International Marketing mcq Set 1
International Marketing mcq Set 2
International Marketing mcq Set 3
International Marketing mcq Set 4
International Marketing mcq Set 5
International Marketing mcq Set 6
International Marketing mcq Set 7
Q1. A strong orientation toward the home country is an indication of
(a) ethnocentricity
(b) polycentricity
(c) geocentricity
Answer
Ans: a) ethnocentricity
Q2. According to Adam Smith’s Theory of absolute advantage, a country should. …. a commodity that can be produced at a lower cost than can other nations.
(a) export
(b) import
(c) both export and import d) neither export nor import
Answer
Ans: a) export
Q3. The evidence that the United States exports constitutes of labor-intensive goods and imports comprises of capital-intensive goods is known as
(a) principle of absolute advantage
(b) principle of relative advantage
(c) Leontief Paradox
(d) factor endowment
Answer
Ans: b) principle of relative advantage
Q4. This export strategy involves selling a product from a home base, usually without any product modification.
(a) exporting
(b) licensing
(c) joint venture
(d) manufacturing
Answer
Ans: a) exporting
Q5. This entry strategy involves granting permits to a foreign company to use industry property, technical knowhow, or engineering design in a foreign market.
(a) exporting
(b) licensing
(c) joint venture
(d) manufacturing
Answer
Ans: b) licensing
Q6. ICICI and Prudential joined together to market Insurance products in India. This strategy is
(a) exporting
(b) licensing
(c) joint venture
(d) assembly operations
Answer
Ans: c) joint venture
Q7. Indian firms were asked to build the biggest oil refinery in the world in Egypt and to train local personnel. This is known as
(a) licensing
(b) manufacturing
(c) joint venture
(d) turnkey
Answer
Ans: d)turnkey
Q8. Which of the following product is most likely to require adaptation for overseas markets.
(a) musical recordings
(b) films
(c) automobiles
(d) watches
Answer
Ans: c) automobiles
Q9. Which of the following cannot be used as a trademark?
(a) a word
(b) a name
(c) a symbol
(d) a device
(e) all of them can be used as a trademark
Answer
Ans: e) all of them can be used as a trademark
Q10. Which marketing component is most likely to be standardized.
(a) brand
(b) advertising
(c) price
(d) distribution
Answer
Ans: a) brand
Q11. The promotion mix does not include
(a) advertising
(b) personal selling
(c) pricing
(d) publicity
Answer
Ans: b) personal selling
Q12. This term of payment is the one most desired by importers.
(a) bill of exchange
(b) letter of credit
(c) open account
(d) cash in advance
Answer
Ans: b) letter of credit
Q13. This method of payment presents the least risk to an exporter.
(a) sight draft
(b) time draft
(c) open account
(d) letter of credit
Answer
Ans: c) open account
Q14. This financial instrument is a document, issued by a bank at a buyer’s request in favor of a seller, promising that the bank will pay an agreed amount of money upon its receipt of certain documents.
(a) sight draft
(b) time draft
(c) bill of exchange
(d) letter of credit
Answer
Ans: d) letter of credit
Q15. Import duty to offset a subsidy is
(a) protective tariff
(b) revenue tariff
(c) tariff surcharge
(d) countervailing duty
(e) variable duties
Answer
Ans: e) variable duties
Q16. This is not a form of subsidy.
(a) cash
(b) interest rate
(c) tax
(d) freight and infrastructure
(e) all of them are subsidies
Answer
Ans: d) freight and infrastructure
Q17. This international organization wants to achieve a broad, multilateral, and free worldwide system of trading.
(a) WTO
(b) GSP
(c) UNCTAD
(d) MFN
Answer
Ans: a) WTO
Q18. According to the international product life cycle theory, a country that developed an innovation will eventually become
(a) a net importer
(b) a net exporter
(c) an absolute exporter
(d) a relative producer
(e) a monopolist
Answer
Ans: c) an absolute exporter
Q19. Innovations are most likely to be first introduced in
(a) least developed countries
(b) less developed countries
(c) growing economies
(d) highly developed countries
Answer
Ans: d) highly developed countries
Q20. Which of the following is not a brand’s function?
(a) creating identification
(b) guaranteeing quality level
(c) helping with promotion
(d) lowering production cost
Answer
Ans: d) lowering production cost
Q21. The most important packaging criterion is
(a) promotional
(b) functional
(c) attractive
(d) versatile
Answer
Ans: a) promotional
Q22. “Noise” does not affect this stage of the communication process.
(a) sender
(b) encoding
(c) decoding
(d) receiver
(e) all of them can be affected
Answer
Ans: e) all of them can be affected
Q23. Which of the following is not an example of indirect export?
(a) Export house in home country
(b) Cooperatives marketing organizations in home country
(c) State trading Corporations in home country
(d) Agent in overseas market
Answer
Ans: c) State trading Corporations in home country
Q24. Which of the following is not an example of Countertrade Arrangement?
(a) Barter Trade
(b) Compensation Arrangement
(c) Buy Back Arrangement
(d) Counterfeiting
Answer
Ans: d) Counterfeiting
Q25. Trade in services is covered under which agreement?
(a) GATS
(b) GATT
(c) TRIPS
(d) TRIMS
Answer
Ans: b) GATT
Q26. EXIM Bank of India provide following services to the Indian Exporter?
(a) Export financing
(b) Advisory Services for Export
(c) Sector and Market specific Research for export
(d) Export Agent
Answer
Ans: a) Export financing
Q27. ECGC helps exporters by providing
(a) insurance protection against payment risks.
(b) information on different countries with its own credit ratings.
(c) information on credit-worthiness of overseas buyers
(d) extending line of credit to overseas entities
Answer
Ans: c) information on credit-worthiness of overseas buyers
Q28. Which of the following is not an export incentive given by Government of India as per the provisions in the FTP 2004-2009?
(a) DEPB
(b) Duty Drawback
(c) Advance License
(d) Direct Export Subsidies
Answer
Ans: c) Advance License
Q29. Which of the following is not an export promotion measure in the FTP 2004-2009?
(a) Towns of Export Excellence
(b) Served from India
(c) Working Capital Management for Export
(d) Focus Market Scheme
Answer
Ans: c) Working Capital Management for Export
Q30. This is not a characteristic of “centrally planned economies.”
(a) a communist philosophy
(b) an active government role in economic planning
(c) bureaucratic political/economic systems
(d) market-oriented economy
Answer
Ans: d) market-oriented economy
Q31. The market-oriented system is also known as
(a) capitalism
(b) socialism
(c) communism
(d) modified communism
Answer
Ans: a) capitalism
Q32. Which of the following is not a strategic alliance?
(a) mergers
(b) joint ventures
(c) licensing agreements
(d) sole ventures
Answer
Ans: d) sole ventures
Q33. These firms allocate corporate resources without taking into consideration national frontiers and also make direct investment abroad.
(a) ethnocentric firms
(b) polycentric firms
(c) geocentric firms
Answer
Ans: c) geocentric firms
Q34. Trade is a
(a) zero sum game
(b) positive sum game
(c) negative sum game
(d) all of the above
Answer
Ans: c) negative sum game
Q35. The theory of factor endowment focus on which factor of production.
(a) labor
(b) land
(c) capital
(d) all of them are considered
Answer
Ans: a) labor
Q36. China do not have comparative advantage in which factor of production?
(a) labor
(b) land
(c) capital
(d) technology
Answer
Ans: d) technology
Q37. According to the international product life cycle theory, a country that invented a product will eventually become
(a) a net importer
(b) a net exporter
(c) an absolute exporter
(d) a monopolist
Answer
Ans: c) an absolute exporter
Q38. The most important factor which makes product modification mandatory is
(a) country’s regulations
(b) electrical current standards
(c) measurement standards
(d) product standards
Answer
Ans: a) country’s regulations
Q39. To sell to their subsidiaries in countries with lower corporate tax rates than that in the United States, American firms should make their transfer prices
(a) low
(b) high
(c) moderate
(d) no change
Answer
Ans: b) high
Q40. When compared to a trading company, an EMC
(a) has more diverse product lines
(b) is more likely to take ownership to merchandise
(c) offers less services
(d) is larger and better financed
Answer
Ans: c) offers less services
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