Business Environment and International Business MCQs

Question 1

The theory suggesting that the patterns of international trade are determined by factor endowment rather than productivity was propounded by which one of the following?

Accepted Answer

Heckscher and Bertil Ohlin

Answer

Adam Smith

Answer

David Ricardo

Answer

Michael Porter

Question 2

Which of the following have been recognised under the intellectual property eligible for creation of rights as per WTO mandate? 1. Computer software, music disc, performing art 2. Geographical indicator 3. Global positioning system 4. Journals, books, seeds, design, brand Select the correct answer:

Accepted Answer

1, 2 and 4

Answer

1, 2 and 3

Answer

1, 3 and 4

Answer

2, 3 and 4

Question 3

The current account of the balance of payments includes all of the following items except which one?

Accepted Answer

The inflow of capital investment by multinational companies

Answer

Exports of manufactured goods

Answer

Interest payments on overseas debts

Answer

Expenditure in a country by overseas visitors

Question 4

Which one among the following has the largest share of exports from India?

Accepted Answer

Gems and jewellery

Answer

Agriculture and allied commodity

Answer

Handicrafts

Answer

Electronic goods

Question 5

Which of the following is not the salient feature of the industrial policy developments since 1991?

Accepted Answer

Public sector has been withdrawing partially or fully from several of the enterprises by divestment

Answer

The scope of the private sector has been enormously expanded

Answer

The Indian industry is increasingly exposed to foreign competition

Answer

Monopoly or dominant position for public sector in most of the industries and control of the commanding heights of the economy by the public sector

Question 6

Match List-I with List-II and select the correct answer: List-I List-II a. Political and legal environment 1. Important for industries directly depending on imports or exports b. Demographic environment 2. Close relationship with the economic system and economic policy c. Economic environment 3. Related to natural resources d. Geographical and ecological environment 4. Occupational and spatial mobilities of population having implications for business

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 7

Consider the following statements in the context of Trade Related Investment Measures (TRIMs). 1. All restrictions on foreign capital companies are to be scrapped 2. No restriction will be imposed on any area of investment 3. Imports of raw material are to be allowed freely 4. Emport of part of the output will be mandatory Which of the above statements are correct?

Accepted Answer

1, 2 and 3

Answer

1, 3 and 4

Answer

1, 2 and 4

Answer

2, 3 and 4

Question 8

Which one of the following is not the basic function of WTO?

Accepted Answer

To facilitate the expansion and balanced growth of international trade

Answer

To facilitate the implementation, administration and operation of trade agreements

Answer

To settle differences and disputes among its member countries

Answer

The carry out periodic reviews of the trade policies of its member countries

Question 9

Out of the following which one is not related with WTO?

Accepted Answer

TRAI

Answer

TRIPS

Answer

Ministerial conference

Answer

TRIMS