81. The basic objective of export Promotion Council is to promote and develop the Exports of the
A. particular products of country
B. only attractive projects of the country
C. only services industry products of the country.
D. overall exports of the country.
Answer
D. overall exports of the country.
82. The main promoter of trade liberalization was
A. gatt
B. nafta
C. cepta
D. cisa
Answer
A. gatt
83. ___ is an important reason for economic integration.
A. geographic proximity
B. democracy
C. totalitarianism
D. common law practice
Answer
A. geographic proximity
84. 75). In which of the following types of regional economic integration are internal tariffs eliminatedwith member countries levying a common external tariff on goods being imported from nonmembers.
A. customs union
B. free trade area
C. common market
D. complete economic integration
Answer
A. customs union
85. A ___ focuses on eliminating internal tariffs with member countries levying a common
external tariff on goods being imported from nonmembers. Additionally, this type of regional economic
integration allows free mobility of production factors such as labor and capital.
A. free trade area
B. common market
C. customs union
D. complete economic integration
Answer
B. common market
86. ___ occurs when production shifts to more efficient producers for reasons of
comparative advantage, allowing consumers access to more goods at a lower price than would have
been possible without integration.
A. trade diversion
B. divestment
C. trade creation
D. retrenchment
Answer
C. trade creation
87. Which of the following was developed with the rationale that the U.S.-Canadian trade was the largestbilateral trade in the world and that the United States is Mexico’s and Canada’s largest trading partner?
A. cefta (the central european free trade agreement)
B. nafta (the north american free trade agreement)
C. asean (association of south east asian nations)
D. eu (the european union)
Answer
B. nafta (the north american free trade agreement)
88. ___ occurs when trade shifts to countries in the group at the expense of trade with
countries not in the group, even though the nonmember country might be more efficient in the absence
of trade barriers.
A. trade creation
B. divestment
C. retrenchment
D. trade diversion
Answer
D. trade diversion
89. NAFTA calls for all of the following EXCEPT:
A. the harmonization of trade rules
B. the liberalization of restrictions on services
C. the implementation of a common currency
D. the liberalization of restrictions on foreign investment
Answer
C. the implementation of a common currency
90. NAFTA is a good example of:
A. trade erosion.
B. divestment.
C. retrenchment.
D. trade diversion.
Answer
D. trade diversion.
91. Where is the headquarters of the EU?
A. belgium
B. netherlands
C. luxembourg
D. greece
Answer
A. belgium
92. Apart from India, Pakistan and Bangladesh who are the other member countries of SAARC?
A. nepal, bhutan, thailand and singapore
B. nepal, bhutan, malaysia and maldives
C. nepal, bhutan, maldives, sri lanka and afghanistan
D. none of the above
Answer
C. nepal, bhutan, maldives, sri lanka and afghanistan
93. Which of the following is not the main purpose for formation of SAARC
A. to combat terrorism
B. to promote the welfare of the people of south asia
C. to form mutual defense against foreign aggression
D. none of the above
Answer
C. to form mutual defense against foreign aggression
94. SAPTA is a trade agreement by ___
A. asean nations
B. apec nations
C. saarc nations
D. eu nations
Answer
C. saarc nations
95. What is the full form of ASEAN?
A. association of south east asian nations
B. administration of south east asian nations
C. administration of southern eastern asian nations
D. organisation of south east asian nations
Answer
A. association of south east asian nations
96. The European Union is a free trade association that is based on a(n)
A. economic and monetary union.
B. economic union.
C. monetary union.
D. a commonly agreed upon list of lowered tariffs.
Answer
A. economic and monetary union.
97. Which one of the following has a single currency managed by a common central bank?
A. asean
B. european union
C. world trade organization
D. the organization for economic cooperation and development
Answer
B. european union
more mcqs
98. Which of the following is an advantage of turnkey projects?
A. can earn a return on knowledge asset
B. will not create a competitor
C. tight control of operations
D. all the above
Answer
A. can earn a return on knowledge asset
99. The country that attracts the largest FDI inflow is
A. india
B. china
C. usa
D. brazil
Answer
B. china
100. Firm that operates internationally is able to
A. earn a greater return from their skills and core competencies
B. realize location economies where they can be performed most efficiently
C. realize greater experience curve economies, which reduces the cost of production
D. all the above
Answer
D. all the above
101. Which one of the following is renowned for its high-quality databases on economic and social data?
A. wto
B. eu
C. oecd
D. world bank
Answer
C. oecd
India’s foreign Trade
102. The main reason behind MNCs investments are
A. to benefit foreign countries
B. to provide financial support to the country’s government
C. for the welfare of underprivileged people.
D. to increase the assets and earn profits.
Answer
D. to increase the assets and earn profits.
103. Which institute supports investments and foreign trade in India?
A. international monetary fund (imf)
B. world trade organisation (wto)
C. world bank
D. international labour organisation (ilo)
Answer
B. world trade organisation (wto)
104. Within an international context, what are ‘economies of scope’ synonymous with?
A. decreased cost per unit of output.
B. buying components in bulk.
C. reusing a resource from one business/country in additional businesses/countries.
D. all of the above.
Answer
D. all of the above.
105. According to the concept of the value chain, of an international firm is profitable if:
A. the value it commands exceeds the costs involved in creating the product
B. the value it commands is lower than the costs involved in creating the product
C. it operates in global industries
D. the value it commands equals the costs involved in creating the product.
Answer
A. the value it commands exceeds the costs involved in creating the product
106. When Safeway supermarkets in the United States buys strawberries from Mexico,
A. it must use dollars to pay mexican farmers.
B. it may use any currency it chooses.
C. it must use pesos to pay mexican farmers.
D. the transaction shows up in the u.s. capital account.
Answer
C. it must use pesos to pay mexican farmers.
107. A country records its international finance accounts in it’s
A. balance of payments accounts.
B. import/export log accounts.
C. trade payments accounts.
D. net exports payments account.
Answer
A. balance of payments accounts.
108. Which organisations strain on the liberalisation of foreign investment and foreign trade?
A. international monetary fund
B. world health organisation
C. world trade organisation
D. international labour organisation
Answer
C. world trade organisation
more mcqs
109. Trade Related Investment Measures (TRIMS) doesn’t apply for
A. Measures that affect trade in goods.
B. Measures that lead to restrictions on quantities.
C. Discouraging measures that limit a company’s imports.
D. Discouraging measures that limit a company’s exports.
Answer
B. Measures that lead to restrictions on quantities.
110. General Agreement on Trade in Services will not be applicable to
A. Services supplied from one country to another – cross border supply
B. Transaction of goods across the border – Export Import
C. Individuals traveling from own country to supply services in another – presence of natural persons.
D. Consumers/firms making use of a service in another country – consumption abroad.
Answer
B. Transaction of goods across the border – Export Import
111. As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn’t consider
A. Direct payments to farmers are permitted.
B. Indirect assistance and support to farmers including R & D support by govt. are not permitted.
C. Domestic policies which directly effect on production and trade have to be cut back.
D. Least developed countries do not need to make any cuts.
Answer
B. Indirect assistance and support to farmers including R & D support by govt. are not permitted.
112. Quantitative restrictions refer to limit set by countries to curb
A. Imports
B. Exports
C. Imports & exports
D. None of the above
Answer
C. Imports & exports
113. A Most Favoured nation status doesn’t necessarily refer to
A. Same and equal economic treatment
B. Non-discriminatory treatment
C. Same tariff rates applicable
D. Uniform civil code
Answer
D. Uniform civil code
114. The world trade organization was formed in the year ___ with GATT as it basis.
A. 1993
B. 1994
C. 1995
D. 1996
Answer
C. 1995
115. Power distance Index (PDI) of 77 compared to a world average of 56.5 for India indicates
A. High level of inequality of power and wealth within the society
B. Low level of inequality of power and wealth within the society
C. High level of Political corruption
D. Low level of Human development Index
Answer
A. High level of inequality of power and wealth within the society
116. Specific cultural dimensions that does not have a significant impact on cross-national businessinteractions is
A. Hofstede’s five cultural dimensions
B. Monochromatic vs polychromatic tune
C. Communication
D. Geography
Answer
D. Geography
117. Professional culture refers to
A. Shared belief of top managers about how they should manage themselves and their employees
B. Shared code of ethics and other commonalities shared by members of a given group
C. Both (a) and (c)
D. None of the above
Answer
B. Shared code of ethics and other commonalities shared by members of a given group
118. An attribute that doesn’t contribute to Porters Diamond model is
A. Government
B. Organized Trade union
C. Factor Conditions
D. Demand Conditions
Answer
B. Organized Trade union
119. ___ theory states that, lack of resources often helps countries to become competitive
A. Competitive theory
B. Porters Diamond Model
C. Theory of Mercantilism
D. Product life cycle theory
Answer
D. Product life cycle theory
120. Identify a factor that doesn’t play an important role in attracting FDI
A. Laws, rule sand regulations
B. Administrative procedures and efficiency
C. Infrastructure related factors
D. Language
Answer
D. Language
