INTERNATIONAL BUSINESS

SAMPLE MCQ

1. NAFTA is an example of _______.

a. Common Market
b. Customers Union
c. Economic Community
d. Free Trade Area
2. Anything that a Government might do to affect a Multinational adversely is known as
_____.
a. Exchange rate risk
b. Business risk
c. Sales risk
d. Political risk
3. Which of the following is not an example of political risk?
a. Change in Government
b. Civil unrest
c. War
d. Cost of production
4. What are the six elements of PEST analysis?
a. Peace , Elements, search and Tape
b. Political, Economic, Social and Technological
c. Political, economy, Social and Technological
d. Power, Environment, Social and Technological
5. Which year was IMF established?
a. 1945
b. 1995
c. 1940
d. 1947
6. Which of the following is not the objective of the IMF?
a. To promote international monetary cooperation
b. To provide loan to private sectors
c. To ensure exchange rate stability
d. To ensure balanced international trade
7. If the Balance of Payment of a country is adverse, then which institution will help that
country?
a. World Bank
b. International Monetary Fund
c. World Trade Organisation
d. Asian Development Bank
8. The World bank is made up of ____member countries.
a. 100
b. 198
c. 189
d. 170
9. The idea of IMF was initiated at the __________conference
a. Bretton woods conference
 b. GATT
c. Uruguay Round negotiation
d. Doha round
10. The objective of _______ is full employment of workers and revising standard of living.
a. IMF
b. WTO
c. ILO
d. UNICEF
11. What is the role of IMF?
a. It controls the budgets of different countries
b. It acts as a forum for International economics
c. Promotes free International Trade
d. It observes world exchange rate, balance of Payments and multilateral Payments
12. The UNCTAD was established in 1964 and was headquartered in ______.
a. Pakistan
b. Geneva
c. Washington
d. Greece
13. The organisation which accelerates and promotes Industrial development in developing
countries is
a. UNCTAD
b. UNICEF
c. World bank
d. IBRD
14. Ultimately GATT was replaced by the _______ in 1995
a. IMF
b. World Bank
c. WTO
d. UNCTAD
15. Which is the right sequence of internationalisation?
a. Domestic, Transnational, International, Multinational
b. Domestic, International, Multinational, Transnational
c. Domestic, Multinational, Transnational, International
d. Transnational, International, Multinational, Domestic
16. Globalisation refers to
a. Integrated and interdependent world
b. Global warming
c. Less foreign trade
d. Protection to domestic trade
17. The main promoter of trade liberalisation and settlement of dispute
a. NAFTA
b. SAFTA
c. WTO
d. EU
18. When two or more firms come together to create a new business entity that is legally
separate and distinct from its parents is known as _______
a. Acquisition
b. Joint venture
 c. Franchising
d. Contract manufacturing
19. Dumping refers to:
a. Increase Tariffs
b. Sale of goods abroad at low price than in home market
c. Buying at low price and selling at high price
d. Expensive goods sold at low price
20. What is an International Business?
a. Trade between countries
b. Trade between regions
c. Trade between states
d. Trade between provinces
21. _________ is a bilateral trade agreement between two nations.
a. TNC
b. Gray market
c. Counter trade
d. MNC
Ans c
22. The terms TRIPs and TRIMs are related to
a. WTO
b. SAPTA
c. NAFTA
d. World Bank
23. Which is refereed as predecessor of WTO?
a. TRIPS
b. TRIMS
c. GATT
d. IMF
24. Which of the following types of regional economic integration focuses only on eliminating
internal tariffs?
a. customs union
b. common market
c. complete economic integration
d. Free trade area
Ans d
25. Which of the following is an example of a producer cartel?
a. ASEAN
b. EU
c. MERCUSOR
d. OPEC

Ans d

26. When a company wants to appeal to varied defined market segments with a strategy
tailored to each segment, it is said to be:
a. Differentiated marketing
b. Undifferentiated marketing
c. Niche Marketing
d. Concentrated Marketing
 Ans a

27. The function of market is to______ demand.

a. Plan
b. Create
c. Price
d. Promote
28. If a company is researching the gender, age, location and occupation of the target market,
what is being researched?
a. Demographic
b. Behavioural
c. Cultural
d. Geographic
29. The country where the headquarters of a Multinational Corporation is located is known as
a. Host Country
b. Home country
c. Third Country
d. Neighbouring country
30. When an international firm follows a strategy of choosing only from the nationals of
Parent country, it is called
a. Polycentric
b. Ethnocentric
c. Geocentric
d. Regiocentric
31. What is a Pull strategy?
a. Communication aimed at distributors
b. Communication aimed at customers
c. Low budget corporate strategy
d. Sell at high rate
32. The company that manages and staffs employees on a global basis.
a. Polycentric
b. Ethnocentric
c. Geocentric
d. Regio centric
33. A parent country national sent on a long term assignment to the host country operations.
a. Expatriate
b. Inpatriate
c. Repatriate
d. Patriotic
34. HRM as practised by multinational organisations is called
a. Global HRM
b. Domestic HRM
c. International HRM
d. Personal Management practices
35. EPCG scheme is applicable for _____________
a. Capital goods
b. Technology
c. Raw material
 d. Consumable
36. ____________is issued when goods are sent by air.
a. Bills of Lading
b. Boarding pass
c. Shipping bill
d. Airway bill
37. If the employee is citizen of India, working in UK and employed by the company whose
headquarters are in USA, then classify the employee.
a. Third country national
b. Third world employees
c. Expatriates
d. Host country nationals
Ans a
38. In this mode of entry, the manufacturer of the home country leases the right of
intellectual properties, i.e. technology, copyrights, brand name to a manufacturer of a
foreign country for a fee.
a. Exporting
b. Licensing
c. Franchising
d. Management contract
39. _______ are rarely used in International markets.
a. LOCO price/ Ex work price
b. Free On Rail
c. Free alongside Ship
d. Cost and Freight
40. ________________ is the removal or reduction of restrictions or barriers on the free
exchange of goods between nations.
a. Privatisation
b. Globalisation
c. Liberalisation
d. Anti Dumping