Business Environment and International Business MCQs

Question 1

Which combination of the following factors has driven globalisation in the recent past?
1. Growth of multinational corporations.
2. Internationalisation of finance.
3. Increased international trade.
Select the correct answer using the options given below

Accepted Answer

Both 1 and 3

Answer

Both 1 and 2

Answer

Both 2 and 3

Answer

All of these

Question 2

Match the items of List-II with the items of List-I relating to liberalization of agricultural trade. List-I List-II a. Tariffication 1. They have demonstrably adverse effects on other member countries. b. Prohibited subsidies 2. They act on goods which are contingent upon export performance. c. Actionable subsidies 3. Replacement of existing non-tariff restrictions. d. Non-actionable subsidies 4. For industrial research in disadvantaged regions.

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 3

Which among the following are multinational corporations?
(1) A multinational, decentralized corporation with strong home country presence.
(2) A global, centralized corporation that acquires cost advantage through centralized production when cheaper resources are available.
(3) An international company that builds on the parent corporations technology and research and development.
(4) A transnational enterprise that combines the (1), (2) and (3).

Accepted Answer

1, 2, 3 and 4

Answer

1 and 3

Answer

2 and 3

Answer

1, 2 and 3

Question 4

Consider the following statements. Assertion (A): International business focuses on global resources, opportunities to buy/sell worldwide. Reason (R): The efforts of IMF, World Bank and WTO to liberalise their economies led to globalization.

Accepted Answer

Both (A) and (R) are true

Answer

Both (A) and (R) are false

Answer

(A) is true, but (R) is false

Answer

(A) is false, but (R) is true

Question 5

Which of the following element determine economic environment of a country?
1. Economic system
2. Policies
3. Money and capital market
4. Social cost
Select the correct answer using the options given below

Accepted Answer

Both 1 and 2

Answer

Both 2 and 3

Answer

Only 3

Answer

All of the above

Question 6

Consider the following statements. Assertion (A): Indian companies have established subsidiaries and joint ventures in a number of countries in different manufacturing industries and service sectors. Reason (R): By restricting the areas of operations and growth, the government policy seriously constrained the potential of Indian companies to make a foray into the foreign countries.

Accepted Answer

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

Answer

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

Answer

Both (A) and (R) are incorrect

Answer

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

Question 7

Which of the following statements is/are correct?

Accepted Answer

The IMF financial years ends on 30 th April

Answer

Currently, IMF has 197 members upto 30 th June, 2011

Answer

Both A and B

Answer

None of the above

Question 8

Which of the following have been recognised under the intellectual property eligible for creation of rights as per WTO mandate?
1. Computer software, music disc, performing art
2. Geographical indicator
3. Global positioning system
4. Journals, books, seeds, design, brand
Select the correct answer:

Accepted Answer

1, 2 and 4

Answer

1, 2 and 3

Answer

1, 3 and 4

Answer

1, 2 and 3

Question 9

Consider the following statements. Statement (I): Developing countries can borrow more than their quota under Extended Fund Facility (EFF) of IMF. Statement (II): The Extended Fund Facility (EFF)was created in 1984 to help the developing countries over longer period up to 3 years.

Accepted Answer

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

Answer

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

Answer

Both the statements (I) and (II) are correct

Answer

Both the statements (I) and (II) are not correct

List-I	List-II
a. Tariffication	1. They have demonstrably adverse effects on other member countries.
b. Prohibited subsidies	2. They act on goods which are contingent upon export performance.
c. Actionable subsidies	3. Replacement of existing non-tariff restrictions.
d. Non-actionable subsidies	4. For industrial research in disadvantaged regions.