- 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
QN1: Foreign trade has the advantage:
a. Trading countries get foreign exchange
b. Can import scarce raw materials
c. Can import machinery and technology
d. (b) and (c) of above
Answer
d. (b) and (c) of above
QN2: The theory explaining trade between two countries is called:
a. Comparative disadvantage theory
b. Comparative cost theory
c. Comparative trade theory
d. None of the above
Answer
b. Comparative cost theory
QN3: Balance of payments means:
a. The balance of receipts and payments of all banks
b. The balance of receipts and payments of State Bank
c. The balance of receipts and payments of foreign exchange by a country
d. The balance of govt. receipts and payments
Answer
c. The balance of receipts and payments of foreign exchange by a country
QN4: International trade is possible primarily through:
a. Generalization in production of all goods
b. Specialization in production of one good
c. Specialization in production of a few goods
d. All of the above
Answer
c. Specialization in production of a few goods
QN5: Commercial policy means:
a. Policy about markets
b. Policy about money supply
c. Policy about imports and exports
d. Policy for controlling of prices of goods
Answer
c. Policy about imports and exports
QN6: Policy of Protection in trade:
a. Facilitates trade
b. Protects foreign producers
c. Protects local producers
d. Protects exporters
Answer
c. Protects local producers
QN7: “In foreign trade, Protection policy means:”
a. Restrictions on exports
b. Restriction on transfer of foreign exchange
c. Restrictions on imports
d. All of the above
Answer
c. Restrictions on imports
QN8: Foreign trade:
a. Increases employment opportunities
b. Increases international mobility of labour
c. Increases competition
d. All of the above
Answer
d. All of the above
QN9: “If a country decreases the external value of its currency, it will affect:”
a. Volume of exports
b. Volume of imports
c. General price level
d. All of the above
Answer
d. All of the above
QN10: The theory explaining trade between two countries is called:
a. Comparative advantage
b. Comparative bargain
c. Comparative trade
d. Comparative returns
Answer
a. Comparative advantage
QN11: This is an advantage of foreign trade:
a. We can preserve our natural resources
b. New technology comes to the country
c. People need not go abroad
d. We can get foreign currencies
Answer
b. New technology comes to the country
QN12: What would encourage trade between two countries?
a. Different tax system
b. Quality control
c. Reduced tariffs
d. Fixing import quotax
Answer
c. Reduced tariffs
QN13: David Ricardo presented the theory of international trade called:
a. Theory of absolute advantage
b. Theory of comparative advantage
c. Theory of equal advantage
d. Theory of total advantage
Answer
b. Theory of comparative advantage
QN14: “””Terms of trade”” between two countries refer to a ratio of:”
a. Export prices to import prices
b. Currency values
c. Exports to imports
d. Balance of trade to balance of payments
Answer
a. Export prices to import prices
QN15: Terms of trade of a country:
a. Mean the trade agreement between trading countries
b. Is another name of exchange ratio of two currencies
c. Show the ratio between total export earnings and import bill of a country
d. Are determined by the price index of export and import goods
Answer
d. Are determined by the price index of export and import goods
QN16: It is drawback of free trade:
a. Prices of local goods rise
b. Government looses income from custom duties
c. National resources are underutilized
d. (a) and (b) of above
Answer
b. Government looses income from custom duties
QN17: Which of the following is international trade:
a. Trade between provinces
b. Trade between regions
c. Trade between countries
d. (b) and (c) of above
Answer
c. Trade between countries
QN18: Trade between two countries takes place when:
a. Cost ratios of commodities are equal
b. Cost ratios of commodities are different
c. Cost ratios of commodities are high
d. Cost ratios of commodities are low
Answer
b. Cost ratios of commodities are different
QN19: This is NOT an advantage of foreign trade:
a. We can get gold from abroad
b. New technology comes to the country
c. We can import goods which are in short supply in India
d. We can made best use of natural resources
Answer
a. We can get gold from abroad
QN20: “Companies become involved in exporting for a number of reasons, all of which are linked to the desire to:”
a. increase profits and sales
b. protect profits and sales from being eroded
c. ” both “”a”” and “”b”””
d. none of the above
Answer
c. ” both “”a”” and “”b”””
QN21: Exports create:
a. Low wage employment
b. High wage employment
c. No increase or decrease in employment
d. None of the above
Answer
a. Low wage employment
QN22: Who does international trade allow to seek out products, services, and components in foreign countries?
a. Manufacturers and distributors
b. Distributors and suppliers
c. Suppliers and public officials
d. Manufacturers and suppliers
Answer
a. Manufacturers and distributors
QN23: “For developing countries, determinants of import demand include:”
a. Government restrictions on all exports
b. Government restrictions on imports
c. Government restrictions on commercial exports only
d. Government restrictions on gold shipments
Answer
b. Government restrictions on imports
QN24: Countries that are members of the GATT/WTO are called:
a. Member nations
b. Members
c. Contracting parties
d. Contracting members
Answer
c. Contracting parties
QN25: The Final Act of the Uruguay Round established:
a. Reduction in global trade barriers and a multilateral framework of discipline for trade in services
b. Reduction in global trade barriers and protection of trade-related intellectual property rights
c. A multilateral framework of discipline for trade in services and protection of trade-related intellectual property rights
d. Reduction in global trade barriers, a multilateral framework of discipline for trade in services, and protection of trade-related intellectual property rights
Answer
d. Reduction in global trade barriers, a multilateral framework of discipline for trade in services, and protection of trade-related intellectual property rights
QN26: “The first step in locating foreign markets, whether for export or for foreign manufacturing is to determine whether:”
a. sufficient personnel are available to handle the foreign operations
b. sufficient capital is available to expand internationally
c. excess production capacity exists in the home market
d. a market exists for the firm’s product
Answer
d. a market exists for the firm’s product
QN27: A major reason given for a firm not exporting is
a. preoccupation with corporate restructuring
b. preoccupation with the vast American market
c. no knowledge of foreign operations
d. insufficient capital to expand foreign markets
Answer
b. preoccupation with the vast American market
QN28: Which of the following are included in a typical services export?
a. Tourism and transportation
b. Sales and forecasting
c. Technology and e-commerce
d. All of the above
Answer
a. Tourism and transportation
QN29: Which of the following is not a reason for exporting?
a. To offset cyclical sales of the global market
b. To satisfy a host government’s requirement that the local subsidiary export
c. To remain competitive in the home market
d. To test foreign markets and foreign competition inexpensively
Answer
a. To offset cyclical sales of the global market
QN30: “Although exporters would prefer to sell on the almost riskless letter of credit terms, increased foreign competition and the universally tight money situation are forcing them to:”
a. accept payment in foreign currency
b. accept export drafts
c. accept documentary drafts
d. offer credit
Answer
d. offer credit
QN31: Which of the following is not one of the purposes served by the export bill of lading?
a. It is a contract for carriage between the shipper and carrier
b. It is a receipt from the carrier for the goods shipped
c. It is a certificate of ownership
d. It is a certificate for release of liability
Answer
d. It is a certificate for release of liability
QN32: The sales agreement should specify:
a. all of the terms and conditions of the sale
b. as simply as possible the duties of the representative and the firm
c. as comprehensively as possible the duties of the representative and the firm
d. None of the above
Answer
b. as simply as possible the duties of the representative and the firm
QN33: The _____ is a program that provides current sales leads from overseas firms that want to buy or represent American firms.
a. Trade Representation Program
b. Trade Incentives Program
c. Trade Alternatives Program
d. Trade Opportunities Program
Answer
d. Trade Opportunities Program
QN34: An export marketing plan is ____ a domestic marketing plan.
a. essentially the same as
b. more comprehensive than
c. more detailed than
d. more specific than
Answer
a. essentially the same as
QN35: An unconditional order that is drawn by the seller on the buyer to pay the draft’s amount on presentation or at an agreed future date and that must be paid before the buyer receives shipping documents is called:
a. an unconditional draft
b. a presentation draft
c. an export draft
d. a documentary draft
Answer
c. an export draft
QN36:__ warehouse is authorized by customs authorities for the storage of goods on which payment of import duties is deferred until the goods are removed
a. A bonded
b. An import
c. A customs
d. A deferred
Answer
a. A bonded
QN37: A specialized corporate form authorized by the federal government that provides tax advantages for exporting firms is known as:
a. an exporting corporation
b. a foreign sales corporation
c. a foreign exporting corporation
d. a foreign tax advantage corporation
Answer
b. a foreign sales corporation
QN38: Which of the following is not one of the kinds of payment terms offered by exporters to foreign buyers?
a. Cash on delivery
b. Cash in advance
c. Consignment
d. Documentary drafts
Answer
a. Cash on delivery
QN39: “When non-exporters complain about the complexity of export procedures, they are generally referring to:”
a. government regulations
b. dealing with foreign regulations
c. documentation
d. all of the above
Answer
c. documentation
QN40: The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries:
a. Economies of large-scale production
b. Relative abundance of various resources
c. Relative costs of labor
d. Research and development expenditures
Answer
b. Relative abundance of various resources
