Business Environment and International Business MCQs

Question 1

Match the items of List-I with the items of List-II and select the correct answer: List I List II a. Political and Legal Environment 1. Important for industries directly depending on imports or exports b. Demographic Environment 2. Close relationship with the economic system and economic policy c. Economic Environment 3. Related to natural resources d. Geographical and Ecological Environment 4. Occupational and spatial mobilities of population having implications for business

Accepted Answer

a-2, b-4, c-1, d-3

Answer

a-2, b-4, c-3, d-1

Answer

a-1, b-2, c-3, d-4

Answer

a-1, b-2, c-4, d-3

Question 2

Consider the following statements. Assertion (A): The industrial growth in India has been hampered by the burden of many controls and regulations. Reason (R): The New Industrial Policy seeks to liberate the industry from the shackles of Licensing System

Accepted Answer

Assertion (A) is correct, but Reason (R) is not correct

Answer

Assertion (A) is correct and Reason (R) is right explanation of (A)

Answer

Both Assertion (A) and Reason (R) are correct

Answer

Both Assertion (A) and Reason (R) are incorrect

Question 3

Which one is not an element of legal environment?

Accepted Answer

Act of Parliamentarians in Lok Sabha

Answer

Indian Contract Act, 1872

Answer

Indian Partnership Act, 1932

Answer

Negotiable Instruments Act, 1881

Question 4

Which of the following statements is not correct relating to comparison of FDI with trade?

Accepted Answer

Only one market can better be served with differentiated products

Answer

FDI overcomes tariff and transport cost involved in trade

Answer

FDI reduces financial risk through greater diversification

Answer

FDI creates harmonious political relations

Question 5

The time limit for filing a complaints before the district forum under the, Consumer Protection Act, 1986 is

Accepted Answer

2 years

Answer

1 year

Answer

3 years

Answer

There is no such time limit

Question 6

Analysis of policies is done on the basis of

Accepted Answer

Both A and B

Answer

forecasting

Answer

change according to time

Answer

None of these

Question 7

Which one of the following is not the guiding principle of the World Bank regarding its lending operations?

Accepted Answer

The bank does expect the borrowing country to spend the loan in a particular country

Answer

Proper assessment of the repayment prospects of loans

Answer

Lending should be only for specific projects which are economically and technically sound and of a high priority nature

Answer

The lending should be to enable a country to meet foreign exchange content of the project cost

Question 8

Some people say that a regional trade bloc encourages member nations to buy within the regional trading bloc when cheaper sources are available outside. Which of the following type of trade impact is created under such situation?

Accepted Answer

Trade Diversion

Answer

Trade Creation

Answer

Trade Randomness

Answer

Trade Growth

Question 9

Supply of money remaining the same when there is an increase in demand for money, there will be:

Accepted Answer

An increase in the rate of interest

Answer

A fall in the level of price

Answer

A decrease in the rate of interest

Answer

An increase in the level of income and employment