Business Environment and International Business MCQs

Question 1

Companies benefit from direct investment by

Accepted Answer

Both A and B

Answer

access to foreign markets

Answer

access to foreign resources

Answer

Neither A nor B

Question 2

Countries who are eligible for both IDA assistance due to low per capita income and credit worthy for some IBRD borrowing are called

Accepted Answer

blend borrowers

Answer

conditional borrower

Answer

participating borrowers

Answer

None of these

Question 3

Which of the following statement(s) is/are incorrect?

Accepted Answer

Both A and B

Answer

Entrepot trade means sale of goods to a foreign country

Answer

Import trade means sale of goods to a foreign country

Answer

None of the above

Question 4

Which of the following is element of internal environment?

Accepted Answer

Policies and objectives

Answer

Financial institution

Answer

Customers

Answer

All of these

Question 5

An import tariff in a labour surplus economy distributes income in favour of

Accepted Answer

owners of capitals and skills

Answer

land lords

Answer

wages earners

Answer

governments

Question 6

What type of trade impact is encouraged when nations of a regional trading bloc try to harmonize economic policies and standards within member nations and reducing prices as trade restrictions are removed?

Accepted Answer

Trade Creation

Answer

Trade Diversion

Answer

Trade Randomness

Answer

Trade Flow

Question 7

Business environment is formed by those institutions and power on which business have . . . . . . . . control.

Accepted Answer

very less

Answer

complete

Answer

no

Answer

None of these

Question 8

If a tariff and import quota lead to equivalent increases in the domestic price of steel, then

Accepted Answer

they have different impacts on how income is distributed

Answer

the quota results in efficiency reductions, but the tariff does not

Answer

the tariff results in efficiency reductions, but the quota does not

Answer

they have different impacts on how much is produced and consumed

Question 9

Consider the following statements. Statement I: TRIMs agreement refers to conditions or restrictions imposed on foreign investors. Statement II: TRIMs agreement specifically forbids imposing restrictions on operations of an enterprise which result in protecting domestic products and making imports disadvantageous.

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