Business Environment and International Business MCQs

Question 1

Which of the following would include Foreign Direct Investment in India?
(i) Subsidiaries of companies in India
(ii) Majority foreign equity holding m Indian companies
(iii) Companies exclusively financed by foreign companies
(iv) Portfolio Investment

Accepted Answer

(i) and (iii) only

Answer

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

Answer

(ii) and (iv) only

Answer

(i), (ii) and (iii) only

Question 2

Consider the following statements. Assertion (A): International business has grown in more recent years at a faster pace than global production. Reason (R): Growth through trade has increased, but growth through foreign direct investment has not.

Accepted Answer

(A) is correct bur (R) is incorrect

Answer

Both (A) and (R) are correct

Answer

(A) is incorrect but (R) is correct

Answer

Both (A) and (R) are incorrect

Question 3

Match the items of List-I with the items of List-II and select the correct answer: List I List II a. Political and Legal Environment 1. Important for industries directly depending on imports or exports b. Demographic Environment 2. Close relationship with the economic system and economic policy c. Economic Environment 3. Related to natural resources d. Geographical and Ecological Environment 4. Occupational and spatial mobilities of population having implications for business

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 4

SAARC was established on

Accepted Answer

8 th December, 1985

Answer

4 th December, 1985

Answer

8 th December, 1993

Answer

None of these

Question 5

Which of the following are sources of ethics? 1. Religion 2. Legal system 3. Economic system 4. Culture 5. Family system Select the correct answer:

Accepted Answer

1, 4 and 5

Answer

1, 2, 3 and 5

Answer

1, 2 and 4

Answer

All of the above

Question 6

Out of the following, which four benefits are available to host countries from MNCs?
(1) Transfer of technology
(2) Learning of business mannerism
(3) Strategic information sharing
(4) Creation of jobs
(5) Entertainment
(6) Better utilization of resources
(7) Enhancing social contacts
(8) Improved competition in local economy

Accepted Answer

1, 4, 6 and 8

Answer

1, 3, 5 and 7

Answer

2, 4, 6 and 8

Answer

3, 6, 7 and 8

Question 7

From the following statements of Assertion (A) and Reason (R), indicate the correct answer.
Assertion (A): Industrial liberalization became an imperative condition for the growth of forces of competition leading to high efficiency and productivity in Indian industries.
Reason (R): Industrial development and curbing of poverty is only possible through government intervention.

Accepted Answer

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

Answer

Both (A) and (R) are not correct

Answer

(A) is correct and (R) is correct explanation of (A)

Answer

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

Question 8

Match the items of List-I with List-II with regard to balance of payments equilibrium: List-I List-II a. Exchange control 1. Exporters surrender foreign exchange to the central bank b. Trade Policy Measure 2. Bank rate raised by the central bank c. Expenditure reducing policy 3. Reduction in foreign exchange rate d. Expenditure switching policy 4. Enhancing exports by granting subsidies

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 9

Which of the following statements is/are incorrect?

Accepted Answer

WTO cannot be described as a 'free trade' institution

Answer

The WTO is the embodiment of the Uruguay Round Result

Answer

WTO was established on 1 st January, 1995

Answer

All of the above

List I	List II
a. Political and Legal Environment	1. Important for industries directly depending on imports or exports
b. Demographic Environment	2. Close relationship with the economic system and economic policy
c. Economic Environment	3. Related to natural resources
d. Geographical and Ecological Environment	4. Occupational and spatial mobilities of population having implications for business

List-I	List-II
a. Exchange control	1. Exporters surrender foreign exchange to the central bank
b. Trade Policy Measure	2. Bank rate raised by the central bank
c. Expenditure reducing policy	3. Reduction in foreign exchange rate
d. Expenditure switching policy	4. Enhancing exports by granting subsidies