Business Environment and International Business MCQs

Question 1

Consider the following statements. Assertion (A): The fall in aggregate expenditure or aggregate demand in the economy works to reduce imports and help in solving the balance of payment problems. Reason (R): The important way to reduce imports and thereby reduce deficit in balance of payments is to adopt monetary and fiscal policies that aim at reducing aggregate expenditure in the economy.

Accepted Answer

Both (A) and (R) are correct and (R) supports (A)

Answer

Both (A) and (R) are correct, but (R) does not support (A)

Answer

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

Answer

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

Question 2

Which of the following are the outcomes of the Sixth Ministerial Conference of WTO which was held at Hong Kong in December 2005?
1. Resolve to complete the Doha Work Programme fully and to conclude negotiations in 2006.
2. Amendments to TRIPS agreement reaffirmed to address public health concerns of developing countries.
3. To continue export subsidies in agriculture upto 2018.
4. Duty free, quota free market access for all LDC's products to all developed countries.

Accepted Answer

1, 2 and 4

Answer

1, 2, 3 and 4

Answer

Both 1 and 3

Answer

Both 2 and 4

Question 3

Consider the following statements. Statement-I: Served From India Scheme (SFIS) has been replaced with Service Exports from India Scheme (SEIS). Statement-II: The rate of reward under SEIS would be based on net foreign exchange earned.

Accepted Answer

Both the statements-I and II are correct

Answer

Statement-I is correct, but statement-II is incorrect

Answer

Statement-II is correct, but statement-I is incorrect

Answer

Both the statements-I and II are incorrect

Question 4

For the following statements of Assertion (A) and Reason (R), indicate the correct answer:
Assertion (A): Liberalization means corporatization of departmental undertakings and public undertakings.
Reason (R): Freedom to public sector undertakings to access capital market.

Accepted Answer

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

Answer

Both (A) and (R) are true but (R) is not a correct explanation of (A)

Answer

(A) is true but (R) is false

Answer

(A) is false but (R) is true

Question 5

Consider the following statements. Statement (I): WTO is only international organization which deals with the rules of trade between organizations. Statement (II): The limit of holding by individual foreign institutional investors in a company has been raised from 5 to 10% of company's share while the aggregate limit has been increased from 24 to 34%.

Accepted Answer

Statements (I) and (II) both are correct

Answer

Statement (I) is correct but Statement (II) is false

Answer

Statement (II) is correct but Statement (I) is false

Answer

Statements (I) and (II) both are false

Question 6

Examine the following statements and choose the correct answer:
Statement (I): Companies with Low cash reserves normally prefer Licensing mode rather than Foreign Direct Investment.
Statement (II): Cash rich firms normally prefer Foreign Direct Investment.

Accepted Answer

Both (I) and (II) are correct

Answer

Both (I) and (II) are wrong

Answer

(I) is correct but (II) is wrong

Answer

(I) is not correct but (II) is correct

Question 7

Under TRIPS Agreement, patent is granted subject to which of the following?
(1) The product or the process is new one.
(2) It contains an inventive step.
(3) It is capable of industrial application for 15 years from the grant of the patent.
(4) It is capable of industrial application for 20 years from the grant of the patent.

Accepted Answer

Only (1), (2) and (4)

Answer

Only (1) and (2)

Answer

Only (1), (2) and (3)

Answer

Only (1) and (4)

Question 8

Match List-I with 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 9

Match the following. List-I List-II a. Foreign trade 1. It is in undertaking by its issue that the bills of exchange drawn by the foreign dealer on the importer will be honoured on presentation upon a specified amount b. Bill of lading 2. It is a document of title to the goods c. Quotation 3. Trade between two or more nations d. Letter of credit 4. It is reply by the seller to the prospective buyer

Accepted Answer

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

Answer

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

Answer

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

Answer

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

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. Foreign trade	1. It is in undertaking by its issue that the bills of exchange drawn by the foreign dealer on the importer will be honoured on presentation upon a specified amount
b. Bill of lading	2. It is a document of title to the goods
c. Quotation	3. Trade between two or more nations
d. Letter of credit	4. It is reply by the seller to the prospective buyer