Business Environment and International Business MCQs

Question 1

Which of the following kinds of situation is signified when there is debit in balance of payments accounts? (1) Low imports and high exports (2) High imports and low exports

Accepted Answer

Only 1 is correct

Answer

Both 1 and 2 are correct

Answer

Both 1 and 2 are incorrect

Answer

Only 2 is correct

Question 2

Match the following. List-I (Organisations) List-II (Objectives) a. SAARC 1. To promote cooperative peace and shared prosperity b. NAFTA 2. To provide protection and enforcement of intellectual property rights c. ASEAN 3. To promote the welfare of the people of South Asia and to improve their quality of life

Accepted Answer

a-3, b-2, c-1

Answer

a-2, b-1, c-3

Answer

a-2, b-3, c-1

Answer

a-1, b-2, c-3

Question 3

Consider the following statements in context of WTO. 1. WTO is a permanent body with its over dispute settlement machanism. 2. Scope of WTO has been broadened by inclusion of services, intellectual property rights and investment measures. 3. WTO promote international trade. 4. WTO banned the foreign currency. 5. WTO managed the hybrid system of clean floating, currency block etc. Which of the statements given above are correct?

Accepted Answer

Both 2 and 5

Answer

Both 1 and 2

Answer

1, 2 and 3

Answer

Both 3 and 4

Question 4

Heckscher-Ohlin theory explains international trade in terms of

Accepted Answer

differences in factor endowments

Answer

demand differences

Answer

differences in labour productivity

Answer

None of the above

Question 5

Which of the following is also known as World Bank?

Accepted Answer

IBRD

Answer

IMF

Answer

ADB

Answer

IFC

Question 6

A tariff will not have any effect on revenue if the duty imposed is

Accepted Answer

Prohibitive

Answer

50%

Answer

100%

Answer

Non-prohibitive

Question 7

Which of the following is not the main objective of Fiscal Policy of India?

Accepted Answer

To increase liquidity in economy

Answer

To promote price stability

Answer

To minimize the in-equality in income and wealth

Answer

To promote employment opportunities

Question 8

A country is said to have a comparative advantage in the production of a good when:

Accepted Answer

it can produce it at a lower opportunity cost than its trading partners

Answer

it can produce more of it than any other country

Answer

it has captured a larger share of the world market than any other country

Answer

its costs of production tor the good are lower than in other countries

Question 9

India is regarded as a country with 'Demographic Dividend'. This is due to:

Accepted Answer

Its high population in the age group below 15-64 years

Answer

Its high population in the age group below 15 years

Answer

Its high population in the age group above 65 years

Answer

Its high total population