Business Environment and International Business MCQs

Question 1

The important objectives of WTO are
1. To improve the quality of technology in the member countries.
2. To improve the standard of living of people in the member countries.
3. To ensure full employment and broad increase in effective demand.
4. To enlarge production and trade of goods.
5. To increase trade of services.
Select the correct answer:

Accepted Answer

1, 2, 3 and 5

Answer

1, 2, 3 and 4

Answer

2, 3, 4 and 5

Answer

1, 3, 4 and 5

Question 2

Which of the following has/have occurred in India after its liberalization of economic policies in 1991?
(i) Share of agriculture in GDP increased enormously
(ii) Share of India's exports in world trade increased
(iii) FDI inflows increased
(iv) India's foreign exchange reserved increased enormously
Select the correct answer using the options given below:

Accepted Answer

(ii), (iii) and (iv) only

Answer

(i) and (iv) only

Answer

(ii) and (iii) only

Answer

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

Question 3

Match the items of List-I with those of List-II . List-I List-II a. Exchange control 1. Adverse BOP b. Price control 2. Domestic firms c. Import control 3. Mass consumption product d. Legislative control 4. Industrial location

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 4

Assertion (A): Special Drawing Rights (SDRs) have the characteristics of an international currency. Reason (R): SDRs were introduced to increase international liquidity.

Accepted Answer

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

Answer

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

Answer

A is true but R is false

Answer

A is false but R is true

Question 5

Match the following. List-I (Concepts) List-II (Advantages) a. International Monetary Fund 1. Risk factor is always extremely high b. International Finance Corporation 2. It has failed to achieve of eliminating foreign exchange restrictions c. Foreign Direct Investment 3. It may transfer technology, which has become outdated in other country d. MNCs for the host country 4. It charges very high interest rates

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 6

Match the following. List-I List-II a. The Essential Commodities Act 1. 1937 b. Agricultural Products Grading and Marketing Act 2. 1958 c. The Prevention of Food Adulteration Act 3. 1955 d. Trademarks and Merchandise Marks Act 4. 1954

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 7

Internal environment of a business includes
1. Business ethics and moral standards.
2. Business and managerial policies.
3. Prospects of business development.
4. Government rules and regulations.
5. Industrial relations.
Select the correct answer:

Accepted Answer

1, 2, 3 and 5

Answer

1, 2, 4 and 5

Answer

2, 3, 4 and 5

Answer

1, 2, 3 and 4

Question 8

Match the following. List-I (Concepts) List-II (Advantages) a. Foreign direct investment 1. It gives a boost to the industrial activities of home country b. Multinational corporations 2. It enables the owners or creators to protect their work c. Intellectual property rights 3. It helps strengthen the political relationships between various nations

Accepted Answer

a-3, b-1, c-2

Answer

a-2, b-3, c-1

Answer

a-3, b-2, c-1

Answer

a-1, b-2, c-3

Question 9

Match the following. List-I (Concepts) List-II (Features) a. Free trade 1. Its value is fixed in gold b. International liquidity 2. Removes tariffs and non-tariff barriers c. Regional economic integration 3. Aggregate stock of internationally acceptable assets d. Special drawing rights 4. It permits trading partner's mutual gains from trade of goods and services

Accepted Answer

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

Answer

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

Answer

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

Answer

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

List-I	List-II
a. Exchange control	1. Adverse BOP
b. Price control	2. Domestic firms
c. Import control	3. Mass consumption product
d. Legislative control	4. Industrial location

List-I (Concepts)	List-II (Advantages)
a. International Monetary Fund	1. Risk factor is always extremely high
b. International Finance Corporation	2. It has failed to achieve of eliminating foreign exchange restrictions
c. Foreign Direct Investment	3. It may transfer technology, which has become outdated in other country
d. MNCs for the host country	4. It charges very high interest rates

List-I	List-II
a. The Essential Commodities Act	1. 1937
b. Agricultural Products Grading and Marketing Act	2. 1958
c. The Prevention of Food Adulteration Act	3. 1955
d. Trademarks and Merchandise Marks Act	4. 1954

List-I (Concepts)	List-II (Advantages)
a. Foreign direct investment	1. It gives a boost to the industrial activities of home country
b. Multinational corporations	2. It enables the owners or creators to protect their work
c. Intellectual property rights	3. It helps strengthen the political relationships between various nations

List-I (Concepts)	List-II (Features)
a. Free trade	1. Its value is fixed in gold
b. International liquidity	2. Removes tariffs and non-tariff barriers
c. Regional economic integration	3. Aggregate stock of internationally acceptable assets
d. Special drawing rights	4. It permits trading partner's mutual gains from trade of goods and services