T.Y.BBI.

– SEM - VI
Sub: International Business
Instructions: All Questions are compulsory.
Multiple Choice Question:

1. The first phase of globalization started around 1870 and ended with ….
a. World War I
b. World War II
c. The Establishment of GATT
d. In 1913 when GDP was High

2. IBRD (International Bank for Reconstruction and Development) also known as

a. Exim Bank
b. World Bank
c. International Monetary fund
d. International Bank

3. Ultimately ………………was replaced by the …………….on 1st Jan 1995

a. GATS, WTO
b. WTO, GATT
c. GATT, WTO
d. IMF, GATT

4. Which is the right sequence of 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

5. Subsidiaries consider the regional environment for policy / Strategy formulation

is known as
a. Polycentric Approach
b. Regio centric Approach
c. Ethnocentric Approach
d. Geocentric Approach

6. ……………is the application of knowledge which redefines the boundaries of

global business
a. Cultural Values
b. Society
c. Technology
d. Economy

7. Capitalistic, communistic, and Mixed are the types of____________

a. Economic System
b. Social System
c. Cultural Attitudes
d. Political System

8. Which is not an Indian Multinational Company?

a. Unilever
b. Asian Paints
c. Piramal
d. Wipro

9. Globalization refers to____________

a) Lower incomes worldwide
b) Less foreign trade and investment
c) Global warming and their effects
d) A more integrated and interdependent world

10.…….is the payment method most often used in International Trade which offers
the exporter best assurance of being paid for the products sold internationally.
a. Bill of Lading
b. Letter of Credit
c. Open Account
d. Drafts

11. _______________corporation produces in the home country or in a single

country and focuses on marketing these products globally or vice a versa.
a. Global
b. International
c. Transnational
d. None of the above

12. The________________company produces, markets, invests and operates

across the world
a. Global
b. International
c. Transnational
d. Multinational

13. WTO stands for___________

a. World technology association
b. World time organization
c. World trade organization
d. World tourism organization

14. NAFTA stands for________________

a. North African trade association
b. North American free trade agreement
c. Northern Atlantic trade agreement
d. Northern association for trade

15. IPR stands for_______________

a. Intellectual property rights
b. International property rights
c. Internal promotion rights
d. Interior promotional rights

16. The main promoter of trade liberalization was______________

a. GATT
b. NAFTA
c. CEPTA
d. CISA

17. MNC Stands for_________________

a. Multi-National Cooperation
b. Multi-National Corporation
c. Multi-National Company
d. Multi-National Collaboration

18. ______ is the first step in the internationalization process.

a. License
b. Foreign Investment
c. Sales
d. Export

19. MEs stands for___________________

a. Small and Medium Entrepreneurs
b. Small Management of Enterprises
c. Small and Medium-sized Enterprises.
d. Societies for Managing Exports

20. The OECD stands for______________

a. Organization for Economic Co-operation and Development
b. Organization for Economic Coordination and Development
c. Organization for Environmental Cooperation and Development.
d. Organization for Environmental Control and Development

21. _______________is consists of the totality of all factors within or outside the
control of individual business firms.
a. Business
b. Environment
c. Business environment
d. organization
22. There are two sets of factors which influence the business of an enterprise
is_____________
a) Internal and External
b) Micro and Macro
c) Political and Legal
d) Social, Cultural & Technological

23. China is the biggest example__________________

a) Capitalism
b) Mixed economy
c) Laissez Faire
d) Socialism

24. The term relates to patent, trademarks, copyrights and trade secrets
is____________
a) Priority right
b) Intellectual property right
c) Tariff & Trade Act
d) Madrid agreement

25. _________________ studies the impact of various

environmental factors on the marketing mix.
a) Break even analysis
b) Risk reward analysis
c) Cost - benefit analysis
d) Product Analysis

26. ________________is the foundation of culture

a) Language
b) Customs
c) Education
d) Religion

27. NAFTA is a series of bilateral agreement between America, Canada

and________________
a) Geneva
b) Mexico
c) UK
d) Ireland

28. The headquarters of SAARC in________________

a) Bangladesh
b) Maldives
c) Sri Lanka
d) Kathmandu

29. ________________is a bilateral trade agreement between two countries.

a) Tie in Agreement
b) Counter trade
c) MNC
d) Gray Market
30. GATT agreements as modified by the agreement__________________
a) WTO
b) ITO
c) Uruguay Round
d) Bretton wood

31. Someone who lives and works in a foreign country is a(n)______________

(a) Expatriate
(b) holiday maker
(c) international jet-setter
(d) immigrant

32. When the firms choose a strategy of recruiting the most suitable persons for the
positions available in the firm, irrespective of their nationalities, it is
called________________
a. Polycentric approach
b. Ethnocentric approach
c. Geocentric approach
d. None of the above

33. The country where the headquarters of a multinational company is located is

known as_______________
a. Host Country
b. Home County
C. Third Country
D. Domestic Country
34. Anti-dumping and countervailing duties are imposed under_____________
a) Customs Tariff Act 1975
b) TRIMS
c) TRIPS
d) Regional Trade Agreement

35. FMCG means_________________

a) Fast Moving Consumer Goods
b) Foreign Measures on Consumer Goods
c) Freely Moving Consumer Goods
d) Free Measures on Consumer Goods

36. _____ refers to the return of an employee to their own country

a. Expatriatism
b. Repatriation
c. Redirection
d. Expatriatism

37. Global assignments in which employees are sent to understand global

operations and are required to have intercultural understanding are
called_____________
a. Strategic assignment
b. Developing assignment
c. Non-developing assignment
d. Managerial assignment

38. The major benefits of trade include______________

a. Reduction in transportation cost
b. Increases in incomes and employment
c. Advances in technical methods
d. b and c

39. ____is the fastest growing trading bloc in the world.

a) MERCOSUR
b) NAFTA
c) EEC
d) ESCAP

40. Which of the following is a form of contractual agreement

a) Franchising
b) Licensing
c) Joint venture
d) Both a and b

41. Companies such as Coca-Cola and Disney have achieved growth through
a. Joint Ventures
b. Exporting
c. Piggy banking
d. Licensing

42. Import means_________________

a. Buying goods from another country
b. Selling goods to another country
c. Only making one kind of product
d. Sales

43. What is the meaning of export______

a. Any oral, written, electronic or visual disclosure, shipment, transfer outside of
the country
b. Any oral, written, electronic or visual disclosure, shipment, transfer inside of the
country
c. Any oral, written, electronic or visual disclosure, shipment, transfer inbound of
the country
d. Any oral, written, electronic or visual disclosure, shipment, transfer within the
country

44. Export ____________, the percentage of total revenues coming from exports,
is not positively correlated with company size.
a. intensity
b. contraction
c. retraction
d. mediation

45. When there are no commercial transactions between two countries due to
various reasons, firm which wants to enter into the market of another
nation, will have to operate from________
a) Third Country Location
b) Strategic alliance
c) Counter trade
d) Turnkey Contract
46. _______ are transactions in which the ownership of companies, other
business organizations, or their operating units are transferred or
consolidated with other entities.
a) Merger and acquisition
b) Counter trade
c) Licensing
d) Strategic alliance

47. _____ is a business arrangement in which one company gives another

company permission to manufacture its product for a specified payment.
a) Merger and acquisition
b) Joint Venture
c) Licensing
d) Counter trade

48. A______ grants the inventor of a new product or process exclusive rights
of manufacture, use or sale of that invention.
a) Patent
b) Copyrights
c) Trade Marks
d) Industrial Design

49. _____ Analysis is concerned with the key external environmental

influence on a business.
a) PEST
b) BEST
c) ABC Analysis
d) SWOT

50.________ envisions a prosperous, inclusive, resilient, and sustainable

Asia and the Pacific, while sustaining its efforts to eradicate extreme
poverty in the region.
a. NAFTA
b. ADB
c. WTO
d. APEC

51. _______ refers to the trade of a commodity through distribution

channels that are legal but unintended by the original manufacturer or
trade mark proprietor.
a) Grey market
b) Green market
c) Black market
d) Red market

52. _____ is a pricing strategy in which a marketer sets a relatively

high initial price for a product or service at first, then lowers the price
over time.
a) Skimming Strategy
b) Penetrating Strategy
c) Dual Pricing
d) Full Cost Pricing

53. In the ____ approach, the cultural values and business practices of
the home country is predominant.
a) Ethnocentric
b) Polycentric
c) Region centric
d) Geocentric

54. ________ is issued when goods are sent by Air.

a. Airways Bill
b. Airways Services
c. Airways Complaints
d. Bill of lading

55. Which of the following do not form part of duty drawback

scheme?
a. Refund of excise duties
b. Refund of customs duties
c. Refund of export duties
d. Refund of income dock charges at the port of shipment

56. The document containing the guarantee of a bank to honor drafts

drawn on it by an exporter is_______
a. Letter of Hypothecation
b. Letter of Credit
c. Bill of Lading
d. Bill of Exchange

57. The Foreign Trade Policy 2015-20 was unveiled by the following
Minister of State for Commerce and Industry on April 1,2015
a. Anand Sharma
b. Anandiben Patel
c. Nirmala Sitaraman
d. Kamal Nath

58. Name the two schemes introduced under the new FIP?
a. Merchandise Export from India Scheme and Services Export from
India Scheme
b. Services Export from India Scheme and Services Import from India
Scheme
c. Services Import from India Scheme and Merchandise Export from
India Scheme
d. Merchandise Import from India Scheme and Services Export from
India Scheme

59. Pre-shipment finance is __________ lending.

a. Short term
b. Medium term
c. Long term
d. Very long term

60. TEE stands for_____

a. Town of Expert Excellence
b. Town of Export Excellence
c. Trade for Export Excellence
d. Trade for Extra Excellence