121. B2B sector specific policy of Indian Government is
A. FDI up to 100% subject to condition that they invest 26 % in favour of Indian Public within 5 yrs
B. FDI up to 100%
C. FDI up to 100% subject to condition that they invest 26 % in favor of Indian Public within 10 yrs
D. FDI up to 49%
Answer
A. FDI up to 100% subject to condition that they invest 26 % in favour of Indian Public within 5 yrs
122. General electric follows ___ as its international operational strategy
A. Global
B. International
C. Multi-domestic
D. Transnational
Answer
B. International
123. Factor of Interdependence in Multi-domestic strategy is
A. Low
B. Moderate
C. High
D. Very High
Answer
A. Low
124. In 90’s the global management perception was based on
A. Standardization v/s adaptation
B. Globalization v/s localization
C. Global integration v/s Local Responsiveness
D. Local responsiveness
Answer
C. Global integration v/s Local Responsiveness
125. The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year 1999 is an example of
A. Subsidiary
B. Joint venture
C. Strategic International Alliance
D. License agreement
Answer
C. Strategic International Alliance
126. CISF pricing includes the following
A. Commission is paid to the agent involved in the transaction
B. Cost of the goods exported
C. Freight & Insurance charges for the goods exported
D. All of the above
Answer
D. All of the above
127. When the transaction is of high value, complex In nature and more technical ___ method of the export sales contract is used.
A. Performa invoice
B. Purchase order
C. Sales contact
D. None of the above
Answer
C. Sales contact
128. Which one of the following is a method for an exporter to get a contract
A. Proforma invoice
B. Purchase order
C. Sales contract
D. All the above
Answer
D. All the above
129. Credits transferable by original beneficiary in favor of secondary beneficiary are known as
A. Deferred credits
B. Transit credits
C. Instalment credits
D. Transferable credits
Answer
A. Deferred credits
130. When the exporter, expects the importer, to make the payment immediately upon the draftbeing presented to him is called.
A. Sight Draft.
B. Usance Draft
C. Demand draft
D. Pay Note
Answer
A. Sight Draft.
131. 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.
132. The theory of Comparative cost advantage is given by
A. Porter
B. Adam Smith
C. Varnoon
D. D.Richardo
Answer
D. D.Richardo
133. Trade Related Investment Measures (TRIMS) doesn’t apply for
A. Measures that lead to restrictions in quantities.
B. Discouraging measures that limit a company’s imports
C. Discouraging measures that limit a company’s exports.
D. ALL OF THE ABOVE
Answer
A. Measures that lead to restrictions in quantities.
134. 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
135. 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. Normal Power and Wealth
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
136. Identify a factor that doesn’t play an important role in attracting FDI
A. Language
B. Laws, rules and regulations
C. Cost of resources
D. Infrastructure related factors
Answer
A. Language
137. The first phase of globalization started around 1870 and ended with ___
A. The World War I
B. The World War II
C. The Establishment of GATT
D. In 1913 when GDP was high
Answer
A. The World War I
138. Which of these is a characteristic of multinational corporations>
A. At least one -third directors are foreign nationals
B. The company does 40% of its business in foreign markets
C. The overseas markets are larger than the domestic market
D. The affiliates are responsive tio a number of important environmental forces
Answer
C. The overseas markets are larger than the domestic market
139. According to this theory the holdings of a country’s treasure primarily in the form of goldconstituted its wealth.
A. Gold Theory
B. Ricardo Theory
C. Mercantilism
D. H .O. THEORY
Answer
C. Mercantilism
140. The Theory of Absolute Cost Advantage is given by
A. Adam smith
B. D. Richardo
C. Raymond Varnoon
D. Porter
Answer
A. Adam smith
141. The Theory of Relative Factor Endowments is given by
A. Ohilin-Hecksher
B. FY Taylor
C. Richardo
D. Porter
Answer
A. Ohilin-Hecksher
142. ___ is application of knowledge which redefine the boundaries of global business
A. Cultural Values
B. Society
C. Technology
D. Economy
Answer
C. Technology
143. Capitalistic, communistic and mixed are the types of
A. Economic system
B. Political system
C. Social System
D. Cultural Attitudes
Answer
A. Economic system
144. 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
145. Quantitative restrictions refer to limit set by countries to curb
A. Imports
B. Exports
C. Imports and Exports
D. All of the above
Answer
C. Imports and Exports
146. India is an
A. Emerging economy
B. Developed economy
C. Less developed economy
D. None of these
Answer
A. Emerging economy
147. The world trade organization was formed in the year ___ with GATT as it basis.
A. 1992
B. 1993
C. 1995
D. 1994
Answer
C. 1995
148. ___ 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
149. Theory of Mercantilism propagates
A. Encourage imports and exports
B. Encourage exports and discourage imports
C. Discourage imports
D. None of these
Answer
B. Encourage exports and discourage imports
150. The country that attract the largest FDI inflow is
A. USA
B. INDIA
C. CHINA
D. BRAZIL
Answer
C. CHINA
151. General electric follows ___ as its international operational strategy
A. GLOBAL
B. TRANSNATIONAL
C. INTERNATIONAL
D. MULTI-DOMESTIC
Answer
B. TRANSNATIONAL
152. Typically the last step in the internationalization process is:
A. Licensing
B. Exporting
C. Wholly owned subsidiaries
D. Foreign Direct Investment
Answer
D. Foreign Direct Investment
153. Which of these is/are the characteristic of a licensing agreement
A. The licensor might provide access to some of its patents or trademarks
B. The licensor might provide access to technology
C. It might be used to avoid the risks of foreign involvement
D. All of the above
Answer
D. All of the above
154. IBRD (International Bank for Reconstruction and Development) also known as
A. EXIM Bank
B. World Bank
C. IMF
D. International Financial Bank
Answer
B. World Bank
155. Ultimately ___ was replaced by the ___ on 1st Jan 1995
A. GATT/WTO
B. GATS/IMF
C. WTO/WORLD BANK
D. WORLD BANK/WIPO
Answer
A. GATT/WTO
156. Which is the right sequence of a stages of Internationalization
A. Domestic, Transnational, Global, International, Multinational
B. Domestic, International, Multinational, Global, Transnational
C. Domestic, Multinational, International, Transnational, Global
D. Domestic, International, Transnational, Multinational, Global
Answer
B. Domestic, International, Multinational, Global, Transnational
157. Subsidiaries consider regional environment for policy / Strategy formulation is known as
A. Polycentric Approach
B. Regiocentric Approach
C. Ethnocentric Approach
D. Geocentric Approach
Answer
B. Regiocentric Approach
158. By entering into international business, a firm expects improvement in
A. Marketing.
B. All spheres of marketing, operation and finance simultaneously.
C. Any or all spheres of marketing, operation and finance.
D. Finance only.
Answer
C. Any or all spheres of marketing, operation and finance.
159. Uneven distribution of natural resources
A. is the only cause for international business.
B. is the major factor for international business.
C. is among the major factors for international business.
D. is not a cause for international business.
Answer
C. is among the major factors for international business.
160. The following factor does not differentiate international business from domesticbusiness
A. different currencies
B. product quality
C. product mobility
D. trade policies
Answer
B. product quality
