Are you preparing for the NET Exam and looking for comprehensive and reliable study material on International Business? Look no further! Our International Business MCQ with answers are specifically designed to help you ace the exam with ease.
Whether you are a student or a professional aiming to enhance your knowledge in the field of international business, our carefully crafted multiple-choice questions will test your understanding and provide valuable insights. With a focus on key concepts, theories, and practical applications, our MCQs cover a wide range of topics including international trade, global marketing, multinational corporations, and more.
Moreover, each question is accompanied by a detailed answer explanation, ensuring that you grasp the core concepts thoroughly. So, gear up for success in the NET Exam by accessing our International Business MCQs, and take your understanding of this dynamic field to new heights.
Top 50 International Business MCQ for NET Exam with Answers
1. ___ can be defined as any business that crosses the national borders of the country of its establishment.
Ans. International business
2. Exports and imports do not constitute an international business. (True/False)
Ans. False
3. ___ is considered the first MNC in the world.
Ans. British East India Company
4. Bretton Woods conference led to the formation of ___.
a) World Trade Organisation
b) International monetary fund
c) United Nations Organisation
d) General Agreement on Trade and Tariffs
Ans. b) International monetary fund
5. Domestic businesses need to comply with the accounting and taxation standards prevailing in that country. (True/False)
Ans. True
6. ___ is not an advantage of international business.
a) Low-cost production
b) Market forces
c) Large customer base
d) Diversified risk
Ans. b) Market forces
7. Franchising and licensing are barriers to international business. (True/False)
Ans. False
8. Technological innovations and diminishing trade barriers are ___ of international business.
Ans. Drivers
9. Companies, which invest in other countries for business and also operate from other countries, are considered as ___.
Ans. Global companies
10. International and global business is different. (True/False)
Ans. True
11. Globalisation improves the living standards of people in developing countries. (True/False)
Ans. True
12. ___ can be defined as the worldwide trend of businesses expanding beyond their domestic boundaries.
Ans. Globalization
13. Trade theories help forecasts and diagnose country trade patterns & trends. (True or False)
Ans. True
14. Opportunity cost and efficiency in production do not vary from country to country. (True or False)
Ans. False
15. Trade occurs as a result of:
a. Choice differential.
b. Habit differential.
c. Taste differential.
d. Resource differential.
Ans. Resource differential
16. Name any two international trade theories?
Ans. Mercantilist and Comparative Cost Theory
17. What are the inherent weaknesses of Mercantilism theory?
Ans. Too much focus on exports only
18. What are the assumptions of the Heckscher-Ohlin Theory?
Ans. Factor endowment
19. What is the main assumption of Absolute Cost Advantage Theory?
Ans. Labour is the only factor of production
20. The two objectives of National economic policies are ___ and ___.
Ans. Full employment, a high economic growth rate.
21. FDI policy is dictated by the government of the host country. (True/False)
Ans. True.
22. Balance of payment is an indicator of a country’s ___.
Ans. Economic health.
23. Political factors define the economic and legal environment in a business environment. (True/False)
Ans. True.
24. ___ refers to the absolute power of the state to coerce and control its citizens.
a) Sovereignty
b) National interest
c) Political stability
d) Political risk
Ans. a) Sovereignty.
25. The two types of political risks are ___ and ___.
Ans. Macro and micro risk.
26. Three of the most used legal systems are ___, ___ and ___.
Ans. Common law, code law, and Islamic law.
27. Scanning of demography provides specific information about different consumer groups
(True/ False)
Ans. True.
28. Few of the international arbitration bodies are ___, ___, __ and ___.
Ans. International Chamber of Commerce, the American Arbitration Association, the London Court of Arbitration and the International Centre for the Settlement of Investment Disputes (ICSID).
29. ___ is defined as the art and other signs or demonstrations of human customs, civilization, and the way of life of a specific society or group.
Ans. Culture
30. The consumer tastes and preferences across countries are similar. (True/False)
Ans. False
31. Match the following:
a) PDI 1) tolerance for uncertainty and ambiguity.
b) Individualism 2) pragmatic future-oriented perspective.
c) Masculinity 3) equality or inequality between individuals.
d) UAI 4) individual or collective achievement.
e) LTO 5) support or does not support male dominance
Ans. (a) – 3, (b) – 4, (c) – 5, (d) – 1, (e) – 2
32. The most important cultural components of a country that relate to business transactions are ___, ___, and ___.
Ans. Language, religion, conflicting attitudes
33. The combination of Japanese vagueness and lack of understanding results in problems that make decision-making very twisted. (True/False)
Ans. True
34. Coded speech and verbosity are considered a waste of time and in time-pressured corporate ___, it is a crime.
a) Brazil.
b) China.
c) the USA
d) France.
Ans. c) the USA
35. The ability to demonstrate a series of behaviour is called ___.
Ans. Skill
36. Diverse groups do not require time to solve issues of working together. (True/False)
Ans. False
37. In international management, where people are from different cultures, you have to develop and apply your knowledge about cultures and not use a standard process for everyone. This is called ___.
Ans. Cross-cultural management.
38. Foreign investment is the investment by a foreign companies/ individual in an Indian company/industry/sector. (True/False)
Ans. True
39. Foreign Investment is of two types – direct and portfolio investment. (True/False)
Ans. True
40. Identify the correct answer. Which of the following is not the result of foreign investment ___?
a) Improvement in human development skills.
b) Increased competition improved productivity.
c) Grants/donations to Indian companies.
d) Easier integration into the global economy.
Ans. C
41. Portfolio Investment is better for a country in the long run. (True/False)
Ans. False
42. India does not allow Greenfield investment in India? (True/False)
Ans. False
43. Which of the following is not the route for portfolio investment in a country?
a) Foreign Institutional Investor.
b) Joint Venture.
c) Depository Receipts.
d) Foreign Currency Convertible Bonds.
Ans. B
44. Regional integration can be defined as the unification of countries. (True/False)
Ans. True
45. Promoting ___ is a need of regional integration.
Ans. Economic diversification
46. Identify the correct answer. Regional integration should not ___.
a) Build environmental programs at the regional level
b) Strengthen trade integration in the region
c) Contribute to the peace and security of the region
d) Break ties with other countries
Ans. d) Break ties with other countries
47. Countries under a political union do not have a common government. (True/False)
Ans. False
48. Countries under a Common External Tariff on imports from non-members are known as Common Market. (True/ False)
Ans. True
49. The purpose of an economic union is to promote closer ___ and ___ ties.
Ans. Cultural and political
50. Identify the factor of production.
a) Capital.
b) Consumers.
c) Market.
d) Policymaker.
Ans. a) Capital
51. The European Free Trade Association (EFTA) was established in the year:
a) 1950.
b) 1960.
c) 1970.
d) 1980.
Ans. b) 1960
52. ___ is a trade pact between Argentina, Brazil, Paraguay and Uruguay.
Ans. MERCOSUR
53. The EU comprises of ___ member states
Ans. 27
54. SAFTA agreement was initiated at the 12th SAARC summit held in Bangladesh. (True/False)
Ans. False
55. The Gulf Cooperation Council (GCC) is also known as the Cooperation Council for the Arab States of the Gulf (CCASG). (True/False)
Ans. True
56. India and MERCOSUR signed a Framework Agreement on ___.
Ans. 17th June 2003
57. The association of India and ASEAN started in the year 1991. (True/False)
Ans. True
58. ___ is the process of conducting business in multiple countries.
Ans. International business.
59. IMF stands for:
a) International Monetary Fund.
b) International Management Foundation.
c) Indian Monetary Fund.
d) Indian Management Foundation.
Ans. a) International Monetary Fund.
60. NAFTA is major support for international business. (True/False)
Ans. False.
61. The WTO is the successor to the ___.
Ans. GATT.
62. Majority of the WTO members belong to developed countries. (True/False)
Ans. False.
63. The main objective of ___ agreement is to establish the framework for liberalising trade in services.
a) GATT.
b) NAFTA.
c) TRIPS.
d) GATS.
Ans. d) GATS.
64. The WTO agreements are a set of rules that are followed by the governments while formulating policies and practices in the area of international trade. (True/False)
Ans. True.
65. The highest authority of WTO is the ___.
Ans. Ministerial Conference.
66. The ___ establishes and implements international labour standards.
Ans. International Labour Conference.
67. The Governing Body meets once a year in Geneva and takes decisions on the ILO policies. (True/False)
Ans. False.
68. The ILO was created in:
a) 1920.
b) 1919.
c) 1929.
d) 1991.
Ans. b) 1919.
69. The body of ILO Conventions and Recommendations is commonly known as the International Labour Conference. (True/False)
Ans. False.
70. The executive council of the ILO is known as the ___.
Ans. Governing body.
71. International financial management started with ___.
Ans. Liberalization
72. The management of finance in domestic and international business is considerably different. (True/False)
Ans. True
73. The ___ may include any changes that will impact the economic environment of the country.
a) Foreign exchange
b) Political risks
c) Market imperfection
d) Enhance opportunity set
Ans. Political risks
74. A ___ needs a more complex calculation.
Ans. Forward market
75. The greater part of the world’s deal in foreign currencies is still taking place in the cities where the international financial activity is centered. (True/False)
Ans. True
Conclusion
These 50 International Business MCQs have provided a valuable resource for those preparing for the NET Exam. By testing your knowledge and understanding of key concepts in international business, these questions have helped to strengthen your grasp on the subject matter.
We hope that you have found this pdf helpful and insightful as you continue your exam preparation journey. If you have enjoyed these MCQs and found them beneficial, we encourage you to share them on social media platforms so that others may also benefit from this resource. Together, let’s support each other in achieving success in the field of international business.
