Business Environment and International Business MCQs

Question 1

The main objective of the WTO is:

Accepted Answer

to minimise barriers to international trade

Answer

to raise living standards in developing countries

Answer

to harmonize tariffs

Answer

to eliminate customs unions

Question 2

India suffered from deficit balance both in trade balance and net invisibles, hence, took up a number of steps to manage this problem. Which one is not appropriate for this?

Accepted Answer

Export control

Answer

Current Account Convertibility

Answer

Liberalized Export Policy

Answer

Unified Exchange Rate

Question 3

The current account is made up of visibles and . . . . . . . .

Accepted Answer

invisible

Answer

constraint

Answer

expert

Answer

None of these

Question 4

What does CRS concern with?

Accepted Answer

The ways in which an organisation exceeds its minimum required obligations to stakeholders

Answer

How an organisation meet the expectations of its stakeholders

Answer

External stakeholders relationship

Answer

The behaviour of individual managers

Question 5

India has the power to appoint a permanent executive director in the . . . . . . . . on the Board of Directors.

Accepted Answer

IMF

Answer

IBRD

Answer

ADB

Answer

None of these

Question 6

Call money rate is applicable for a very short period to

Accepted Answer

inter bank advances

Answer

bank to Reserve Bank advances

Answer

reserve Bank to Bank advances

Answer

commercial Banks to Industrial Banks advances

Question 7

In international trade which of the following is a non-tariff trade barrier?

Accepted Answer

anti-dumping laws

Answer

quotas

Answer

import bans

Answer

export controls

Question 8

Consider the following statements. Assertion (A): An export processing zone is different from free trade zone as it promotes units primarily devoted to exports. Reason (R): Goods imported to a free trade zone maybe re-exported without any processing, in the same form. But goods exported by units in an EPZ are expected to have undergone some value addition by manufacturing/processing.

Accepted Answer

(A) is correct and (R) is correct explanation of (A)

Answer

(A) is correct but (R) is not the correct explanation of (A)

Answer

(A) is correct but (R) is incorrect

Answer

(A) is incorrect but (R) is correct

Question 9

This theory maintains that exchange rates will tend towards the point at which their international purchasing power is equal. What is this called?

Accepted Answer

Purchasing Power Parity

Answer

Gross Value Added

Answer

Gross Domestic Product at nominal price

Answer

Net National Income