Business Environment and International Business MCQs

Question 1

Match the following. List-I (IMF Facilities) List-II (Features) a. Stand by arrangements 1. Overcoming BoP difficulties b. Extended fund facility 2. To provide short-term BoP assistance for deficit of a temporary and cyclical nature c. Poverty, reduction and growth facility 3. It is aimed at preventing the spread of crisis d. Contingent credit lines facility 4. To support programmes to strength substantially and in suitable manner BoP positions

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 2

The World Bank provides long-term loans for various development projects of . . . . . . . . duration.

Accepted Answer

5-20 years

Answer

10-30 years

Answer

3-15 years

Answer

None of these

Question 3

Consider the following statements. Assertion (A): TRIPS requires an understanding about the scope of the new patent regime. Reason (R): Patent protection will be extended to microorganisms, non-biological and microbiological processes and plant varieties.

Accepted Answer

(A) and (R) are not related with each other

Answer

(R) is related with (A)

Answer

(A) is independent of (R)

Answer

While (R) is related with TRIMS, (A) is related with TRIPS

Question 4

Additional risk that have to be taken care of, while trading across nations are

Accepted Answer

Neither A nor B

Answer

exchange risk

Answer

country risk

Answer

Both A and B

Question 5

Consider the following statements. Statement I: During the period of prosperity changes in incomes of the people and prices of goods affect exports and imports of goods and thereby influence the balance of payments. Statement II: Cyclical disequilibrium is caused by the fluctuations in the economic activity or what are known as trade cycles.

Accepted Answer

Both the statements I and II are correct

Answer

Statement I is correct, but II is incorrect

Answer

Statement II is correct, but I is incorrect

Answer

Both the statements I and II are incorrect

Question 6

With reference to Balance of Payments, which of the following constitutes/constitute the Current Account? (i) Balance of trade (ii) Foreign assets (iii) Balance of invisibles (iv) Special Drawing Right

Accepted Answer

(ii) and (iii)

Answer

(i) only

Answer

(i) and (iii)

Answer

(i), (ii) and (iv)

Question 7

For the following statements of Assertion (A) and Reason (R), indicate the correct answer: Assertion (A): Liberalization means corporatization of departmental undertakings and public undertakings. Reason (R): Freedom to public sector undertakings to access capital market.

Accepted Answer

Both (A) and (R) are true and (R) is correct explanation of (A)

Answer

Both (A) and (R) are true but (R) is not a correct explanation of (A)

Answer

(A) is true but (R) is false

Answer

(A) is false but (R) is true

Question 8

World Trade Organization is the only global international organization dealing with the rules of trade between nations. Which of the following statements support this? Statement I: At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments. Statement II: The goal is to ensure that trade flows as smoothly, predictably and freely as possible.

Accepted Answer

Both Statements are true

Answer

Only Statement I is true

Answer

Only Statement II is true

Answer

None of the above statement is true

Question 9

Match the following. List-I (Concepts) List-II (Advantages) a. Foreign direct investment 1. It gives a boost to the industrial activities of home country b. Multinational corporations 2. It enables the owners or creators to protect their work c. Intellectual property rights 3. It helps strengthen the political relationships between various nations

Accepted Answer

a-3, b-1, c-2

Answer

a-2, b-3, c-1

Answer

a-3, b-2, c-1

Answer

a-1, b-2, c-3