Business Environment and International Business MCQs
Practice free Business Environment and International Business multiple-choice questions with instant answer feedback and step-by-step solutions. Click an option to check yourself, reveal the full explanation, and work through all 873 questions — no login required.
Question 676hard
Match the following.
| List-I | List-II |
| a. Merchandise exports | 1. Purchase of foreign goods |
| b. Merchandise imports | 2. Sales of goods abroad |
| c. Investment income | 3. Largely caused by excess of imports over exports in merchandise |
| d. Balance of payment deficits | 4. Dividends, interest etc received from abroad |
Question 677hard
Match the following.
| List-I (Concepts) | List-II (Features) |
| a. Absolute advantage | 1. State, in which exports equal imports |
| b. Balance of trade | 2. Ability of a country to produce a good more efficiently |
| c. Static equilibrium | 3. It is a long-term phenomenon |
| d. Secular disequilibrium | 4. Difference between merchandise exports and imports |
Question 678hard
The devaluation of currency of a country is done when
1. it has adverse balance of payment.
2. it has favourable balance of payment.
Select the correct answer using the options given below
1. it has adverse balance of payment.
2. it has favourable balance of payment.
Select the correct answer using the options given below
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Question 679hard
From the following, identify the trading blocks in the world and choose the correct answer:
(1) European Union
(2) North American Free Trade Agreements
(3) South Asian Association of Regional Cooperation
(4) Central American Common Market
(5) Central African Customs Union
(1) European Union
(2) North American Free Trade Agreements
(3) South Asian Association of Regional Cooperation
(4) Central American Common Market
(5) Central African Customs Union
Question 680hard
Match the items of List I with the items of List-II and choose the correct answer:
| List-I | List-II |
| a. Direct investment overseas aimed at manufacturing products not manufactured by the firm in the home country | 1. Inward FDI |
| b. Direct investment in a foreign country aimed to sell the output of the firm's domestic production | 2. Backward Vertica FDI |
| c. Direct investment overseas aimed at providing inputs for the firms production process in the home country | 3. Conglomerate FDI |
| d. Foreign firms investing overseas and taking control over foreign assets | 4. Forward Vertical FDI |
Question 681hard
Match the following.
| List-I (Theories of International Trade) | List-II (Features) |
| a. Theory of mercantilism | 1. It is developed by John Stuart Mill. |
| b. Theory of absolute advantage | 2. What each country will export and what it will import is determined by comparative differences in labour costs. |
| c. Theory of comparative cost | 3. It refers to the ability of a country to produce a good more. |
| d. Theory of reciprocal demand | 4. It attributes and measures the wealth of a nation by the size of its accumulated treasures. |
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Question 682medium
Arrange the following steps of 'international product life cycle theory' in a correct order.
1. Maturity stage
2. Introductory stage
3. Decline stage
4. Growth stage
1. Maturity stage
2. Introductory stage
3. Decline stage
4. Growth stage
Question 683hard
Which of the following expressions amount to the import restriction measures?
(i) currency control
(ii) establishment of EPZs
(iii) tariff cuts
(iv) imposition of tariffs
(v) imposition of non-tariff barriers
(i) currency control
(ii) establishment of EPZs
(iii) tariff cuts
(iv) imposition of tariffs
(v) imposition of non-tariff barriers
Question 684hard
With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?
(i) Balance of trade
(ii) Foreign assets
(iii) Balance of invisibles
(iv) Special Drawing Right
(i) Balance of trade
(ii) Foreign assets
(iii) Balance of invisibles
(iv) Special Drawing Right