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International Business Environment Set 1

This document contains 25 multiple choice questions about international business environments and concepts. The questions cover topics such as reasons for international trade, the effects of globalization, types of foreign market entry strategies, features of multinational companies, stages of internationalization, and factors of the business environment. The questions are designed to test understanding of fundamental international business topics.

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231 views6 pages

International Business Environment Set 1

This document contains 25 multiple choice questions about international business environments and concepts. The questions cover topics such as reasons for international trade, the effects of globalization, types of foreign market entry strategies, features of multinational companies, stages of internationalization, and factors of the business environment. The questions are designed to test understanding of fundamental international business topics.

Uploaded by

Gyany Kidda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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International Business Environment MCQs

[set-1]

1. Nations conduct international trade because:


A. Some nations prefer to produce one thing while others produce other things.
B. Resources are not equally distributed among all trading nations.
C. Trade enhances opportunities to accumulate profits.
D. Interest rates are not identical in all trading nations
Answer: B

2. International Trade is most likely to generate short-term unemployment in:


A. Industries in which there are neither imports nor exports
o m
B. Import-competing industries
. c
e
C. Industries that sell to domestic and foreign buyers.
t
D. Industries that sell to only foreign buyers
a
Answer: B

q M
3. Globalization refers to: c
A. Lower incomes worldwide M
B. Less foreign trade and investment
C. Global warming and their effects
D. A more integrated and interdependent world
Answer: D

4. Increased foreign competition tend to


A. Intensify inflationary pressure at home
B. Induce falling output per worker-hour for domestic workers
C. Place constraints on the wages of domestic workers
D. Increase profits of domestic import-competing industries
Answer: C

5. The movement to free international trade is most likely to generate short-term


unemployment in which industries
A. Industries in which there are neither imports nor exports
B. Import-competing industries.
C. Industries that sell to domestic and foreign buyers
D. Industries that sell to only foreign buyers
Answer: B

6. International trade forces domestic firms to become more competitive in terms


of
A. The introduction of new products
B. Product design and quality
C. Product price
D. All of the above
Answer: D

7. If a nation has an open economy it means that the nation:


A. Allows private ownership of capital.
B. Has flexible exchange rates
C. Has fixed exchange rates
D. Conducts trade with other countries
Answer: D

8. According to Adam Smith, the trade between countries should happen _____.
A. Naturally according to the market forces
B. Under government regulation
C. Using factors that are available
D. Only when a country has an absolute advantage
Answer: D

9. Mercantilists believed that a country could increase the amount of wealth it had
by _____.
A. Promoting exports and discouraging imports
B. Discouraging exports and promoting imports
C. Controlling imports and exports
D. Increasing both imports and exports
Answer: A

10. Investment in Plant & machinery is termed as


A. FDI

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B. FII
C. Portfolio Investment
D. Capital Investment
Answer: D

11. The traditional mode of entering into international business is


A. Licensing
B. Exporting
C. Joint venture
D. Subsidiary
Answer: B

12. Which type of following stage of internationalization has Decentralized decision


making?
A. Subsidiary
B. Multinational Corporation
C. Transnational corporation
D. Domestic Company
Answer: C

13. Agreement between two parties where in one gives rights to use their intangible
property to another entity is called as
A. Direct Exporting
B. Turnkey project
C. Strategic alliance
D. Licensing
Answer: D

14. Only manufacturing and exporting as per the requirement of importer is called
A. Direct Export
B. Sales
C. Import
D. Indirect Export
Answer: D

15. Complex projects involving creation of an asset as per the requirement of the
client is called _________.

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A. Joint venture
B. Strategic alliance
C. Turnkey Project
D. Subsidiary
Answer: C

16. Rapid integration or interconnection between countries is known as:


A. Globalisation
B. Liberalisation
C. Socialisation
D. Privatisation
Answer: A

17. Globalisation has improved in the living structure of


A. All the people
B. Workers in Developing Countries
C. People in developed Countries
D. None of the above
Answer: C

18. The main reason behind MNCs investments are


A. To benefit foreign countries
B. To provide financial support to the country’s Government
C. For the welfare of underprivileged people
D. To increase assets & earn profits
Answer: D

19. Which institute supports investments and foreign trade in India?


A. IMF
B. WTO
C. World Bank
D. International labour Organisation ( ILO)
Answer: B

20. Which of the following is not a feature of a Multi-National Company?


A. It owns/ control production in more than one nation
B. It set up factories where it is close to the market

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C. It organises production in complex ways.
D. It employs labour only from its own country
Answer: D

21. An MNC is a company that owns or controls production in


A. One country
B. More than one country
C. Only developing countries
D. Only developed countries
Answer: B

22. Which is the right sequence of stages of Internationalization


A. Domestic, Transnational, Global, International, Multinational
B. Domestic, International, Multinational, Global, Transnational
C. Domestic, Multinational, International, Transnational, Global
D. Domestic, International, Transnational, Multinational, Global
Answer: B

23. Which of the following business environment are known and controllable?
A. Domestic business Environment
B. Foreign business Environment
C. International business Environment
D. None
Answer: A

24. Forces that impacts business environment due to change in government is type
of
A. Legal
B. Cultural
C. Social
D. Political
Answer: D

25. Which of the following is not cultural factor?


A. Language
B. Income
C. Beliefs
D. Customs

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Answer: B

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