Business Environment and International Business MCQs

Question 1

Which of the following institutions is not part of the World Bank community?

Accepted Answer

WTO

Answer

IBRD

Answer

IDA

Answer

IFC

Question 2

Consider the following statements. Assertion (A): There was demand for World Bank, IMF and ITO type institutions after World War II so as to avoid war type situation in future. Reason (R): The great depression of early 1930s produced the apprehensions that imports would throw more people out of work. This led governments to raise their trade barriers, retaliations and protectionism.

Accepted Answer

Both (A) and (R) are correct and (R) supports (A)

Answer

Both (A) and (R) are correct, but (R) does not support (A)

Answer

(A) is correct, but (R) is incorrect

Answer

(R) is correct, but (A) is incorrect

Question 3

In case, we see that domestic currency is depreciating, this should be linked with:

Accepted Answer

All of the above

Answer

High inflation rate

Answer

Increase in exports

Answer

Increase in foreign debt

Question 4

Which of the following statement is not true about business environment?

Accepted Answer

A businessman had complete control over business environment

Answer

It affects working capacity of business

Answer

Business environment always changes

Answer

It affects operation of business

Question 5

Consider the following statements. Assertion (A): The import volume tends to be very high when there is simultaneous high eco-nomic growth rate and a sharp fall in the relative price of imports and vice versa. Reason (R): High rate of growth, ceteris paribus, is associated with rise in imports and increase in the imports, ceteris paribus, is associated with a fall in the relative price of imports.

Accepted Answer

Both (A) and (R) are correct and (R) is the right explanation of (A)

Answer

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

Answer

(A) is correct but (R) is not correct

Answer

(R) is correct but (A) is not correct

Question 6

Which of the following is a feature of the micro environment of an organisation?

Accepted Answer

Distribution channel factors

Answer

Social factors

Answer

Economic factors

Answer

All of the above

Question 7

Which of the following statement is true?

Accepted Answer

Economic system affects economic environment of business

Answer

It is possible to control business environment

Answer

Both A and B

Answer

None of the above

Question 8

Which one of the following matches corresponds to the Member and Observer countries of the SAARC? (i) India, Pakistan, Bangladesh, Bhutan, Nepal, Sri Lanka, Afghanistan, Maldives (ii) China, USA, Myanmar, Iran, Japan, South Korea, Australia, Mauritius and European Union (iii) Pakistan, Nepal, India, Bangladesh, Iran (iv) UK, USA, North Korea, South Africa

Accepted Answer

(i) and (ii)

Answer

(iii) and (iv)

Answer

(ii) and (iv)

Answer

(ii) and (iii)

Question 9

Which of the following denote the structural changes in Indian economy?

Accepted Answer

All of the above

Answer

Primary sector contribution has gone down

Answer

Service sector contribution has gone up

Answer

Secondary sector has not changed much