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

A. private

B. complementary

C. different

D. same

A. Money Financed ⇔ Inflation

B. Bond Financed ⇔ High interest rates

C. Tax Financed ⇔ Deflation

D. Externally Financed ⇔ Imports minus Export

A. In foreign direct investment, foreign companies develop new companies in home country

B. Foreign companies open their subsidiaries in the country in FDI

C. FDI does not create capital in the domestic country

D. FDI has favourable impact on production and employment in the state

A. Trade diversion alone

B. Trade creation alone

C. Both trade diversion and trade creation

D. Neither trade diversion nor trade creation

A. When there are differences in commodity prices in the two countries

B. When there is difference in commodities prices

C. When cost of production of different commodities differ between the two countries

D. When production functions of the same goods are identical

A. 1 and 2

B. 2 only

C. 1 only

D. Neither 1 nor 2

A. 1, 2 and 4

B. 1 and 3

C. 2 and 3

D. 2 and 4

A. Borrowing from the Central Bank

B. Issues of new currency by the Government

C. Withdrawal of past accumulated cash balance by the government

D. All the above

A. 1, 2 and 3

B. 4, 3 and 1

C. 1, 2 and 4

D. 3, 1 and 2

A. Direct environment

B. Indirect environment

C. Competitive environment

D. Social environment