International Business Management

1) Globalisation refers to:

a. A more integrated and interdependent world
b. Less foreign trade and investment
c. Global warming
d. Lower incomes worldwide

2) International Trade makes it possible for people to

have
a. An earning for living only
b. A manufacturing unit
c. A higher standard of living
d. A group activity

3) The extent to which an organization fulfils a

customer's needs, desires and expectations is
a. Customer satisfaction
b. Good manufacturing practices
c. Job Satisfaction
d. All the above

4) The objective developed at corporate level move

down to lower levels where business strategic
plans and marketing plans are prepared to guide
the company's activities
a. True
b. False
5) The external market environment includes the
economic environment, the technological
environment, political environment, legal
environment and
a. Performance of employees environment
b. Cultural and the social environment
c. Grapevine environment
d. None of the above

6) Competitor analysis is an organized approach for

evaluating the strengths and weakness of current
or potential competitors
a. Marketing strategies
b. Financial Strengths
c. Quality strengths
d. All the above

7) Component parts have two markets; one is

original equipment manufacturer (OEM)
and the other is
a. Retail market
b. Replacement market
c. Consumer market
d. None of the above
 8) The goal of a vendor analysis is the most
necessarily to get the lowest possible price for a
product or service but
a. To lower the total costs associated with purchase
b. To get a good quality of supply
c. To keep a constant check on the total activity
d. All the above

9) The system for gathering marketing intelligence is

called marketing
a. Decision support system
b. Defined support system
c. Describe support system
d. Development support system

10) Packaging to be satisfactory should satisfy the

following:-
It should be capable of understanding the hazards of
handling and transport
It should be easy to handle
It should be manageable to quick examinations of
contents
It should be easy to identify
It should be adequately marked
Must confirm to buyers specification
a. False
 b. True

11)The copying and marketing of products is made

difficult by:-
a. Patent
b. Legal restrictions
c. Both (a) & (b)
d. None of the above

12)An exporter incurs several other costs, besides

production costs. These costs may be cost of holding
stocks, packing, transport, documentation, pre-
shipment inspection, insurance, etc. Such costs are
termed as:-
a. Differential costs
b. Delivery costs
c. Selling and delivery costs
d. Marginal costs

13)Foreign Direct Investment involves:

a. A speculator trying to make a profit by buying
company shares on a foreign stock exchange.
 b. UK energy company buying territories abroad,
say in India, where it expects to find oil
reserves.
c. A tourist purchasing foreign currency to spend on
a holiday abroad.
d. A company signing an agreement with a
wholesaler to distribute its products in foreign
markets.

14)Level of economic development, size of national

market, economic policies and ability to act as regional
or global hub affect the:
a. Country bargaining power
b. Individual bargaining power
c. Global bargaining power
d. Company bargaining power

15)The packing and marking should be of

recommended standards or as per specifications laid
down by the buyer. In case of dangerous goods,
packing instructions are also given by:
a. Shipping agents
b. Shipping companies
c. Export promotion council
 d. Customs authority

16)After the cargo is loaded on the ship, the

Commanding Office of the ship issues a ______. It
contains information about the name of the vessel,
berth, date of shipment, description of packages,
marks and numbers, condition of the cargo at the time
of receipt on board the ship.
a. Delivery challan
b. Mate receipt
c. Port challan
d. Shipper's receipt

17)The system of moral principles and rules of conduct

applied to business is known as:-
a. Moral ethics
b. Business ethics
c. Social ethics
d. Conduct ethics
18) Which ___________ liberalization has made strategic
management a buzz word among the Indian corporate
since early 1990s.
a. Cultural
b. Economic
c. Social
d. None of the above.

19)Which of the following terms are used

interchangeably in strategies?
a. Strategic movement
b. Business policy.
c. Corporate strategy.
d. All of the above.

20) In corporate language, the term ‘Mission’ leads to

_________
a. Everyday working norm
b. Targets
c. Objectives
d. None of the above

21) Which of the following is a target audience of a

MNC?
a. Employees
b. Stock Holders
c. Consumers
d. All of the above

22) Which of the following are the internal factors that

influence the strategy and other decisions?
a. Value System
b. Mission and Objectives
 c. Management Structure and Nature
d. All of the above

23) The external environment consists of two types of

environment. Name them.
a. Mini And Micro
b. Mega and Micro
c. Micro and Macro
d. Mini and Mega

24) _________ analysis is one of the prime and primary

steps in strategic management.
a. SCOT
b. WOTS
c. ETOP
d. SWOT

25) Which of the following is a factor on which

structure (of a firm) depends?
a. Size of business
b. Nature of business
c. Characteristics of the market
d. All of the above

26) The ______________ threw open the world of short

term financing in India.
a. Bank of India
b. Canara Bank
c. Reserve Bank of India
d. State Bank of India
27) What is the full form of BCG?
a. Bombay Consulting Group
b. Barmby Consulting Group
c. Bolivia Consulting Group
d. Boston Consulting Group

28) Portfolio matrix is also known as?

a. Business Alternative screen
b. Business Attractiveness screen
c. Backwards Attractiveness screen
d. Business Attractive system

29) Who is the author of ‘Competitive Strategy,

Competitive Advantage’?
a. Chandler
b. Porter
c. David
d. Waterman

30) Which of the following is a common entry barrier?

a. Government policy
b. Economics on scale
c. Cost disadvantages
d. All of the above
31) Which of the following is an important reason for
business growth?
a. Natural urge
b. Survival
c. Market Share
d. All of the above

32) Most of the waves of M&As occurred during _____

booms.
a. Social
b. Political
c. Cultural
d. Economic

33) How does a domestic firm start its international

business?
a. By thinking big
b. By manufacturing
c. By exporting
d. By processing

34) In the current business scenario, one has to apply

_______ to managing the entire flow of information,
materials and services from raw materials suppliers
through factories and warehouses to the end
customers.
a. total systems approach
b. total quality approach
 c. total management approach
d. total marketing approach

35) The flow of materials from suppliers all the way to

customers is viewed as a:
a. system
b. procedure
c. process
d. operation

36) The supply chain is identified by first selecting the:

a. suppliers
b. end customers
c. distribution system
d. product group

37) A firm can make profit only if its products are:

a. priced lower than competitors
b. valued by the consumers
c. of good quality
d. both a & c

38) The price consumers are prepared to pay for a

product is a measure of the _____of the
product to consumers
a. value
b. popularity
c. assessment
d. worth
39) A firm is invariably viewed as a value chain,
comprising of a series of distinct value creation
activities which include:
a. production management
b. marketing management
c. materials management
d. all the above

40) Production, marketing and delivering the product

to buyers and providing after sales services to the
buyers of the product are the ___ activities of the value
creation chain
a. primary
b. secondary
c. main
d. auxiliary

41) Getting products and services where they are

needed and when they are desired, comes under the
purview of ______ function of management:
a. Logistics
b. Marketing
c. Transportation
d. Stores

42) Broadly speaking, logistics involves the integration

of following activities ;-
a. transportation
 b. inventory
c. warehousing
d. all the above

43) Logistical process facilitates the flow of materials

from suppliers to the manufacturing
firms and the distribution of finished products through
marketing channels to consumers
a. True
b. False

44) A key product or service which is closely

interrelated with the firm’s core competencies would
more likely to reflected in a favourable ;-
a. insourcing decision
b. out sourcing decision
c. both a) & b) above
d. manufacturing decision

45) The choice of in sourcing / outsourcing is affected

by following factors;
a. changing demand
b. shifting technology life cycles
c. strategy development
d. all the above
46) In modern management, ________ has become a
central feature of management planning and control
a. information
b. production
c. logistics
d. scheduling

47) A slow and erratic communication may result in:

a. loss of customers
b. excessive transportation
c. inventory and warehousing costs
d. all the above

48) The drivers of new supply chain systems and the

new e-economy are:
a. Internal and external strategic integration
b. Globalization and communication
c. Data information management
b. All the above

49) A hasty outsourcing decision may lock a company

into;-
a. unnecessarily high costs
b. unnecessarily high inventories
 c. unnecessarily high tensions
b. all the above

50) When performance falls short of expectations; it is

up to the marketing manager to
a) Take corrective action
b) Immediately change marketing plan and
implementing it
c) Tighten control
d) None of the above

51) The more marketing oriented a firm is, the larger a

role marketing planning will play in the
a) Strategic planning
b) Corporate planning
c) Business planning
d) Distribution planning

52) Strategic business units will have the

characteristics as
I. A distinct mission and a specific target
market
II. Control over their resources.
III. Their own competitors
IV. Plans independent of the other business in
the organization

a) Yes
b) No.
53) Competitor analysis is an organized approach for
evaluating the strengths and weakness of the
current or potential competitors
a) Marketing strategies
b) Financial Strengths
c) Quality strengths
d) All the above

54) Even a well planned marketing strategy may fail in

periods of rapid business decline as witnessed
recently in 2008 financial crisis.
a) True
b) False

55) "Cash Purchases" are affected because the

worth of cash in terms of buying power declines
during
a) High competition
b) High inflation
c) Clearance sale
d) All the above

56) When producers selling directly to consumers,

through telemarketing, mail order and catalog
 shopping and forms of electronic retailing, it is
called as
a) Uninterrupted channel
b) Business channel
c) Direct channel
d) None of the above

57) When the conditions of use, tastes and preferences

of consumers, purpose of the use or need
satisfaction, regulatory environment, the buying
capacity of the consumers etc. are not the same in
the different markets, it calls for:
a) Product modifications
b) ‘Mee-too’ strategy
c) Change in design
d) Change in marketing strategy

58) Sometimes, institutional credit is extended to

foreign buyers instead of exporters. The buyers’
credit is extended, usually to the buyers of capital
goods.
a) True
b) False
59) Technical, industrial and commercial steps which
lead to the marketing of new manufactured
products, commercial use of new manufactured
products and commercial use of technical process
and equipment are:
a) Strategic marketing may be defined as above,
in the business contacts
b) Advanced marketing may be defined as
above, in the business contacts
c) Innovation may be defined as above, in the
business contacts
d) None of the above

60) After the cargo is loaded on the ship, the

Commanding Office of the ship issues a ______. It
contains information about the name of the
vessel, berth, date of shipment, description of
packages, marks and numbers, condition of the
cargo at the time of receipt on board the ship.
a. Delivery challan
b. Mate’s receipt
c. Port challan
d. Shipper's receipt

62) Bajaj Auto, until a decade back had a monopoly in

their line of business. But, with the competition
on the rise, they had to resort to Strategic
Management.
a. True
 b. False

63) Which of the following is a target audience of an

MNC?
a. Employees
b. Stock Holders
c. Consumers
d. All of the above

64) Which of the following is strength of the SWOT

analysis, concerning Marketing?
a. Poor brand image
b. Weak distribution
c. Deep product mix
d. Narrow product mix

65) Which of the following is an opportunity

concerning SWOT analysis
a. Recession
b. Boom
c. Political Instability
d. Delicensing

66) Both environmental analysis and organisational

analysis are important steps in strategic
management.
 a. True
b. False

67) In ______ SBU companies, the corporate strategy is

implemented through SBU strategies, which are
formulated to achieve the corporate strategy.
a. Single
b. Multi
c. Solo
d. None of the above

68) ________ objectives indicate the planned long term

positioning of the organization.
a. Short term
b. Medium term
c. Long term
d. None of the above

69) Operationalising the corporate strategy requires.

a. Development of functional strategies
b. Production
c. R&D
d. All of the above
70) Products in High Growth-High Market share are
called _______
a. Dogs
b. Cash Cows
c. Stars
d. Question marks

71) As per the BCG Matrix, Dogs may produce _______

a. Loss
b. Profit
c. No loss no profit
d. None of the above

72) Which of the following is a factor which influences

the intensity of rivalry?
a. The volume of purchase relative to the total
sale of the seller
b. The importance of the product to the buyer in
terms of the total cost
c. Number of firms and their relative market
share
d. Switching costs

73) Which of the following is an important reason for

pursuing stability strategy?
 a. The company is doing fairly well and it is
hopeful of the same in the future
b. The feeling that sticking to the known
business is always better and safe
c. The company may not want to take the risks
of growth and expansion
d. All of the above

74) Analysis of International Opportunities provide

great stimulus to an urge for growth.
a. True
b. False

75) To produce materials and components of the

specified quality in a cost effective manner, the
supplier should have:
a. ability / competency
b. motivation
c. adequate information
d. all the above

76) The supply manager must control the quality and

related costs of incoming materials
a. True
b. False
77) World class logistics practices include use of
logistics information systems as a key to
Competitiveness.
a. True
b. False

78) The forex market is the place where money

denominated in one currency is bought and sold
with money denominated in another currency.
a. True
b. False

79) The greatest service of the forex market to

international business is that helps minimize
forex risks.
a. True
b. False

80) Tax havens are countries that impose little or no

corporate income tax.
a. True
b. False

81) International Financial Management refers to the

financial function of an overseas business.
a. True
b. False
82) The international marketing mix is the
combination of four P’s – product, price,
promotion and place.
a. True
b. False

83) Standardisation is a product strategy that entails

sale of a product across the globe with little or no
modification.
a. True
b. False

84) Adaptation or modifications of products to suit

local needs helps achieve economies of scale, even
if the volumes of are not high.
a. True
b. False

85) A firm marketing consumer or personal use

products has no choice but to adapt its offering to
suit local needs.
 a. True
b. False

86) Brand equity can be understood as the set of

assets (or liabilities) linked to the brand that add
(or subtract) value.
a. True
b. False

87) An MNC is said to follow standard rate policy when

it charges the same price for its products and
services, regardless of where they are sold.
a. True
b. False

88) When a product is sold below its cost of

production, it is called dumping.
a. True
b. False

89) Predatory dumping involves selling at a loss to gain

access to a market and drive out competition.
a. True
b. False
90) Which of the following statements best describes
Corporate Social Responsibility?
a. A corporation's requirement to make as much
profit as possible.
b. A corporation's obligation to society that
goes beyond the requirements of the law and
economics to take into account the social
and environmental impact of its decisions.
c. A corporation's obligation to consider the
impact of its decisions on the environment.
d. The duty of care a corporation has to its
employees and customers.

91) A stakeholder can best be defined as:

 a. The network of people who come into contact
with a business.
b. All the organisations that work with a business.
c. All the suppliers, customers and employees of a
business.
d. Any individual, group, or organization that is
affected by or can affect the activities of a
business.

92) 'Enlightened Shareholder Value' or 'enlightened

self interest' refers to which of the following?
a. The pursuit of short term profit maximisation to
increase the value of shares.
b. The pursuit of short term profit maximisation to
increase dividends.
 c. That stakeholder engagement reduces profits.
d. The idea that CSR can help companies
increase their profits and therefore
dividends and share value.

93) Which of the following form part of the business

case for CSR?
a. Better motivated staff reduce operating costs.
b. Increased brand value and reputation.
c. The maintenance of the 'licence to operate'.
d. All of the options given.

94) The moral case for CSR, i.e. that it is the right
thing to do, is justified by which of the following
arguments?
a. That the corporation is a creation of society
and should therefore serve its needs.
b. That the corporation is a legal creation and
therefore cannot be a moral agent.
c. Large corporations do not have the power or
resources to address society's problems.
d. Business decisions will have social and
environmental consequences which will be
addressed by governments.
95) Which of the following is not a true statement in
highlighting problems associated with bribery and
corruption?

a. It adds substantially to the cost of doing

business.
b. It can undermine the democratic process.
c. It may divert resources away from public
service projects such as schools and hospitals.
d. It is commonly accepted and just another
feature of a properly working market
economy.

96) Which one of the following is a pull factor in

emigration?

a. Political oppression
b. Job opportunities
c. Food shortages
d. War

97) Which of the following do NOT facilitate

globalisation?
a. Improvements in communications
b. Barriers to trade and investment
 c. Immigration controls
d. Removal of controls on movement of capital
across borders

98) Which of the following could be defined as a

multinational company?
a. A firm that owns shares in a foreign company
but does not participate in the company's
decision making.
b. A UK based internet package holiday firm
specializing in selling tours to Turkey to
German customers.
c. A firm owning a chain of supermarket
outlets outside its country of origin.
d. A finance company transferring its HQ and all
its activities from the UK to the US.

99) Which of the following is not a driver of

globalization?
a. The fragmentation of consumer tastes
between countries.
b. The competitive process.
c. Multinational companies successfully
persuading governments to lower trading
barriers.
d. The need to gain economies of scale.
100) Globalization is beneficial for firms because:
a. It protects them against foreign competition.
b. It cushions them from the effects of events in
other countries.
c. It opens up new market opportunities.
d. It increases the risk and uncertainty of
operating in a globalising world economy.