Top 80+ Solved International Business Environment MCQ Questions Answer
Q. 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
Q. International Trade is most likely to generate short-term unemployment in:
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
Q. Globalization refers to:
a. Lower incomes worldwide
b. Less foreign trade and investment
c. Global warming and their effects
d. A more integrated and interdependent world
Q. 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
Q. The movement to free international trade is most likely to generate short-termunemployment 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
Q. 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
Q. 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
Q. 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
Q. 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
Q. Investment in Plant & machinery is termed as
a. FDI
b. FII
c. Portfolio Investment
d. Capital Investment
Q. The traditional mode of entering into international business is
a. Licensing
b. Exporting
c. Joint venture
d. Subsidiary
Q. Which type of following stage of internationalization has Decentralized decisionmaking?
a. Subsidiary
b. Multinational Corporation
c. Transnational corporation
d. Domestic Company
Q. Agreement between two parties where in one gives rights to use their intangibleproperty to another entity is called as
a. Direct Exporting
b. Turnkey project
c. Strategic alliance
d. Licensing
Q. Only manufacturing and exporting as per the requirement of importer is called
a. Direct Export
b. Sales
c. Import
d. Indirect Export
Q. Complex projects involving creation of an asset as per the requirement of the client iscalled _________.
a. Joint venture
b. Strategic alliance
c. Turnkey Project
d. Subsidiary