Business Environment and International Business MCQs

Question 1

The recession phase of the trade cycle will normally be accompanied by all of the following except one point from the following options

Accepted Answer

An increase in the rate of inflation

Answer

A fall in the level of national output

Answer

An improvement in trade balance

Answer

A rise in the level of unemployment

Question 2

Result of technological environment in business environment is

Accepted Answer

Both A and B

Answer

e-commerce

Answer

e-banking

Answer

None of these

Question 3

Consider the following statements. Statement (I): Developing countries can borrow more than their quota under Extended Fund Facility (EFF) of IMF. Statement (II): The Extended Fund Facility (EFF)was created in 1984 to help the developing countries over longer period up to 3 years.

Accepted Answer

Statement (I) is correct, but (II) is not correct

Answer

Statement (II) is correct, but (I) is not correct

Answer

Both the statements (I) and (II) are correct

Answer

Both the statements (I) and (II) are not correct

Question 4

EPCG denotes:

Accepted Answer

Export Promotion and Credit Guarantee

Answer

Export Potential and Credit Guarantee

Answer

Earning Promotion and Credit Guarantee

Answer

Export Potential and Credit Goods

Question 5

United Nations Conference on Trade and Development (UNCTAD)was set up in:

Accepted Answer

1964

Answer

1944

Answer

1954

Answer

1960

Question 6

Which of the following would include Foreign Direct Investment in India? (i) Subsidiaries of companies in India (ii) Majority foreign equity holding m Indian companies (iii) Companies exclusively financed by foreign companies (iv) Portfolio Investment

Accepted Answer

(i) and (iii) only

Answer

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

Answer

(ii) and (iv) only

Answer

(i), (ii) and (iii) only

Question 7

Which of the following constitute Capital Account? (i) Foreign Loans (ii) Foreign Direct Investment (iii) Private Remittances (iv) Portfolio Investment

Accepted Answer

(i), (ii) and (iv)

Answer

(i), (ii) and (iii)

Answer

(ii), (iii) and (iv)

Answer

(i), (iii) and (iv)

Question 8

Match List-I with List-II relating to benefits and cost of economic integration and identify the option representing correct matching. List-I List-II a. Trade creation 1. Movement of production and resources in opposite directions. b. Trade diversion 2. Become active when a member country does not augment export but simply shifts its imports from low cost source to high cost source. c. Trade deflection 3. Shifting the locus of production from high cost to low cost centre within the union. d. Polarisation forces 4. Goods produced in a third country entering a free trade area through a member country having lower tariff.

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 9

Which one of the following is not a favourable factor for globalization?

Accepted Answer

Obsolescence

Answer

Wide base

Answer

Niche markets

Answer

Competition