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. International business.
B. Multinational business
3. 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
4. BY HAVING BUSINESS IN DIFFERENT COUNTRIES, A FIRM REDUCES
A. credit risk.
B. political risk.
C. financial risk.
D. business risk.
ANSWER: B
5. 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
6. 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
7. 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
8. 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
9. THE DISADVANTAGES OF GREENFIELD FDI AS COMPARED TO ACQUISITION IS
A. Profit will be less.
B. Size of investment will be high.
C. Lesser control in management.
D. Delay in the establishment.
ANSWER: D
10. 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
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.
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
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.
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
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.
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
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.
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.
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.
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
D. all of the above.
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.
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.
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.
D. all of the above.
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.
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
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.
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
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.
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
101. 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
102. COMPUTER PROGRAMS ARE PROTECTED AS
A. Copyrights.
B. Trademarks.
C. Patents.
D. Industrial design.
ANSWER: A
103. IN INDIA, THE PATENT AVAILABLE FOR PHARMACEUTICALS IS
A. for product only.
B. for process only.
C. both for product and process
D. neither product nor process.
ANSWER: C
104. THE DEGRADING EFFECT ON THE ENVIRONMENT BY MNCS IS THROUGH
A. Relocating production from developing to developed countries.
B. Relocating production from developed to developing countries.
C. Flouting environmental laws.
D. Relocation of distribution.
ANSWER: B
105. WHICH ONE OF THE FOLLOWING IS TRUE OF THE CHINESE?
A. They pay close attention to long-standing relationships.
B. ‘They are very relaxed about time’ and ‘they prefer to work
on a one-to-one basis’ only.
C. They are very relaxed about time.
D. They prefer to work on a one-to-one basis.
ANSWER: B
106. IN THIS CULTURE, EQUALITY IS A DESIRABLE VALUE. HOWEVER, THE
ACTUAL BEHAVIOUR OF WHOM DOES NOT SHOW SO MUCH EQUALITY, AS IN THIS
CULTURE PEOPLE SHOULD GET WHAT THEY DESERVE IF THEY HAVE THE
CAPABILITIES TO WORK HARD?
A. Romanians.
B. Americans.
C. Russians.
D. The French.
ANSWER: B
107. WHICH OF THE FOLLOWING SENTENCES ABOUT INDIVIDUALISM IS NOT TRUE?
A. Individualistic are universalistic cultures while collectivistic
cultures are particularistic.
B. Individualists tend to see brands as unique human personalities.
C. In individualistic cultures private time and work are not strictly
separated.
D. Individualism is increasing world-wide because it is associated
with wealth.
ANSWER: B
108. CONFUCIANISM HAS ADHERENTS MAINLY IN
A. Eastern Europe.
B. The USA.
C. China, Korea and Japan.
D. Africa.
ANSWER: C
109. WHICH OF THE FOLLOWING IS NOT TRUE ABOUT HIGH- CONTEXT CULTURES?
A. lawyers are less important.
B. Negotiations are lengthy.
C. People make a big deal out of private space.
D. Competitive bidding is less important.
ANSWER: C
110. WHICH OF THE FOLLOWING IS NOT AN ELEMENT OF CULTURE?
A. Tax law.
B. Language.
C. Traditions.
D. Art.
ANSWER: B
111. TO ASSESS THE POTENTIAL OF INTERNATIONAL MARKETS, ORGANIZATIONS
GENERALLY COMPARE NATIONS WITH RESPECT TO
A. political regime.
B. demographics, GNP/capita and ‘consumer preferences’.
C. consumer preferences.
D. demographics, GNP/capita.
ANSWER: B
112. WHICH OF THE FOLLOWING STATEMENT IS TRUE?
A. The payment of interest is considered illegal by Islam.
B. The payment of interest is considered legal by Islam.
C. Alcohol consumption is considered legal by Islam.
D. Women entrepreneurs are encouraged.
ANSWER: A
113. THE CULTURAL ENVIRONMENT OF A COUNTRY IS BEST DEFINED BY WHICH
CHARACTERISTICS?
A. Degree of nationalism and economic community membership.
B. Production process and standards of measurement.
C. Standard of living and stage of economic development.
D. Values, attitudes, heroes, myths and symbols.
ANSWER: D
114. HYPERBOLE, PERSUASIVENESS, DREAMS, GREAT EXPECTATIONS, AND
COMPARATIVE ADVERTISING ARE REFLECTIONS OF WHICH HOFSTEDE’S
DIMENSION?
A. Individualism.
B. Femininity.
C. Masculinity.
D. Collectivism.
ANSWER: C
115. WHICH OF THE FOLLOWING SENTENCES IS NOT TRUE?
A. In small power distance cultures, freedom means independence.
B. Characteristic of weak uncertainty avoidance is resistance to
change, a desire for stability.
C. The norm, the desirable, in masculine societies is that one wants
to show one’s success.
D. In large power distance and collectivistic cultures, children
remain dependent on their parents
much more than those in small power distance and individualistic
cultures.
ANSWER: B
116. TO WHAT EXTENT OF THE WORLD POPULATION IS COLLECTIVIST?
A. 10- 20 per cent.
B. 40-50 per cent.
C. 70-80 per cent.
D. 90-95 per cent
ANSWER: C
117. THE ROOTS OF INDIVIDUALISM ARE IN
A. France.
B. Saudi Arabia.
C. England.
D. The USA.
ANSWER: C
118. INCOME AND POPULATION ARE TWO VARIABLES THAT CAN BE USED
A. demographic segmentation.
B. Behavioural segmentation.
C. Lifestyle segmentation.
D. Psychographic segmentation.
ANSWER: A
119. STRONG EXCHANGE RATES CAN
A. helps predict a change in lifestyle across Europe.
B. predicts the evolution of sales for particular brands.
C. help estimates consumer purchasing power.
D. drives imports to become cheaper.
ANSWER: D
120. WHEN AN ORGANIZATION SELLING ELECTRIC AND ELECTRONIC HOUSEHOLD
GOODS EVALUATES INTERNATIONAL
markets in view of entering them, a crucial factor taken into account
is represented by
A. The demographic characteristics.
B. The economic factors.
C. The cultural factors.
D. The technological factors.
ANSWER: B
121. THE LEAST DEMANDING TARGETING STRATEGY IN INTERNATIONAL MARKETING
IS
A. focused.
B. differentiated.
C. concentrated.
D. undifferentiated.
ANSWER: D
122. WHICH OF THE FOLLOWING ARE POSITIVE REASONS FOR
INTERNATIONALIZATION?
A. Market diversification.
B. Economies of scale.
C. International competitiveness.
D. All of the above.
ANSWER: D
123. WHICH ECONOMIC FACTORS SHOULD BE ANALYSED BY ORGANIZATIONS
WISHING TO EXPAND IN INTERNATIONAL MARKETS?
A. Interest rates.
B. Employment.
C. Purchasing power.
D. All the above.
ANSWER: D
124. HOW CAN A MARKETER USE THE AGE DISTRIBUTION OF THE POPULATION IN
A MARKET?
A. the marketer can use it to identify the purchasing power of the
population in each country.
B. the marketer can use it to identify the potential number of
customers in various age groups.
C. the marketer can use it to identify behavioural patterns within
each age group.
D. the marketer can use it to identify lifestyle patterns within
various age groups.
ANSWER: B
125. IN THE PEST FRAMEWORK FOR ENVIRONMENTAL ANALYSIS, WHAT DOES THE
LETTER E STANDS FOR
A. Ethical.
B. Ecological.
C. Educational.
D. Economic.
ANSWER: D
126. ANALYZING PROCESSES OF CHANGE IN THE BUSINESS ENVIRONMENT
INVOLVES CONCEPTUALIZING IT AS
A. Complex.
B. Static.
C. Dynamic.
D. Diverse.
ANSWER: D
127. PROFIT MAY BE DEFINED AS
A. the difference between total wage costs and total sales revenue.
B. total revenue from sales.
C. the difference between total production costs and total sales
revenue.
D. the amount of money paid to shareholders as dividends.
ANSWER: C
128. THE CONCEPT OF A FIRM’S ‘LICENSE TO OPERATE’ REFERS TO
A. a legal requirement for company registration.
B. the need for a firm to retain its legitimacy in the eyes of the
public.
C. a qualification needed by company directors.
D. an agreement recognizing trade unions.
ANSWER: B
129. WHAT DOES THE TERM ‘THIRD SECTOR’ REFER TO?
A. the high technology industries.
B. the service sector.
C. the voluntary sector.
D. small and medium-sized enterprises (SMEs).
ANSWER: C
130. THE IDEA THAT CONSUMERS ARE IN CHARGE OF THE ECONOMIC SYSTEM
BECAUSE THEIR PREFERENCES DRIVE BUSINESS DECISIONS ABOUT WHAT TO
PRODUCE IS REFERRED TO AS
A. consumer activism.
B. consumer sovereignty.
C. consumerism.
D. consumer therapy.
ANSWER: B
131. A MULTINATIONAL CORPORATION (MNC) IS DEFINED BY
A. carrying out production in more than one country.
B. having sales in more than one country.
C. having a multi-ethnic workforce.
D. having suppliers in more than one country.
ANSWER: A
132. WHICH TYPE OF ORGANIZATION STRUCTURE IS CHARACTERIZED BY
DEPARTMENTS OR UNITS DEALING WITH SPECIALIZED TASKS?
A. Matrix.
B. Divisional.
C. Hierarchical.
D. Functional.
ANSWER: D
133. THE POLITICAL SYSTEM THAT STRESSES THE PRIMACY OF COLLECTIVE
GOALS OVER INDIVIDUAL GOALS IS
A. individualism.
B. Collectivism.
C. Socialism.
D. Communism.
ANSWER: B
134. THE SYSTEM OF GOVERNMENT IN A NATION IS CALLED THE
A. Political system.
B. Economic environment.
C. Political environment.
D. National policy.
ANSWER: C
135. A PHILOSOPHY OF FREEDOM OF AN INDIVIDUAL IN THE ECONOMIC AND
POLITICAL PURSUITS IS
A. Collectivism.
B. Individualism.
C. Socialism.
D. Democracy.
ANSWER: D
136. THE POLITICAL POWER MONOPOLIZED BY A PARTY THAT GOVERNS ACCORDING
TO RELIGIOUS PRINCIPLES IS
A. Communist totalitarianism.
B. Theocratic totalitarianism.
C. Secular totalitarianism.
D. Tribal totalitarianism.
ANSWER: B
137. THE PRODUCTIVE ACTIVITIES PRIVATELY OWNED AS OPPOSED TO BEING
OWNED BY THE STATE IS
A. Market economy.
B. Secular economy.
C. Command economy.
D. Mixed economy.
ANSWER: A
138. 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
139. THE LAW BASED ON THE TRADITION OF A PRECEDENT AND CUSTOM IS
A. civil law.
B. criminal law.
C. common law.
D. religious law.
ANSWER: C
140. THE PROTECTION AGAINST THE NEW INVENTION OF A PRODUCT OR PROCESS
FOR A DEFINED PERIOD IS
A. patent.
B. trademark.
C. copy right.
D. Technology.
ANSWER: A
141. THE EXCLUSIVE LEGAL RIGHT OF AUTHORS. COMPOSERS, PLAY WRITES,
ARTISTS AND PUBLISHERS TO PUBLISH AND DISPERSE THEIR WORKS IS
A. Patent.
B. trademark.
C. copy right.
D. Technology.
ANSWER: C
142. THE PARIS CONVENTION FOR THE PROTECTION OF INDUSTRY PROPERTY WAS
DATED
A. 1783.
B. 1883.
C. 1983.
D. 2003.
ANSWER: A
143. THE TRANSFER OF THE OWNERSHIP OF STATE PROPERTY INTO THE HANDS OF
THE PRIVATE INDIVIDUALS BY THE SALE OF STATE ASSETS THROUGH AUCTION IS
A. Privatization.
B. Liberalization.
C. Globalization.
D. Domestication.
ANSWER: A
144. MFN IS AN ACRONYM OF
A. Most Favorable Nations.
B. Most Favored Nations.
C. Most Fortune Nations.
D. Most Fastest Nations.
ANSWER: B
145. THE LAW THAT PREVENTS THE PRACTICES IN RESTRAINT OF TRADE IS
A. Antiboycott regulations.
B. Antitrust Laws.
C. Antibribery regulations.
D. Anticorruption regulations.
ANSWER: A
146. 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. nationalization.
D. domestication.
ANSWER: C
147. THE REQUIREMENT IMPOSED BY THE HOST COUNTRY GOVERNMENT THAT
GRADUALLY OWNERSHIP AND MANAGEMENT OF THE FIRM TRANSFERRED TO THE
LOCALS IS
A. expropriation.
B. confiscation.
C. nationalization.
D. domestication.
ANSWER: D
148. THE CREATION OF THE DIFFICULT CONDITIONS IN THE COUNTRY SO AS TO
FORCE THE FOREIGN INVESTORS OPT OUT OF THE COUNTRY
A. creeping expropriation.
B. boycott.
C. violence.
D. exchange control.
ANSWER: A
149. THE TOTAL ACCUMULATED VALUE OF FOREIGN-OWNED ASSETS AT A GIVEN
PERIOD OF TIME IS
A. flow of FDI.
B. stock of FDI.
C. inflow of FDI.
D. outflow of FDI.
ANSWER: B
150. THE FOCUS ON INCREASING PROFITABILITY AND PROFIT GROWTH BY
REAPING THE COST REDUCTION THAT COMES FROM ECONOMIES OF SCALE IS
A. global standardization strategy.
B. localization strategy.
C. transnational strategy.
D. international strategy.
ANSWER: A
151. THE FOCUS ON INCREASING PROFITABILITY BY CUSTOMIZING THE FIRM’S
GOODS OR SERVICES PROVIDING A GOOD MATCH TO TASTE AND PREFERENCES IN
DIFFERENT NATIONAL MARKETS IS
A. global standardization strategy.
B. localization strategy.
C. transnational strategy.
D. international strategy.
ANSWER: B
152. THE FIRMS TRYING TO SIMULTANEOUSLY ACHIEVE LOW COSTS BY LOCATING
ECONOMIES IN THE FIRM`S GLOBAL NETWORK OF OPERATIONS IS
A. global standardization strategy.
B. localization strategy.
C. transnational strategy.
D. international strategy.
ANSWER: C
153. THE STRATEGY OF TAKING THE PRODUCTS FIRST PRODUCED FOR THEIR
DOMESTIC MARKET AND SELLING THEM INTERNATIONALLY WITH ONLY MINIMAL
LOCAL CUSTOMIZATION IS
A. global standardization strategy.
B. localization strategy.
C. transnational strategy.
D. international strategy.
ANSWER: D
154. AN AGREEMENT WHEREBY A PERSON GRANTS THE OTHER THE RIGHTS TO THE
INTANGIBLE PROPERTY FOR A SPECIFIED PERIOD FOR A RETURN OF ROYALTY IS
A. franchising.
B. licensing.
C. joint venture.
D. strategic alliances.
ANSWER: B
155. THE AGREEMENT IN WHICH A FIRM NOT ONLY SELLS THE INTANGIBLE
PROPERTY TO AN ENTITY BUT ALSO INSIST ON THE STRICT RULES AS TO HOW IT
DOES BUSINESS IS
A. franchising.
B. licensing.
C. joint venture.
D. strategic alliances.
ANSWER: A
156. AN ENTITLEMENT ESTABLISHING A FIRM THAT IS JOINTLY OWNED BY TWO
OR MORE OTHERWISE INDEPENDENT FIRMS
A. franchising.
B. licensing.
C. joint venture.
D. strategic alliances.
ANSWER: C
157. THE COOPERATIVE AGREEMENT BETWEEN POTENTIAL OR ACTUAL COMPETITORS
IS
A. franchising.
B. licensing.
C. joint venture.
D. strategic alliances.
ANSWER: D
158. THE ENTRY MODE THAT ALLOWS FIRMS TO EXPORT THEIR PROCESS KNOWHOW TO COUNTRIES WHERE FDI IS PROHIBITED, THEREBY ENABLING THE FIRM TO
EARN A GREATER RETURN FROM THIS ASSETS IS
A. licensing.
B. consultancy exports.
C. project exports.
D. turnkey projects.
ANSWER: D
159. THE ABSTRACT IDEAS ABOUT WHAT A GROUP OF PEOPLE AND THAT WHEN
TAKEN TOGETHER CONSTITUTE A DESIGN FOR LIVING IS
A. norms.
B. values.
C. Attitude.
D. belief.
ANSWER: B
160. THE SOCIAL GUIDELINES AND RULES THAT PRESCRIBE APPROPRIATE
BEHAVIOUR IN A PARTICULAR SITUATION IS
A. norms.
B. values.
C. Attitude.
D. belief.
ANSWER: A
161. THE RELATION BETWEEN TRIPS AND WIPO CONVENTIONS IS
A. WIPO conventions are more valid.
B. TRIPS agreement excludes subjects covered by WIPO conventions.
C. TRIPS agreement is subordinate to WIPO conventions.
D. TRIPS agreement incorporates substantive provisions of WIPO
conventions.
ANSWER: D
162. THE LEADING CONTINENT IN INTERNATIONAL TRADE IN IT PRODUCTS IS
A. Asia.
B. Europe.
C. America.
D. Africa.
ANSWER: A
163. THE ORIGIN OF COMMON LAW IS IN
A. America.
B. England.
C. Russia.
D. India.
ANSWER: B
164. THE LAW SYSTEM PRACTICES IN JAPAN IS
A. Common law.
B. Code law.
C. Civil law.
D. Religious law.
ANSWER: B
165. TERRORISM IN THE HOST COUNTRY IS A
A. ownership risk.
B. operating risk.
C. transfer risk.
D. general risk.
ANSWER: B
166. CASE LAW IS THE OTHER NAME FOR
A. code law.
B. common law.
C. civil law.
D. criminal law.
ANSWER: B
167. THE NEW ECONOMIC POLICY HAS COMPONENTS
A. Liberalization.
B. Privatization.
C. Globalization.
D. LPG.
ANSWER: D
168. A MIXED ECONOMY IS NECESSARILY A
A. controlled.
B. planned.
C. organized.
D. planned, organized and controlled.
ANSWER: B
169. WHICH LAW EMPHASIZED THE IMPORTANCE OF CONTINUOUS DEVELOPMENT AND
EXPANSION OF EXPORT-ORIENTED PRODUCTION?
A. Export Policy Resolution, 1970.
B. MRTP.
C. IRDA.
D. The Companies Act.
ANSWER: A
170. WHAT IS THE GROWTH RATE OF THE INDUSTRIAL OUTPUT IN THE LAST FOUR
DECADES?
A. 4.5 % per annum.
B. 5 % annum.
C. 6 % per annum.
D. 5.5 % per annum.
ANSWER: D
171. MICROENVIRONMENT CONSISTS OF
A. suppliers.
B. competitors.
C. political.
D. cultural.
ANSWER: A
172. THE MACRO-ENVIRONMENT CONSISTS OF
A. suppliers.
B. competitors.
C. marketing.
D. distributors.
ANSWER: B
173. COMPETITORS, CUSTOMERS AND PUBLIC ARE THE PART OF
A. macro environment.
B. microenvironment.
C. business necessities.
D. internal environment.
ANSWER: B
174. WHAT ARE THE IMPORTANT EXTERNAL FACTORS THAT CONSTITUTE THE
ECONOMIC ENVIRONMENT OF BUSINESS?
A. economic condition.
B. economic policy.
C. economic system.
D. economic condition, policy and system.
ANSWER: D
175. WHAT ARE THE MAIN OBJECTIVES OF THE POLICY INITIATIVES?
A. Reducing the govt. Deficit.
B. Reduction of the current account deficit in the balance of
payments.
C. Raising GDP growth.
D. All of the above.
ANSWER: B
176. WHEN WAS THE FIRST FIVE YEAR PLAN?
A. 1950.
B. 1951.
C. 1952.
D. 1953.
ANSWER: B
177. WHAT ARE THE MAIN OBJECTIVES OF THE FIVE-YEAR PLAN?
A. achieve full employment.
B. reduce inequalities of income and wealth.
C. set up a socialist society based on equality.
D. balanced economy.
ANSWER: D
178. WHAT DO YOU MEAN BY DGTD?
A. Director-General of Trade and Development.
B. Director General of Total Development.
C. Director General of Technical Development.
D. Director General of Transport Development.
ANSWER: A
179. THE ENVIRONMENT IS SYNONYM WITH
A. task.
B. relation.
C. people.
D. situational variables.
ANSWER: D
180. THE PURPOSE OF A SWOT ANALYSIS IS TO ANALYSE
A. business environment in which an organisation operates.
B. The strategic capability of an organisation.
C. The business environment and the strategic capability of an
organisation relative to its competitors.
D. External and organisational environments.
ANSWER: C
181. SWOT SHOULD BE
A. A general list of issues under each heading.
B. Focused on key issues and as specific as possible.
C. Completed when an analysis of the external environment has been
conducted.
D. SWOT analysis is the best strategic management framework for
analysing the competitive positioning of an organization.
ANSWER: B
182. ETHICAL ISSUES CONCERNING BUSINESS AND PUBLIC SECTOR
ORGANISATIONS EXIST AT THREE LEVELS
A. Macro, Corporate, Individual.
B. Corporate, Business, Functional.
C. Corporate, Functional, Individual.
D. Business, Family, Individual.
ANSWER: A
183. AN ETHICAL STANCE IS AN EXTENT TO WHICH
A. An organisation meets the expectations of its stakeholders.
B. An organisation will exceed its minimum obligations to stakeholders
and society at large.
C. An organisation meets regulatory requirements.
D. An organisation respects the dominant religious beliefs of the
country in which it operates.
ANSWER: B
184. CORPORATE SOCIAL RESPONSIBILITY CONCERNS
A. how an organisation meets the expectations of its stakeholders.
B. the behaviour of individual managers.
C. external stakeholder relationships.
D. the ways in which an organisation exceeds its minimum required
obligations to stakeholders.
ANSWER: D
185. THE CULTURAL FRAMES OF REFERENCE INCLUDE
A. National; organisational field; competitors.
B. National; organisational; organisational field and
functional/divisional.
C. Unions; organisational; industrial.
D. Organisational; colleagues; organisational field.
ANSWER: B
186. AN ORGANISATIONAL FIELD IS A
A. Definition of the competitive structure of an industry.
B. Set of assumptions held in common within an industry.
C. Set of benchmarks which organisations should achieve in order to be
successful
D. Community of organisations with a common meaning system and which
interact more frequently with each other than with those outside the
field.
ANSWER: D
187. THE CULTURE OF AN ORGANISATION CAN BE CONCEIVED AS CONSISTING OF
LAYERS
A. Values; beliefs; behaviours; and taken-for-granted assumptions.
B. . Values; beliefs; tasks, objectives.
C. Beliefs; tasks; personalities.
D. Individual; functional; organisational.
ANSWER: A
188. THE CULTURAL WEB IS A
A. Representation of the taken-for-granted assumptions, or paradigm,
of an organisation and the physical manifestations of the organisation
culture.
B. Representation of the taken-for-granted assumptions, or paradigm,
of an organization and its competitors.
C. Representation of the power in an organisation.
D. Representation of the politics in an organisation.
ANSWER: A
189. THE ENVIRONMENTAL FACTOR THAT INCLUDES PEOPLES ATTITUDE TO
FAMILY, RELIGION ETC IS
A. Cultural.
B. Economic.
C. Socio- cultural.
D. Political.
ANSWER: C
190. THE VALUE CHAIN ATTEMPTS TO IDENTIFY THOSE ACTIVITIES WHICH ADD
VALUE TO
A. The organizations stakeholders.
B. The senior strategic managers in the organization
C. The organizations shareholders.
D. The customer or final user.
ANSWER: D
191. THE VALUE CHAIN IS COMPOSED OF PRIMARY & SUPPORT ACTIVITIES.
WHICH ANSWER BELOW PROVIDES THE CORRECT COMPONENTS FOR PRIMARY
ACTIVITIES?
A. Service, human resource management, marketing & sales, operations
and outbound logistics.
B. Marketing & Sales, Operations, Outbound Logistics and Service.
C. Procurement, Firm Infrastructure, Human Resource Management,
Technology Development and Marketing & Sales.
D. Inbound Logistics, Operations, Outbound Logistics, Marketing &
Sales and Service.
ANSWER: C
192. WHICH TYPES OF ORGANIZATIONAL KNOWLEDGE IS A SOURCE OF
COMPETITIVE ADVANTAGE?
A. Explicit knowledge is classified and formalized in a planned and
systematic way.
B. Personal knowledge which is hard to communicate and formalize.
C. Customer databases, market research reports, management reports.
D. The collective and shared experience accumulated through systems,
routines and activities of sharing across the organization.
ANSWER: D
193. THE GLOBAL COMMONS REFERS TO
A. The shared parts of the earth.
B. The parts of the Earth is not accessible to anyone nation.
C. Natural phenomenon that affects all inhabitants of the earth.
D. All parts of nature that contribute to the health of the global
environment
ANSWER: C
194. THE LARGEST OIL-EXPORTING COUNTRY IN THE WORLD IS
A. Norway.
B. Saudi Arabia.
C. Russia.
D. Great Britain.
ANSWER: B
195. WHICH OF THE FOLLOWING IS A POSSIBLE CONSEQUENCE OF GLOBAL
WARMING?
A. A global temperature increase of ten to fifteen Celsius.
B. An increase in ultraviolet radiation reaching the earth’s
surface.
C. A global temperature increase of three to ten degrees Fahrenheit.
D. An increase in the chlorofluorocarbons in the atmosphere.
ANSWER: D
196. THE PROCESS WHEREBY A COMMONS IS SPILT INTO PRIVATELY HELD PIECES
OF PROPERTY IN ORDER TO MANAGE RESOURCES RESPONSIBILITY IS
A. Land division.
B. Land reform.
C. Enclosure.
D. Privatisation.
ANSWER: D
197. WHAT 1997 TREATY ADOPTED A COMPLEX FORMULA FOR GREENHOUSE
EMISSIONS TO 1990 LEVELS IN THE GLOBAL NORTH? KYOTO PROTOCOL.
A. UNEP. framework
B. convention on climate change.
C. UNCLOS III
D. Montreal Protocol.
ANSWER: B
198. WHICH COUNTRIES HAVE BEEN RELUCTANT TO AGREE TO A REDUCTION IN
GREENHOUSE GAS EMISSION?
A. Russia.
B. Great Britain.
C. France.
D. China
ANSWER: B
199. AIR AND WATER POLLUTION ARE TYPICALLY
A. Regional.
B. Multilateral.
C. Economic.
D. Global.
ANSWER: D
200. WHICH OF THE FOLLOWING IS CHARACTERISTIC OF THE FINAL STAGE OF
DEMOGRAPHIC TRANSITION?
A. High death rates.
B. Rapid population growth.
C. Birth and death rates that are close to each other.
D. High birth rates.
ANSWER: C
1. LIBERALIZATION MEANS
(A) Free determination of interest rates
(B) Liberating the industry, trade and economy from unwanted
restrictions
(C) Opening up of economy to the world by attaining international
competitiveness
(D) Reducing number of reserved industries from 17 to 8
2. WHEN A COMPANY TAKEN OVER ANOTHER ONE AND CLEARLY BECOMES THE NEW
OWNER, THE ACTION IS CALLED
(A) Acquisition
(B) Merger
(C) Strategic Alliance
(D) None of the above
3. BY WHICH ACT DOES THE GOVERNMENT CHECK RESTRICTIVE TRADE?
(A) MRTP Act
(B) FEMA act
(C) Industrial Policy Act 1991
(D) None of these
4. WHICH AMONG THE FOLLOWING IS NOT OPENED FOR PRIVATE SECTOR
PARTICIPATION
(A) Railways
(B) Telecommunication sector
(C) Education sector
(D) Power sector
5. WHICH AMONG THESE CAN BE THE CONDITION FOR THE SUCCESS OF
PRIVATISATION?
(A) Measurability of performance
(B) Alternative institutional arrangements
(C) Barriers to enter the market
(D) All of the above
6. WHICH AMONG THESE IS MONOPOLISTIC TRADE PRACTICE?
(A) Manufacturing only one product
(B) Selling only one product
(C) Limiting technical Development
(D) Unreasonably limiting competition
7. THE INDUSTRIAL POLICY RESOLUTION WAS PASSED FIRST IN
(A) 1947
(B) 1956
(C) 1931
(D) 1999
8. GLOBALISATION IS THE TERM USED TO DESCRIBE PROCESS OF REMOVAL OF
RESTRICTION ON
(A) Investment
(B) Foreign Trade
(C) Both (A) and (B)
(D) None of the above
9. LAISSEZ FAIRE POLICY IS ADOPTED IN
(A) Socialist Economic system
(B) Capitalist Economic system
(C) Communist Economic System
(D) Mixed Economic System
10. WHICH ONE IS NOT THE MAIN OBJECTIVE OF FISCAL POLICY IN INDIA?
(A) To promote employment opportunities
(B) To minimize the inequalities of income and wealth
(C) To promote price stability
(D) To increase liquidity in economy
11. WHICH ACT WAS REPLACED WITH THE INTRODUCTION OF COMPETITION ACT
2002?
(a) FERA
(b) MRTP
(c) POTA
(d) None of these
12. COMPETITION ACT WAS ENACTED IN THE YEAR——(a) June 2002
(b) Dec. 2002
(c) January 1999
(d) None of these
13. WHICH COMMITTEE RECOMMENDED THE ENACTMENT OF COMPETITION ACT
(a) High level Committee on competition policy and Law
(b) A Committee on Law and Order
(c) A Central Committee for Research and Policy
(d) None of these.
14. WHO IS CONCERNED WITH THE AUDITING OF THE RECEIPTS AND EXPENDITURE
OF THE STATE AND CENTRAL GOVT.
(a) Accountant General
(b) Comptroller and Auditor General
(c) Reserve Bank of India
(d) None of the above.
15. WHICH POLICY IS CONCERNED WITH RAISING REVENUE THROUGH TAXATION
AND DECIDING ON THE LEVEL AND PATTERN OF EXPENDITURE?
(a) Monetary policy
(b) fiscal Policy
(c) Cash policy
(d) None of these
16. WHO IS RESPONSIBLE FOR PRESENTING THE UNION BUDGET BEFORE THE
PARLIAMENT?
(a) Prime Minister
(b) Finance Minister
(c) RBI Governor
(d) None of these
17. THE PLANNING COMMISSION WAS SET UP IN INDIA IN ——
(a) 1950
(b) 1951
(c) 1947
(d) 1952
18. WHO IS THE PRESIDENT OF NATIONAL DEVELOPMENT COUNCIL ?
(a) Finance Minister
(b) Prime Minister
(c) Monteng sing Aluvalia
(d) None
19. FROM WHICH FIVE YEAR PLAN ‘GROWTH WITH SOCIAL JUSTICE’ HAS
RECEIVED ADDED EMPHASIS?
(a) 5th
(b) 4th
(c) 3rd
(d) 6th
20. GAAT WAS BORN IN THE YEAR——
(a) 1948
(b) 1945
(c) 1947
(d) 1950
21. WHAT WAS THE PREDECESSOR OF WTO?
(a) GAAT
(b) IMF
(c) ADB
(d) None of the above
22. IN WHICH YEAR WTO WAS FORMULATED?
(a) 1995
(b) 1948
(c) 1991
(d) 1988
23. FEMA WAS PASSED IN THE YEAR —
(a) 1999
(b) 1989
(c) 2000
(d) 1997
24. THE QUOTA SYSTEM WAS FIRST INTRODUCED IN THE YEAR?
(a) 1955
(b) 1960
(c) 1949
(d) 1952
25. PLR STANDS FOR
(a) Prime ministers Land Recovery
(b) Prime Lending Rate
(c) Price Leverage Rate
(d) None of these
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.
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
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.
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
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.
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
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 macroenvironment.
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.
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.
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.
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
D. all of the above.
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.
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.
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.
D. all of the above.
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.
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
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.
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
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.
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
76. The accounting standards are mandatory for
A. Sole proprietor
B. Companies
C. Firms
D. societies
Discussion
B.Companies
77. what is the Impact of Pandemic COVID-19 on international trade.
A. Long term
B. Short term
C. Both a& b
D. Only a
Discussion
C.Both a& b
78. Outsourcing has been raising –
A. Nationally
B. Internationally
C. Both a & b
D. Only a
Discussion
C.Both a & b
51. Both foreign direct investment (FDI) and foreign institutional investment (FII) are related to
investment in a country. Which of the following is incorrect regarding FDI and FII?
A. Both FII and FDI bring capital into the economy.
B. FII invests in technology-oriented enterprises, whereas FDI invests in traditional business set ups.
C. The restrictions on the entry of FDI are lower than that on FII.
D. FDI is considered to be more stable thna FII. FII can be withdrawn even at a short notice.
Discussion
B.FII invests in technology-oriented enterprises, whereas FDI invests in traditional business set ups.
52. : Which of the following statements is/are correct regarding FDI under automatic route?
1. FDI in India under the automatic route does not require prior approval either by the Government
of India or the Reserve Bank of India.
2. Investors are only required to notify the concerned regional office of the RBI before receipt of
inward remittances and file required documents with that office before the issue of shares to foreign
investors. Select the correct answer using the codes given below.
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Discussion
C.Both 1 and 2
53. Which of the following are the components of foreign capital?
1. Grants and loans
2. External commercial borrowings
3. Foreign direct investment
4. Deposits from non-residents
Select the correct answer using the codes given below.
A. 1, 2, 3, and 4
B. 1, 2, and 4 only
C. 1 and 2 only
D. 3 and 4 only
Discussion
A.1, 2, 3, and 4
54. The value of Special Drawing Right (SDR) is determined by the basket of ......currencies.
A. 4
B. 5
C. 6
D. 7
Discussion
B.5
55. Which of the following is not the objective of the IMF?
A. To promote international monetary cooperation
B. To ensure balanced international trade
C. To ensure exchange rate stability
D. To provide loan to private sectors
Discussion
D.To provide loan to private sectors
56. If the Balance of Payment of a country is adverse, then which institution will help that country?
A. World Bank
B. World Trade Organization
C. International Monetary Fund
D. Asian Development Bank
Discussion
C.International Monetary Fund
57. Which of the following is known as the Paper Gold?
A. US Dollar
B. Pound
C. Demand draft
D. Special Drawing Right
Discussion
D.Special Drawing Right
58. Why the World Bank was established?
A. To promote the International Trade
B. To reconstruct the economies damaged during the Second World War
C. To improve the adverse Balance of Payment situation of the nonmember countries
D. None of the above
Discussion
B.To reconstruct the economies damaged during the Second World War
59. Which of the following statement is correct?
A. Every member country of the IMF automatically becomes the member of the World Bank
B. The World Bank has 45 founder members
C. India is not the founding member of the World Bank
D. IMF is the part of World Bank group
Discussion
A.Every member country of the IMF automatically becomes the member of the World Bank
60. Which of the following institutions is not part of the World Bank community?
A. IBRD
B. WTO
C. IDA
D. IFC
Discussion
B.WTO
61. The main focus of IBRD and IDA is on ___________:
A. Developed Countries
B. Developing Countries
C. Both of The Above
D. None of The Above
Discussion
B.Developing Countries
62. The president is selected by the board of executive directors for a ____year, renewable term:
A. 5 Year
B. 3 Year
C. 4 Year
D. None of The Above
Discussion
A.5 Year
63. Which of the following does not form part of current account under balance of payments?
A. Export and import of goods
B. Export and import of services
C. Income receipts and payments
D. Capital receipts and payments
Discussion
D.Capital receipts and payments
64. Which of the following pairs is not correctly matched with regard to balance of payment
accounts?
A. Import of goods and services – Debit in the current account
B. Receipts of transfer payments – Credit in the current account
C. Direct investment receipt – Credit in the capital account
D. Portfolio investment payments – Debit in the current account
Discussion
D.Portfolio investment payments – Debit in the current account
65. A country is said to be in debt trap if
A. It has to abide by the conditionality imposed by the International Monetary Fund
B. It is required to borrow money to make interest payments on outstanding loans
C. It has been refused loans or aid by creditors
D. The World Bank charges a very high rate of interest on outstanding as well as new loans
Discussion
B.It is required to borrow money to make interest payments on outstanding loans
66. Balance in capital account refer to the
A. Nation’s net exports of goods and services
B. Nation’s net exports of financial claims
C. Nation’s net exports of international official reserve assets
D. Nation’s sum of net exports of goods, services and financial claims
Discussion
B.Nation’s net exports of financial claims
67. Where is the headquarter of the WTO?
A. . New York
B. . Washington DC
C. . Geneva
D. . Austria
Discussion
C.. Geneva
68. Which of the following statement is not true about the WTO?
A. . WTO is a permanent organisation
B. . Uruguay round gave the birth to the WTO
C. .Ministerial Conference is the highest policy making body of the WTO
D. .WTO was officially constituted on 1 January 1991.
Discussion
D..WTO was officially constituted on 1 January 1991.
69. Which of the following is not the objective of the WTO?
A. . To improve the standard of living of peoples of the member countries
B. . To enlarge production and trade of goods
C. . To protect environment
D. . To improve the Balance of Payment situation of the member countries
Discussion
D.. To improve the Balance of Payment situation of the member countries
70. Which of the following body is not related to the WTO?
A. . Dispute Settlement Body
B. .Trade Policy Review Body
C. . Council of trade in goods
D. . Exchange Rate Management Body
Discussion
D.. Exchange Rate Management Body
71. Which of the followings are called Brettonwoods Twins?
A. IMF & International Bank for Reconstruction and Development (IBRD)
B. IMF & World Trade Organisation
C. IBRD & World Trade Organisation
D. None of the above
Discussion
A.IMF & International Bank for Reconstruction and Development (IBRD)
72. Which of the following institution is associated with Dunkel Proposals?
A. World Bank
B. International Monetary Fund
C. World Trade Organization
D. United Nations Organization
Discussion
C.World Trade Organization
73. As per Indian GAAP Financial statements are prepared at :
A. Market value
B. Fair value
C. Cost
D. All of the above
Discussion
B.Fair value
74. total no. Of IFRS is
A. 14
B. 16
C. 17
D. 18
Discussion
C.17
75. How many Ind As are there in India
A. 21
B. 39
C. 41
D. 32
Discussion
C.41
26. Rise in prices due imbalance between demand and supply is called as
A. GDP
B. Inflation
C. Deflation
D. None of the above
Discussion
B.Inflation
27. Culture spreads from one place to another and such transmission is called as ________.
A. difference.
B. reputation.
C. adoption.
D. heritage.
Discussion
A.difference.
28. What are the elements of business ethics?
A. Values rights and duties.
B. attitudes pressure and environment.
C. value environment and attitude.
D. Responsibilities.
Discussion
A.Values rights and duties.
29. India follows the ________political system
A. Authoritarian
B. Parliamentary
C. Absolutist system
D. Military dictatorship
Discussion
B.Parliamentary
30. The _______ is being driven by the demand and supply of products and services.
A. Market economy
B. Capitalist economy
C. Both a & B
D. Socialist Economy
Discussion
C.Both a & B
31. India is the best example of
A. Market Economy
B. Capitalist economy
C. Mixed Economy
D. Socialist Economy
Discussion
C.Mixed Economy
32. Which of the following is not only a part of ethics but statutory compliance?
A. Preserving Natural resources
B. Development of Roads
C. Fair Product & Prices
D. Disclosure of Financial Statement
Discussion
D.Disclosure of Financial Statement
33. Which of the following attitude is result of religion?
A. Attitude towards work
B. Purchasing Behaviour
C. None of the both
D. Both A & B
Discussion
D.Both A & B
34. Commitment, competence and consistency are three distinct characteristics that resultin
______________
A. Culture building
B. Values
C. Organizational socialization
D. Attitudes
Discussion
A.Culture building
35. The practices of a company for which it is accountable in relation to other parties iscalled
____________
A. Social responsibility
B. Code of Ethics
C. Values
D. Culture
Discussion
A.Social responsibility
36. National culture is based on ______________
A. Language
B. The territory of the state
C. The sense of belonging of a people
D. The nation-state.
Discussion
C.The sense of belonging of a people
37. Corporate governance is a form of
A. External regulation
B. Self regulation
C. Government control
D. Charitable action
Discussion
B.Self regulation
38. CSR & corporate governance represent a -------- between business and society.
A. Social climate
B. Special contract
C. Special climate
D. Social contract
Discussion
D.Social contract
39. Corporate governance is concerned with the formation of …………… term objective
A. Very short
B. Short
C. Medium
D. Long
Discussion
D.Long
40. The Current System of International Finance is a
A. gold standard
B. Fixed Exchange rate system
C. Floating exchange rate system
D. Managed Float Exchange rate system
Discussion
D.Managed Float Exchange rate system
41. More expansion of foreign direct investment can boost __________ .
A. Money circulation
B. Demand
C. Employment
D. Unemployment
Discussion
C.Employment
42. More expansion of foreign direct investment can boost
A. Money Circulation
B. Demand
C. Employment
D. Unemployment
Discussion
C.Employment
43. The union government adopted new definition of FDI and FPI in 2014. Which of the given below
is incorrect in this regard
A. The new definition considers 5% investment in capital of an unlisted company as FPI.
B. The new definition considers 5% investment in capital of an unlisted company as FDI.
C. The new definition considers 5% investment in capital of an listed company as FPI.
D. None of the above
Discussion
A.The new definition considers 5% investment in capital of an unlisted company as FPI.
44. Government has raised FDI level in Brownfield pharma to what percent under the automatic
route to attract capital and technologies in the pharmaceutical sector?
A. 74
B. 49
C. 50
D. 56
Discussion
A.74
45. OLI Theory is also known as
A. The transaction cost approach
B. The Eclectic Paradigm
C. The strategic linkage theory
D. Perfect market hypothesis
Discussion
B.The Eclectic Paradigm
46. Which country leads the inflow of FDI in India?
A. Mauritius
B. France
C. USA
D. UK
Discussion
A.Mauritius
47. In which of the following sectors does the Government of India allow more than 50% FDI?
A. Insurance
B. Print media
C. Telecommunications
D. Both A & C
Discussion
D.Both A & C
48. In which of the following sectors does the Government of India allow more than 50%FDI?
A. Joint venture
B. Strategic alliance
C. Acquisition
D. Merger
Discussion
B.Strategic alliance
49. Which of the following theories explains the behaviour of late entrants to catch up with the
competition?
A. OLI theory
B. Transition Cost approach
C. The Leapfrogging theory
D. The perfect market Hypothesis
Discussion
C.The Leapfrogging theory
50. Which of the following types of FDI includes creation of new assets and production facilities in
the host country?
A. Brownfield investment
B. Mergers & Acquisition
C. Strategic Alliance
D. Greenfield investment
Discussion
D.Greenfield investment
1. Nations conduct international trade because:
A. Some nations prefer to produce one thing while others produce other things.
B. Resources are not equally distributed among all trading nations.
C. Trade enhances opportunities to accumulate profits.
D. Interest rates are not identical in all trading nations
Discussion
B.Resources are not equally distributed among all trading nations.
2. International Trade is most likely to generate short-term unemployment in:
A. Industries in which there are neither imports nor exports
B. Import-competing industries
C. Industries that sell to domestic and foreign buyers.
D. Industries that sell to only foreign buyers
Discussion
B.Import-competing industries
3. 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
Discussion
D.A more integrated and interdependent world
4. Increased foreign competition tend to
A. Intensify inflationary pressure at home
B. Induce falling output per worker-hour for domestic workers
C. Place constraints on the wages of domestic workers
D. Increase profits of domestic import-competing industries
Discussion
C.Place constraints on the wages of domestic workers
5. The movement to free international trade is most likely to generate short-termunemployment in
which industries
A. Industries in which there are neither imports nor exports
B. Import-competing industries.
C. Industries that sell to domestic and foreign buyers
D. Industries that sell to only foreign buyers
Discussion
B.Import-competing industries.
6. International trade forces domestic firms to become more competitive in terms of
A. The introduction of new products
B. Product design and quality
C. Product price
D. All of the above
Discussion
D.All of the above
7. If a nation has an open economy it means that the nation:
A. Allows private ownership of capital.
B. Has flexible exchange rates
C. Has fixed exchange rates
D. Conducts trade with other countries
Discussion
D.Conducts trade with other countries
8. According to Adam Smith, the trade between countries should happen _____.
A. Naturally according to the market forces
B. Under government regulation
C. Using factors that are available
D. Only when a country has an absolute advantage
Discussion
D.Only when a country has an absolute advantage
9. Mercantilists believed that a country could increase the amount of wealth it had by_____.
A. Promoting exports and discouraging imports
B. Discouraging exports and promoting imports
C. Controlling imports and exports
D. Increasing both imports and exports
Discussion
A.Promoting exports and discouraging imports
10. Investment in Plant & machinery is termed as
A. FDI
B. FII
C. Portfolio Investment
D. Capital Investment
Discussion
D.Capital Investment
11. The traditional mode of entering into international business is
A. Licensing
B. Exporting
C. Joint venture
D. Subsidiary
Discussion
B.Exporting
12. Which type of following stage of internationalization has Decentralized decisionmaking?
A. Subsidiary
B. Multinational Corporation
C. Transnational corporation
D. Domestic Company
Discussion
C.Transnational corporation
13. Agreement between two parties where in one gives rights to use their intangibleproperty to
another entity is called as
A. Direct Exporting
B. Turnkey project
C. Strategic alliance
D. Licensing
Discussion
D.Licensing
14. Only manufacturing and exporting as per the requirement of importer is called
A. Direct Export
B. Sales
C. Import
D. Indirect Export
Discussion
D.Indirect Export
15. Complex projects involving creation of an asset as per the requirement of the client iscalled
_________.
A. Joint venture
B. Strategic alliance
C. Turnkey Project
D. Subsidiary
Discussion
C.Turnkey Project
16. Rapid integration or interconnection between countries is known as:
A. Globalisation
B. Liberalisation
C. Socialisation
D. Privatisation
Discussion
A.Globalisation
17. Globalisation has improved in the living structure of
A. All the people
B. Workers in Developing Countries
C. People in developed Countries
D. None of the above
Discussion
C.People in developed Countries
18. The main reason behind MNCs investments are
A. To benefit foreign countries
B. To provide financial support to the country’s Government
C. For the welfare of underprivileged people
D. To increase assets & earn profits
Discussion
D.To increase assets & earn profits
19. Which institute supports investments and foreign trade in India?
A. IMF
B. WTO
C. World Bank
D. International labour Organisation ( ILO)
Discussion
B.WTO
20. Which of the following is not a feature of a Multi-National Company?
A. It owns/ control production in more than one nation
B. It set up factories where it is close to the market
C. It organises production in complex ways.
D. It employs labour only from its own country
Discussion
D.It employs labour only from its own country
21. An MNC is a company that owns or controls production in
A. One country
B. More than one country
C. Only developing countries
D. Only developed countries
Discussion
B.More than one country
22. 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
Discussion
B.Domestic, International, Multinational, Global, Transnational
23. Which of the following business environment are known and controllable?
A. Domestic business Environment
B. Foreign business Environment
C. International business Environment
D. None
Discussion
A.Domestic business Environment
24. Forces that impacts business environment due to change in government is type of
A. Legal
B. Cultural
C. Social
D. Political
Discussion
D.Political
25. Which of the following is not cultural factor?
A. Language
B. Income
C. Beliefs
D. Customs
Discussion
B.Income
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International Business MCQ with Answers pdf download
International Business MCQ with Answers pdf download
Nov 18, 2021Dec 8, 2021 admin
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Multiple choice questions of Subject Commerce Solved International Business MCQ with Answers
pdf download ( International Business MCQ with Answers pdf download Quiz ) for Entrances
(Entrance Exam) Conducted by different Central and State Universities are given below.
NOTE: Be carefully during selecting Answers because we shuffle the answer options for more
concentration so, Be Active. All the Best
International Business Questions and Answers pdf | International Business MCQ with Answers pdf
download
1. When was the first phase of globalisation ended?
(a) The World War I
(b) The World War II
(c) The establishment of GATT
(d) In 1913 when GDP was high
Ans. a
2. Rapid integration or inter-connection between countries is known as
(a) privatisation
(c) globalisation
(b) liberalisation
(d) socialisation
Ans. c
3. On Ist Jan, 1995,
(a) GATS, WTO
(c) GATT, WTO was replaced by the
(b) WTO, GATT
(d) IMF, GATT
Ans. c
4. Which of the following is not a force in the Porter Five Forces model?
(a) Buyers
(b) Suppliers
(c) Complementary products
(d) Industry rivalry
Ans. c
5. Select example of Indian multinational company.
(a) Hindusthan Unilever
(b) Videocon
(d) Tesco
(c) Cargill
Ans. b
6. . . is application of knowledge which redefines the boundaries of global business.
(a) Cultural value
(b) Society
(d) Economy
(c) Technology
Ans. c
7. ……. company produces, markets, invests and operates across the world.
(a) Global
(b) International
(d) Multinational
(c) Transnational
Ans. c
8. International business transactions include
(a) sales
(c) transportation
(b) investments
(d) All of these
Ans. c
9. Globalisation refers to
(a) lower income worldwide
(b) less foreign trade investments
(c) global warming and their effects
(d) a more integrated and interdependent world
Ans. a
10. Which of the following is an example of an issue for which an agreement has not been made
between two or more countries?
(a) Restricting harmful emissions
(b) Deep-sea mining in non-coastal areas of the oceans
(c) Preserving endangered species
(d) Banning the use of certain pesticides
Ans. b
11. The WTO was established to implement the final act of Uruguay Round agreement of
(b) GATT
(d) UNO
(a) MFA
(c) TRIP’s
Ans. b
12. MNC stands for
(a) Multinational Coopertion
(b) Multinational Corporation
(c) Multinational Company
(d) Multinational Collaboration
Ans. a
International Business Questions and Answers pdf | International Business Quizlet
13. SMES stand for
(a) Small and Medium Entrepreneurs
(b) Small Management of Enterprises
(c) Small and Medium-sized Enterprises
(d) Societies for Managing Exports
Ans. c
14. An MNE may be synonymous with all of the following except
(a) a company that has a worldwide approach to markets and promotions
(b) an FDI
(c) an MNC
(d) a TNC
Ans. b
15. Exports and imports apply mostly to which of the following?
(a) Services
(c) Intellectual property
(b) Merchandise
(d) Licensing
Ans. b
16. Globalisation can create problems for business because
(a) it reduced vulnerability to political risk and uncertainty when operating abroad
(b) it can result in more competition
(c) it means that they can increase prices
(d) it will help in bringing new things in the market
Ans. a
17. Which of the following is not a characteristic of bartering internationally?
(a) Bartering can be time consuming
(b) Bartering can be expensive
(c) Bartering is a type of service export and import
(d) Bartering can be risky
Ans. c
18. Technology has a tremendous impact on international business in all of the following ways
except
(a) the demand for new products and services has increased
(b) the number of international business transactions has increased
(c) the managers’ ability to control foreign operations has been improved
(d) it has raised the cost of doing business abroad
Ans. d
19. The aim of the MNC is to boost accounting profitability by shifting funds around the
(a) country
(b) region
(c) world
(d) market
Ans. c
20. Key controllable factors in global marketing are
(a) government policy and legislation
(b) social and technical changes
(c) marketing activities and plans
(d) All of the above
Ans. c
International Business Exam Questions and Answers pdf
21. In order to have controlling interest in a foreign company
(a) an investor must have at least 100 % interest in the foreign company
(b) an investor must have at least 50% interest in the foreign company
(c) an investor may hold a minority stake if the remaining ownership is widely dispersed
(d) an investor must make all decisions at headquarters about the foreign company
Ans. c
22. Advantages of having diverse brands consist of each of the following except
(a) quickly respond to retailers
(b) effectively compete in market
(c) save the actual brand image
(d) fill all the gaps in market
Ans. d
23. A company commonly uses ….. to handle foreign operations during the early stages of
international expansion because it minimises commitment.
(a) its own sales force
(b) intermediaries
(c) barter transactions
(d) wholly owned subsidiaries
Ans. b
24. Which is not an Indian multinational company?
(a) Unilever
(b) Asian Paints
(d) Wipro
(c) Piramal
Ans. a
25. International business conducted by governments differs from that conducted by private
companies as the former
(a) is involved only in foreign aid transactions
(b) makes foreign sales but is not involved in investments and transportation
(C) may not necessarily undertake business for the sake of profit
(d) will handle transactions on credit
Ans. c
26. Historically, foreign direct investment has followed foreign trade because
(a) foreign trade is less costly and less risky
(b) management can expand the business in large increments
(c) the firm has already established its own sales company to import in its own name
(d) All of the above
Ans. a
27. The theory of comparative cost advantage is given by
(a) David Ricardo
(b) Adam Smith
(d) Ohlin and Heckscher
(c) FW Taussig
Ans. a
28. At an early stage of international involvement, require(s) the least formal commitment and pose
the least risk to the company’s resources,
(a) foreign direct investment
(b) joint ventures
(c) importing and exporting
(d) wholly owned subsidiaries
Ans. c
29. Frequently, a firm will go abroad to
(a) protect its home market
(b) earn greater profits
(c) test market a product
(d) All of these
Ans. d
30. According to the US Department of Commerce approximately of US exports of goods are by US
owned multinational corporations.
(a) 33.33%
(c) 67%
(b) 50%
(d) 75%
Ans. c
chapter 1 globalization and international business multiple choice questions | business environment
and international business mcq for ugc net | international business mcq for net exam
31. Which of the following statements is true regarding the growth of international business?
(a) International business has grown in more recent years at a slower pace than global production
(b) International business has grown in more recent years at a faster pace than global production
(C) During the global economic downturn of 2001 international business grew at a faster pace than
global production
(d) Growth through trade has increased but growth through foreign direct investment has not
Ans. b
32. Which of the following is a major benefit of joint production between a local company and a
multinational company?
(a) MNC can buy the local company
(b) MNC can control the increase in the price
(c) MNC can bring latest technology in the production
(d) None of the above
Ans. c
33. Which of the following has played a big role in organizing production across the countries?
(b) Domestic companies
(d) Consumers
(a) WTO
(c) Information technology
Ans. c
34. All of the following are reasons to study international business except
(a) to bring non-territorial areas under the control of national governments
(b) international business comprises a large and growing portion of the world’s total business
(c) global events and competition affect almost all companies
(d) company operating internationally will engage in modes of business that differ from those it is
accustomed to domestically
Ans. a
35. What is the first step to be international for a company?
(a) Franchise
(c) FDI
(b) Exporting
(d) None of these
Ans. b
36. The IMF is firm of
(a) 190 members countries
(b) 182 members countries
(c) 186 member countries
(d) 183 member countries
Ans. d
37. Which of the following has benefited least because of globalisation in India?
(a) Industrial sector
(c) Agriculture sector
(b) Service sector
(d) None of these
Ans. c
38. Strategy involves which of the following?
(a) Understanding the goals of the organisation
(b) Allocating resources to take advantage of opportunities arising from the organisation’s external
envirorment
(c) Determining the long-term direction of the organisation
(d) All of the above
Ans. d
39. Which of the following countries sends a larger portion of its exports to developing nations than
to developed economies as a whole?
(a) New Zealand
(b) Germany
(c) China
(d) The UK
Ans. a
40. Which one of the following is not true regarding the world trade organisation?
(a) It allows free trade to all countries without any trade barriers
(b) Its aim is to liberalise international trade
(c) It establishes rules regarding international trade
(d) WTO rules have forced the developing countries to remove trade barriers
Ans. a
International business questions and answers pdf | international business quizlet | international
business exam questions and answers pdf
41. An impact analysis helps firms to
(a) assess the impact of external forces on the business
(b) priorities responses to the forces of the external environment
(c) identify the most probable opportunities and threats
(d) None of the above
Ans. b
42. What was the meaning of globalisation till 1950?
(a) Only foreign investment
(b) Only foreign trade
(c) Both of the above
(d) None of these
Ans. b
43. Exploring the strategic implications of global warming is best described as
(a) an external environmental analysis
(b) future forecasting
(c) scenario planning
(d) None of the above
Ans. c
44. An analysis of the external environment enables a firm to identify
(a) strengths and opportunities
(b) strengths and weaknesses
(c) weaknesses and threats
(d) opportunities and threats
Ans. d
45. In which year the world trade organisation was formed?
(b) 1995
(a) 1991
(c) 1990
(d) 1993
Ans. b
46. In 1999, foreign direct investment soared to unprecedented levels because of large American
firms responding to such factors as
(a) domestic competition
(b) higher oil prices
(c) stable interest rates worldwide
(d) liberalisation by host governments in regard to foreign investment
Ans. d
47. Which or of the following is a pull factor in emigration?
(a) Poitics
(b) Job opportunities
(c) Infrastructure
(d) None of the above
Ans. b
48. Which of the following do not facilitate globalisation?
(a) Barriers to trade and investment
(b) Improvements in communications
(c) Immigration controls
(d) Removal of controls on movement of capital across borders
Ans. a
49. Which of the following constitutes foreign direct investment?
(a) A tourist purchasing foreign currency to spend on holiday abroad
(b) A speculators trying to make a profit by buying company’s shares on a foreign stock exchange
(c) A UK energy company buying territory abroad where it expects to find oil reserves
(d) None of the above
Ans. c
50. Globalisation is beneficial for firms because
(a) it cushions them from the effects of events in other countries
(b) it opens up new market opportunities
(c) it decreases the risk and uncertainty of operating in a globalized worid economy
(d) None of the above
Ans. b
1. 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
2. IBRD (INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT) ALSO
KNOWN AS
a. Exim Bank
b. World Bank
c. International Monetary fund
d. International Bank
3. ULTIMATELY ………………WAS REPLACED BY THE …………….ON
1ST JAN 1995
a. GATS, WTO
b. WTO, GATT
c. GATT, WTO
d. IMF, GATT
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
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
6. ACCORDING TO THIS THEORY, THE HOLDINGS OF A COUNTRY’S TREASURE
PRIMARILY IN THE FORM OF GOLD CONSTITUTED ITS WEALTH.
a. Gold Theory
b. Ricardo Theory
c. Mercantilism
d. Hecksher Theory
7. THE THEORY OF ABSOLUTE COST ADVANTAGE IS GIVEN BY
a. David Ricardo
b. Adam Smith
c. F W Taylor
d. Ohlin and Heckscher
8. THE THEORY OF RELATIVE FACTOR ENDOWMENTS IS GIVEN BY
a. David Ricardo
b. Adam Smith
c. F W Taussig
d. Ohlin and Hecksher
9. THE THEORY OF COMPARATIVE COST ADVANTAGE IS GIVEN BY
a. David Ricardo
b. Adam Smith
c. F W Taussig
d. Ohlin and Hecksher
10. ……………IS THE APPLICATION OF KNOWLEDGE WHICH REDEFINES THE
BOUNDARIES OF GLOBAL BUSINESS
a. Cultural Values
b. Society
c. Technology
d. Economy
11. CAPITALISTIC, COMMUNISTIC AND MIXED ARE THE TYPES OF
a. Economic System
b. Social System
c. Cultural Attitudes
d. Political System
12. WHICH IS NOT AN INDIAN MULTINATIONAL COMPANY?
a. Unilever
b. Asian Paints
c. Piramal
d. Wipro
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
14. WHICH OF THE FOLLOWING IS NOT A FORCE IN THE PORTER FIVE FORCES
MODEL?
a. Buyers
b. Suppliers
c. Complementary products
d. Industry rivalry
15. COMPARATIVE COST TRADE THEORY IS GIVEN BY
a. Adam Smith
b. David Ricardo
c. Gottfried Haberler
d. Heckscher Ohlin
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
c. Open Account
d. Drafts
17. KEY CONTROLLABLE FACTORS IN GLOBAL MARKETING ARE:
a. Government policy and legislation
b. social and technical changes
c. marketing activities and plans
d. all of the above.
18. SELECT EXAMPLE OF INDIAN MULTINATIONAL COMPANY
a. Hindusthan Unilever
b. Videocon
c. Cargill
d. Tesco
19. …………………CORPORATION PRODUCES IN THE HOME COUNTRY OR
IN A SINGLE COUNTRY AND FOCUSES ON MARKETING THESE PRODUCTS GLOBALLY
OR VICE A VERSA.
a. Global
b. International
c. Transnational
d. None of the above
20. THE —————-COMPANY PRODUCES, MARKETS, INVESTS AND
OPERATES ACROSS THE WORLD
a. Global
b. International
c. Transnational
d. Multinational
21. …..IS ONLY A LEGAL AGREEMENT AND IT IS NOT AN INSTITUTION, BUT
….. IS A PERMANENT INSTITUTION.
a. GATT, WTO
b. WTO, GATT
c.WTO, IMF
d. IMF, GATT
22. THE WTO WAS ESTABLISHED TO IMPLEMENT THE FINAL ACT OF URUGUAY
ROUND AGREEMENT OF ……
a. MFA
b. GATT
c. TRIP’s
d. UNO
23. WTO STANDS FOR
a. World technology association
b. World time organization
c. World trade organization
d. World tourism organization
24. NAFTA STANDS FOR
a. North African trade association
b. North American free trade agreement
c. Northern Atlantic trade agreement
d. Northern association for trade
25. IPR STANDS FOR
a. Intellectual property rights
b. International property rights
c. Internal promotion rights
d. Interior promotional rights
26. THE MAIN PROMOTER OF TRADE LIBERALIZATION WAS
a. GATT
b. NAFTA
c. CEPTA
d. CISA
27. MNC STANDS FOR
a. Multi-National Cooperation
b. Multi-National Corporation
c. Multi-National Company
d. Multi-National Collaboration
28. _ IS THE FIRST STEP IN THE INTERNATIONALIZATION PROCESS.
a. License
b. Foreign Investment
c. Sales
d. Export
29. SMES STANDS FOR:
a. Small and Medium Entrepreneurs
b. Small Management of Enterprises
c. Small and Medium-sized Enterprises.
d. Societies for Managing Exports
30. THE OECD STANDS FOR:
a. Organization for Economic Co-operation and Development
b. Organization for Economic Coordination and Development
c. Organization for Environmental Cooperation and Development.
d. Organization for Environmental Control and Development
1.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. 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 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 c. Open Account d. Drafts
Answer: b. International Business Multiple Choice Questions PDF
1. Which sector got priority in the 1st five year plan?
(a) Agriculture
(b) Industrial
(c) Infrastructure
(d) Communication
Answer: Agriculture
Explanation: In order of priority, the First Plan placed agriculture and irrigation first, transport and
communications second, social services third, then power and finally industry.
2. The low income economies are sometimes referred to as ———(a) First world
(b) Second world
(c) Third world
(d) None of these
Answer: Third world
Explanation: The low income economies are sometimes referred to as Third world. Low- income and
middle-income economies are sometimes referred to as developing economies.
3. Which is the Govt.’s strategy in respect of public expenditure and revenue which have a
significant Impact on business.
(a) Monetary policy
(b) Fiscal Policy
(c) Trade policy
(d) Foreign exchange policy
Answer: Fiscal Policy
Explanation: Fiscal Policy is the Govt.’s strategy in respect of public expenditure and revenue which
have a significant Impact on business. In economics and political science, fiscal policy is the use of
government revenue collection and expenditure to influence a country’s economy.
4. In which year the constitution of India was amended to add, among other things, that India
should be a socialist state?
(a) 1954
(b) 1976
(c) 1980
(d) 1985
Answer: 1976
Explanation: In 1976 the constitution of India was amended to add, among other things, that India
should be a socialist state.
5. The method used for transferring complex technology is ———–
(a) Turnkey contracts
(b) Licensing agreements
(c)Training of experts
(d) None of these
Answer: Turnkey contracts
Explanation: The method used for transferring complex technology is Turnkey contracts. A Turnkey
Contract is one under which the contractor is responsible for both the design and construction of a
facility. The basic concept is that in a Turnkey Contract the contractor shall provide the works ready
for use at the agreed price and by a fixed date.
6. In which year the Adrian Cadbury Committee on corporate governance was appointed?
(a) 1991
(b) 1996
(c) 1980
(d) 2000
Answer: 1991
Explanation: The Corporate Governance Committee was set up in May 1991 by the Financial
Reporting Council, the Stock Exchange and the accountancy profession in response to continuing
concern about standards of financial reporting and accountability.
7. CII stands for
(a)Confederation of Indian Industries
(b) Condition of Indian Industries
(c) Classes of Indian Industries
(d) Civilians of Indian Industries
Answer: Confederation of Indian Industries
Explanation: CII stands for Confederation of Indian Industry. It is a not-for-profit and nongovernment organization that is established to create a conducive environment for the development
of industry and civil society in India through advisory and consultative services.
8. According to Birla Committee on Corporate governance, the non executive directors should
comprise at least ——– per cent of the Board, if one of them is the chairman
(a) 30%
(b) 20
(c) 10
(d) 70
Answer: 30%
Explanation: According to Birla Committee on Corporate governance, the non executive directors
should comprise at least 30% per cent of the Board, if one of them is the chairman.
9. In which year Govt. of India appointed the Rangarajan Committee on disinvestment in PSEs
(a) 1990
(b) 1991
(c) 1993
(d) 1996
Answer: 1993
Explanation: The Rangarajan Committee on the ‘Disinvestment of shares in PSEs’ (April 1993)
emphasized the need for substantial disinvestments. The major recommendations of the committee
were: It stated that the percentage of equity to be divested could be up to 49% for industries
explicitly reserved for the public sector.
10. The Govt. of India constituted a Public sector Disinvestment commission on——
(a) 15 March 1991
(b) 23 Aug 1993
(c) 23 Sept 1993
(d) 06 May 1994
Answer: 23 Aug 1993
Explanation: The Govt. of India constituted a Public sector Disinvestment commission on 23 Aug
1993. The disinvestment commission defines strategic sale as the sale of a substantial portion of the
Government shareholding of a central public sector enterprises (CPSE) of upto 50%, or such higher
percentage as the competent authority may determine, along with transfer of management control.
11. Which Act was replaced with the introduction of Competition Act 2002?
(a) FERA
(b) MRTP
(c) POTA
(d) None of these
Answer: MRTP
Explanation: The Monopolies and Restrictive Trade Practices Act (MRTP) was replaced with the
introduction of Competition Act 2002.
12. Competition Act was enacted in the year——(a) June 2002
(b) Dec. 2002
(c) January 1999
(d) None of these
Answer: Dec. 2002
Explanation: Competition Act was enacted in 2002. The main objectives of the Competition
Act, 2002 are: to provide the framework for the establishment of the Competition Commission. to
prevent monopolies and to promote competition in the market. to protect the freedom of trade for
the participating individuals and entities in the market.
13. Which committee recommended the enactment of Competition Act
(a) High level Committee on competition policy and Law
(b) A Committee on Law and Order
(c) A Central Committee for Research and Policy
(d) None of these.
Answer: High level Committee on competition policy and Law
Explanation: High level Committee on competition policy and Law recommended the enactment of
Competition Act. The Competition Act, 2002 was enacted by the Parliament of India and governs
Indian competition law. It replaced the archaic The Monopolies and Restrictive Trade Practices Act,
1969.
14. Who is concerned with the auditing of the receipts and expenditure of the State and Central
Govt.
(a) Accountant General
(b) Comptroller and Auditor General
(c) Reserve Bank of India
(d) None of the above.
Answer: Comptroller and Auditor General
Explanation: Comptroller and Auditor General is concerned with the auditing of the receipts and
expenditure of the State and Central Govt.
15. Which policy is concerned with raising revenue through taxation and deciding on the level and
Pattern of expenditure?
(a) Monetary policy
(b) Fiscal Policy
(c) Cash policy
(d) None of these
Answer: Fiscal Policy
Explanation: Fiscal Policy is concerned with raising revenue through taxation and deciding on the
level and Pattern of expenditure. In economics and political science, fiscal policy is the use of
government revenue collection and expenditure to influence a country’s economy.
16. Who is responsible for presenting the Union Budget before the Parliament?
(a) Prime Minister
(b) Finance Minister
(c) RBI Governor
(d) None of these
Answer: Finance Minister
Explanation: Finance Minister is responsible for presenting the Union Budget before the Parliament.
The Union Budget of India, also referred to as the Annual Financial Statement in the Article 112 of
the Constitution of India, is the annual budget of the Republic of India.
17. The Planning commission was set up in India in ——–
(a) 1950
(b) 1951
(c) 1947
(d) 1952
Answer: 1951
Explanation: The Planning Commission was set up by a Resolution of the Government of India in
March 1950 in pursuance of declared objectives of the Government to promote a rapid rise in the
standard of living of the people by efficient exploitation of the resources of the country, increasing
production and offering opportunities to all for employment in the service of the community. The
first Five-year Plan was launched in 1951.
18. Who is the President of National Development Council ?
(a) Finance Minister
(b) Prime Minister
(c) Monteng sing Aluvalia
(d) None
Answer: Prime Minister
Explanation: The National Development Council is presided over by the Prime Minister of India and
includes all Union Ministers, Chief Ministers of all the States and Administrators of Union Territories
and Members of the NITI Aayog.
19. From which five year plan ‘growth with social justice’ has received added emphasis?
(a) 5th
(b) 4th
(c) 3rd
(d) 6th
Answer: 5th
Explanation: From 5th five year plan ‘growth with social justice’ has received added emphasis. The
Fifth Five-Year Plan laid stress on employment, poverty alleviation (Garibi Hatao), and justice.
The plan also focused on self-reliance in agricultural production and defence.
20. GAAT was born in the year————–
(a) 1948
(b) 1945
(c) 1947
(d) 1950
Answer: 1948
Explanation: General Agreement on Tariffs and Trade (GAAT) was born in the year 1948. The GAAT is
a legal agreement between many countries, whose overall purpose was to promote international
trade by reducing or eliminating trade barriers such as tariffs or quotas.
21. What was the predecessor of WTO?
(a) GAAT
(b) IMF
(c) ADB
(d) None of the above
Answer: GAAT
Explanation: Over the past 60 years, the WTO, which was established in 1995, and
its predecessor organization the GATT have helped to create a strong and prosperous international
trading system, thereby contributing to unprecedented global economic growth.
22. In which year WTO was formulated?
(a) 1995
(b) 1948
(c) 1991
(d) 1988
Answer: 1995
Explanation: The WTO began life on 1 January 1995, but its trading system is half a century older.
Since 1948, the General Agreement on Tariffs and Trade (GATT) had provided the rules for the
system. (The second WTO ministerial meeting, held in Geneva in May 1998, included a celebration of
the 50th anniversary of the system.)
23. FEMA was passed in the year —
(a) 1999
(b) 1989
(c) 2000
(d) 1997
Answer: 1999
Explanation: The Foreign Exchange Management Act (1999) or in short FEMA has been introduced
as a replacement for earlier Foreign Exchange Regulation Act (FERA). FEMA became an act on the 1st
day of June, 2000.
24. The quota system was first introduced in the year
(a) 1955
(b) 1960
(c) 1949
(d) 1952
Answer: 1955
Explanation: The quota system was first introduced in 1955. A quota is a government-imposed trade
restriction that limits the number or monetary value of goods that a country can import or export
during a particular period. Countries use quotas in international trade to help regulate the volume of
trade between them and other countries.
25. PLR stands for
(a) Prime ministers Land Recovery
(b) Prime Lending Rate
(c) Price Leverage Rate
(d) None of these
Answer: Prime Lending Rate
Explanation: PLR stands for Private Label Rights. PLR is a content that can be edited, modified and
shared by you as your own. Some people have created great content and provide you with rights to
use it as you wish.
1 Geographical indication specifies:
(a) Place of origin of goods only
(b) Special characteristics of product associated with place of origin.
(c) Both (a) and (b)
2 Strategic alliance cannot be between:
(a) Manufacturer and supplier
(b) Competitors
(c) Non- competitors
(d) None of the above
3 The mode of entry into international business with least risk to the firm is
(a) Export house
(b) Trading house
(c) A manufacturing exporter
(d) Merchant exporter.
4 A global company can----------- its experience to expand its global operations
(a) Contract
(b) Expand
(c) Minimize
(d) Leverage
5 Governmental regulations can affect the viability & ----------- of a company using the
internet as a foreign market entry mode.
(a) Effectiveness
(b) Association
(c) Performance
(d) None of the above
6 ______ typically offer more flexibility in international markets.
(a) SMEs
(b) LSEs
(c) MNEs
(d) None of the above
7 Within an international context, what are 'economies of scope' synonymous with?
(a) Reusing a resource from one business/country in additional businesses/countries.
(b) Decreased cost per unit of output.
(c) Buying components in a bulk.
(d) Any of the above.
8 Globalization refers to:
(a) A more integrated and interdependent world
(b) Less foreign trade and investment
(c) Global warming
(d) Lower incomes worldwide
9 Which of the following is not a driver of globalization?
(a) The fragmentation of consumer tastes between countries.
(b) The competitive process.
(c) Multinational companies successfully persuading governments to lower trading
barriers.
(d) The need to gain economies of scale.
10 Globalization is beneficial for firms because:
(a) It protects them against foreign competition.
(b) It cushions them from the effects of events in other countries.
(c) It opens up new market opportunities.
(d) It increases the risk and uncertainty of operating in a globalizing world
economy.
11 The internet facilitates globalization by:
(a) Making it more difficult to contact potential customers abroad.
(b) Cutting the cost for firms of communicating across borders.
(c) Making it harder to send money from one country to another.
(d) Making it easier for governments to censor the information received by their
citizens from abroad.
12 Why might MNCs in the past have focused their marketing activities on the triad?
(a) That is where the most lucrative markets were located.
(b) Income per head in developing countries was relatively low.
(c) Transport and communication links were improving outside the triad.
(d) Technologically advanced goods and services do not appeal to consumers in
developing economies.
13 Globalization can create problems for business because:
(a) It can result in more competition.
(b) It increases vulnerability to political risk and uncertainty when operating
abroad.
(c) It means that they can increase prices.
(d) All of the options given are correct.
14 Which of the following statements on civil law systems would be seen as an
advantage by business?
(a) Civil law systems operate in very few countries.
(b) Relevant areas of law are much easier to find than in common law systems.
(c) Relevant areas of law are more difficult to find than in common law systems.
(d) Lawyers act as oral advocates for their clients.
15 How does international law facilitate international trade and investment?
(a) It makes it easier to resolve contract disputes for firms involved in international
trade and investment.
(b) It allows business to choose the most favorable national legal system to institute
proceedings.
(c) The terms used in international conventions are open to differing
interpretations.
(d) The Uniform Commercial Code favors big US multinationals.
16 Laws relating to The Single Market Program allow EU-based companies to:
(a) Move goods and services from any member state to another.
(b) Transfer managers to any member state.
(c) Invest anywhere in the EU.
(d) All of the options given.
17 Competition Law in the EU means that firms:
(a) Are free to set up international cartels.
(b) May be refused permission to take over a US competitor.
(c) Can not be made to repay government financial assistance.
(d) Can cross-subsidise loss-making services from profitable activities.
18 The law relating to E-Commerce fits which of the following descriptions:
(a) It comprises a single set of laws.
(b) The law lacks clarity.
(c) There is no problem applying contract law to the internet.
(d) The law makes it easy to deal with foreign computer hackers.
19 The existence of different currencies is beneficial to private financial institutions
because:
(a) Each country has its own currency.
(b) The exchange rate of each currency is fixed by the International Monetary Fund.
(c) A collapse in the exchange rate of a currency can cause economic disruption.
(d) Profits can be made from arbitrage.
20 The International Monetary Fund is important because:
(a) It has sufficient financial resources to deal with a major global financial crisis.
(b) It has sufficient financial resources to help individual countries facing balance
of payments problems.
(c) Emerging economies can exercise significant influence on it.
(d) It fixes exchange rates.
21 Which of the following are characteristic of the period when financial bubbles
burst?
(a) Excessive optimism about future asset prices.
(b) Excessive pessimism about future asset prices.
(c) Rising house prices.
(d) Rising share prices.
22 What functions do financial institutions traditionally perform?
(a) They immobilise savings.
(b) They concentrate risk.
(c) They spread risk.
(d) They offer only short-term finance.
30 The balance of payments includes which of the following?
(a) a country's balance of trade
(b) foreign investments
(c) foreign aid
(d) all of the above
31 Globalization refers to:
(a) A more integrated and interdependent world
(b) Less foreign trade and investment
(c) Global warming
(d) Lower incomes worldwide
32 Which one of the following is a pull factor in emigration?
(a) Political oppression
(b) Job opportunities
(c) Food shortages
(d) War
33 Which of the following do NOT facilitate globalization?
(a) Improvements in communications
(b) Barriers to trade and investment
(c) Immigration controls
(d) Removal of controls on movement of capital across borders
34 Which of the following constitutes Foreign Direct Investment?
(a) A speculator trying to make a profit by buying company shares on a foreign
stock exchange.
(a) A UK energy company buying territory abroad where it expects to find oil
reserves.
(b) A tourist purchasing foreign currency to spend on a holiday abroad.
(c) A company signing an agreement with a wholesaler to distribute its products in
foreign markets.
35 Which of the following could be defined as a multinational company?
(a) A firm that owns shares in a foreign company but does not participate in the
company's decision making.
(b) A UK based internet package holiday firm specializing in selling tours to
Turkey to German customers.
(c) A firm owning a chain of supermarket outlets outside its country of origin.
(d) A finance company transferring its HQ and all its activities from the UK to the
US.
36 Which of the following is a driver of globalization?
(a) Trade barriers and controls on inflows of foreign direct investment.
(b) Weak competition.
(c) Technological advance.
(d) Economies of scale are being exploited to the maximum.
37 Globalization is beneficial for firms because:
(a) It protects them against foreign competition.
(b) It cushions them from the effects of events in other countries.
(c) It opens up new market opportunities.
(d) It increases the risk and uncertainty of operating in a globalizing world economy.
38 The internet facilitates globalization by:
(a) Making it more difficult to contact potential customers abroad.
(b) Cutting the cost for firms of communicating across borders.
(c) Making it harder to send money from one country to another.
(d) Making it easier for governments to censor the information received by their
citizens from abroad.
39 Why might MNCs in the past have focused their marketing activities on the triad?
(a) That is where the most lucrative markets were located.
(b) Income per head in developing countries was relatively low
(c) Transport and communication links were improving outside the triad.
(d) Technologically advanced goods and services do not appeal to consumers in
developing economies.
40 Globalization can create problems for business because:
(a) It can result in more competition.
(b) It reduced vulnerability to political risk and uncertainty when operating abroad.
(c) It means that they can increase prices.
(d) All of the options given are correct.
41 Ethnocentric views concentrate on their
(a) home country
(b) host country
(c) world orientation
(d) Raci al orientation
42 In a global market place
(a) the entire world is a market place
(b) national borders are irrelevant
(c) the potential for organizations to grow expands dramatically
(d) All of the above
43 In a global market place Managers must
(a) deals with economic, political and cultural differences
(b) expect competitors to suddenly appear at any time from any place
(c) not to take specific differences of local environment into consideration
(d) A and B
44. Trade Related Investment Measures (TRIMS) doesn’t apply for
(a) Measures that affect trade in goods.
(b) Measures that lead to restrictions in quantities.
(c) Discouraging measures that limit a company’s imports.
(d) Discouraging measures that limit a company’s exports.
45 . General Agreement on Trade in Services will not be applicable to
(a) Services supplied from one country to another – cross border supply
(b) Transaction of goods across the border – Export Import
(c) Individuals traveling from own country to supply services in another – presence
of natural persons.
(d) Consumers/firms making use of a service in another country – consumption
abroad.
(e) Foreign company setting up subsidiary or branches to provide services in
another country –commercial presence.
46. As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn’t consider
(a) Direct payments to farmers are permitted.
(b) Indirect assistance and support to farmers including R & D support by govt. are
not permitted.
(c) Domestic policies which directly effect on production and trade have to be cut
back.
(d) Least developed countries do not need to make any cuts.
47. Quantitative restrictions refer to limit set by countries to curb
(a) Measures that affect trade in goods.
(b) Measures that lead to restrictions in quantities.
(c) Discouraging measures that limit a company’s imports.
(d) Discouraging measures that limit a company’s exports.
48. A Most Favored nation status doesn’t necessarily refers to
(a) Same and equal economic treatment
(b) Non-discriminatory treatment
(c) Same tariff rates applicable
(d) Uniform civil code
49. The world trade organization was formed in the year _________ with GATT as it basis.
(a) 1993
(b) 1994
(c) 1995
(d) 1996
50. Specific cultural dimensions that does not have a significant impact on cross national
business interactions is
(a) Hofstede’s five cultural dimensions
(b) Monochromatic vs polychromatic tune
(c) Communication
(d) Geography
51. NAFTA is an example of
(a) Common Market
(b) Customers Union
(c) Economic Community
(d) Free Trade Area
52. Which one is not an international organization
(a) SAARC
(b) ASEM
(c) ASEAN
(d) CBDT
53. Which of the following is not an International Financial Institution
(a) ICICI
(b) IMF
(c) IDA
(d) World Bank
54. What one of the following is not the advantage of MNCs to the host country
(a) Increase in social activities
(b) increase in economic activities
(c) Utilisation of natural resource
(d) R&D efforts enhanced.
55. In terms of the PESTLE analysis, the liberalizing of international trade and tariff
regimes could go in which section or sections?
(a) Political
(b) Legal
(c) Political and economic and legal
(d) Political and environmental
56. An 'industry recipe' can be defined as:
(a) An accepted pattern of operating and competing
(b) A tactic for anticipating a competitor's next move
(c) The hidden competences that are difficult to imitate
(d) A strategic group
57. Typically, profits are highest in which stage of the industry life-cycle?
(a) Introduction
(b) Growth
(c) Maturity
(d) Decline
58. The corporate culture of a firm is more effectively carried to the managers who are
(a) Host country nationals
(b) Home country nationals
(c) Third country nationals
59. Posting of home country nationals for all key management positions throughout the
globe is supported by:
(a) Geocentric staffing model.
(b) Polycentric staffing model.
(c) Ethnocentric staffing model.
60. Which of the following is NOT a business opportunity generated by globalization?
(a) Access to low cost labour.
(b) Cheap International transport.
(c) Currency crises.
(d) Less stringent regulation of the business environment.
1. Balance of Payments is an accounting statement that records monetary transactions
between ________.
.
Residents of a nation and the rest of the world
a. Non-residents and the rest of the world
b. Residents of a nation and non-residents
c. None of the above
Answer: a
2. Balance of Payments uses the _________ system of accounting.
.
Single-entry
a. Double-entry
b. Cash basis
c. Accrual basis
Answer: b
3. The ‘resident’, whose monetary transactions get recorded under the Balance of Payments
system, includes _______.
.
Government agencies
a. Individuals
b. Firms
c. All of the above
Answer: d
4. The components of a Balance of Payment account are ____________.
.
Capital Account
a. Current Account
b. Both a and b
c. None of the above
Answer: c
5. The Balance of Payment account records the inflow of foreign exchange on the _______.
.
Debit side
a. Credit side
b. Both a and b
c. None of the above
Answer: b
6. Balance of trade is the ___________.
.
Difference between export and import of services
a. Total of export and import of services
b. Difference between export and import of goods
c. Total of export and import of goods
Answer: c
7. Which of the following is not a component of the Balance of Payments?
.
Real account
a. Current account
b. Capital account
c. None of the above
Answer: a
8. Import and export of goods are known as _____.
.
Nominal trade
a. Invisible trade
b. Visible trade
c. None of the above
Answer: c
9. Import and export of services are known as ________.
.
Nominal trade
a. Invisible trade
b. Visible trade
c. None of the above
Answer: b
10. Import of machinery and equipment is recorded under __________ of the ______ account.
.
Credit side, capital
a. Debit side, capital
b. Debit side, current
c. Credit side, current
Answer: c
11. Gifts or grants received from outside the country get recorded under __________ of the
______ account.
.
Credit side, capital
a. Debit side, capital
b. Debit side, current
c. Credit side, current
Answer: d
12. The Current account of the Balance of Payments includes transactions like ___________.
.
Imports and exports of goods and services
a. Transfers to and from abroad
b. Income to and from abroad
c. All of the above
Answer: d
13. The Capital account of the Balance of Payments includes transactions like ___________.
.
Changes in foreign exchange reserves
a. Investments to and from abroad
b. Borrowings and lendings to and from abroad
c. All of the above
Answer: d
14. Balance of payments is a ___________ concept as compared to balance of trade.
.
Broader
a. Similar
b. Narrower
c. None of the above
Answer: a
15. Trade Deficit occurs when ______________.
.
Export of goods is less than imports of goods
a. Export of goods is more than imports of goods
b. Export of services is less than imports of services
c. Export of services is more than imports of services
Answer: a
16. A business organisation located within India gets a loan from a foreign-based company.
This transaction is recorded in the ____________ of ____________ account within the
Balance of Payment account of India.
.
Debit side, current
a. Credit side, current
b. Debit side, capital
c. Credit side, capital
Answer: d
17. A business organisation located within India invests in a foreign-based company. This
transaction is recorded in the ____________ of ____________ account within the Balance
of Payment account of India.
.
Debit side, current
a. Credit side, current
b. Debit side, capital
c. Credit side, capital
Answer: c
18. Foreign exchange transactions that are independent of other activities in the Balance of
Payments account are ________ transactions.
.
Capital account
a. Current account
b. Accommodating
c. Autonomous
Answer: d
19. Foreign exchange transactions that are dependent on other activities in the Balance of
Payments account are __________ transactions.
.
Capital account
a. Current account
b. Accommodating
c. Autonomous
Answer: c
20. When payments of foreign exchange are more than receipts, then the Balance of
Payments is __________.
.
Surplus
a. Deficit
b. Balanced
c. None of the above
Answer: b
21. The transactions undertaken to cover the deficit or surplus of autonomous transactions
are called __________.
.
Accommodating transactions
a. Capital account transactions
b. Current account transactions
c. None of the above
Answer: a
22. The measures taken to improve the negative Balance of Payments include ___________.
.
Exchange control
a. Currency devaluation
b. Import substitution
c. All of the above
Answer: d
23. An increase in the foreign exchange reserve gets recorded on the _________ of the
Balance of Payments account.
.
Debit side
a. Credit side
b. Not added to any side
c. It can be added to any side
Answer: b
24. Which of the following are a part of the Capital account of the Balance of Payments?
.
Foreign loans
a. Monetary movements
b. Foreign investments
c. All of the above
Answer: d
25. Balance of Payments is an accounting statement for _________.
.
Business year
a. New year
b. Accounting year
c. All of the above
Answer: c
26. The current account deficit is unfavourable for a country because it signifies ______.
.
Demerits for the nation
a. That the nation is a borrower from the rest of the world
b. The government does not have sufficient foreign exchange to finance its
international payment
c. Both b and c
Answer: d
27. The interest amount on deposits from a foreign bank is recorded in the current account
because it is ______.
.
A transfer receipt
a. An income from abroad
b. An invisible service
c. A visible good
Answer: b
28. If the value of visible exports is more than the value of invisible imports, the balance
relates to ____________.
.
Trade deficit
a. Capital account
b. Current account
c. It cannot be determined
Answer: d
29. If the value of visible imports is more than the value of invisible exports, the balance
relates to ____________.
.
Trade deficit
a. Capital account
b. Current account
c. It cannot be determined
Answer: d
30. If the trade deficit is Rs. 1000 crores and the import of goods is Rs. 2000 crores, then the
export of goods will be Rs. _________.
.
2000 crores
a. 1000 crores
b. 1500 crores
c. 500 crores
Answer: b
1) The broadening set of interdependent relationships among people from different parts of
the world is known as ________.
A) globalization
B) offshoring
C) franchising
D) outsourcing
Answer: A Page Ref: 49
2) Although globalization may bring economic growth, critics nevertheless contend that
________.
A) the growth is not fast enough
B) the inequality of gains puts some people in a relatively worse economic situation
C) this growth is mainly for the future, thus ignoring present economic growth needs
D) the cultural foundations of sovereignty are supported by globalization
Answer: B Page Ref: 57
3) Some observers feel that international institutions and the people working in them cannot
adequately handle the complexities of an interconnected world. Based on this, these
observers believe that ________.
A) international business will grow primarily on a regional basis
B) globalization is nevertheless inevitable
C) globalization will slow in the future
D) private companies will replace international organizations in running the world's economy
Answer: C Page Ref: 68
4) Which of the following is a common shortcoming of studies examining culture in different
countries and regions?
A) Cultures are static, tending not to evolve much over periods of time. This tempts researchers to
draw conclusions from old data.
B) It is impossible to compare countries because of differences in the form of data collected.
C) People are almost always reluctant to complain about their own cultures, so they present only
positive opinions to researchers.
D) Responses are reported in averages, which can lead to a belief in unrealistic stereotypes.
Answer: D Page Ref: 95
5) The nation offers a workable reference for studying cultural differences because
________.
A) a nation contains only one distinct culture
B) similarity among people is both a cause and effect of national boundaries
C) the commonality of language within a nation eases the process of conducting surveys
D) different groups within the same country always have more in common with each other than
with groups in other countries
Answer: B Page Ref: 95
6) A problem of using the nation as a reference point for culture is that ________.
A) nations fail to mediate the different interests within their boundaries
B) self-stereotypes tend to fall along national lines
C) such an approach tends to be polycentric
D) variations tend to be great within a country
Answer: D Page Ref: 96
7) ________ consists of specific learned norms based on attitudes, values, and beliefs of a
group of people.
A) Ethnology
B) Civilization
C) Culture
D) Doctrine
Answer: C Page Ref: 93
8) Companies may be able to better motivate workers through delayed compensation, such
as retirement programs, in a society characterized by ________.
A) low uncertainty avoidance
B) high trust
C) high future orientation
D) high masculinity
Answer: C Page Ref: 108
9) The fact that Spanish words and phrases such as macho and enchilada have come into
American English illustrates that ________.
A) cultural diffusion is a two-way process
B) most cultural diffusion moves from developed countries to developing countries
C) existing national borders are shifting
D) material cultures are becoming more universal
Answer: A Page Ref: 119
10) Why should managers in international business understand international trade theories?
A) Countries' trade policies, based on trade theories, influence which products companies might
export to given countries.
B) The understanding helps managers decide whether their companies should follow laissez-faire
management practices.
C) The theories help managers decide whether to locate production in large versus small countries.
D) The comprehension is useful when deciding whether to transfer managers abroad to manage
foreign operations.
Answer: A Page Ref: 262
11) According to the PLC theory, companies produce products where labor rates are high
during the introductory stage of the products' cycles. Which of the following is NOT a
reason for this practice?
A) These workers are efficient in non-standardized production.
B) Producers can pass on higher costs to consumers who are unwilling to await possible price
reductions.
C) The practice reduces transportation costs because early consumers are near the highly paid
workers.
D) Import restrictions prevent production in countries other than the ones making product
innovations. Answer: D Page Ref: 277
12) All the following are reasons for the lower international mobility of people than capital
EXCEPT which one?
A) The differences in economic return between countries are lower for people than for capital.
B) It is more expensive to move people than capital.
C) People may have to learn another language and adapt to a different culture.
D) International capital transfers have less cumbersome legal restrictions than international
movements of people.
Answer: A Page Ref: 283
13) Trade protectionism may affect companies' operations in all of the following ways
EXCEPT which one?
A) Foreign supplies may be more difficult to obtain.
B) Certain products may be sold more easily abroad.
C) The transfer of personnel internationally may be more difficult.
D) Certain products may be more difficult to sell abroad.
Answer: C Page Ref: 300
14) Countries sometimes fear that foreign producers are pricing their exports artificially low.
This fear would most likely be based on the assumption that ________.
A) foreign companies will earn inadequately to repay their foreign debt
B) there will be insufficient earnings to improve product technology
C) foreign producers will charge exorbitant prices after putting competition out of business
D) they will be unable to maintain industries needed in times of war
Answer: C Page Ref: 307
15) Which of the following hypothetical examples would be a restriction on the import of
services?
A) The United States restricts foreign companies from carrying cargo between two U.S. cities.
B) Japan restricts North Koreans from visiting Tokyo Disneyland.
C) China does not allow the importation of rice from Thailand.
D) Canada does not allow Air Canada to buy Brazilian aircraft, which it claims are subsidized.
Answer: A
Page Ref: 317
16) The European Union is an example of ________ integration.
A) regional
B) relative
C) global
D) bilateral
Answer: A Page Ref: 328
17) An advantage for foreign multinationals operating in the European Union is that
________.
A) there are no exchange rate risks
B) market size is larger because of the elimination of internal tariff barriers
C) they can use differential external tariff barriers to determine where to ship products
D) the EU uses English as its official language
Answer: B Page Ref: 340
18) The ________ is a preferential trade agreement that was organized in 1967 and comprises
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore,
Thailand, and Vietnam.
A) APEC
B) OAU
C) ASEAN
D) CAFTA
Answer: C Page Ref: 349
19) Which of the following is NOT among the five forces in the Five-Forces Model of Industry
Structure?
A) governments
B) buyers
C) potential new entrants
D) suppliers of raw materials
Answer: A Page Ref: 442
20) In the international environment, firms use an international strategy, a multidomestic
strategy, a global strategy, or a ________ strategy.
A) regional
B) standardization
C) transnational
D) locational
Answer: C
Page Ref: 466
21) A disadvantage of the ________ strategy is that firms that adopt this strategy tend to
decentralize too much autonomy to national subsidiaries.
A) multidomestic
B) continental
C) international
D) transnational
Answer: A
Page Ref: 469
22) When planning international geographic expansion, managers use scanning to ________.
A) reduce the number of options available to a manageable number for further detailed analysis
B) assure the compatibility between the mode of operation and the country for international
expansion
C) assure that all countries within a region have similar investment climates
D) decide whether to use a concentration or a diversification strategy
Answer: A Page Ref: 486
23) Grids are a useful method of comparing countries for international business expansion
because ________.
A) they generally show how countries will perform in the future
B) they show risk on one axis and opportunity on another
C) they can highlight unacceptable conditions and set minimum scores for proceeding further
D) they highlight the interrelationship of operations in different countries
Answer: C Page Ref: 501
24) A go-no-go decision means ________.
A) an individual project decision is based on whether the project meets threshold criteria
B) projects are ranked in comparison to each other, and projects are approved from the top of the
list down until available resources are exhausted
C) management reviews existing information and decides whether additional individualized
feasibility studies are warranted
D) projects are approved or disapproved based on the potential ease of divestment
Answer: A Page Ref: 507
25) A(n) ________ operates on a contractual basis and provides exclusive representation for
an exporter's goods and services in a foreign market.
A) export management company
B) import broker
C) invoice agent
D) horizontal financial trader
Answer: A Page Ref: 541
26) Companies are likely to export products abroad in all of the following situations EXCEPT
which one?
A) when their average cost per unit of home country production declines substantially by increasing
output
B) when they want to use the riskiest method to engage in international trade
C) when they aim to increase degree of market diversification
D) when they are new to international business
Answer: B Page Ref: 524-525
27) The probability of being an exporter ________.
A) decreases with firm size
B) is almost always related to firm size
C) is rarely related to firm size
D) increases with firm size
Answer: D Page Ref: 526
28) Products that have to be altered significantly for a country's market are more likely to be
________.
A) imported into that market
B) licensed to a foreign firm
C) produced within that country
D) test-marketed in the home country
Answer: C Page Ref: 565
29) What is an international joint venture?
A) an agreement between two or more companies to manage a foreign business for a fee
B) the ownership of a company by two or more companies, of which at least one is a foreign
company where the venture is located
C) an international agreement between two or more firms for the use of a trademark
D) an agreement between two or more organizations to share management expertise
Answer: B Page Ref: 578-579
30) When a large company and a small company enter a collaborative arrangement,
________.
A) the large company is expected to contribute more to the arrangement
B) the large company is likely to be more active in the venture
C) the small company is more likely to view the collaboration's expansion as competition to itself
D) the small company is likely to be disadvantaged if legal action is necessary to solve a dispute
Answer: D Page Ref: 581