Business Environment and International Business MCQs

Question 1

The main features of TRIMS are:
(i) All restrictions on foreign capital are imposed.
(ii) No restriction is imposed on any area of investment.
(iii) Restrictions on repatriation of dividend is eliminated.
(iv) Imports of raw material is allowed freely.
(v) No limit on the extent of foreign investment.
Indicate the correct combination

Accepted Answer

(ii), (iii), (iv) and (v)

Answer

(i), (ii), (iii) and (v)

Answer

(iii), (iv) and (v)

Answer

(iv) and (v)

Question 2

Assertion (A): Amended Patent Act, in compliance with WTO, provides for grant of product patent as well as a process patent for a period of 20 years from the date of application. Reason (R): Under the Act, patent may be granted to an invention which means a new product or process involving an inventive step and capable of industrial application, a technical advance over existing knowledge.

Accepted Answer

A is true, but R is false

Answer

Both A and R are true, but R is not the correct explanation of A

Answer

A is false, but R is true

Answer

Both A and R are true and R is the correct explanation of A

Question 3

Which one of the following correspond to the member and observer countries of the SAARC?
(i) India, Pakistan, Bangladesh, Bhutan, Nepal, Sri Lanka, Afghanistan, Maldives
(ii) Iran, China, Japan, USA, South Korea, 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 4

Assertion (A): Under FEMA, the receiver of laundered money is to be made culpable, instead of sender/distributor. Reason (R): FEMA differs from the earlier Exchange Regulation Act FERA with regard to penalties and punishment in case of violation of the act.

Accepted Answer

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

Answer

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

Answer

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

Answer

Both A and R are incorrect

Question 5

Assertion (A): Comparative cost theory is static in character. Reason (R): Comparative cost theory is based on fixed supplies of factors of production

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 6

Match the following. List-I (Theories of International Trade) List-II (Features) a. Theory of reciprocal demand 1. Through specialisation, countries could increase their efficiency. b. Theory of absolute advantage 2. It emphasises the demand side as well. c. Theory of mercantilism 3. It assume that there is only one factor of production. d. Theory of comparative cost 4. Countries should export more than they import.

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 7

It is said that freedom of private enterprise is the greatest in the free market economy. Which of the following assumptions is true in this context?
(i) Land, labour, and capital are integrated with the help from private enterprise.
(ii) Income is received in monetary form by the sale of services of the factors of production and from the profits of the private enterprise.
(iii) Members of the free-market economy have freedom of choice in so far as consumption, occupation, savings, and investments are concerned.
(iv) The free-market economy is not planned, controlled or regulated by the government.
(v) The free-market economy is prone to corrupt practices.

Accepted Answer

(i), (ii), (iii) and (iv)

Answer

(i), (ii) and (iii)

Answer

(i), (ii), (iii), (iv) and (v)

Answer

(ii), (iii), (iv) and (v)

Question 8

Match the following. List-I (Organisations) List-II (Objectives) a. SAARC 1. To promote cooperative peace and shared prosperity b. NAFTA 2. To provide protection and enforcement of intellectual property rights c. ASEAN 3. To promote the welfare of the people of South Asia and to improve their quality of life

Accepted Answer

a-3, b-2, c-1

Answer

a-2, b-1, c-3

Answer

a-2, b-3, c-1

Answer

a-1, b-2, c-3

Question 9

Match items of List I with List II relating to macro environment of business and indicate the 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

List-I (Theories of International Trade)	List-II (Features)
a. Theory of reciprocal demand	1. Through specialisation, countries could increase their efficiency.
b. Theory of absolute advantage	2. It emphasises the demand side as well.
c. Theory of mercantilism	3. It assume that there is only one factor of production.
d. Theory of comparative cost	4. Countries should export more than they import.

List-I (Organisations)	List-II (Objectives)
a. SAARC	1. To promote cooperative peace and shared prosperity
b. NAFTA	2. To provide protection and enforcement of intellectual property rights
c. ASEAN	3. To promote the welfare of the people of South Asia and to improve their quality of life

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