Business Environment and International Business MCQs

Match the following with the year of establishment.

List-I	List-II
a. World Trade Organization	1. 1993
b. Uruguay Round Negotiation	2. 1995
c. WTO - Trade Policy Review Body	3. 1997
d. The Patents (Amendment) Act	4. 1999

Match List-I with List-II and select the correct answer:

List I	List II
a. Accommodating capital flow	1. Creation of international reserve assets by the IMF and their allocation among member countries in order to improve international liquidity
b. Autonomous capital flow	2. Estimate of foreign exchange flow on account of either variations in the collection of related figures or unrecorded illegal transactions of foreign exchange
c. SDR Allocation	3. Inflow of foreign exchange to meet the balance of payments deficit, normally from the IMF
d. Statistical discrepancy	4. Flow of loans/investments in normal course of business.

Which one of the following matches correspond to the member and observer countries of the SAARC?
1. India, Pakistan, Bangladesh, Bhutan, Nepal, Sri Lanka, Afghanistan, Maldive
2. Iran, China, Japan, USA, South Korea, European Union
3. Pakistan, Nepal, India, Bangladesh, Iran
4. UK, USA, North Korea, South Africa
Select the correct answer:

Out of the following, which are the important objectives of IMF?
1. To promote exchange rate stability.
2. To create standby reserves.
3. To print international currency notes.
4. To establish a multilateral system of payments.
5. To maintain orderly exchange rate stability.
6. To create employment
Select the correct answer:

According to Michael Porter, which of the following can be identified as four determinants of national competitive advantage?
(1) Factor Conditions
(2) Demand Conditions
(3) Firm Strategy, Structure and Rivalry
(4) Related and Supporting Industries
(5) Financial Conditions
(6) Export Industry

Which of the following kinds of situation is signified when there is debit in balance of payments accounts?
(1) Low imports and high exports
(2) High imports and low exports

Which of the following assumptions are true in context of theory of comparative advantage?
(1) Two trading economies each producing the same two goods.
(2) The factors of production in each economy are perfectly mobile.
(3) There are no trade barriers and no transport costs.
(4) The state of technology is unchanged.

Match the following economic institutions with the year of their establishment:

a. World Bank	1. 1946
b. International Finance Corporation	2. 1956
c. International Development Agency	3. 1960
d. Asian Development Bank	4. 1966

Match items of List-I with List-II relating to macro environment of business and indicate the option of correct matching:

List-I	List-II
a. Economic environment	1. Ethical issues
b. Political and government	2. Trade and transport policies environment
c. Socio-cultural environment	3. Economic stratification of population
d. Demographic environment	4. Judiciary powers