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International business environment MCQs - CSEET

Q.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

Ans - b

Q.2 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

Ans- b

Q.3 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

Ans –d

Q.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

Ans- c

Q.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

Ans- b

Q.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

Ans –d

Q.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

Ans- d

Q.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


Q.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

ans- a

Q.10 Investment in Plant & machinery is termed as<1>a) FDI

b) FII

c) Portfolio Investment

d) Capital Investment

Ans- D

Q.11 The traditional mode of entering into international business is<1>a) Licensing

b) Exporting

c) Joint venture

d) Subsidiary

Ans- b

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


a) Subsidiary

b) Multinational Corporation

c) Transnational corporation

d) Domestic Company

Ans – c

Q.13 Agreement between two parties where in one gives rights to use their intangible

property to another entity is called as<1>a) Direct Exporting

b) Turnkey project

c) Strategic alliance

d) Licensing

Ans- d

Q. 14 Domestic company is___ stage of internationalization process.





Ans- c

Q.15 Only manufacturing and exporting as per the requirement of importer is called<1>a) Direct Export

b) Sales

c) Import

d) Indirect Export

Ans- d

Q.16 Complex projects involving creation of an asset as per the requirement of the client is

called _________.

a) Joint venture

b) Strategic alliance

c) Turnkey Project

d) Subsidiary

Ans- c

Q.17 Rapid integration or interconnection between countries is known as:

a) Globalisation

b) Liberalisation

c) Socialisation

d) Privatisation

Ans- a

Q.18 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

Ans- c

Q.19 The main reason behind MNCs investments are<1>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

Ans -d

Q. 20 Which institute supports investments and foreign trade in India?

a) IMF

b) WTO

c) World Bank

d) International labour Organisation ( ILO)

Ans - b

Q.21Which 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

c) It organises production in complex ways.

d) It employs labour only from its own country

Ans - d

Q. 22 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

Ans - b

Q.23 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

Unit II

Q.24 Which of the following business environment are known and controllable?

a) Domestic business Environment

b) Foreign business Environment

c) International business Environment

d) None

Ans – a

Q.25 Forces that impacts business environment due to change in government is type of<1>a) Legal

b) Cultural

c) Social

d) Political

Ans- d

Q. 26 Which of the following is not cultural factor?

a) Language

b) Income

c) Beliefs

d) Customs

Ans- b

Q. 27 Rise in prices due imbalance between demand and supply is called as<1>a) GDP

b) Inflation

c) Deflation

d) None of the above


Q.28 Culture spreads from one place to another and such transmission is called as ________.

a) difference.

b) reputation.

c) adoption.

d) heritage.


Q 29. What are the elements of business ethics?

a) Values rights and duties.

b) attitudes pressure and environment.

c) value environment and attitude.

d) Responsibilities.


Q.30 India follows the ________political system<1>a) Authoritarian

b) Parliamentary

c) Absolutist system

d) Military dictatorship

Ans – b

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