Business Environment and International Business MCQs

Select the correct option of the following statements being correct or incorrect.
Statement (I): International liquidity encompasses the international reserves only.
Statement (II): International liquidity covers only official holdings of gold, foreign exchange, SDRs and reserve position in the IMF available for the settlement of the international transactions.

Match the following components of Business Environment.

List-I	List-II
a. Economic environment	1. EXIM policy
b. Social environment	2. Customs
c. Political environment	3. Social values
d. Legal environment	4. Business Law and Banking Act

From the following, identify the tools of fiscal policy.
(i) Public expenditure
(ii) Open market operations
(iii) Deficit financing
(iv) Taxation
(v) Reserve requirements

Possible impact of WTO on various aspects of the Indian economy.
1. Quantitative restriction will be allowed.
2. Secondhand cars will be imported.
3. There will be dumping of Chinese goods.
4. Increase in population.
5. Child labour exploitation.
6. Unemployment will increase.
Which of the combination is correct?

International liquidity comprises which four of the following?
(i) Gold held by Central Banks
(ii) Gold held by families
(iii) Forex Reserve held by Commercial Banks
(iv) Mineral wealth
(v) SDRs
(vi) Borrowing facilities
(vii) NRIs FDRs
(viii) Credit facilities available under AWAP

Which of the following statements are true in context of fiscal policy?
(i) Fiscal policy plays a key role in elevating the rate of capital formation both in the public and private sectors.
(ii) Fiscal policy helps mobilize considerable amount of resources for financing its numerous projects through taxation.
(iii) Fiscal policy helps in providing stimulus to elevate the savings rate.
(iv) Fiscal policy gives adequate incentives to the private sector to expand its activities.
(v) Fiscal policy aims to minimize the imbalance in the dispersal of income and wealth.

Match List-I with List-II relating to benefits and cost of economic integration and identify the option representing correct matching.

List-I	List-II
a. Trade creation	1. Movement of production and resources in opposite directions.
b. Trade diversion	2. Become active when a member country does not augment export but simply shifts its imports from low cost source to high cost source.
c. Trade deflection	3. Shifting the locus of production from high cost to low cost centre within the union.
d. Polarisation forces	4. Goods produced in a third country entering a free trade area through a member country having lower tariff.

Consider these two statements.
1. The Identification of five stages of economic integration of European Union in the forms of Free Exchange Area, Customs union, Common market, Economic Union, Economic and Monetary Union.
2. The identification of convergence criteria and Maastricht Treaty type of agreement that laid the foundation of European Union.
Which of the following personality identify such events in 1961?

Match the items of List-I with List-II and indicate the correct answer.

List-I	List-II
a. Fiscal Policy	1. Mitigation of National hazards
b. Technology Policy	2. Balance of Payment
c. Macro-Economic Policy	3. Fiscal Federalism
d. Monetary Policy	4. Inflation