Global Business Environment MCQs with answers: these notes are useful for the preparation of various competitive and academic exams like NET, UGC, BCOM, MCOM, MBA, BBA, and many other regular and distance education exams.
Global Business Environment MCQ Multiple Choice Questions
101. Geographical indications specify
A. Place of origin of goods
B. Special characteristics of the product are associated with the place of origin.
C. Place and special characteristics of the product
D. Place or special characteristics of the product
Answer: (C)
102. Computer programs are protected as
A. Copyrights.
B. Trademarks.
C. Patents.
D. Industrial design
Answer: (A)
103. In India, the patent available for pharmaceuticals is
A. for product only.
B. for processing only.
C. both for product and process
D. neither product nor process
Answer: (C)
104. The degrading effect of MNCs on the environment is through
A. Relocating production from developing countries to developed countries
B. Relocating production from developed countries to developing countries
C. Flouting environmental laws
D. Relocation of distribution
Answer: (B)
105. Which one of the following is true of the Chinese?
A. They pay close attention to long-standing relationships.
B. ‘They are very relaxed about time’ and ‘they prefer to work on a one-to-one basis only.
C. They are very relaxed about time.
D. They prefer to work on a one-to-one basis.
Answer: (B)
106. In this culture, equality is a desirable value. However, the actual behaviour of whom does not show so much equality, as in this culture, people should get what they deserve if they have the capabilities to work hard.
A. Romanians.
B. Americans.
C. Russians.
D. The French
Answer: (B)
107. Which of the following sentences about individualism is not true?
A. cultures are universalistic, while collectivistic cultures are particularistic.
B. Individualists tend to see brands as unique human personalities.
C. In individualistic cultures, private time and work are not strictly separated.
D. Individualism is increasing worldwide because it is associated with wealth.
Answer: (B)
108. Confucianism has adherents mainly in
A. Eastern Europe
B. The USA
C. China, Korea, and Japan
D. Africa
Answer: (C)
109. Which of the following is not true about high-context cultures?
A. lawyers are less important
B. Negotiations are lengthy
C. People make a big deal out of private space
D. Competitive bidding is less important
Answer: (C)
110. Which of the following is not an element of culture?
A. Tax law
B. Language
C. Traditions
D. Art
Answer: (B)
111. To assess the potential of international markets, organizations generally compare nations with respect to
A. Political regime
B. demographics, GNP/capita, and ‘consumer preferences.
C. consumer preferences
D. demographics, GNP/capita
Answer: (B)
112. Which of the following statements is true?
A. The payment of interest is considered illegal by Islam
B. The payment of interest is considered legal by Islam
C. Alcohol consumption is considered legal by Islam
D. Women entrepreneurs are encouraged
Answer: (A)
113. The cultural environment of a country is best defined by which characteristics?
A. Degree of nationalism and economic community membership.
B. Production process and standards of measurement.
C. Standard of living and stage of economic development.
D. Values, attitudes, heroes, myths, and symbols.
Answer: (D)
114. Hyperbole, persuasiveness, dreams, great expectations, and comparative advertising are reflections of Hofstede’s dimension.
A. Individualism.
B. Femininity.
C. Masculinity.
D. Collectivism.
Answer: (C)
115. Which of the following sentences is not true?
A. In small power-distance cultures, freedom means independence.
B. Characteristic of weak uncertainty avoidance is resistance to change, a desire for stability.
C. The norm, the desirable, in masculine societies is that one wants to show one’s success.
D. In large power distance and collectivistic cultures, children remain dependent on their parents
much more than those in small power distance and individualistic cultures.
Answer: (B)
116. To what extent of the world population is collectivist?
A. 10- 20 per cent.
B. 40-50 per cent.
C. 70-80 per cent.
D. 90-95 per cent
Answer: (C)
117. The roots of individualism are in
A. France.
B. Saudi Arabia.
C. England.
D. The USA.
Answer: (C)
118. Income and population are two variables that can be used
A. demographic segmentation.
B. Behavioural segmentation.
C. Lifestyle segmentation.
D. Psychographic segmentation.
Answer: (A)
119. Strong exchange rates can
A. helps predict a change in lifestyle across Europe.
B. predicts the evolution of sales for particular brands.
C. help estimates consumer purchasing power.
D. drives imports to become cheaper.
Answer: (D)
120. When an organization selling electric and electronic household goods evaluates international markets in view of entering them, a crucial factor taken into account is represented by
A. The demographic characteristics.
B. The economic factors.
C. The cultural factors.
D. The technological factors.
Answer: (B)
121. The least demanding targeting strategy in international marketing is
A. focused.
B. differentiated.
C. concentrated.
D. undifferentiated.
Answer: (D)
122. Which of the following are positive reasons for internationalization?
A. Market diversification.
B. Economies of scale.
C. International competitiveness.
D. All of the above.
Answer: (D)
123. Which economic factors should be analyzed by organizations wishing to expand in international markets?
A. Interest rates.
B. Employment.
C. Purchasing power.
D. All the above.
Answer: (D)
124. How can a marketer use the age distribution of the population in a market?
A. the marketer can use it to identify the purchasing power of the population in each country.
B. the marketer can use it to identify the potential number of customers in various age groups.
C. the marketer can use it to identify behavioral patterns within each age group.
D. the marketer can use it to identify lifestyle patterns within various age groups.
Answer: (B)
125. In the PEST framework for environmental analysis, what does the letter E stands for
A. Ethical.
B. Ecological.
C. Educational.
D. Economic.
Answer: (D)
126. Analyzing processes of change in the business environment involves conceptualizing it as
A. Complex.
B. Static.
C. Dynamic.
D. Diverse.
Answer: (D)
127. Profit may be defined as
A. the difference between total wage costs and total sales revenue.
B. total revenue from sales.
C. the difference between total production costs and total sales revenue.
D. the amount of money paid to shareholders as dividends.
Answer: (C)
128. The concept of a firm’s ‘license to operate refers to
A. a legal requirement for company registration.
B. the need for a firm to retain its legitimacy in the eyes of the public.
C. a qualification needed by company directors.
D. an agreement recognizing trade unions.
Answer: (B)
129. What does the term ‘third sector’ refer to?
A. the high technology industries.
B. the service sector.
C. the voluntary sector.
D. small and medium-sized enterprises (SMEs).
Answer: (C)
130. The idea that consumers are in charge of the economic system because their preferences drive business decisions about what to produce is referred to as
A. consumer activism.
B. consumer sovereignty.
C. consumerism.
D. consumer therapy.
Answer: (B)
131. A multinational corporation (MNC) is defined by
A. carrying out production in more than one country.
B. having sales in more than one country.
C. having a multi-ethnic workforce.
D. having suppliers in more than one country.
Answer: (A)
132. Which type of organizational structure is characterized by departments or units dealing with specialized tasks?
A. Matrix.
B. Divisional.
C. Hierarchical.
D. Functional.
Answer: (D)
133. The political system that stresses the primacy of collective goals over individual goals is
A. individualism.
B. Collectivism.
C. Socialism.
D. Communism.
Answer: (B)
134. The system of government in a nation is called the
A. Political system.
B. Economic environment.
C. Political environment.
D. National policy.
Answer: (C)
135. A philosophy of freedom of an individual in economic and political pursuits is
A. Collectivism.
B. Individualism.
C. Socialism.
D. Democracy.
Answer: (D)
136. The political power monopolized by a party that governs according to religious principles is
A. Communist totalitarianism.
B. Theocratic totalitarianism.
C. Secular totalitarianism.
D. Tribal totalitarianism.
Answer: (B)
137. The productive activities privately owned as opposed to being owned by the state is
A. Market economy.
B. Secular economy.
C. Command economy.
D. Mixed economy.
Answer: (A)
138. The goods and the services produced, priced, and distributed by the government is
A. Market economy.
B. Secular economy.
C. Command economy.
D. Mixed economy.
Answer: (C)
139. The law based on the tradition of a precedent and custom is
A. civil law.
B. criminal law.
C. common law.
D. religious law.
Answer: (C)
140. The protection against the new invention of a product or process for a defined period is
A. patent.
B. trademark.
C. copy right.
D. Technology.
Answer: (A)
141. The exclusive legal right of authors. Composers, play writes, artists, and publishers publish and disperse their works is
A. Patent.
B. trademark.
C. copy right.
D. Technology.
Answer: (C)
142. The Paris Convention for the Protection of Industry Property was dated
A. 1783.
B. 1883.
C. 1983.
D. 2003.
Answer: (A)
143. The transfer of the ownership of state property into the hands of private individuals by the sale of state assets through auction is
A. Privatization.
B. Liberalization.
C. Globalization.
D. Domestication.
Answer: (A)
144. MFN is an acronym of
A. Most Favorable Nations.
B. Most Favored Nations.
C. Most Fortune Nations.
D. Most Fastest Nations.
Answer: (B)
145. The law that prevents the practices of restraint of trade is
A. Antiboycott regulations.
B. Antitrust Laws.
C. Antibribery regulations.
D. Anticorruption regulations.
Answer: (A)
146. The taking over of a private firm by the host country’s government to be run as a government unit is
A. expropriation.
B. confiscation.
C. nationalization.
D. domestication.
Answer: (C)
147. The requirement imposed by the host country government that gradually ownership and management of the firm transferred to the locals is
A. expropriation.
B. confiscation.
C. nationalization.
D. domestication.
Answer: (D)
148. The creation of difficult conditions in the country forces the foreign investors to opt out of the country
A. creeping expropriation.
B. boycott.
C. violence.
D. exchange control.
Answer: (A)
149. The total accumulated value of foreign-owned assets at a given period of time is
A. flow of FDI.
B. stock of FDI.
C. inflow of FDI.
D. outflow of FDI.
Answer: (B)
150. The focus on increasing profitability and profit growth by reaping the cost reduction that comes from economies of scale is
A. global standardization strategy.
B. localization strategy.
C. transnational strategy.
D. international strategy.
Answer: (A)
151. The focus on increasing profitability by customizing the firm’s goods or services providing a good match to taste and preferences in different national markets is
A. global standardization strategy.
B. localization strategy.
C. transnational strategy.
D. international strategy.
Answer: (B)
152. The firms trying to simultaneously achieve low costs by locating economies in the firm`s global network of operations is
A. global standardization strategy.
B. localization strategy.
C. transnational strategy.
D. international strategy.
Answer: (C)
153. The strategy of taking the products first produced for their domestic market and selling them internationally with only minimal local customization is
A. global standardization strategy.
B. localization strategy.
C. transnational strategy.
D. international strategy.
Answer: (D)
154. An agreement whereby a person grants the other the rights to the intangible property for a specified period for a return of royalty is
A. franchising.
B. licensing.
C. joint venture.
D. strategic alliances.
Answer: (B)
155. The agreement in which a firm not only sells the intangible property to an entity but also insist on the strict rules as to how it does business is
A. franchising.
B. licensing.
C. joint venture.
D. strategic alliances.
Answer: (A)
156. An entitlement establishing a firm that is jointly owned by two or more otherwise independent firms
A. franchising.
B. licensing.
C. joint venture.
D. strategic alliances.
Answer: (C)
157. The cooperative agreement between potential or actual competitors is
A. franchising.
B. licensing.
C. joint venture.
D. strategic alliances.
Answer: (D)
158. The entry mode that allows firms to export their process know-how to countries where FDI is prohibited, thereby enabling the firm to earn a greater return from these assets is
A. licensing.
B. consultancy exports.
C. project exports.
D. turnkey projects.
Answer: (D)
159. The abstract ideas about what a group of people and that when taken together constitute a design for living is
A. norms.
B. values.
C. Attitude.
D. belief.
Answer: (B)
160. The social guidelines and rules that prescribe appropriate behaviour in a particular situation is
A. norms.
B. values.
C. Attitude.
D. belief.
Answer: (A)
161. The relation between TRIPS and WIPO conventions is
A. WIPO conventions are more valid.
B. TRIPS agreement excludes subjects covered by WIPO conventions.
C. TRIPS agreement is subordinate to WIPO conventions.
D. TRIPS agreement incorporates substantive provisions of WIPO conventions.
Answer: (D)
162. The leading continent in international trade in IT products is
A. Asia.
B. Europe.
C. America.
D. Africa.
Answer: (A)
163. The origin of Common law is in
A. America.
B. England.
C. Russia.
D. India.
Answer: (B)
164. The law system practices in Japan is
A. Common law.
B. Code law.
C. Civil law.
D. Religious law.
Answer: (B)
165. Terrorism in the host country is a
A. ownership risk.
B. operating risk.
C. transfer risk.
D. general risk.
Answer: (B)
166. Case law is the other name for
A. code law.
B. common law.
C. civil law.
D. criminal law.
Answer: (B)
167. The new economic policy has components
A. Liberalization.
B. Privatization.
C. Globalization.
D. LPG.
Answer: (D)
168. A mixed economy is necessarily a
A. controlled.
B. planned.
C. organized.
D. planned, organized, and controlled.
Answer: (B)
169. Which law emphasized the importance of continuous development and expansion of export-oriented production?
A. Export Policy Resolution, 1970.
B. MRTP.
C. IRDA.
D. The Companies Act.Answer: (A)
170. What is the growth rate of industrial output in the last four decades?
A. 4.5 % per annum.
B. 5 % annum.
C. 6 % per annum.
D. 5.5 % per annum.
Answer: (D)
171. Microenvironment consists of
A. suppliers.
B. competitors.
C. political.
D. cultural.
Answer: (A)
172. The macro-environment consists of
A. suppliers.
B. competitors.
C. marketing.
D. distributors.
Answer: (B)
173. Competitors, Customers, and Public are the part of
A. macro environment.
B. microenvironment.
C. business necessities.
D. internal environment.
Answer: (B)
174. What are the important external factors that constitute the economic environment of business?
A. economic condition.
B. economic policy.
C. economic system.
D. economic condition, policy, and system.
Answer: (D)
175. What are the main objectives of the policy initiatives?
A. Reducing the govt. Deficit.
B. Reduction of the current account deficit in the balance of payments.
C. Raising GDP growth.
D. All of the above.
Answer: (B)
176. When was the first Five year Plan?
A. 1950.
B. 1951.
C. 1952.
D. 1953.
Answer: (B)
177. What are the main objectives of the five-year plan?
A. achieve full employment.
B. reduce inequalities of income and wealth.
C. set up a socialist society based on equality.
D. balanced economy.
Answer: (D)
178. What do you mean by DGTD?
A. Director-General of Trade and Development.
B. Director General of Total Development.
C. Director General of Technical Development.
D. Director General of Transport Development.
Answer: (A)
179. The environment is synonymous with
A. task.
B. relation.
C. people.
D. situational variables.
Answer: (D)
180. The purpose of a SWOT analysis is to analyze
A. business environment in which an organisation operates.
B. The strategic capability of an organization.
C. The business environment and the strategic capability of an organization relative to its competitors.
D. External and organizational environments.
Answer: (C)
181. SWOT should be
A. A general list of issues under each heading.
B. Focused on key issues and as specific as possible.
C. Completed when an analysis of the external environment has been conducted.
D. SWOT analysis is the best strategic management framework for analyzing the competitive positioning of an organization.
Answer: (B)
182. Ethical issues concerning business and public sector organizations exist at three levels
A. Macro, Corporate, Individual.
B. Corporate, Business, Functional.
C. Corporate, Functional, Individual.
D. Business, Family, Individual.
Answer: (A)
183. An ethical stance is the extent to which
A. An organization meets the expectations of its stakeholders.
B. An organisation will exceed its minimum obligations to stakeholders and society at large.
C. An organisation meets regulatory requirements.
D. An organisation respects the dominant religious beliefs of the country in which it operates.
Answer: (B)
184. Corporate Social Responsibility concerns
A. how an organization meets the expectations of its stakeholders.
B. the behaviour of individual managers.
C. external stakeholder relationships.
D. the ways in which an organization exceeds its minimum required obligations to stakeholders.
Answer: (D)
185. The cultural frames of reference include
A. National; organizational field; competitors.
B. National; organizational; organizational field and functional/divisional.
C. Unions; organizational; industrial.
D. Organisational; colleagues; organizational field.
Answer: (B)
186. An organizational field is a
A. Definition of the competitive structure of an industry.
B. Set of assumptions held in common within an industry.
C. Set of benchmarks that organisations should achieve in order to be successful
D. Community of organizations with a common meaning system and which interact more frequently with each other than with those outside the field.
Answer: (D)
187. The culture of an organization can be conceived as consisting of layers
A. Values; beliefs; behaviours; and taken-for-granted assumptions.
B. . Values; beliefs; tasks, objectives.
C. Beliefs; tasks; personalities.
D. Individual; functional; organizational.
Answer: (A)
188. The cultural web is a
A. Representation of the taken-for-granted assumptions, or paradigm, of an organization and the physical manifestations of the organization’s culture.
B. Representation of the taken-for-granted assumptions, or paradigm, of an organization and its competitors.
C. Representation of the power in an organization.
D. Representation of the politics in an organization.
Answer: (A)
189. The environmental factor that includes people’s attitude to family, religion, etc is
A. Cultural.
B. Economic.
C. Socio-cultural.
D. Political.
Answer: (C)
190. The value chain attempts to identify those activities which add value to
A. The organization’s stakeholders.
B. The senior strategic managers in the organization
C. The organization’s shareholders.
D. The customer or final user.
Answer: (D)
191. The value chain is composed of primary & support activities. Which answer below provides the correct components for primary activities?
A. Service, human resource management, marketing & sales, operations, and outbound logistics.
B. Marketing & Sales, Operations, Outbound Logistics, and Service.
C. Procurement, Firm Infrastructure, Human Resource Management, Technology Development, and Marketing & Sales.
D. Inbound Logistics, Operations, Outbound Logistics, Marketing & Sales, and Service.
Answer: (C)
192. Which types of organizational knowledge are sources of competitive advantage?
A. Explicit knowledge is classified and formalized in a planned and systematic way.
B. Personal knowledge which is hard to communicate and formalize.
C. Customer databases, market research reports, and management reports.
D. The collective and shared experience accumulated through systems, routines, and activities of sharing across the organization.
Answer: (D)
193. The global commons refers to
A. The shared parts of the earth.
B. The parts of the Earth are not accessible to anyone nation.
C. Natural phenomenon that affects all inhabitants of the earth.
D. All parts of nature that contribute to the health of the global environment
Answer: (C)
194. The largest oil-exporting country in the world is
A. Norway.
B. Saudi Arabia.
C. Russia.
D. Great Britain.
Answer: (B)
195. Which of the following is a possible consequence of global warming?
A. A global temperature increase of ten to fifteen Celsius.
B. An increase in ultraviolet radiation reaching the earth’s surface.
C. A global temperature increase of three to ten degrees Fahrenheit.
D. An increase in the chlorofluorocarbons in the atmosphere.
Answer: (D)
196. The process whereby a commons is spilled into privately held pieces of property in order to manage resources responsibility is
A. Land division.
B. Land reform.
C. Enclosure.
D. Privatisation.
Answer: (D)
197. What 1997 treaty adopted a complex formula for greenhouse emissions to 1990 levels in the global north? Kyoto protocol.
A. UNEP. framework
B. convention on climate change.
C. UNCLOS III
D. Montreal Protocol.
Answer: (B)
198. Which countries have been reluctant to agree to a reduction in greenhouse gas emissions?
A. Russia.
B. Great Britain.
C. France.
D. China
Answer: (B)
199. Air and water pollution are typically
A. Regional.
B. Multilateral.
C. Economic.
D. Global.
Answer: (D)
200. Which of the following is characteristic of the final stage of demographic transition?
A. High death rates.
B. Rapid population growth.
C. Birth and death rates that are close to each other.
D. High birth rates.
Answer: (C)
201. Analysing process of change in the Business environment involves conceptualizing it as –
A. Diverse
B. Complex
C. Dynamic
D. Static
Answer: (C)
Global Business Environment Quiz-1
