Fundamentals of Global Business Management

Chapter 01: Introduction to International Bussiness

Q1.Which of the following is not a major objective to engage in international business?

To tke mre risks CorrectAnswer


Q2.The ____ is dominating economy and the international financial system

USA Correct Answer


Q3.The post____period witnessed an unexpected expansion of national companies into international or multinational companies

World War II Correct Answer


Q4.INCO terms were introduced by ______

International Chamber of Commerce (ICC) Correct Answer


Q5.CIP stands for

Carriage Insurance Paid Correct Answer


Q6.INCO terms is a short form for "____ " terms

International Commerce Correct Answer


Q7.FOB stands for

Free On Board Correct Answer


Q8.All business transactions - private & governmental – that involve two or more countries is called as ___

International Business Correct Answer


Q9.Factors responsible for the difference between Domestic and International Business are

Socio-Cultural Environment

Political & Legal Environment

Economic Environment

All of These Correct Answer


Q10.The objective of ____ is to simplify and clarify the international trade terms

INCO terms Correct Answer


Chapter 02: International Trade Theories


Q1.When companies want to go international,_____ theories can guide them to be careful and prepared

international trade Correct Answer


Q2.Countries which are rich in labour will export labour intensive goods and countries which have plenty of capital will export capital-intensive products. This theory was put forth by

Heckscher- Ohlin Correct Answer


Q3.Country A produces 20 units of Commodity X and 30 units of Commodity Y . Country B produces 40 units of Commodity X and 10 units of Commodity Y. If both the country specialise as per Absolute Advantage what will be the total production?

140 Units Correct Answer


Q4.A country should specialize in producing and exporting those products in which it has a comparative, or relative cost, advantage. This theory was put forth by

Ricardo Correct Answer


Q5.Country A produces 20 units of Commodity X and 30 units of Commodity Y . Country B produces 40 units of Commodity X and 10 units of Commodity Y .Which country has an Absolute Advantage in producing Commodity X?

Country B Correct Answer


Q6.The _____ Model uses a more proactive approach in considering factors

Diamond Correct Answer


Q7.Advanced countries lose their exports initially to developing countries and subsequently to less developed countries and eventually become importers. This theory is called as _ theory

Product life cycle Correct Answer


Q8.Country A produces 20 units of Commodity X and 30 units of Commodity Y . Country B produces 10 units of Commodity X and 20 units of Commodity Y .What is cost efficiency of Country A in producing Commodity X?

2 Correct Answer


Q9.Countries should find out what they can produce more efficiently (which really means cheaper, better and faster), and then specialise in what they do best . This theory was put forth by

Adam Smith Correct Answer


Q10.Country A produces 20 units of Commodity X and 30 units of Commodity Y . Country B produces 10 units of Commodity X and 20 units of Commodity Y .Which country has an Comparative Advantage in producing Commodity X?

Country A Correct Answer


Q11.The major reasons for which trade influences the income distribution are 1) Resources are non-transferable immediately and without incurring costs from one industry to another and 2) Industries use different factors. This theory was put forth by

Samuelson and Jones Correct Answer


Chapter 3: Introduction to International Bussiness



Q1.Which of the following is not a part of cultural Environment?

Public Correct Answer


Q2.Poor Urban Population is represented by the acronym

PUPPIES Correct Answer


Q3.Which of the following is not a part of Demographic Dynamics?

demand Correct Answer


Q4.Which of the following is not a part of Micro Environment?

Mission Correct Answer


Q5.Which of the following is not a part of Internal Environment?

Customers Correct Answer


Q6.Which of the following is not a part of Macro Environment?

Public Correct Answer


Q7.The ____ factors refer to natural resource such as forest and mineral wealth, weather and climatic conditions

Ecological Correct Answer


Q8.What are the heritages that form the bases for the majority of the legal systems of the world?

Common Law

Civil law

Islamic Law

All of these Correct Answer


Q9.Major levels of the environment are

Internal Environment

Micro environment

Macro environment

All of these Correct Answer


Q10.The ____ includes the factors that influence a country's attractiveness for international business firms

economic environment Correct Answer


Chapter 04: Globalization of International Business


Q1.A firms accept a world wide approach to marketing and its operations become global. This is called as ___ orientation

Geocentric Correct Answer


Q2.Which of the following is not a part of nontariff barriers?

tax on import Correct Answer


Q3.Tax imposed by a government on goods entering at its borders is called as ___

tariff Correct Answer


Q4.A firm considers that the products, marketing strategies and techniques applicable in the home market are equally so in the overseas market as well. This is called as ___ orientation

Ethnocentric Correct Answer


Q5.Government laws, regulations, policies, conditions, restrictions, or specific requirements, and private sector business practices or prohibitions that protect the domestic industries are called as ____

nontariff barriers Correct Answer


Q6.Risk of war or enmity between the home country and host country is called as ___

Country Risk Correct Answer


Q7.The objective of trade barriers is to

protect the domestic industries from foreign competition. Correct Answer


Q8.The economic process of transferring property, from public ownership to private ownership is called as ___

Privatization Correct Answer


Q9.Risk of political party having different ideology coming to power is called as ___

Political risk Correct Answer


Q10.A policy of protecting the domestic businesses from foreign competition by applying tariffs, import quotas, or many types of other restrictions is called as ___

Protectionism Correct Answer


Q11.The non-discriminatory treatment of all signatory countries to the WTO (World Trade Organization) with the same duty rate for purposes of imports is called as ___

Most Favored Nation Correct Answer


Q12.The process of relaxation from government control is called as ___

Liberalization Correct Answer


Q13.Risk of depreciation of home currency for importers is called as ___

Foreign Exchange Rate risk Correct Answer


Q14.Import quota is an example of

nontariff barriers Correct Answer


Q15.An organization doing business in more than one country is called as ___

Multinational corporation Correct Answer


Chapter 5: International Trade Blocks


Q1.A co-operative union or group of countries within a specific geographical boundary. RTB protects its member nations within that region from imports from the non-members is called as Regional trading bloc Correct Answer


Q2.An organisation established on August 8, 1967, in Bangkok (Thailand).by Singapore, Brunei, Malaysia, Philippines, Thailand and Indonesia is

ASEAN Correct Answer


Q3.International Trade agreements help in

enhancing the production

optimum utilization of resources

raising the standard of living

All of these Correct Answer


Q4.An organisation established on 1 January 1994 with Canada, Mexico, and the United States of America as members is

NAFTA Correct Answer


Q5.India, Bangladesh, Bhutan, Pakistan, the Maldives, Nepal and Sri Lanka established ____on Dec 8, 1985

SAARC Correct Answer


Q6.A system whereby preferential tariff treatment is granted on a non-reciprocal and non-discriminatory basis by most developed countries to exports from developing countries is called as ___

Generalized System of Preferences Correct Answer


Q7.India became a ______ of ASEAN in 1992

sectoral dialogue partner Correct Answer


Q8.Which is a regional bloc with the largest number of member states?

EU Correct Answer


Q9.An Agreement on economic co - operation for promotion of trade by providing preferential trading among developing countries

Global System of Trade Preferences Correct Answer


Q10.SAARC stands for South _____ Association for Regional cooperation

Asian Correct Answer


Chapter 6: Internatinal Trade Organization


Q1.An international reserve asset introduced by the IMF in 1969 was

ADR Correct Answer


Q2.After the conclusion of _______ the leaders decided to set up several international organisations

Second World War in 1945 Correct Answer


Q3.Which is the international organsiation that has responsibility for promoting industrialization throughout the developing world, in cooperation with its Member States?

UNIDO Correct Answer


Q4.Which of the following is not a part of Functions of WTO?

Giving financial aid to poor countries Correct Answer


Q5.Which is the international organsiation Established in 1964 with the aim at the development-friendly integration of developing countries into the world economy?

UNCTAD Correct Answer


Q6.Which is the international organsiation established in 1945 with the main purpose to develop an exchange rate system?

IMF Correct Answer


Q7.Which is the voice of world business, championing the global economy as a force for economic growth, job creation and prosperity?

ICC Correct Answer


Q8.Which is the single global international organization dealing with the rules related to international trade?

WTO Correct Answer


Q9.The general objectives of international organisations are to

encourage trade and cooperation Correct Answer


Q10.An exchange rate system was evolved and followed up to 1971by __

IMF Correct Answer


Q11.International Bank for Reconstruction and Development (IBRD) is known as

World Bank Correct Answer


Q12.Which is the multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific?

ADB Correct Answer


Q13.The GATT’s main purpose was to

reduce barriers to international trade Correct Answer


Chapter 07: Forein Trade Policy


Q1.Rewards for export of notified goods to notified markets shall be payable under ____

EPCG

Merchandise Exports from India Scheme (MEIS) Correct Answer


Q2.Under which scheme a certain amount of duties of Customs and Central Excise remitted or paid by Government on the exportation of the commodities

Duty Drawback Scheme Correct Answer


Q3.India’s policy in the past was

Export promotion and import substitution Correct Answer


Q4.A geographical region that has economic and other laws that are more free-market-oriented and liberal than a country's typical or national laws is called as___

Special Economic Zone (SEZ) Correct Answer


Q5.Which scheme has the objectives of Identifying the priorities of research relevant to the Department of Commerce?

Market Access Initiative Correct Answer


Q6.Which scheme provides an outlay for development of export infrastructure that will be distributed to the States?

ASIDE Correct Answer


Q7.Which scheme allows import of capital goods subject to an export obligation equivalent to 8 times of duty saved amount to be fulfilled in 8 years?

EPCG Correct Answer


Q8.Now India is following _____ policy

free trade Correct Answer


Q9.Which scheme provides for rewards to all Service providers?

SEIS Correct Answer


Q10.Business leaders who have excelled in international trade and have successfully contributed to country’s foreign trade are caled as ____

Status Holders Correct Answer


________________________________

All business Transactions private and governmental that involve two or more countries is called as

International Business

A situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country is called as

Free Trade

Reward for export of notified good to notified markets shall be payable under

Merchandise Exports from India Scheme (MEIS)

The ability of a country to achieve sustained high rate of growth in gross domestic product (GDP) per capital is called as

Fob stand for :- Free On Board

Which scheme has the objectives of identifying the priorities of research relevant to the department of Commerce?

 MAI (MARKET ACCESS INITIATIVE)

The general objectives of international organizations are to

Encourage trade and cooperation

The major reasons for which trade influences the income distribution are 1. Resources are nontransferable immediately and without incurring costs from one industry to another and 2. Industries use different factors. This theory was put forth by

India, Bangladesh, Bhutan, Pakistan, the Maldives, Nepal and Sri Lanka established ____ on Dec 8, 1985

SAARC

When companies want to go international, ____theories can guide them to be careful and prepared.

International Trade

CIP Stands for: Carriage and Insurance Paid To (CIP)


The Post____period witnessed an unexpected expansion of national companies into international or multinational companies.

Worldwar I

World War II

The___ is dominating economy and the international financial system

Gatt

Ibrd

Usa

The quantity of goods of a specific kind or class that the government of importing country will permit to be imported is called as___

Quota

An international reserve asset introduced by the IMF in 1969 was

Special Drawing Rights (SDR)

The ___factors refer to natural resource such as forest and mineral wealth, weather and climatic conditions.

Ecological

Which scheme provides an outlay for development of export infrastructure that will be distributed to the states?

Assistance to states for Developing Export Infrastructure and Allied Activities (ASIDE).

The economic process of transferring property, from public ownership to private ownership is called as ___

Privatization

Risk of war or enmity between the home country and host country is called as

Country Risk

Import quota is an example of


 

Country should find out what they can produce more efficiently (Which really means cheaper, better and faster) and then specialise in what they do best. This theory was put forth by.

 

India’s policy in the past was

 

After the conclusion of ___ the leaders decided to set up several international organisations

Second World War in 1945

Which scheme allows import of capital goods subject to an export obligation equivalent to 8 times of duty saved amount to be fulfilled in 8 years?

EPCG

Major level of the environment are

 

Country A produces 20 units of Commodity X and 30 units of Commodity Y. Country B produces 10 units of Commodity X and 20 units of Commodity Y. What is cost efficiency of Country A in producing Commodity X?

 

Government laws, regulations, policies, conditions, restrictions, or specific requirements and private sector business practices or prohibitions that protect the domestic industries are called as

 

the probability of not getting what one expects is called as

 

which of the following is not a part of Micro Environment?

 

Which is the international organisation established in 1945 with the main purpose to develop an exchange rate system?

IMF

Which is the voice of world business. Championing the global economy as a force for economic growth, job creation and prosperity?

 

Which of the following is not a part of Internal Environment?

 

A firm considers that the products, marketing strategies and techniques applicable in the home market are equally so in the overseas market as well. This is called as___orientation.

 

Which of the following is not a part of the Functions of WTO?

 

The non- discriminatory treatment of all signatory countries to the WTO (World Trade Organization) with the same duty rate for purposes of imports is called as___

 

An organisation established on August 8, 1967, in Bangkok (Thailand). By Singapore, Brunei, Malaysia, Philippines, Thailand and Indonesia is

The Association of Southeast Asian Nations, or ASEAN

An Organisation established on 1 January 1994 with canada, Mexico, and the United States of America as members is

The objective of trade barriers is to

 

A firm adopts to overseas markets and attempts to organize its international marketing activities on a country to country basis. This is called as ___ orientation.

 

Now India is following ___ policy.

 

Advanced countries lose their exports initially to developing countries and subsequently to less developed countries and eventually become importers. This theory is called as ___ theory

 

A Geographical region that has economic and other laws that are more free market oriented and liberal than a country’s typical or national laws is called as ___

 

Which scheme provides for rewards to all Service providers?

 

A country should specialize in producing and exporting those products in which it has a comparative or relative cost, advantage. This theory was put forth by

 

INCO terms is a short form for “___”terms.

 

Risk of depreciation of home currency for importers is called as _____

 

Tax imposed by a government on goods entering at its borders is called as____

 

A system whereby preferential tariff treatment is granted on a non-reciprocal and non-discriminatory basis by most developed countries to exports from developing countries is called as _____

 

A policy of protecting the domestic businesses from foreign competition by applying tariffs, import quotas or many types of other restrictions is called as____

Protectionism

Which is the international organization Established in 1964 with the aim at the developing countries into the world economy?

United Nations Conference on Trade and Development (UNCTAD)

Under which scheme a certain amount of duties of Customs a Central Excise remitted or paid by Government on the exportation of the commodities.

 

Which of the following is not a part of nontariff barriers?

Tax on Import

International Bank for Reconstruction and Development (IBRD) is known as

 

India became a _____ of ASEAN in 1992.

sectoral dialogue partner

The general objectives of international organizations are to

 

Risk of Default by Debtors is called as ___

Credit Risk

Firms accept a worldwide approach to marketing and its operations become global. This is called as ____ orientation.

 

A firm adopts to overseas markets and attempts to organize its international marketing activities on a country to country basis. This is called as ___ orientation.

 

Which of the following is not a part of Macro Environment?

Public

Which of the following is not a part of Functions of WTO?

 

Which is the multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific?

ADB

SAARC stands for South Asian Association for Regional Cooperation

 

Business leaders who have excelled in international trade and have successfully contributed to country’s foreign trade are called as ____

 

The objective of ____ is to simplify and clarify the international trade terms.

 

The ___ includes the factors that influence a country’s attractiveness for international business firms.

Economic Environment

Country A produces 20 units of commodity X and 30 units of commodity Y. Country B produces 40 units of commodity X and 10 units of Commodity Y. If both the country specialize as per Absolute Advantage what will be the total Production?

 

An Exchange rate system was evolved and followed up to 1971 by

 

What are the heritages that form the bases for the majority of the legal systems of the world?

All of them.

The growing economic Interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology is called as____

 

International Trade agreements help in____

enhancing the production

optimum utilization of resources

raising the standard of living

All of these

 

Country A produces 20 units of Commodity X and 30 units of Commodity Y, Country B produces 10 units of Commodity X and 20 units of Commodity Y. Which country has an Comparative Advantage in producing Commodity X?

Factors responsible for the difference between Domestic and International Business are

 

Which is a regional bloc with the largest number of member states?

 

INCO terms were introduced by____

 

A co-operative union or group of countries within a specific geographical boundary. RTB protects its member nations within that region from imports from the non- members is called as ____

Regional Trading Bloc

Countries which are rich in labour will export labour intensive goods and countries which have plenty of capital will export capital-intensive products. This theory was put forth by.

 

Which of the following is not a major objective to engage in international business?

 

An organization doing business in more than one country is called as _____

 

Poor Urban Population is represented by the acronym

 

Which is the international organsiation that has responsibility for promoting industrialization throughout the developing world in cooperation with its member states?

 

An Agreement on Economic Co-operation for promotion of trade by providing preferential trading among developing countries.

 

A firm accepts a regional marketing policy covering a group of countries which have comparable market characteristics. This is called as _____orientation.

 

The GATT’s main purpose was to

 

Which of the following is not a part of Demographic Dynamics?

 

The Process of relaxation from government control is called as_____

Free trade is a situation where a ____

 

Which is the single global international organization dealing with the rules related to international trade?

The ____Model uses a more proactive approach in considering factors.

Which of the following is not a part of cultural Environment?

Risk of political party having different ideology coming to power is called as___

Political

 

 

 

 

 

 

 

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