Business Environment and International Business MCQs

Question 1

Globalization is the term used to describe process of removal of restriction on which of the following?

Accepted Answer

Both A and B

Answer

Foreign trade

Answer

Investment

Answer

None of the above

Question 2

Consider the following statements. Assertion (A): Industrialization of an economy is considered synonymous with growth. Reason (R): The transfer of resources from agrarian to industrial may be capital or labour or both.

Accepted Answer

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

Answer

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

Answer

(A) is true, but (R) is false

Answer

(A) is false, but (R) is true

Question 3

Which of the following statements is/are incorrect?

Accepted Answer

ASEAN was established in Bangkok

Answer

ASEAN had originally 6 members countries

Answer

Combodia joined ASEAN on 23rd July, 1997

Answer

None of the above

Question 4

Which one of the following statements is NOT correct?

Accepted Answer

Trade between two countries can take place when their supply and demand conditions are identical

Answer

Trade between two countries can take place with different supply conditions and similar demand conditions

Answer

Trade between two countries can take place with identical supply conditions and dissimilar demand conditions

Answer

Trade between two countries can take place with different supply and demand conditions

Question 5

Which of the following is not a part of economic environment?

Accepted Answer

Financial market

Answer

Economic policy

Answer

Economic inequality

Answer

All of these

Question 6

All of the following are benefits which all countries gain when adopting a single currency such as Euro, except:

Accepted Answer

lower Interest rates

Answer

reduced transaction cost

Answer

increased price transparency

Answer

reduced exchange rate uncertainty

Question 7

Brunei Darussalam joined ASEAN on

Accepted Answer

30th April, 1999

Answer

23rd July, 1997

Answer

8th January, 1984

Answer

None of these

Question 8

The trade theory of absolute advantage was developed by

Accepted Answer

Adam Smith

Answer

Haberler

Answer

David Ricardo

Answer

Alfred Marshall

Question 9

Globalisation can create problems for business because

Accepted Answer

it increases vulnerability to political risk and uncertainty when operating abroad

Answer

it means that they can increase prices

Answer

it can result in more competition

Answer

All of the above