Top 150+ Solved International Business MCQ Questions Answer
Q. What are the four factor endowments?
a. national resources, labor, physical capital and human capital
b. types of technology
c. material inputs used up in the process of production
d. international differences in climate
Q. The Heckscher- Ohlin model is principally focused on what aspect of economics?
a. international trade
b. supply and demand
c. normative economics
d. production possibility frontier
Q. A no-trade world will have which of the following characteristics:
a. countries will have same relative endowments of production factors
b. consumers across countries will have identical and homogenous tastes
c. there will be no distortions or externalities
d. all of the above
Q. Transportation cost of trade affects:
a. pattern of trade
b. boundaries between tradable and non-tradable goods
c. global supply chains
d. all of the above
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. What was the first economic theory of international trade to be developed?
a. the theory of mercantilism
b. the theory of comparative advantage
c. the theory of absolute advantage
d. the heckscher-ohlin theory
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. 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. 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. The movement to free international trade is most likely to generate short-term unemployment in whichindustries
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. According to the principle of comparative advantage:
a. south korea should export steel
b. south korea should export steel and dvds
c. japan should export steel
d. japan should export steel and dvds
Q. Country A has an absolute advantage in
a. product x
b. product y
c. neither x nor y
d. both x and y
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. Comparative Cost Trade Theory is given by
a. adam smith
b. david ricardo
c. gottfried haberle
d. heckscher ohlin
Q. ……………...is the payment method most often used in International Trade which offers the exporter bestassurance of being paid for the products sold internationally.
a. bill of lading
b. letter of credit
c. open account
d. drafts