Business Environment and International Business MCQs

Question 1

Match List-I with List-II and select 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

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 2

Which of the following statement/s is/are true in context of WTO?

Accepted Answer

All of the above

Answer

The WTO is run by its member governments. All major decisions are made by the membership as a whole

Answer

Some decisions are made by ministers who usually meet at least once every two years

Answer

Some decisions are made by their ambassadors or delegates who meet regularly in Geneva

Question 3

Which of the following pairs of GATT rounds and the associated years are correctly matched? 1. First Round ⇔ 1948 2. Kennedy Round ⇔ 1964-67 3. Tokyo Round ⇔ 1973-79 Select the correct answer:

Accepted Answer

2 and 3

Answer

1, 2 and 3

Answer

1 and 2

Answer

1 and 3

Question 4

Which of the following is not ensured to the consumer in the globalization?

Accepted Answer

Clear origin of goods and services

Answer

Lower prices

Answer

Better selection

Answer

Improved service

Question 5

In computation of balance of payments, overall balance of paymems is equal to

Accepted Answer

Balance of current account + Balance of capital account + Statistical discrepancy

Answer

Export of goods and invisibles - Import of goods

Answer

Foreign exchange inflow - Foreign exchange outflow

Answer

Export of goods and invisibles + Import of goods and invisibles

Question 6

Match List-I with List-II and select the correct answer: List-I List-II a. Industries Development Regulation Act 1. 1947 b. Import and Export Control Act 2. 1948 c. Foreign Exchange Management Act 3. 1951 d. Factories Act 4. 1999

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 7

Consider the following statements. Assertion (A): The 'Balance of Payments' presents a classified record of all receipts on account of goods exported, services rendered and capital received by 'residents' and payments made by them on account of goods imported and services received from capital transferred to 'non-residents' or 'foreigners'. Reason (R): The 'Balance of Payments' of a country is a systematic record of all economic transactions between the 'residents' of a country and the rest of the world.

Accepted Answer

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

Answer

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

Answer

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

Answer

Both (A) and (R) are incorrect

Question 8

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

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 9

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)