Business Environment and International Business MCQs

Match the following.

List-I (Theories of International Trade)	List-II (Founders)
a. Theory of reciprocal demand	1. David Ricardo
b. Theory of absolute advantage	2. Adam Smith
c. Theory of comparative advantage	3. Raymond Vernon
d. Product life cycle theory of trade	4. John Stuart Mill

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

Consider the following statements and identify the right ones.
1. A double entry system of record of all economic transactions between the residents of a country and rest of the world is called balance of trade.
2. All transactions related to goods, services or income are classified as capital account.

Match the following.

List-I (Organisations)	List-II (Features)
a. SAARC	1. It creates procedures for the resolution of trade disputes
b. ASEAN	2. It is dedicated to economic, technological, social and cultural development
c. NAFTA	3. Non-interference in the internal affairs of one another

Match the following.

List-I (Types of Intellectual Property Rights)	List-II (Features)
a. Trademarks	1. It may refer to the creation of a shape colour, pattern or a combination of all these things.
b. Patents	2. It is a symbol generally used to identify a particular product, which indicates its source.
c. Industrial Design Rights	3. These are the designs, practices, formulas etc.
d. Trade Secrets	4. The invention must new and should be useful or can be applied in industries.

The equivalence between the effects of a tariff and a quota which limits imports by the same amount depends on the assumption that
(1) There are comparative conditions prevailing abroad
(2) There is perfect competitive among quota holders
(3) There is free competition within the domestic import competing industry
Which of the above statements is correct?

Assertion (A): Internal factors of business environment are controllable factors.
Reason (R): The company can alter or modify such factors to suit the environment.

Consider the following statements.
Assertion (A): An export processing zone is different from free trade zone as it promotes units primarily devoted to exports.
Reason (R): Goods imported to a free trade zone maybe re-exported without any processing, in the same form. But goods exported by units in an EPZ are expected to have undergone some value addition by manufacturing/processing.

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: