Business Environment and International Business MCQs

Question 1

Which of the following pairs is not correct?

Accepted Answer

Permit issued by custom authorities to export goods is dock warrant

Answer

Items in the negative list of imports and exports are prohibited goods

Answer

Items which require license for export and import are restricted goods

Answer

None of the above

Question 2

The existence of international trade is best explained by the fact that countries:

Accepted Answer

have different endowments of factors of production

Answer

use different currencies

Answer

have different economic systems

Answer

have specialized in different goods and services

Question 3

Which is one of an advantage to adopt shared value approach while practicing CSR for an organisation?

Accepted Answer

Creates and interdependence of long-term business success on balanced social system

Answer

Integrates the needs of both the business and the charitable cause

Answer

Contributes to the firm by solving only environmental issues

Answer

Contributes fastest way to form an alliance and increase engagement among the stakeholders

Question 4

Match the following. List-I (Concepts) List-II (Features) a. Absolute advantage 1. State, in which exports equal imports b. Balance of trade 2. Ability of a country to produce a good more efficiently c. Static equilibrium 3. It is a long-term phenomenon d. Secular disequilibrium 4. Difference between merchandise exports and imports

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 5

A tariff rate quota

Accepted Answer

is a two-tier tariff system intended to restrict imports

Answer

is a limit on the number of tariff that a country can place on imports

Answer

uses a single tariff along with import quotas to restrict import

Answer

is designed to avoid the price increases caused by simple tariffs

Question 6

Which of the following can be taken as the most valid description of business purpose?

Accepted Answer

Create a customer

Answer

Maximize profits

Answer

Serve the society

Answer

Increase the wealth in the firm

Question 7

The BoP is a fund statement that reflects changes in assets, liabilities and net worth during a . . . . . . . . period.

Accepted Answer

specified

Answer

given

Answer

financial

Answer

None of these

Question 8

A country leaving the membership of IMF can continue its membership with World Bank, if . . . . . . . . members of bank give their votes in its favour.

Accepted Answer

75%

Answer

65%

Answer

67%

Answer

79%

Question 9

FEMA is implemented for

Accepted Answer

Both A and B

Answer

to facilitate external trade and payment

Answer

to emphasises on transparency

Answer

None of the above