibility b) Predictability
c) Continuity d) Structural
Ans. B
78. _________ established a mechanism where by their local currencies are kept equal
in value to gold and to each other.
a) International money b) Floating exchange rate
c) Bretton wwod system d) International Gold standard
Ans. D
79. IMF was organised in ________
a) 1948 b) `1946
c) 1956 d) 1958
Ans. B
80. Member's Gold Subscription + Credit extended by the member through the fund to
other members _________
a) Gold Tranche b) Credit Tranches
c) Gold standard Machanism d) Floating exchange rate

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Ans. A
81. ___________ was introduced in 1969
a) Oil Facility b) Extended facility
c) Buffer stock facility d) Trust Fund facility
Ans. C
82. ________ are made by the fund out of the profits it has made by its gold rate
operations
a) Oil Facility b) Gold standard Mechanism
c) Buffer stock facility d) Trust Fund Loan facility
83. If the funds holdings of a member's currency are less than 100% of the member's
quota, the difference is called _________
a) Credit Tranche b) Reserve Tranche
c) Gold Tranche d) All of the above
84. In the form of pound sterling and U.S. dollars, these two currencies were known as
__________
a) Reserve currencies b) Foreign exchange
c) Floating Exchange rate d) Exchange transaction
Ans. A
85. SDR was approved in _________
a) 1969 b) 1965
c) 1967 d) 1972
Ans. C
86. __________ will include interest and amortization payment, put a strain on future
balance of payments
a) Credit Servicing charges b) Debit servicing charges
c) Both a and b d) None of the above
Ans. B
87. India is _________ place in IMF General Quota
a) 12th b) 11th
c) 9th d) 13th
Ans. D
88. ___________ are also known as International Bank for Reconstruction and
Development.
a) IMF b) ADB
c) World Bank d) ECM
Ans. C
89. _________ is the Supreme governing authority of World Bank.
a) The president b) The Executive Directors
c) The Board of Governors d) Members of the Board
Ans. C
90. _________ becomes the Ex-officio Chairman of World Bank.
a) The Board of Governors b) The Executive Directors
c) Other members d) The President
And. D
91. __________ is responsible for the conduct of the ordinary business of the bank and
its organisation

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a) The Governor b) The President
c) The Executive Directors d) Other members
Ans. B
92. In the day to day administration the Board delegates its power to ___________
a) Other members b) The Board of Governors
c) The President d) The Executive Directors
Ans. D
93. ADB was setup in ________
a) 1969 b) 1967
c) 1966 d) 1968
Ans. C
94. The headquarters of ADB is _________
a) Geneva b) Manila
c) U.S.A d) Italy
Ans. B
95. The highest policy making body of the ADB is __________
a) Board of Governors b) Board of Directors
c) President d) Other members
Ans. A
96. To take decisions of loan application in ADB by
a) Board of Governors b) Board of Directors
c) The President d) Other members
Ans. B
97. The President elected for a term __________ in ADB
a) 3 Years b) 4 Years
c) 5 Years d) 6 Years
Ans. C
98. _________ is also known as the European Common Market.
a) EEC b) CEC
c) SADF d) NAFTA
Ans. A
99. _________ is the most successful of the integration schemes.
a) ECM b) SAARC
c) NAFTA d) CEC
Ans. A
100. __________ is the World's largest trading block
a) NAFTA b) EEC
c) SAARC d) GATT
Ans. B
101. GATT was replaced by the WTO on _________
a) 1 Jan. 2004 b) 1 Jan 1996
c) 1 Jan. 1992 d) 1 Jan. 1995 Ans. d
102. Under _________ approach companies view the entire world as a
single country.
a) Geocentric b) Regio centric
c) Poly centric d) Ethno centric Ans. a

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103. Companies establish foreign subsidiary and empowers its executives is
_________
a) Regio centric b) Geocentric
c) Poly centric d) Ethno centric Ans. c
104. _________ theory suggests for maintaining favourable balance of
trade in the form of import of gold for export of goods and services.
a) Gold standard b) Mercantilism
c) Non merchantilism d) Breton wood system Ans. b
105. _________ is the application of knowledge which redefine the
boundaries of global business.
a) Cultural factors b) Political factors
c) Social factors d) Technology Ans. d
106. _________ is a form of licensing
a) Franchising b) Patent
c) Brand d) None of the above Ans. a
107. _________ is the long term contracting out of non-core business
processes to an outside to help achieve increased share holder value
a) Contract manufacturing b) BPO
c) Management contract d) Turnkey contract Ans. b
108. A _________ is a contract under which a firm agrees to fully design,
construct and equip a manufacturing/business service facility and turn
the project over to the purchaser when it is ready for operation for a
remuneration.
a) BPO b) Contract Manufacturing
c) Turnkey project d) Management contract Ans. c
109. First WTO Ministerial conference held in _________
a) Geneva b) Singapore
c) Manila d) Dona Ans. b
110. In WTO _________ is the highest hierarchical level in the
organizational structure.
a) General council b) Committee and
Management Bodies
c) Management Bodies d) Ministerial conference Ans. d
111. _________ is the sale of goods abroad at a price which is lower than
the selling price of the same goods at the same time in the same
circumstances at home, taking account of difference in transport costs.
a) Dumping b) Tariff
c) Anti dumping d) None of the above Ans. a
112. When the production of a product is more than the demand in the
home country, the stocks piled up even after sales is _________
a) Persistent Dumping b) Predatory dumping
c) Intermittent Dumping d) Anti Dumping Ans. c
113. The monopolist sells the remaining production in foreign countries at a
low price continuously in _________
a) Intermittent Dumping b) Persistent Dumping
c) Predatory Dumping d) Anti dumping Ans. b

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114. The monopolist sells the product in a foreign market at a low price
initially with a view to drive away the competitors and increase the
price after the competitors leave the market in _________
a) Predatory dumping b) Intermittent dumping
c) Persistent dumping d) Anti duping Ans. a
115. India was one of the _________ Governments that become members
of the WTO on the first day of the formation of the WTO
a) 56 b) 96
c) 76 d) 103 Ans. c
116. EU Council Committee is also called _________
a) Corper b) Executive body
c) Advisory committee d) Commissioners Ans. a
117. The Corper is the link between the EU and _________
a) Commissioners b) Council
c) Executive body d) Member Governments Ans. d
118. The North American Free Trade Agreement (NAFTA) came into
being on _________
a) 1 Jan. 1992 b) 1 March 1996
c) 1 Jan. 1994 d) 1 March 1994 Ans. c
119. In the year 1989 _________ was established
a) NAFTA b) APEC
c) ESCAP d) SAARC Ans. b
120. _________ is expected to eliminate all tariffs and trade barriers among
the USA, Canada and Mexico.
a) SAARC b) ASEAN
c) NAFTA d) EEC Ans. d
121. OPEC means _________
a) Organisation of Petroleum Exporting Countries
b) Organisation of Pacific Economic Co-operation
c) Organisation of Pacific European Co-operation
d) Organisation of Pacific Exporting Commission Ans. a
122. The remaining balance of quota, after drawing 25% of reserve trench
is called _________
a) God Trench b) Credit trench
c) Quotas d) Fund lending Ans. b
123. The short fall of the member's currency with fund over its quota is
called _________
a) Gold trench b) Credit trench
c) Reserve trench d) Quotas Ans. c
124. _________ are popularly known as "Paper Gold".
a) Gold trench b) Gold standard
c) Gold Exchange Standard d) Special Drawing Rights Ans. d
125. _________ is popularly known as World Bank
a) IBRD b) IDA
c) ADB d) IMF Ans. a
126. IDA was established primarily to provide finance to less developed

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member countries on a _________ basis.
a) Credit b) Soft loan
c) Debit d) Hard loan Ans. b
127. IDA loans are known as _________
a) IDA credit b) IDA debit
c) Soft loan d) Both a and b Ans. a
128. The first conference of the UNCTAD was held in _________
a) USA b) Seattle
c) Geneva d) Mexica Ans. c
129. The product is sold at a high price in international markets and at a
low price in the domestic market is called _________
a) Reverse dumping b) Persistent dumping
c) Predatory dumping d) Sporadic dumping Ans. a
130. _________ is an arrangement to pay for import of goods and services
with something other than cash.
a) Turkey contract b) Counter Trade
c) Dumping d) None of the above Ans. b
131. _________ is goods - for - goods deal
a) Contract b) Trade
c) Counter Trade d) Purchase Ans. c
132. Privatisation may be effected in the form of _________
a) Liberalisation b) Globalisation
c) Dis-investment d) None of the above Ans. c
133. The industrial policy of the Government of India was declared by
_________
a) Indira Gandhi b) Rajeev Gandhi
c) Narasimha Rao d) Jawaharlal Nehru Ans. d
134. The Industrial Policy Resolution 1956 was known as _________
a) New Industrial Policy b) Economic Policy
c) Economic Constitution of
India
d) Industrial reforms Ans. c
135. _________ consisted of 17 industries and future development of the
industry, it is to be excluded responsibility of the state
a) Schedule B b) Schedule A
c) Schedule D d) Schedule C Ans. b
136. The organization is said to be when some sudden and unpredictable
changes take place is called _________
a) Changing environment b) Stable environment
c) Natural environment d) Turbulent environment Ans. d
137. In an organisation, changes occur slowly but threat occurs in cluster is
called _________
a) Placid - clustered environment
b) Placid - rando-mixed environment
c) Disturbed - reactive environment
d) Turbulent field environment Ans. a

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138. _________ is a device used to establish a set of priorities for using the
organization’s scarce resources
a) Buffering b) Rationing
c) Smoothing d) Coalescing Ans. b
139. _________ is the process of convincing the various powerful elements
of the environment to act in the favour of the organisations.
a) Coalescing b) Co-optation
c) Lobbying d) None of the above Ans. c
140. _________ is an open forum of government
a) Two party system b) Single party system
c) Dominated one party system d) Parliamentary system Ans. d
141. _________ is an unintended channel of distribution that runs parallel
to the planned channel.
a) Gray market b) Black market
c) Bribery d) Counterfeiting Ans. a
142. Culture is _________
a) Subjective b) Prescriptive
c) Cumulative d) All of the above Ans. d
143. ________ is a series of bilateral agreement between America, Canada
and Mexico
a) SAARC b) APEC
c) NAFTA d) ASEAN Ans. c
144. ______ agreement as modified by the Bretton wood agreement.
a) WTO b) ITO
c) GAAT d) TRIMS Ans: c
145. _________ means replacement of existing non-tariff restriction on trade
such as import quotas.
a) Tariffication b) Tariff binding
c) Tariff cuts d) Reduction in subsidies Ans. a
146. The import aspects of the UR agreement on agriculture include
Tariffication, Tariff binding, Tariff cuts and _________
a) Tariff b) Tariff rates
c) Reduction in subsidies and d) None of the above Ans. c
domestic support
147. The combined package of trade rules and Tariff concessions became
known as the _________
a) WTO b) GATT
c) NAFTA d) SAARC Ans. b
148. _________ may be defined as "information with a commercial value".
a) GATT b) TRIPS
c) WTO d) IPRS Ans. d
149. Creators can be given the right to prevent others from using their
inventions, designs or other creations is known as _________
a) TRIMS b) TRIPS
c) IPRS d) GAAT Ans. c
150. _________ was a set of rules and multilateral agreement

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a) TRIPS b) TRIMS
c) GAAT d) WTO Ans. c
151. In TRIPS, a patent would be applicable for _________
a) 10 Years b) 20 years
c) 25 years d) 30 years Ans. b
152. GATS covers which of the following?
a) Cross-border equity b) Consumption abroad
c) Commercial presence d) All the above Ans. d
153. WTO Anti-dumping agreement doesn't have _________
a) rules for calculating the amount of dumping
b) procedures for conducting anti-dumping investigations
c) rules for setting disputes related to restrictive quota practices
d) standards for dispute settlement panels to apply in anti-dumping
disputes
Ans. c
154. The time limit specified by the Agreement on import licensing for the
agencies to deal with the procedure.
a) 15 days b) 30 days
c) 60 days d) 90 days Ans. b
155. The rules and commitment of Agreement on Agriculture apply to
_________
a) Market access b) Domestic support
c) Export subsidies and other
programs
d) All the above Ans. d
156. _________ duties can be imposed of a product is dumped in the
importing country at less than its normal value provided it causes
material injury to the domestic industry.
a) Tariff b) Anti-dumping
c) Countervailing d) Reduction in subsidies Ans. b
157. _________ are maximum tariffs imposed by the member countries of
WTO.
a) Rates b) Subsidies
c) Quotas d) Bound rates Ans. d
158. The fundamental principles of GATT was
a) Most Favoured Nation b) National Treatment
c) Both a and b d) None of the above Ans. b
159. Anti-dumping and countervailing duties are imposed under _________
a) Customs Tariff Act 1975 b) TRIMS
c) TRIPS d) Regional Trade Agreement Ans. a
160. Bhutan has Bilateral Trade Agreement with _________
a) Sri Lanka b) Pakistan
c) Russia d) India Ans. d
161. FMCG means
a) Fast Moving Consumer Goods
b) Foreign Measures on Consumer Goods

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c) Freely Moving Consumer Goods
d) Free Measures on Consumer Goods Ans. a
162. Copyright means the exclusive right to do or authorize others to do
certain acts in relation to _________
a) Literary, dramatic, musical or
artistic work
b) Cinematography
c) Sound recordings d) All the above Ans. d
163. Which one of the following is the function of trade mark
a) Identifies the product and its origin
b) Guaranteed its unchanged quality
c) Advertises the product
d) All the above Ans. d
164. _________ is the art and other manifestations of human customs,
civilization and the way of life a particular society or group.
a) Culture b) Trends
c) Business d) Marketing Ans. a
165. The cultural habit of firm hand-shake is associated with the culture of
_________
a) US b) Middle East
c) Arab countries d) Japan Ans. a
166. The Highest Hofstadter Dimension for a culture is _________
a) LTO b) PDI
c) UAI d) IDV Ans. b
167. A separate Bilateral NAFTA on market access for agricultural
products with Canada and _________
a) America b) Britain
c) Mexico d) Japan Ans. c
168. The SAARC countries comprise _________
a) Indonesia, Malaysia, Philippines, Singapore, Thailand, Bhutan,
Nepal
b) Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri
Lanka
c) Sri Lanka, Bhutan, Nepal, China, India, Bangladesh, Indonesia
d) Bangladesh, Bhutan, China, Nepal, Pakistan, India, Sri Lanka Ans. b
169. _________ provides a platform for the peoples of South Asia to work
together in a spirit of friendship trust and undertaking.
a) OECS b) ASEAN
c) SAARC d) NAFTA Ans. c
170. ASEAN established on 8 August 1967 in _________
a) Katmandu b) Singapore
c) Bangkok d) Nepal Ans. c
171. ASEAN was established by the five original member countries are
_________
a) Indonesia, Malaysia, Philippines, Singapore and Thailand
b) India, Malaysia, Bhutan, Singapore, Thailand

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c) India, Sri Lanka, Malaysia, Philippines, Thailand
d) India, Sri Lanka, Singapore, Thailand, Malaysia Ans. a
172. The exchange rate system under the IMF came to be known as
_________
a) Gold standard b) Floating rate
c) SDRS d) Breton Wood System Ans. d
173. _________ were created as a reserve asset by the IMF
a) Floating rate b) SDR
c) Credit trench d) God standard Ans. b
174. The _________ of a country refers to the systematic record of all
receipts and payments between residents of the country and nonresidents
over a period of time.
a) Pegging b) Extended Fund Facility
c) BOP d) Structural Adjustment
Facility
Ans. c
175. Holding _________ gives the bearer the option to acquire foreign
exchange from the monetary authorities of another member of the IMF
a) SDR b) Gold standard
c) Credit trench d) All of the above Ans. a
176. Which of the following is a form of contractual agreement _________
a) Franchising b) Licensing
c) Joint venture d) Both a and b Ans. d
177. Build, operate and transfer is the basic principle of _________
a) Strategic alliance b) Turnkey projects
c) Contract Manufacturing d) Management Contract Ans. b
178. Which of the following is not a joint venture?
a) Licensing b) Franchising
c) Strategic alliance d) Contract Manufacturing Ans. c
179. _________ allows a company to conduct business in another country
whose laws discourage foreign ownership
a) Contract Manufacturing b) Licensing
c) Franchising d) Joint venture Ans. b
180. Which country is known for group harmony and collectivism?
a) USA b) France
c) Germany d) Japan Ans. d
181. Globalization is based on the theory of
a) Mixed economy b) Capitalism
c) Free trade and comparative
advantage
d) Import Substitution Ans. c
182. The process of globalization of the economy refers to _________
a) Removal of restrictions on foreign trade and foreign investment
b) Economic growth
c) Foreign investment in flow
d) Employment generation Ans. a

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183. The member countries of WTO have moved to "Product Patent
Regime" under _________
a) TRIMS b) TRIPS
c) GATTS d) SAPTA Ans. b
184. Contract Manufacturing is a form of _________
a) Acquisition b) Franchising
c) Licensing d) Joint venture Ans. d
185. GATS operates on _________ levels
a) 2 b) 6
c) 7 d) 3 Ans. d
186. _________ is the first ever set of multilateral, legally enforceable rules
covering international trade in services.
a) GATS b) TRIPS
c) TRIMS d) WTO Ans. a
187. _________ means treating one's trading equally
a) GATS b) WTO
c) MFN d) TRIPS Ans. c
188. MFA was replaced on 1 Jan. 1995 by _________
a) AOA b) ATC
c) GATS d) TRIMS Ans. b
189. Removal of QRS means _________
a) Duty free imports b) An item can be imported
without import license or
quotas
c) All imports are free of tariffs d) None of the above Ans. b
190. India has Bilateral Trade Agreement with _________
a) Sri Lanka b) Pakistan
c) Nepal d) Bhutan Ans. d
191. _________ transfers are selling of products by a company to its
affiliated company in host country.
a) Indirect export b) Direct exporting
c) Intra-corporate d) All the above Ans. c
192. _________ is the long term contracting out of non-core business
processes to an outside provider to help achieve increased shareholder
value.
a) BPO b) Turnkey project
c) Contract Manufacturing d) Management Contract Ans. a
193. WTO members abolished quotas on trade in _________
a) Agriculture b) Textiles and clothing
c) Tropical products d) Natural Resources based
products
Ans. b
194. ___________ operates as a co-operative, multi-lateral, economic and
trade forum.
a) ASEAN b) APEC
c) SAARC c) ESCAP Ans:b

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195. _______ is the fastest growing trading bloc in the world.
a) MERCOSUR b) NAFTA
c) EEC d) ESCAP Ans:a
196. Marketing forces to determine the exchange rate of currencies under
______.
a) Gold Standard b) Bretton wood system
c) Floating rate system d) Credit Tranche Ans:c
197. _______ is called the soft loan window of the IBRD.
a) IFC b) IDA
c) UNCTAD d) IMF Ans:b
198. _____ is a joint venture of IBRD and IFC.
a) UNCTAD b) IDA
c) IMF d) MIGA Ans:d
199. _____ promotes the development friendly integration of developing
countries into the world economy.
a) UNCTAD b) IBRD
c) IMF d) IDA Ans:a
200. _____ provides long term loans at a very low rate of interest to the less
developed countries.
a) IFC b) IDA
b) IBRD d) MIGA Ans:b

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International Business Environment Mcq

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List of International Business Multiple Choice Questions

2. IBRD (International Bank for Reconstruction and Development) also known as

3. Ultimately ………………was replaced by the …………….on 1st Jan 1995

4. Which is the right sequence of stages of Internationalization

a. Domestic, Transnational, Global, International, Multinational

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7. The Theory of Absolute Cost Advantage is given by

8. The Theory of Relative Factor Endowments is given by

9. The theory of comparative cost advantage is given by

11. Capitalistic, communistic and Mixed are the types of

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12. Which is not an Indian Multinational Company?

13. Globalization refers to:

a) Lower incomes worldwide

15. Comparative Cost Trade Theory is given by

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Global Business Environment MCQs with Answers –

By Eguardian India April 1, 2018

Global Business Environment MCQ Multiple Choice Questions

1. Geographical indications specify

2. Business across several countries with some decentralization of management decision

3. Land as a factor of production is immobile

4. Immobility of labour among nations is

5. Uneven distribution of natural resources

7. Free international trade maximizes world output through

8. International business does not result in the following

9. By entering into international business, a firm expects an improvement in

10. By having business in different countries, a firm reduces

11. Wholly owned subsidiary can be set up

12. The essential feature of FDI is

13. No new investment in the host country is created in the case of

15. The disadvantages of Greenfield FDI as compared to acquisition is

C. Lesser control in management.

16. Conglomerate FDI refers to

17. Countries/ regions with huge market size will attract

18. The following statement with respect to culture is false

19. The following is not a component of culture

20. Non- verbal communication

21. Religion of a person affects his/her

22. For society, religion has no influence on

23. The role of women is restricted in

25. Social stratification is done on the basis of

26. Social mobility is measured by

27. Lower power distance countries are characterized by

28. A country with high uncertainty avoidance will witness

C. less dependence on rules and regulations.

29. As per cultural dimensions of Hofstede, masculinity refers to

31. A country in the stage of traditional society is characterized by

32. The stage indicating the highest level of economic growth is

33. The income level of residents in a country is indicated by

35. In a business cycle, the phase preceding prosperity is

36. Monetary policy relates to controlling

37. Analysing the business environment best assists in

39. The following factors are key drivers of globalisation