1. Which organisations strain on the liberalisation of foreign investment and foreign trade?
Correct : C. world trade organisation
2. Theory of Mercantilism propagates
Correct : B. encourage exports and discourage imports
3. Free international trade maximizes world output through
Correct : A. countries specializing in production of goods they are best suited for.
4. International business does not result in the following
Correct : D. consumption is minimized.
5. By having business in different countries, a firm reduces
Correct : B. political risk.
6. Which of the following is an advantage of turnkey projects?
Correct : A. can earn a return on knowledge asset
7. The country that attracts the largest FDI inflow is
Correct : B. china
8. Firm that operates internationally is able to
Correct : D. all the above
9. Trade Related Investment Measures (TRIMS) doesn’t apply for
Correct : B. Measures that lead to restrictions on quantities.
10. General Agreement on Trade in Services will not be applicable to
Correct : B. Transaction of goods across the border – Export Import
11. As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn’t consider
Correct : B. Indirect assistance and support to farmers including R & D support by govt. are not permitted.
12. Quantitative restrictions refer to limit set by countries to curb
Correct : C. Imports & exports
13. A Most Favoured nation status doesn’t necessarily refer to
Correct : D. Uniform civil code
14. The world trade organization was formed in the year _________ with GATT as it basis.
Correct : C. 1995
15. Power distance Index (PDI) of 77 compared to a world average of 56.5 for India indicates
Correct : A. High level of inequality of power and wealth within the society
16. Specific cultural dimensions that does not have a significant impact on cross-national business
interactions is
Correct : D. Geography
17. Professional culture refers to
Correct : B. Shared code of ethics and other commonalities shared by members of a given group
18. An attribute that doesn’t contribute to Porters Diamond model is
Correct : B. Organized Trade union
19. _______ theory states that, lack of resources often helps countries to become competitive
Correct : D. Product life cycle theory
20. Identify a factor that doesn’t play an important role in attracting FDI
Correct : D. Language
21. B2B sector specific policy of Indian Government is
Correct : A. FDI up to 100% subject to condition that they invest 26 % in favour of Indian Public within 5 yrs
22. General electric follows ___________ as its international operational strategy
Correct : B. International
23. Factor of Interdependence in Multi-domestic strategy is
Correct : A. Low
24. In 90’s the global management perception was based on
Correct : C. Global integration v/s Local Responsiveness
25. The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year 1999 is an example of
Correct : C. Strategic International Alliance
26. CISF pricing includes the following
Correct : D. All of the above
27. When the transaction is of high value, complex In nature and more technical __________
method of the export sales contract is used.
Correct : C. Sales contact
28. Which one of the following is a method for an exporter to get a contract
Correct : D. All the above
29. Credits transferable by original beneficiary in favor of secondary beneficiary are known as
Correct : A. Deferred credits
30. When the exporter, expects the importer, to make the payment immediately upon the draft
being presented to him is called.
Correct : A. Sight Draft.
31. The basic objective of export Promotion Council is to promote and develop the Exports of the
Correct : D. Overall exports of the country.
32. The theory of Comparative cost advantage is given by
Correct : D. Richardo
33. Trade Related Investment Measures (TRIMS) doesn’t apply for
Correct : A. Measures that lead to restrictions in quantities.
34. As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn’t consider
Correct : B. Indirect assistance and support to farmers including R & D support by govt. are not permitted
35. Power distance Index (PDI) of 77 compared to a world average of 56.5 for India indicates
Correct : A. High level of inequality of power and wealth within the society
36. Identify a factor that doesn’t play an important role in attracting FDI
Correct : A. Language
37. The first phase of globalization started around 1870 and ended with …
Correct : A. The World War I
38. Which of these is a characteristic of multinational corporations>
Correct : C. The overseas markets are larger than the domestic market
39. According to this theory the holdings of a country’s treasure primarily in the form of gold
constituted its wealth.
Correct : C. Mercantilism
40. The Theory of Absolute Cost Advantage is given by
Correct : A. Adam smith
41. The Theory of Relative Factor Endowments is given by
Correct : A. Ohilin-Hecksher
42. …………… is application of knowledge which redefine the boundaries of global business
Correct : C. Technology
43. Capitalistic, communistic and mixed are the types of
Correct : A. Economic system
44. General Agreement on Trade in Services will not be applicable to
Correct : B. Transaction of goods across the border – Export Import
45. Quantitative restrictions refer to limit set by countries to curb
Correct : C. Imports and Exports
46. India is an
Correct : A. Emerging economy
47. The world trade organization was formed in the year _________ with GATT as it basis.
Correct : C. 1995
48. ________theory states that, lack of resources often helps countries to become competitive
Correct : D. Product life cycle theory
49. Theory of Mercantilism propagates
Correct : B. Encourage exports and discourage imports
50. The country that attract the largest FDI inflow is
Correct : C. CHINA
51. General electric follows ___________ as its international operational strategy
Correct : B. TRANSNATIONAL
52. Typically the last step in the internationalization process is:
Correct : D. Foreign Direct Investment
53. Which of these is/are the characteristic of a licensing agreement
Correct : D. All of the above
54. IBRD (International Bank for Reconstruction and Development) also known as
Correct : B. World Bank
55. Ultimately ……………… was replaced by the …………….on 1st Jan 1995
Correct : A. GATT/WTO
56. Which is the right sequence of a stages of Internationalization
Correct : B. Domestic, International, Multinational, Global, Transnational
57. Subsidiaries consider regional environment for policy / Strategy formulation is known as
Correct : B. Regiocentric Approach
58. By entering into international business, a firm expects improvement in
Correct : C. Any or all spheres of marketing, operation and finance.
59. Uneven distribution of natural resources
Correct : C. is among the major factors for international business.
60. The following factor does not differentiate international business from domestic
business
Correct : B. product quality
61. Geographical indications specify
Correct : C. Place and special characters of the product.
62. Business across several countries with some decentralization of management decision
making to subsidiaries is
Correct : B. Multinational business.
63. Wholly owned subsidiary can be set up
Correct : A. as a Greenfield venture.
64. The essential feature of FDI is
Correct : C. Investor’s influence on the management of the enterprise.
65. No new investment in the host country is created in the case of
Correct : B. Acquisition.
66. A firm investing in a foreign country to distribute the products there in creation of
Correct : C. Forward vertical FDI.
67. The disadvantages of Greenfield FDI as compared to acquisition is
Correct : D. Delay in establishment.
68. Conglomerate FDI refers to
Correct : D. FDI made in unrelated products.
69. Countries/ regions with huge market size will attract
Correct : A. Market seeking FDI.
70. The following statement with respect to culture is false
Correct : D. Culture is determined by national boundaries.
71. The following is not a component of culture
Correct : D. Life expectancy.
72. Non- verbal communication
Correct : C. includes body language.
73. Religion of a person affects his/her
Correct : D. all of the above.
74. For the society, religion has no influence on
Correct : B. language.
75. The role of women is restricted in
Correct : C. Traditional Islamic countries.
76. The following nationals would be aggressive at the beginning of business negotiations,
but offer large concessions in the end
Correct : B. Russian.
77. Social stratification is done based on
Correct : B. caste.
78. Social mobility is measured by
Correct : A. The extent to which an individual can move the strata to which he/she belongs.
79. Lower power distance countries are characterized by
Correct : A. relationships based on equality and informality.
80. A country with high uncertainty avoidance will witness
Correct : B. decision taken as a result of group consensus.
81. As per cultural dimensions of Hofstede, masculinity refers to
Correct : C. Society characterized by aggressive and materialistic behaviour.
82. According to economic growth model of Rostow, passage of a country through the
stages is
Correct : A. in the order specified.
83. A country in the stage of traditional society is characterized by
Correct : C. predominance of agriculture.
84. The stage indicating highest level of economic growth is
Correct : A. age of mass consumption.
85. The income level of residents in a country is indicated by
Correct : C. per capita gross national income.
86. For a country with relatively lower level of cost of living PPP per capita GNI will be
Correct : B. higher than per capita GNI.
87. In a business cycle, the phase preceding prosperity is
Correct : C. recovery.
88. Monetary policy relates to controlling
Correct : C. money supply, interest rate and exchange rate.
89. Analysing the business environment best assists in
Correct : B. Auditing macro environmental influences; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.
90. In relation to the PESTEL framework, which of the following statements is correct?
Correct : C. It can be used as a checklist to understand the different environmental influences in the macro environment.
91. The following factors are key drivers of globalisation
Correct : D. Market, cost, competition and government policies.
92. Scenarios are used to
Correct : D. Develop a view of an environment which has a high degree of uncertainty, build plausible views of different possible futures and take a long term view of strategy.
93. Porter suggests the following reasons for one nation being more competitive than another
Correct : C. Factor conditions; demand conditions; related and supporting industries; and firm strategy, industry strategy and rivalry.
94. The five forces that affect the level of competition in an industry are
Correct : A. Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry.
95. In international business cheaper alternatives to litigation is/ are
Correct : D. Conciliation and arbitration.
96. A contract drafted under civil law differs from that drafted under common law in the
following respect
Correct : B. It will be shorter and less specific.
97. Ownership of intellectual property is recognized in law by granting
Correct : D. Patent, copyright or trademark as appropriate.