Business Environment and International Business MCQs

Question 1

Out of the following which is not a major component of Gross Domestic Product (GDP)?

Accepted Answer

Net Personal Income

Answer

Personal Consumption Expenditure

Answer

Gross Private Domestic Investment

Answer

Net Exports

Question 2

Which among the following is closely associated with intellectual property rights?

Accepted Answer

TRIPs

Answer

GATS

Answer

TRIMS

Answer

MFN

Question 3

'Most Favoured National Clause' under WTO requires

Accepted Answer

Preferential treatment to all member countries of GATT

Answer

Preferential treatment to particular identified countries

Answer

Preferential treatment only to developing countries

Answer

Preferential treatment to countries with a balance of payments deficit

Question 4

Which one is not the form of FDI?

Accepted Answer

Making investment in the mutual funds

Answer

Purchase of existing assets in foreign currency

Answer

New Investment in property plant equipment

Answer

Transfer of many types of assets

Question 5

Match the items of List-I with those of List-II with regard to international monetary fund's various schemes: List-I List-II a. Extended Fund Facility (EFF) 1. Repayment period 4 to 10 years b. Stan Arrangements 2. Repayment period 3 to 5 years c. Supplemented Reserve Fund (SRF) 3. Repayment period 2 to 5 years d. Poverty Reduction and Growth Facility (PRGF) 4. Repayment period 10 years

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 6

Which of the following bodies are of IMF?

Accepted Answer

Board of Governors

Answer

Executive Board

Answer

Managing Director

Answer

All of these

Question 7

Which of the following staternent/s is/are true in context of Effective Revenue Deficit (ERD)?

Accepted Answer

All of the above are true

Answer

ERD is the difference between revenue deficit and grants for creation of capital assets

Answer

The concept of ERD was suggested by the Rengarajan Committee on Public Expenditure

Answer

ERD aims to deduct the money used out of borrowing to finance capital expenditure

Question 8

Which one of the following is not the benefit of MNCs to the host nation?

Accepted Answer

Increase in social activity

Answer

Increase in economic activity

Answer

Utilization of natural resources

Answer

R & D efforts enhanced

Question 9

NAFTA was signed by

Accepted Answer

All of the above

Answer

George H. W. Bush

Answer

Mexican President Salinas

Answer

Canadian Prime Minister Brian Mulroney