Business Environment and International Business MCQ Questions and Solutions with Explanations

81

The European Union has all the following features except which one?

A) The absence of barriers to trade between all member states B) The absence of barriers to movement of capital among member states C) Common rates of indirect taxation D) A common external tariff

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Answer & Solution

Answer: Option C

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82

Match items of List-I with List-II relating to macro environment of business and indicate the option of correct matching:

List-I	List-II
a. Economic environment	1. Ethical issues
b. Political and government	2. Trade and transport policies environment
c. Socio-cultural environment	3. Economic stratification of population
d. Demographic environment	4. Judiciary powers

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

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Answer & Solution

Answer: Option A

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83

The spot rate of exchange is quoted for the immediate delivery of

A) foreign treasury B) foreign exchange C) foreign rate D) foreign transactions

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Answer & Solution

Answer: Option B

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84

From the following identify the one which is not a commercial counter trade?

A) Classical barter B) Counter purchase C) Pre-compensation D) Buy-back agreement

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Answer & Solution

Answer: Option D

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85

A common market is one where:

A) all the trading nations agree commonly to levy a common and uniform tariff rate for all goods B) all the trading nations agree commonly to rationalize tariff and non-tariff barriers mutually to promote intra-region trade C) there is a customs union along with free intra-union movement of factors of production D) there is an economic union along with free intraunion movement of residents

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Answer & Solution

Answer: Option B

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86

Which of the following institutions is not part of the World Bank community?

A) IBRD B) WTO C) IDA D) IFC

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Answer & Solution

Answer: Option B

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87

Consider the following statements.
Assertion (A): There was demand for World Bank, IMF and ITO type institutions after World War II so as to avoid war type situation in future.
Reason (R): The great depression of early 1930s produced the apprehensions that imports would throw more people out of work. This led governments to raise their trade barriers, retaliations and protectionism.

A) Both (A) and (R) are correct and (R) supports (A) B) Both (A) and (R) are correct, but (R) does not support (A) C) (A) is correct, but (R) is incorrect D) (R) is correct, but (A) is incorrect

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Answer & Solution

Answer: Option A

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88

In case, we see that domestic currency is depreciating, this should be linked with:

A) High inflation rate B) Increase in exports C) Increase in foreign debt D) All of the above

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Answer & Solution

Answer: Option D

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89

Which of the following statement is not true about business environment?

A) It affects working capacity of business B) Business environment always changes C) It affects operation of business D) A businessman had complete control over business environment

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Answer & Solution

Answer: Option D

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90

Consider the following statements.
Assertion (A): The import volume tends to be very high when there is simultaneous high eco-nomic growth rate and a sharp fall in the relative price of imports and vice versa.
Reason (R): High rate of growth, ceteris paribus, is associated with rise in imports and increase in the imports, ceteris paribus, is associated with a fall in the relative price of imports.

A) Both (A) and (R) are correct and (R) is the right explanation of (A) B) Both (A) and (R) are correct but (R) is not the right explanation of (A) C) (A) is correct but (R) is not correct D) (R) is correct but (A) is not correct

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Answer & Solution

Answer: Option A

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