Business Environment and International Business MCQs

Question 1

Key currencies acceptable internationally are

Accepted Answer

US dollar

Answer

UK pound sterling

Answer

Both A and B

Answer

Neither A nor B

Question 2

Match the following. List-I List-II a. Social factors 1. Increment and reduction in price of fuel b. Political factors 2. Primary function of business c. Economic factors 3. Customs, traditions and assumptions d. Analysis of needs and interest of customers 4. Industrial policy of government

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 3

According to which of the following management thinkers, business environment is defined as total of all things external to firms and industries which effect their organization and operations?

Accepted Answer

Arthur M. Welmer

Answer

John Wick

Answer

Bayord O. Wheeler

Answer

Mathew Smith

Question 4

Suppose a Mexican firm imports bananas at $ 1000 and sells them for $ 2000. The effect on GDP would be that:

Accepted Answer

the GDP will increase by $ 1000

Answer

the GDP will decrease by $ 3000

Answer

the GDP will increase by $ 3000

Answer

the GDP will increase by $ 2000

Question 5

What is not the advantage of SEZ?

Accepted Answer

diversion of large tracts of farm land

Answer

improvement of infrastructure in the hinterland

Answer

attracting foreign investment

Answer

all of the above

Question 6

Which among the following is not a correct sequential combination?

Accepted Answer

Macro Environment → External Environment → Customers → Prospects of Business Development

Answer

Macro Environment → Economic Environment → National Income → Pattern of Income Distribution

Answer

Business Environment → Internal Environment → Business Ethics → Payment of Fair Wages

Answer

Business Environment → External Environment → Micro Environment → Suppliers

Question 7

Which of the following are not effects of dumping on an importing country? (i) Domestic industry might be affected adversely by a decline in sales and profits. (ii) If dumping is continued for a longer period, survival of the domestic industry may be threatened. (iii) Dumping may create BOP problems for the country. (iv) It finds market for its surplus production.

Accepted Answer

Only (iv)

Answer

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

Answer

(ii), (iii) and (iv)

Answer

(iii) and (iv)

Question 8

Arrange the following organisations in the increasing order of their establishment years. 1. SAARC 2. NAFTA 3. ASEAN

Accepted Answer

3, 1, 2

Answer

3, 2, 1

Answer

2, 3, 1

Answer

1, 2, 3

Question 9

In the Five Forces framework, threat of entrants means

Accepted Answer

The possibility of a new competitor entering the market

Answer

The possibility of an existing competitor capturing the entire market

Answer

The possibility of an existing competitor with drawing from the market

Answer

The possibility of a potential competitor entering a different market