Top 150+ Solved International Business MCQ Questions Answer
Q. Under a gold standard,
a. a nation’s currency can be traded for gold at a fixed rate
b. a nation’s central bank or monetary authority has absolute control over its money supply
c. new discoveries of gold have no effect on money supply or prices
d. a & b
Q. The Bretton Woods accord
a. of 1879 created the gold standard as the basis of international finance
b. of 1914 formulated a new international monetary system after the collapse of the gold standard
c. of 1944 formulated a new international monetary system after the collapse of the gold standard
d. none of the above
Q. The current system of international finance is a
a. gold standard
b. fixed exchange rate system
c. floating exchange rate system
d. managed float exchange rate system
Q. A simultaneous purchase and sale of foreign exchange for two different dates is called
a. currency devalues
b. currency swap
c. currency valuation
d. currency exchange
Q. The basic objective of export Promotion Council is to promote and develop the Exports of the
a. particular products of country
b. only attractive projects of the country
c. only services industry products of the country.
d. overall exports of the country.
Q. _______________ is an important reason for economic integration.
a. geographic proximity
b. democracy
c. totalitarianism
d. common law practice
Q. 75). In which of the following types of regional economic integration are internal tariffs eliminatedwith member countries levying a common external tariff on goods being imported from nonmembers.
a. customs union
b. free trade area
c. common market
d. complete economic integration
Q. A _______________ focuses on eliminating internal tariffs with member countries levying a commonexternal tariff on goods being imported from nonmembers. Additionally, this type of regional economicintegration allows free mobility of production factors such as labor and capital.
a. free trade area
b. common market
c. customs union
d. complete economic integration
Q. _______________ occurs when production shifts to more efficient producers for reasons ofcomparative advantage, allowing consumers access to more goods at a lower price than would havebeen possible without integration.
a. trade diversion
b. divestment
c. trade creation
d. retrenchment
Q. Which of the following was developed with the rationale that the U.S.-Canadian trade was the largestbilateral trade in the world and that the United States is Mexico’s and Canada’s largest trading partner?
a. cefta (the central european free trade agreement)
b. nafta (the north american free trade agreement)
c. asean (association of south east asian nations)
d. eu (the european union)
Q. _______________ occurs when trade shifts to countries in the group at the expense of trade withcountries not in the group, even though the nonmember country might be more efficient in the absenceof trade barriers.
a. trade creation
b. divestment
c. retrenchment
d. trade diversion
Q. Apart from India, Pakistan and Bangladesh who are the other member countries of SAARC?
a. nepal, bhutan, thailand and singapore
b. nepal, bhutan, malaysia and maldives
c. nepal, bhutan, maldives, sri lanka and afghanistan
d. none of the above