Business Environment and International Business MCQs

Question 1

International trade brings developing countries in contact with

Accepted Answer

low developed countries

Answer

developed nations

Answer

underdeveloped countries

Answer

All of the above

Question 2

Important factors considered in international product life cycle theory are

Accepted Answer

Both A and B

Answer

technological innovation

Answer

market structure

Answer

Neither A nor B

Question 3

Factor Endowment Theory of International Trade was propounded by

Accepted Answer

Bertil - Ohlin

Answer

David Ricardo

Answer

J. S. Mill

Answer

C. P. Kindleberger

Question 4

Counter-trade means:

Accepted Answer

A sort of bilateral trade where one set of goods is exchanged for another set of goods and a seller provides a buyer with deliveries

Answer

A company takes full responsibility for making its goods available in the target market by selling directly to the end-users

Answer

The companies in two separate sovereigns agree to exchange one set of goods for another set of goods

Answer

A set of multilateral trade where one of goods and services may be exchanged for another set of goods and services among the trading partners

Question 5

Compared to a fixed exchange rate system, an economy will benefit from a flexible exchange rate system because:

Accepted Answer

governments will not have to deflate the economy when balance of payments deficits occur

Answer

it enables businesses to vary their export prices

Answer

it reduces the cost of acquiring foreign exchange

Answer

it ensures that businesses never become uncompetitive in international markets

Question 6

Which of the following can not be included in socio-cultural factors of a business?

Accepted Answer

Poverty

Answer

Changing preferences

Answer

Demographics

Answer

Techniques

Question 7

Physical delivery of foreign exchange has to take place in case of

Accepted Answer

spot market

Answer

forward market

Answer

future market

Answer

All of these

Question 8

Foreign direct investment involves

Accepted Answer

tangible goods

Answer

intangible goods

Answer

human resource

Answer

intellectual property

Question 9

The macro environment consists of

Accepted Answer

Public

Answer

Economic, political and legal

Answer

Consumer and competitors

Answer

Intermediaries