Business Environment and International Business MCQs

Question 1

Which of the following statements is incorrect?

Accepted Answer

India joined MIGA in 1994

Answer

IFC is headquartered in Washington DC

Answer

Multinational corporations are also known as global companies

Answer

None of the above

Question 2

In an economist's view, which of the following perspectives of globalisation is most suitable?

Accepted Answer

The growth of international trade and increase in international trade flows

Answer

The rise of global media and global culture

Answer

The emergence of global institutions and global conflicts

Answer

The development of communication technologies

Question 3

Which of the following statements is/are incorrect?

Accepted Answer

IMF provide loans to governments or to any of their political subdivisions

Answer

IMF make the balance of payments deficits

Answer

Both A and B

Answer

All of the above

Question 4

Currently, in which areas is FDI in India prohibited? 1. Atomic energy 2. Lottery business 3. Gambling and betting 4. Chit fund trade 5. Nidhi company 6. Home and real estate business 7. Construction of cigars and business 8. Metro rail

Accepted Answer

All of the above

Answer

1, 2, 3, 6, 7 and 8

Answer

1, 2, 3, 4, 7 and 8

Answer

1, 2, 3, 4, 5 and 8

Question 5

Under the Foreign Trade Policy 2015-2020, which of the following additional ports are allowed for export and import? (1) Calicut Airport, Kerala (2) Rajkot Airport, Gujarat (3) Arakonam lCD, Tamil Nadu (4) Ludhiana Airport, Punjab

Accepted Answer

1 and 3

Answer

1 and 4

Answer

2 and 4

Answer

3 and 4

Question 6

Assertion (A): The gains from trade are determined by the terms of trade. Reason (R): The gains from trade depend on the differences in comparative cost rations.

Accepted Answer

Both A and R are individually true and R is the correct explanation of A

Answer

Both A and R individually true but R is NOT the correct explanation of A

Answer

A is true but R is false

Answer

A is false but R is true

Question 7

UNCTAD stands for:

Accepted Answer

United Nations Conference on Trade and Development

Answer

United Nations Committee on Tariff and Development

Answer

United Nations Conference on Trade and Deficit

Answer

Union of Nations Cause for Trade and Development

Question 8

It is said that freedom of private enterprise is the greatest in the free market economy. Which of the following assumptions is true in this context? (i) Land, labour, and capital are integrated with the help from private enterprise. (ii) Income is received in monetary form by the sale of services of the factors of production and from the profits of the private enterprise. (iii) Members of the free-market economy have freedom of choice in so far as consumption, occupation, savings, and investments are concerned. (iv) The free-market economy is not planned, controlled or regulated by the government. (v) The free-market economy is prone to corrupt practices.

Accepted Answer

(i), (ii), (iii) and (iv)

Answer

(i), (ii) and (iii)

Answer

(i), (ii), (iii), (iv) and (v)

Answer

(ii), (iii), (iv) and (v)

Question 9

Match the items of List-I with List-II with regard to balance of payments equilibrium: List-I List-II a. Exchange control 1. Exporters surrender foreign exchange to the central bank b. Trade Policy Measure 2. Bank rate raised by the central bank c. Expenditure reducing policy 3. Reduction in foreign exchange rate d. Expenditure switching policy 4. Enhancing exports by granting subsidies

Accepted Answer

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

Answer

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

Answer

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

Answer

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