Business Environment and International Business MCQs

Question 1

Favourable investment on private investment in called

Accepted Answer

effect on Public credit policy

Answer

effect of fiscal policy

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limits of fiscal policy

Answer

None of the above

Question 2

Globalisation is beneficial for firms because

Accepted Answer

it opens up new market opportunities

Answer

it protects them against foreign competition

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it cushions them from the effects of events in other countries

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it increases the risk and uncertainty of operating in a globalising world economy

Question 3

The main advantage of a system of flexible (floating) exchange rates is that it:

Accepted Answer

provides automatic correction of balance of payments deficits

Answer

provides certainty for international traders.

Answer

reduces international transactions costs

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provides policy discipline for governments

Question 4

Which of the following is not included in features of business environment?

Accepted Answer

Activities of business environment are complex in nature

Answer

Business environment includes both types internal and external

Answer

It is not in control of a businessman

Answer

Business environment is movable/continuous

Question 5

Which of the following is not a characteristic of bartering internationally?

Accepted Answer

Bartering is a type of service export and import

Answer

Bartering can be time consuming

Answer

Bartering can be expensive

Answer

Bartering can be risky

Question 6

Which of the following can not be advantage of licensing?

Accepted Answer

It has possibility of creating future competitor

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It has low financial risks

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It avoid tariffs

Answer

None of the above

Question 7

SAARC helps to strength then cooperation with other

Accepted Answer

developing countries

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developed countries

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underdeveloped countries

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None of these

Question 8

Which among the following are multinational corporations? (1) A multinational, decentralized corporation with strong home country presence. (2) A global, centralized corporation that acquires cost advantage through centralized production when cheaper resources are available. (3) An international company that builds on the parent corporations technology and research and development. (4) A transnational enterprise that combines the (1), (2) and (3).

Accepted Answer

1, 2, 3 and 4

Answer

1 and 3

Answer

2 and 3

Answer

1, 2 and 3

Question 9

Which of the following statements is/are incorrect?

Accepted Answer

Regional common market provides a largest market to all

Answer

Regional economic integration facilitate the realisation of the optimum allocation of resources

Answer

Regional integration facilitates desirable change in composition of foreign trade

Answer

All of the above