Business Environment and International Business MCQs

Question 1

Which of the following is not included in economic policy of government?

Accepted Answer

Industrial policy

Answer

Import-export policy

Answer

Licensing policy

Answer

Monetary policy

Question 2

Consider the following statements. Statement-I: Served From India Scheme (SFIS) has been replaced with Service Exports from India Scheme (SEIS). Statement-II: The rate of reward under SEIS would be based on net foreign exchange earned.

Accepted Answer

Both the statements-I and II are correct

Answer

Statement-I is correct, but statement-II is incorrect

Answer

Statement-II is correct, but statement-I is incorrect

Answer

Both the statements-I and II are incorrect

Question 3

The main function of money market is to:

Accepted Answer

enable businesses and governments to obtain liquidity

Answer

encourage saving

Answer

permit the efficient buying and selling of goods

Answer

deal in credit instruments of longer duration

Question 4

Which one of the following is not a benefit of privatization?

Accepted Answer

Concentration of economic power

Answer

Encourage entrepreneurship

Answer

Better management of enterprise

Answer

Freedom from bureaucracy

Question 5

The European Union has all the following features except which one?

Accepted Answer

Common rates of indirect taxation

Answer

The absence of barriers to trade between all member states

Answer

The absence of barriers to movement of capital among member states

Answer

A common external tariff

Question 6

Match items of List-I with List-II relating to macro environment of business and indicate the option of correct matching: List-I List-II a. Economic environment 1. Ethical issues b. Political and government 2. Trade and transport policies environment c. Socio-cultural environment 3. Economic stratification of population d. Demographic environment 4. Judiciary powers

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 7

The spot rate of exchange is quoted for the immediate delivery of

Accepted Answer

foreign exchange

Answer

foreign treasury

Answer

foreign rate

Answer

foreign transactions

Question 8

From the following identify the one which is not a commercial counter trade?

Accepted Answer

Buy-back agreement

Answer

Classical barter

Answer

Counter purchase

Answer

Pre-compensation

Question 9

A common market is one where:

Accepted Answer

all the trading nations agree commonly to rationalize tariff and non-tariff barriers mutually to promote intra-region trade

Answer

all the trading nations agree commonly to levy a common and uniform tariff rate for all goods

Answer

there is a customs union along with free intra-union movement of factors of production

Answer

there is an economic union along with free intraunion movement of residents