Business Environment and International Business MCQs

Which of the following can be included in the current account of the balance of payments?
(i) Purchase of goods from abroad
(ii) Sale of services abroad
(iii) Worker's remittances from abroad
(iv) Sale of copy right to foreigners
(v) Direct investment in equity capital

Match the following.

List-I	List-II
a. Social factors	1. Increment and reduction in price of fuel
b. Political factors	2. Primary function of business
c. Economic factors	3. Customs, traditions and assumptions
d. Analysis of needs and interest of customers	4. Industrial policy of government

Match the following.

List-I (IMF Facilities)	List-II (Features)
a. Stand by arrangements	1. Overcoming BoP difficulties
b. Extended fund facility	2. To provide short-term BoP assistance for deficit of a temporary and cyclical nature
c. Poverty, reduction and growth facility	3. It is aimed at preventing the spread of crisis
d. Contingent credit lines facility	4. To support programmes to strength substantially and in suitable manner BoP positions

Match List-I and List-II and select the correct answer using the option given below the lists.

List-I	List-II
a. Free trade area	1. No restriction on trade and factor movement
b. Customs union	2. Trade is free and no customs duties
c. Common market	3. No customs duties; duties on non-members
d. Economic union	4. Advanced stage of integration

Match the following.

List-I (Economic Systems)	List-II (Features)
a. Traditional economy	1. Produces only those goods and services, which are required for the survival or which they want to consume
b. Capitalism	2. The freedom of occupation is absent or restricted
c. Socialism	3. Consumers have complete freedom of choice of consumption
d. Mixed economy	4. The private sector operates primarily with a profit motive and public sector seeks to achieve social welfare

Consider the following statements.
Assertion (A): The member nations facing balance of payments crisis can approach the IMF seeking redressal of the BOP crisis.
Reason (R): The goal of world leaders who attended Bretton wood conference in 1944 was to promote international monetary cooperation so as to reduce the repetition of world war type conflicts.

The following table shows cost per unit of production of two goods, wheat and cloth in 2 countries X and Y with no transportation cost and free trade

	X (Rs.)	Y (Rs.)
Wheat	50	350
Cloth	100	500

Which one of the following will take place?

Match the items of List-I with the items in List-II and select a correct answer.

List-I	List-II
a. Vishesh Krishi Upaj Yojana I	1. scheme intended to reduce difficulties of exporters
b. EPCG	2. duty Entitlement Pass Book
c. DFRC	3. to boost exports of fruits, vegetables, flowers, minor forest produce, etc.
d. DEPB	4. relating to import of duty-free fuel

Consider the following statements.
Assertion (A): International Finance Corporation (IFC) contributes to increase sustainable agriculture opportunities, improve health and education and increase access to financing for micro finance and business client.
Reason (R): The IFC has focused on a set of development goals to ensure that its projects are expected to achieve the target.