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
MCQ of International Marketing mba course
QN1: The European Union is an example of a___.
A) customs union
B) free trade agreement only
C) regional trade agreement with no internal barriers but with individual external tariffs
D) common language agreement
Answer
Answer: A) customs union
QN2: A___results when free mobility of factors of product is added to a customs union.
A) customs union
B) common market
C) free trade agreement
D) regional trade agreement
Answer
Answer: B) common market
QN3: A trade agreement where the member countries have a common external tariff is a
A) free trade agreement
B) customs union
C) regional free trade zone
D) NAFTA-style agreement
Answer
Answer: A) free trade agreement
QN4: Geographic proximity is an important factor in establishing trading blocs because
A) countries next to each other rarely have trade barriers
B) neighboring countries typically use the same language
C) good trading relationships often exist, so it is easier to reduce barriers and increase trade for countries that are close geographically
D) the WTO gives preference to trading blocs that involve two or more countries that share a common border
Answer
Answer: C) good trading relationships often exist, so it is easier to reduce barriers and increase trade for countries that are close geographically
QN5: Most trade groups contain countries in the same area of the world. Why is this so?
A) The distances that goods need to travel between such countries are short.
B) Distribution channels are not easily established in adjacent countries.
C) Adjacent countries are reluctant to coordinate policies.
D) Neighboring countries usually lack a common history and interests.
Answer
Answer: A) The distances that goods need to travel between such countries are short.
QN6: Trade agreements, whether regional, bilateral, or global, help companies___.
A) by opening up markets in countries that are part of the agreements
B) to invest more abroad but not necessarily export more
C) to export products to countries that are part of the agreements but not necessarily import more
D) make export and import decisions, but they do not help with investment decisions
Answer
Answer: A) by opening up markets in countries that are part of the agreements
QN7: The clause embodied the fundamental principle of GATT-trade without discrimination.
A) most-favored-nation
B) nontariff barriers
C) free rider
D) normal trade relations
Answer
Answer: A) most-favored-nation
QN8: ___is a WTO principle that allows member nations to extend tariff cuts to WTO members.
A) Most-favored-nation
B) Nontariff barrier relations
C) The free rider policy
D) Normal trade relations
Answer
Answer: D) Normal trade relations
QN9: Under the WTO agreement,_.
A) Baa a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures
B) there there ithere is no dispute resolution mechanism except for trade involving environmental products
C) countries are countries are allowed to place trade barriers on member countries with no particular justification, because the WTO has no enforcement mechanism, just like GATT
D) tariffs are nottariffs are permitted to be levied by developed countries against developing countries but not against each other
Answer
Answer: A) Baa a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures
QN10: A major problem with the Doha Round is that___.
A) developing countries want developed countries to better protect their intellectual property
B) developed countries want a reduction in agricultural subsidies by the developing countries
C) the WTO does not want the developing countries to liberalize their investment rules
D) because of security issues, not all countries were able to attend the meetings, so it was impossible to get a consensus vote
Answer
Answer: B) developed countries want a reduction in agricultural subsidies by the developing countries
QN11: integration is the political and economic agreements among countries that give preference to member countries to the agreement.
A) Global
B) Economic
C) Bilateral
D) Regional
Answer
Answer: B) Economic
QN12: Which of the following countries are members of NAFTA?
A) the United States, Canada, and Mexico
B) North America and Latin America
C) the United Kingdom, the United States, and Canada
D) the United States, Canada, and Australia
Answer
Answer: A) the United States, Canada, and Mexico
QN13: Which of the following country is not a member of SADC?
A) Angola
B) Nigeria
C) Zambia
D) South Africa
Answer
Answer: B) Nigeria
QN14: Member countries of the African Union are planning to establish a Court of Justice for which the statutes defining the composition and functions of the Court of Justice will be submitted to the Assembly in
A) Maputo
B) Durban
C) Lome
D) Lusaka
Answer
Answer: A) Maputo
QN15: Treaty to establishing the African Economic Community (AEC) was signed in
A) 1993
B) 1991
C) 1990
D) 1998
Answer
Answer: B) 1991
QN16: Which of the following country is not a member of SAARC?
A) Bangladesh
B) Bhutan
C) India
D) China
Answer
Answer: D) China
QN17: Which of the following are not third-world regions?
a. Latin America.
b. Asia.
c. Africa.
d. Australia.
Answer
Answer: d. Australia.
QN18: Which of the following countries are not newly industrialized countries (NICs)?
a. Taiwan.
b. North Korea.
c. Singapore.
d. Hong Kong.
Answer
Answer: d. Hong Kong.
QN19: Which country is not a transitional economy
a. China.
b. Russia.
c. Hungary.
d. Mexico.
Answer
Answer: d. Mexico.
QN20: Development economics focuses primarily on the poorest _ of the world’s a. population.
b. two-thirds.
c. one-third.
d. 28 percent.
e. 5 percent.
Answer
Answer: b. two-thirds.
QN21: The poorest region of the world is
a. the Middle East.
b. sub-Saharan Africa.
c. Asia.
d. Latin America.
Answer
Answer: b. sub-Saharan Africa.
QN22: Of the world’s population, what portion lives in developing countries?
a. approximately 35%.
b. approximately 80%.
c. nearly 10 billion people.
d. less than 1 billion people.
Answer
Answer: b. approximately 80%.
QN23: In which of the following countries would you expect material lifestyles to be most like those in the United States?
a. Nigeria.
b. Japan.
c. India.
d. Mali.
Answer
Answer: b. Japan.
QN24: Compared to the income of the family of Balayya discussed in the text, the Smiths’ family income was roughly
a. twice as large.
b. 10 to 12 times as large.
c. 200 times larger.
d. -three-fourths as large.
Answer
Answer: c. 200 times larger.
QN25: Which of the following could be considered critical questions in development economics?
a. How do the poorest 2/3 of the world live?
b. What are the major theories of economic development?
c. What factors affect labor skills in the third world?
d. all of the above are correct.
Answer
Answer: b. What are the major theories of economic development?
QN26: Which of the following characteristics are most likely found in developing countries?
a. high population growth rates.
b. large number of people living in poverty.
c. very traditional methods of agricultural production.
d. all of the above
e. none of the above
Answer
Answer: d. all of the above
QN27: Which of the following could not be considered a major economic system?
a. capitalism.
b. communism.
c. socialism.
d. physical quality of life index.
e. none of the above.
Answer
Answer: d. physical quality of life index.
QN28: One classification of development levels used by the World Bank divides countries into three group on the basis of GNP per capita. They are
a. NIC, OPEC and G7
b. Low-income, middle-income and high-income
c. Southeast, Northeast and Southwest
d. Asia, America and Europe
Answer
Answer: b. Low-income, middle-income and high-income
QN29: The World Bank’s GNP per capita classification for low-income, middle-income and high income countries respectively is
a. less than $900, $900-$9,000 and more than $9,000.
b. less than $5,000, $5,000-$15,000 and more than $15,000.
c. less than $100, $100-$1,000 and more than $1000.
d. less than $50,000, $50,000-$150,000 and more than $150 000.
Answer
Answer: c. less than $100, $100-$1,000 and more than $1000.
QN30: OPEC is the
a. Organization of Petroleum Exporting Country.
b. Organization of Pre- European Commission.
c. Oil Producing Economies Caucus.
d. Organization of Problematic Economies Committee
Answer
Answer: a. Organization of Petroleum Exporting Country.
QN31: The Paasche index uses _ weights.
a. current-year
b. base-year
c. fisher ideal index
d. Purchasing Power Parity (PPP)
Answer
Answer: b. base-year
QN32: Which of the following is not a problem in comparing developed and developing countries’ GNP?
a. GNP is understated for developed countries, since a number of items included in their national incomes are intermediate goods
b. The economic contribution of a housewife in a peasant family may not be measured in GNP in poor country.
c. GNP is understated for developing countries since many of their labor-intensive good have no impact on exchange rate since they are not traded.
d. GNP is overstated for countries where the price of foreign exchange is less than market clearing price.
Answer
Answer: b. The economic contribution of a housewife in a peasant family may not be measured in GNP in poor country.
QN33: The University of Pennsylvania researchers Summers and Heston compute the price level of GDP as the ratio of purchasing power parity (PPP) exchange rate to the actual exchange rate where
a. both exchange rates are measured as the domestic currency price of the US-dollar.
b. both exchange rates are not converted into international dollars.
c. both exchange rates are pegged.
d. both exchange rate are converted into Big Mac PPP formula.
Answer
Answer: a. both exchange rates are measured as the domestic currency price of the US-dollar.
QN34: PPP is
a. a theory that tells us that exchange rates between currencies are in equilibrium when their purchasing power is the same in both countries.
b. GDP divided by exchange rate.
c. a measure of income inequality.
d. a measure of infant mortality in developing countries.
Answer
Answer: c. a measure of income inequality.
QN35: The Physical Quality of Life Index (PQLI) combines three indicators. They are
a. infant mortality, life expectancy and adult literacy rate.
b. crime rate, clean environment and quality of housing.
c. air pollution rate, water pollution rate and sanitation.
d. health, education and environment.
Answer
Answer: a. infant mortality, life expectancy and adult literacy rate.
QN36: Which of the following is not one of the Newly Industrialized Countries (NICs)?
a. Japan
b. South Korea
c. Taiwan
d. Singapore
Answer
Answer: a. Japan
QN37: According to the text, basic 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.
Answer
Answer: a. food, clothing and housing.
QN38: Which of the following statement is not true about LDCs?
a. Most LDCs have less than 1/10 the per capita GNP of the U.S.
b. A greater share of GNP would have to be devoted to education to attain the same primary enrollment rates as in the U.S.
c. Setting up western labor standard and minimum wages in labor-abundant LDCs is sensible.
d. Most LDCs have a greater shortage of qualified teachers than the U.S. does.
Answer
Answer: d. Most LDCs have a greater shortage of qualified teachers than the U.S. does.
QN39: Imitating labor standards from rich countries in LDCs may increase
a. equality.
b. poverty.
c. employment.
d. human development.
Answer
Answer: d. human development.
QN40: Which of the following did Mahatma Gandhi, non-violent politician and leader of India’s nationalist movement, not advocate?
a. village economic development.
b. handicraft production and labor-intensive technology.
c. centralized decision making.
d. reduction of material wants.
Answer
Answer: c. centralized decision making.
