Top 80+ Solved International Business Environment MCQ Questions Answer
Q. In which of the following sectors does the Government of India allow more than 50% FDI?
a. Insurance
b. Print media
c. Telecommunications
d. Both A & C
Q. In which of the following sectors does the Government of India allow more than 50%FDI?
a. Joint venture
b. Strategic alliance
c. Acquisition
d. Merger
Q. Which of the following theories explains the behaviour of late entrants to catch up with the competition?
a. OLI theory
b. Transition Cost approach
c. The Leapfrogging theory
d. The perfect market Hypothesis
Q. Which of the following types of FDI includes creation of new assets and production facilities in the host country?
a. Brownfield investment
b. Mergers & Acquisition
c. Strategic Alliance
d. Greenfield investment
Q. Both foreign direct investment (FDI) and foreign institutional investment (FII) are related to investment in a country. Which of the following is incorrect regarding FDI and FII?
a. Both FII and FDI bring capital into the economy.
b. FII invests in technology-oriented enterprises, whereas FDI invests in traditional business set ups.
c. The restrictions on the entry of FDI are lower than that on FII.
d. FDI is considered to be more stable thna FII. FII can be withdrawn even at a short notice.
Q. : Which of the following statements is/are correct regarding FDI under automatic route?1. FDI in India under the automatic route does not require prior approval either by the Government of India or the Reserve Bank of India. 2. Investors are only required to notify the concerned regional office of the RBI before receipt of inward remittances and file required documents with that office before the issue of shares to foreign investors. Select the correct answer using the codes given below.
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Q. Which of the following are the components of foreign capital?1. Grants and loans2. External commercial borrowings3. Foreign direct investment4. Deposits from non-residentsSelect the correct answer using the codes given below.
a. 1, 2, 3, and 4
b. 1, 2, and 4 only
c. 1 and 2 only
d. 3 and 4 only
Q. Which of the following is not the objective of the IMF?
a. To promote international monetary cooperation
b. To ensure balanced international trade
c. To ensure exchange rate stability
d. To provide loan to private sectors
Q. If the Balance of Payment of a country is adverse, then which institution will help that country?
a. World Bank
b. World Trade Organization
c. International Monetary Fund
d. Asian Development Bank
Q. Which of the following is known as the Paper Gold?
a. US Dollar
b. Pound
c. Demand draft
d. Special Drawing Right
Q. Why the World Bank was established?
a. To promote the International Trade
b. To reconstruct the economies damaged during the Second World War
c. To improve the adverse Balance of Payment situation of the nonmember countries
d. None of the above
Q. Which of the following statement is correct?
a. Every member country of the IMF automatically becomes the member of the World Bank
b. The World Bank has 45 founder members
c. India is not the founding member of the World Bank
d. IMF is the part of World Bank group
Q. Which of the following institutions is not part of the World Bank community?
a. IBRD
b. WTO
c. IDA
d. IFC