QN1). The most recent round of GATT provided new rules to prevent dumping. This round was the:
a) Kennedy Round.
b) Uruguay Round.
c) Merry-Go Round.
d) American Round.
Ans: b) Uruguay Round. Answer
QN2). MNCs have ___ approaches for international business:
a) 1
b) 2
c) 4
d) 3
Ans: d) 3 Answer
QN3). Corporate Social responsibility is majorly towards:
a) Only shareholders
b) Shareholders, employees, customers & society
c) Only employees
d) Only customers
Ans: b) Shareholders, employees, customers & societyAnswer
QN4). A situation where any advantage given by one member of the WTO to another member must be extended to all WTO members.
a) The most favored nation principle.
b) The intra-regional principle
c) The comparative advantage principle
d) The trade diversion principle
e) The excessive invoicing principle
Ans: a) The most favored nation principle. Answer
QN5). Which organisation of the World Bank Group deals with matters related to the development of the poorest countries in the world?
a) The International Bank for Reconstruction and Development
b) The International Development Association
c) The International Finance Corporation
d) The Multilateral Investment Agency
Ans: b) The International Development Association Answer
QN6). What are the forms of assistance that the World Bank provides to its members?
a) Technical and financial
b) Political and financial
c) Political and economic
d) Technical and military
Ans: a) Technical and financial Answer
QN7). Which of the following international organizations is now responsible for developing and maintaining the system of international trade rules and dealing with trade disputes?
a) IMF
b) WTO
c) IBRD
d) GATT
Ans: b) WTO Answer
QN8). SDR stands for
a) State depository receipt
b) Simple depository receipt
c) Sample depository receipt
d) Statutory depository receipt
N.B. the correct answer is: (Special Drawing Rights)
Ans: N.B. the correct answer is: (Special Drawing Rights) Answer
QN9). Generally, countries with higher inflation have
a) Similar money growth patterns to low-inflation countries.
b) Lower money growth than low-inflation countries.
c) Higher levels of government spending than low-inflation countries.
d) Higher money growth than low-inflation countries.
Ans: d) Higher money growth than low-inflation countries. Answer
QN10). Being amongst the poorest of the poor in low income countries is:
a) Relative poverty
b) Absolute poverty
c) Ultra poverty
d) Voluntary poverty
Ans: c) Ultra poverty Answer
QN11). Concept relating to the unfairness or injustice of a society in its divisions of rewards & business is:
a) Human resource development
b) Social injustice
c) Parallel economy
d) Poverty
Ans: b) Social injustice Answer
QN12). Inflation can be defined as:
a) Rise in the general level of prices of goods and services in an economy over a period of time.
b) Fall in the general level of prices of goods and services in an economy over a period of time
c) No change in the general level of prices of goods and services in an economy over a period of time
d) Cyclical change in the general level of prices of goods and services in an economy over a period of time
Ans: a) Rise in the general level of prices of goods and services in an economy over a period of time. Answer
QN13). Which of the following are often regarded as characterizing globalization?
a) Increasing space
b) Shrinking space
c) Strengthened borders
d) Disappearing borders
Ans: d) Disappearing borders Answer
QN14). Which of the following perspectives of globalization is most likely to reflect the views of economists?
a) The growth of international trade and the increase in international trade flows
b) The rise of global culture and global media
c) The emergence of global conflicts and global institutions
d) The decline of sovereignty of the nation state
Ans: d) The decline of sovereignty of the nation stateAnswer
QN15). The work of an MNC is mainly concerned with:
a) Adapting a marketing mix to enter a market in another country.
b) Transferring a marketing mix to enter a market in another country.
c) Establishing global brands.
d) Translating product instructions and advertising messages.
Ans: a) Adapting a marketing mix to enter a market in another country. Answer
QN16). A global market leader is an organization which:
a) Has the monopoly over several foreign markets.
b) Is recognized as being ahead of the rest in terms of market share.
c) Is ahead of the competition in terms of global innovation.
d) Has more than 50% global market share.
Ans: b) Is recognized as being ahead of the rest in terms of market share. Answer
QN17). Which of the following organizations was established by industrialized nations to loan money to underdeveloped and developing countries?
a) OPEC
b) NAFTA
c) The World Bank
d) The IMF
Ans: c) The World Bank Answer
QN18). GDP stands for:
a) Gross National Product
b) Gross Domestic product
c) Government National Product
d) Gross National Premise
Ans: b) Gross Domestic product Answer
QN19). Capitalism, Socialism & Mixed economy are types of
a) Economic systems
b) Business environment
c) Economic policies
d) Economic controls
Ans: b) Business environment Answer
QN20). Which of the following could not be considered a major economic system?
a) Capitalism.
b) Communism.
c) Socialism.
d) Physical quality of life index.
Ans: d) Physical quality of life index. Answer
QN21). Basic human needs include
a) Food, clothing and housing.
b) Health, education and quality housing.
c) Adequate nutrition, primary education, health, sanitation, water supply and housing.
d) Longevity and living standards.
Ans: a) Food, clothing and housing. Answer
QN22). The percentage of the labour force that is unemployed is the:
a) Unemployment rate.
b) Labour force rate.
c) Unemployment population ratio
d) Employment rate.
Ans: a) Unemployment rate. Answer
QN23). An individual who is not working and who has given up looking for work is classified as:
a) Hard core unemployed.
b) Unemployable.
c) A discouraged worker.
d) Unemployed.
Ans: c) A discouraged worker. Answer
QN24). Cyclical unemployment is the:
a) Unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.
b) Portion of unemployment that is due to changes in the structure of the economy that result in a significant loss of jobs in certain industries.
c) Portion of unemployment that is due to the normal working of the labour market.
d) Unemployment that occurs during recessions and depressions.
Ans: d) Unemployment that occurs during recessions and depressions. Answer
QN25). Unemployment resulting from real wages being above their equilibrium level is called ______ unemployment
a) Natural
b) Disequilibrium
c) Structural
d) Frictional
Ans: b) Disequilibrium Answer
QN26). The framework for helping employees develop their personal & organizational skills is:
a) Human resource development
b) Employee training
c) Employee management
d) Performance management
Ans: a) Human resource development Answer
QN27). Analysing the business environment best assists in:
a) Identifying key competitive forces; identifying competitive position; identifying key opportunities, threats, strengths and weaknesses.
b) Auditing macro environmental influences; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.
c) Auditing external and organizational factors; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.
d) Assessing historical trends; auditing environmental dangers; identifying strategic capabilities; identifying competitive position.
Ans: c) Auditing external and organizational factors; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats. Answer
QN28). The following factors are key drivers of globalisation:
a) Government action, exchange rates, competition and socio-demographic factors.
b) Market convergence, competition, exchange rates and cost advantages.
c) Cost advantages, government action, economic cycles and competition.
d) Market, cost, competition and government policies.
Ans: d) Market, cost, competition and government policies. Answer
QN29). In the Five Forces framework, the term “threat of entrants” means:
a) The possibility of an existing competitor capturing the entire market.
b) The possibility of an existing competitor withdrawing from the market.
c) The possibility of a new competitor entering the market.
d) The possibility of a potential competitor entering a different market.
Ans: d) The possibility of a potential competitor entering a different market. Answer
QN30). Which of the following statements in relation to the Five Forces framework
a) The framework assists in developing a broad perspective on the environment within which an organization is operating.
b) It is not appropriate in public sector management.
c) The framework is a means of identifying the forces which affect the level of competition in an industry or sector.
d) The framework identifies the major stakeholders of an organization.
Ans: c) The framework is a means of identifying the forces which affect the level of competition in an industry or sector. Answer
QN31). The five forces that affect the level of competition in an industry are:
a) Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry.
b) Threat of buyers; power of entry; power of substitutes; threat of suppliers; threat of recession.
c) Threat of recession; power of buyers; power of suppliers; threat of management failure; competitive rivalry.
d) Threat of entry; power of buyers; power of suppliers; threat of substitutes; government action.
Ans: a) Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry. Answer
QN32). Porter suggests the following reasons for one nation being more competitive than another:
a) Ability to speak English; developed network of supporting industries; absence of competition; and low labour cost.
b) Abundant natural resources; skilled labour force; temperate climate; and democracy.
c) Factor conditions; demand conditions; related and supporting industries; and firm strategy, industry strategy and rivalry.
d) Strong sporting ethos; emphasis on individual achievement; strong national party in power; large home market.
Ans: c) Factor conditions; demand conditions; related and supporting industries; and firm strategy, industry strategy and rivalry. Answer
QN33). A successful business must meet its:
a) Economic objectives
b) Social objectives.
c) Economics and social objectives
d) Top executive’s expectations
Ans: c) Economics and social objectives Answer
QN34). Companies have to change their product portfolio because of cultural preferences. These are included under:
a) Demographic environment
b) Political environment
c) Socio-Cultural environment
d) Technological environment
Ans: c) Socio-Cultural environment Answer
QN35). Environment related to business is
a) Stagnant
b) Predictable
c) Dynamic
d) Simple
Ans: c) Dynamic Answer
QN36). The marketing mix for an organization is decided by
a) Legal environment
b) Demographic environment
c) Economic environment
d) Political environment
Ans: b) Demographic environment Answer
QN37). HRD aims to maximize employees as well as organizational ______?
a) Effectiveness
b) Economy
c) Efficiency
d) Performance
Ans: d) Performance Answer
QN38). The focus of HRD revolves around
a) Machine
b) Motivation
c) Money
d) Men
Ans: d) Men Answer
QN39). The form of economic system in which man, machine and land are in individual hands is:
a) Capitalism
b) Socialism
c) Mixed Economy
d) Democracy
Ans: a) Capitalism Answer
QN40). Industrial, fiscal, Export-Import policies are types of:
a) Economic policy
b) Licensing policy
c) Monetary policy
d) Foreign policy
Ans: a) Economic policy Answer
