Business Environment and International Business MCQ Questions and Solutions with Explanations

31

Which among the following is not a correct sequential combination?

A) Macro Environment → Economic Environment → National Income → Pattern of Income Distribution B) Business Environment → Internal Environment → Business Ethics → Payment of Fair Wages C) Business Environment → External Environment → Micro Environment → Suppliers D) Macro Environment → External Environment → Customers → Prospects of Business Development

Discuss

Answer & Solution

Answer: Option D

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32

Which of the following are not effects of dumping on an importing country?
(i) Domestic industry might be affected adversely by a decline in sales and profits.
(ii) If dumping is continued for a longer period, survival of the domestic industry may be threatened.
(iii) Dumping may create BOP problems for the country.
(iv) It finds market for its surplus production.

A) (i), (ii), (iii) and (iv) B) (ii), (iii) and (iv) C) (iii) and (iv) D) Only (iv)

Discuss

Answer & Solution

Answer: Option D

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33

Arrange the following organisations in the increasing order of their establishment years.
1. SAARC
2. NAFTA
3. ASEAN

A) 3, 2, 1 B) 3, 1, 2 C) 2, 3, 1 D) 1, 2, 3

Discuss

Answer & Solution

Answer: Option B

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34

In the Five Forces framework, threat of entrants means

A) The possibility of an existing competitor capturing the entire market B) The possibility of an existing competitor with drawing from the market C) The possibility of a new competitor entering the market D) The possibility of a potential competitor entering a different market

Discuss

Answer & Solution

Answer: Option C

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35

Which of the following pairs is not correct?

A) Items in the negative list of imports and exports are prohibited goods B) Permit issued by custom authorities to export goods is dock warrant C) Items which require license for export and import are restricted goods D) None of the above

Discuss

Answer & Solution

Answer: Option B

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36

The existence of international trade is best explained by the fact that countries:

A) use different currencies B) have different economic systems C) have different endowments of factors of production D) have specialized in different goods and services

Discuss

Answer & Solution

Answer: Option C

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37

Which is one of an advantage to adopt shared value approach while practicing CSR for an organisation?

A) Integrates the needs of both the business and the charitable cause B) Contributes to the firm by solving only environmental issues C) Contributes fastest way to form an alliance and increase engagement among the stakeholders D) Creates and interdependence of long-term business success on balanced social system

Discuss

Answer & Solution

Answer: Option D

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38

Match the following.

List-I (Concepts)	List-II (Features)
a. Absolute advantage	1. State, in which exports equal imports
b. Balance of trade	2. Ability of a country to produce a good more efficiently
c. Static equilibrium	3. It is a long-term phenomenon
d. Secular disequilibrium	4. Difference between merchandise exports and imports

A) a-3, b-2, c-4, d-1 B) a-3, b-4, c-1, d-2 C) a-2, b-4, c-1, d-3 D) a-4, b-3, c-2, d-1

Discuss

Answer & Solution

Answer: Option C

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39

A tariff rate quota

A) is a limit on the number of tariff that a country can place on imports B) uses a single tariff along with import quotas to restrict import C) is designed to avoid the price increases caused by simple tariffs D) is a two-tier tariff system intended to restrict imports

Discuss

Answer & Solution

Answer: Option D

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40

Which of the following can be taken as the most valid description of business purpose?

A) Create a customer B) Maximize profits C) Serve the society D) Increase the wealth in the firm

Discuss

Answer & Solution

Answer: Option A

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Business Environment and International Business MCQ Questions and Solutions with Explanations | Commerce