International Marketing Management

TYBBA – Sem 5
Multiple Choice Questions

Ms. Vinita Sutaria

Vivekanand College for BBA

1 Greenfield Investment: It is the direct investment in new facilities or the

expansion of existing facilities.
A. True B. False A
C. Maybe D. Not sure
2 In 2006, Mittal Steel announced its initial bid of $23 billion for Arcelor
which was later increased to $38.3 billion which was later agreed. This is an
example of ?
A. Horizontal FDI B. Mergers & Acquisition
B
C. Greenfield Investment D. Vertical FDI
3 Horizontal FDI, which primarily revolves around investing funds in a foreign
company belonging to the same industry as that owned or operated by the
FDI investor.
A. True B. False
A
C. Maybe D. Not sure
4 Burger King buys a farm in China to produce meat - Is an example of which
form of FDI
A. Greenfield Investment B. Horizontal FDI
C
C. Vertical FDI D. Mergers & Acquisition
5 “Ex Works” means that the seller delivers when it places the goods at the
disposal of the buyer at the seller’s premises or at another named place
A. True B. False
A
C. Maybe D. Not Sure
6 “Free Carrier” means that the seller delivers the goods to the carrier or
another person nominated by the buyer at the seller’s premises or another
named place.
A. True B. False
A
C. Maybe D. Not sure
7 if a truck carrying a shipment to the airport encounters an accident in which
the goods are damaged, the seller is not responsible for damages if the buyer
has not insured the products because the goods had already been transferred
to the first carrier: the truck. This is example of Incoterm _________?

A. Free On Board (FOB) B. Carriage Paid To (CPT)

B
C. Ex Works (EXW) D. Free Alongside Ship (FAS)
8 Jeff pays the shipping costs and the parts are shipped by Ann's Wiring, Inc.
(also known as shipping point). On the way to Jeff's factory, the trucker gets
into an accident and the parts are ruined. Jeff tries to sue Ann, but he can't
because the title of the goods already passed to him. This is example of
Incoterm _________?

A. Ex Works (EXW) B. Free Alongside Ship (FAS)

C
C. Free On Board (FOB) D. Carriage Paid To (CPT)
9
Which
of
the
following is international
trade?
Which
of
the
following is international
trade?
Which
of
the
following is international
trade?
Which
 of
the
following is international
trade?
Which of the following is international trade
A. Trade between province B. Trade between regions
C
C. Trade between countries D. All of above
10 A tariff is
A. Restriction on number of B. Limit on the amount of imported
export firms goods
C
C. Tax and imports D. Both B & C
11 Which of the following trade policies limits specified quantity of goods to be
imported at one tariff rate
A. Quota B. Import tariff
A
C. Specific tariff D. All of above
12 A commercial invoice is issued by
A. Exporter B. Exporter’s bank
A
C. Importer D. Importer’s bank
13 A document that contains a precise description of the goods is known as a
A. Weight list B. Packing list
C
C. Commercial invoice D. Certificate of origin
14 The CPT term is similar to the CIP term except that
A. The seller is not required to B. The seller is required to arrange or
arrange or pay for insurance pay for insurance coverage of goods
coverage of goods during during transportation
transportation
A
C. The buyer is not required to D. The buyer is required to arrange or
arrange or pay for insurance pay for insurance coverage of goods
coverage of goods during during transportation
transportation
15 Most unsafe mode by which firms perform worldwide business is
A. Licensing B. Franchising
D
C. International trade D. Establishment of new subsidiaries
16 Which of the following is also known as international Bank for
Reconstruction and Development
A. Asian Development Bank B. World Bank B
 C. Reserve Bank of India D. International Monetary Fund

17 One of the following is NOT an advantage of international trade

A. Import defense material B. Dependence on foreign countries
B
C. Export of surplus production D. Availability of cheap raw materials
18 Special Economic Zones are
A. Situated outside India, but B. Treated as foreign territory and not
subject to RBI control Indian laws
B
C. Governed by international and D. Prohibited from buying goods from
not Indian laws domestic tariff area
19 The IEC number is issued by the
A. Central government B. State government C
C. Director General of foreign D. Ministry of Commerce
trade
20 The apex body of the foreign trade is

A. The central government B. The state government C

C. The ministry of commerce D. All of above
21 Bill of lading is issued by the

A. Captain of the vessel B. Shipping company B

C. Custom authority D. Consignor
22 ___________ is a certificate which specifies the country of the production of
goods.

A. Certificate of dispatch B. Mate receipt D

C. Shipping bill D. Certificate of origin
23 ______________ contains particulars of goods exported, name of the vessel,
master or agents, the port at which goods are to be discharged etc
A. Mate receipt B. Shipping bill B
C. Cart ticket D. Certificate of measurement
24 The following are forms of shipping bills EXCEPT
A. Service Shipping bill B. Dutiable Shipping bill A
C. Free Shipping bill D. Drawback Shipping bill
25 ___________ is a receipt issued by Commanding officer of the ship when the
cargo is loaded on the ship
A. Certificate of origin B. Cart ticket C
C. Mate receipt D. Shipping bill
26 A________, also known as a cart chit, vehicle and gate pass, is prepared by
the exporter and
includes details of the export cargo in terms of the shipper's name,
A. Shipping bill B. Certificate of origin D
 C. Mate receipt D. Cart ticket
27 A bill of lading acknowledging receipt of the goods apparently in good order
and condition and
without any qualification is termed as a _____________;
A. Clean bill of lading B. Claused bill of lading. A
C. Transshipment bill of lading. D. Stale bill of lading.
28 if a bill of lading is qualified with certain adverse remarks such as, "goods
insufficiently packed in accordance with Carriage of Goods by Sea Act,"
"one box damaged", etc., it is termed as a.
A. Stale bill of lading B. Claused bill of lading B
C. Clean bill of lading D. Transshipment bill of lading
29 A bill of lading that has been held too long before it is passed on to a bank or
the consignee is called a.
A. Transshipment bill of lading B. Clean bill of lading D
C. Claused bill of lading D. stale bill of lading
30 An _________ also called, an air consignment note, is a receipt issued by an
airline for the carriage of goods.
A. Cart ticket B. Shipping bill C
C. Airway bill D. Mate receipt
31 A is a document containing the guarantee of a bank to honour drafts drawn
on it by an exporter,
A. letter of credit B. Mate receipt A
C. Shipping bill D. Shipping bill
32 "an instrument in writing containing an unconditional order, signed by the
maker, directing a certain person to pay a certain sum of money only to, or to
the order of, a certain person or to the bearer of the instrument." Is the
definition of

A. Bills of lading B. Bills of exchange B

C. Shipping bill D. Bills of lading
33 _________ is one which is required to be paid by the drawee immediately on
presentation of the bill.

A. documentary bills of exchange B. Usance Bill of Exchange C

C. Sight Bill of Exchange D. Clean Bill of Exchange
34 _________ there is maturity period called the tenor, and the payment is to be
made only on the maturity of the bill.

A. Usance Bill of Exchange B. Sight Bill of Exchange A

C. Clean Bill of Exchange D. Documentary Bill of Exchange
35 A bill of exchange not accompanied by the relative shipping
documents is known as a ____________.
 A. documentary bills of exchange B. Clean bill of exchange B

C. Usance Bill of Exchange D. Sight Bill of Exchange

36 A __________ is a bill of exchange accompanied by the relative shipping

documents such as the bill of lading, marine insurance policy,
commercial invoice, certificate of origin, etc.
A. Sight Bill of Exchange B. Usance Bill of Exchange C
C. documentary bills of exchange D. Clean Bill of Exchange

37 A ___________ is a document signed by the customer conveying to a banker

the full ownership of goods at the port of destination in respect of which he
has made advances either by loan or by acceptance or negotiation of bills of
exchange.
A. Trust receipt B. Mate receipt D
C. Sight Bill of Exchange D. letter of hypothecation

38 _________ means that the seller delivers the goods to the carrier or another
person nominated by the buyer at
the seller’s premises or another named place.
A. Free Carrier B. Delivered at Place A
C. Carriage Paid To D. Carriage and Insurance Paid to
39 ______ means that the seller delivers the goods to the carrier or another
person nominated by the seller
at an agreed place
A. Delivered at Place B. Carriage Paid To B
C. Delivered Duty Paid D. Delivered at Place Unloaded
40 __________ means that the seller delivers the goods to the carrier or another
person nominated by the seller at an agreed place
A. Delivered at Place Unloaded B. Delivered Duty Paid C
C. Carriage and Insurance Paid to D. Free Carrier
41 ______ means that the seller delivers when the goods are placed at the
disposal of the buyer on the arriving means of transport ready for unloading
at the named place of destination.
A. Carriage Paid To B. Delivered at Place Unloaded D
C. Free Alongside Ship D. Delivered at Place
42 ________ means that Seller delivers the goods and transfer risk to Buyer,
when the goods once unloaded from the arriving means of transport are
placed at the disposal of the Buyer & at the named place or destination or at
an agreed point within that place, if any point has been agreed
A. Delivered at Place Unloaded B. Free Carrier A
C. Delivered Duty Paid D. Carriage Paid To
43 ________ means that the seller delivers the goods when the goods are placed
at the disposal of the buyer, cleared for import on the arriving means of
transport ready for unloading at the named place of destination.
A. Cost, Insurance and Freight B. Delivered Duty Paid B
 C. Free Alongside Ship D. Free Carrier

44 ________ means that the seller delivers when the goods are placed alongside
the vessel (e.g., on a quay or a barge) nominated by the buyer at the named
port of shipment.
A. Cost and Freight B. Cost, Insurance and Freight C
C. Free Alongside Ship D. Delivered at Place Unloaded
45 _____ means that the seller delivers the goods on board the vessel or
procures the goods already so delivered.

A. Delivered Duty Paid B. Cost, Insurance and Freight D

C. Cost, Insurance and Freight D. Cost and Freight
46 ______ means that the seller delivers the goods on board the vessel or
procures the goods already so delivered.
A. Cost, Insurance and Freight B. Cost and Freight A
C. Delivered Duty Paid D. Carriage Paid To
47 The foreign direct investment includes _______ .
A. Intellectual properties B. Human resources C
C. Tangible goods D. Intangible goods
48 For spreading information, the foreign policy decision-makers rely on
_______ .
A. Bureaucrats B. Media B
C. Politicians D. Public
49 More expansion of foreign direct investment can boost __________ .
A. Money circulation B. Demand C
C. Employment D. Unemployment
50 Which industry characteristics will have free entry?
A. Mineral mining B. Cable television C
C. T-shirt silk screening D. Satellite radio
51 When a country is specialised in particular good and then trade with other
countries is called
A. Agreement B. Interdependence B
C. Correlation D. Dependence
52 When capital and labour are moved internationally, it will help in developing
A. Economic growth gains B. Capital gains C
C. More gains from income D. More gains from trade
53 International trade contributes and increases the world _________
A. Population B. Inflation C
C. Economy D. Trade Barriers
54 Free international trade maximizes world output through________.
 A. Countries reducing various B. Countries specializing in production B
taxes imposed. of goods they are best suited for.
C. Perfect competition between D. The diluting the international
countries and other special business laws & conditions between
regions countries.
55 Domestic company limits it’s operations to ___________ political
boundaries.
A. International B. National B
C. Transnational D. Global
56 Trade between two or more than two countries is known as ________.
A. Internal Business B. External Trade C
C. International Trade D. Unilateral Trade
57 _____refers to the tax imposed on imports.
A. Imported Tax B. Tariffs B
C. Subsidies D. Import Quotas
58 _____ means selling the products at a price less than on going price in the
market.
A. Quota B. Tariff D
C. Subsidy D. Dumping
59 A voluntary export restraint is the opposite form of _____.
A. Import quotas B. International tariffs A
C. Subsidies D. Dumping
60 The international trade between ___________ is like a vast game of beggar
my neighbor.
A. Exporter & Importer B. Two Countries C
C. Two world wars D. Country’s allies and enemies
61 ____ is a group of countries agree to abolish all trade restrictionsand barriers.
A. Common market B. Economic Union D
C. Custom Union D. Free Trade Area
62 ________ is the tariffs imposed in order to earn revenue for the
country.
A. Revenue tariff B. Protective tariff A
C. Single Column Tariff D. Double Column Tariff
63 _________ is imposed in order to protect infant industries by
restricting or eliminating competition from foreign companies.
A. Single Column Tariff B. Protective tariff B
C. Revenue tariff D. Double Column Tariff
64 Under this system of tariff, a flat rate of duty is charged on
imports from all the countries.
A. Revenue tariff B. Protective tariff C
C. Single Column Tariff D. Free trade
65 Under this system, two rates of duties are fixed. Lower rates for countries
having bilateral trade agreements with the duty levying country and higher
rates for countries having no such agreements.
A. Single column tariff B. Revenue tariff D
C. Protective tariff D. Double Column Tariff
66 Under ________, import or export of a commodity up to a specific limit
is allowed duty free or at a lower rate of tariff.
 A. tariff quota B. mixing quota A

C. unilateral quota system D. boycott

67 Under _________, a manufacturer has to use certain quantity of

domestic raw materials in combination with the imported raw materials to
manufacture finished products for exports.
A. Tariff quota B. mixing quota B
C. unilateral quota system D. bilateral quota

68 Under the ________, a country on its own fixes the maximum quantity of a
commodity to be imported or exported without consulting other countries.
A. boycott B. tariff quota C
C. unilateral quota system D. mixing quota
69 Under the _______, importing and exporting countries fix up quotas in
consultation with each other.
A. Mixing quota B. Unilateral quota system D
C. boycott D. bilateral quota system
70 A government _________ is an absolute restriction against the import of
certain goods from other countries.
A. boycott B. tariff quota A
C. unilateral quota system D. bilateral quota system