Business Environment and International Business MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7

1.
Which of the following statement/s is true about a Multi-National Corporation (MNC)?

A. An MNC is one which owns or controls production or service facilities in more than one country

B. MNCs can be ranked according to the amount of foreign assets they control

C. MNCs can be ranked according to a transnationality index

D. All of the above

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2.
There is a view that reduced rates on income tax would lead to a significant rise in income tax revenue. This view has been attributed to:

A. Herbert Simon

B. Arthur Laffer

C. Robert Lucas

D. J. B. Say

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3.
Which of the following best describes the term 'import cover', sometimes seen in the news?

A. It is the ratio of value of imports to the Gross Domestic Product of a country

B. It is the total value of imports of a country in a year

C. It is the ratio between the value of exports and that of imports between two countries

D. It is the number of months of import that could be paid for by a country's international reserves

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4.
India is a net exporter of hand-made carpets and an importer of high-tech product like computer memory chips and printers. This pattern of India trade is explained by the

A. Ricardian theory

B. Heckscher-Ohlin

C. Labour theory of value

D. Purchasing power parity theory

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5.
The World Bank began its operation in

A. June, 1950

B. June, 1946

C. July, 1944

D. August, 1950

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6.
Which of the following is a WTO procedure to promote globalization?

A. Promotion of free trade

B. Reduction of budgetary subsidies

C. Reduction in shipping costs

D. Promotion of foreign portfolio investment

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7.
Which among the following are criticisms given against World Trade Organization (WTO)?
(1) It is not a democratic and transparent institution.
(2) It has domination of international trade by rich countries for the benefit of their individual interests.
(3) It encourages a 'race to the bottom' in wages by pitting workers against each other rather than promoting internationally recognized labour standards.
(4) It is seeking to privatize essential public services.

A. 2, 3 and 4

B. 1, 2 and 3

C. 1, 2 and 4

D. 1, 2, 3 and 4

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8.
Which of the following is not a forum of Consumer Dispute Redressal System?

A. Local forum

B. District forum

C. State Forum (State Commission)

D. National Commission

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9.
Match the following components of Business Environment.

List-I List-II

a. Economic environment 1. EXIM policy

b. Social environment 2. Customs

c. Political environment 3. Social values

d. Legal environment 4. Business Law and Banking Act

A. a-1, b-2, c-3, d-4

B. a-3, b-4, c-2, d-1

C. a-3, b-1, c-2, d-4

D. a-1, b-2, c-4, d-3

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10.
Match the items of List-II with the items of List-I relating to liberalization of agricultural trade.

List-I List-II

a. Tariffication 1. They have demonstrably adverse effects on other member countries.

b. Prohibited subsidies 2. They act on goods which are contingent upon export performance.

c. Actionable subsidies 3. Replacement of existing non-tariff restrictions.

d. Non-actionable subsidies 4. For industrial research in disadvantaged regions.

A. a-2, b-3, c-1, d-4

B. a-4, b-1, c-2, d-3

C. a-3, b-2, c-1, d-4

D. a-2, b-4, c-3, d-1

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Economic environment	1. EXIM policy
b. Social environment	2. Customs
c. Political environment	3. Social values
d. Legal environment	4. Business Law and Banking Act

List-I	List-II
a. Tariffication	1. They have demonstrably adverse effects on other member countries.
b. Prohibited subsidies	2. They act on goods which are contingent upon export performance.
c. Actionable subsidies	3. Replacement of existing non-tariff restrictions.
d. Non-actionable subsidies	4. For industrial research in disadvantaged regions.

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

1. Which of the following statement/s is true about a Multi-National Corporation (MNC)?

Answer & Solution

2. There is a view that reduced rates on income tax would lead to a significant rise in income tax revenue. This view has been attributed to:

Answer & Solution

3. Which of the following best describes the term 'import cover', sometimes seen in the news?

Answer & Solution

4. India is a net exporter of hand-made carpets and an importer of high-tech product like computer memory chips and printers. This pattern of India trade is explained by the

Answer & Solution

5. The World Bank began its operation in

Answer & Solution

6. Which of the following is a WTO procedure to promote globalization?

Answer & Solution

Answer & Solution

8. Which of the following is not a forum of Consumer Dispute Redressal System?

Answer & Solution

9. Match the following components of Business Environment. List-I List-II a. Economic environment 1. EXIM policy b. Social environment 2. Customs c. Political environment 3. Social values d. Legal environment 4. Business Law and Banking Act

Answer & Solution

Answer & Solution

Read More Section(Business Environment and International Business)

1.
Which of the following statement/s is true about a Multi-National Corporation (MNC)?

2.
There is a view that reduced rates on income tax would lead to a significant rise in income tax revenue. This view has been attributed to:

3.
Which of the following best describes the term 'import cover', sometimes seen in the news?

4.
India is a net exporter of hand-made carpets and an importer of high-tech product like computer memory chips and printers. This pattern of India trade is explained by the

5.
The World Bank began its operation in

6.
Which of the following is a WTO procedure to promote globalization?

8.
Which of the following is not a forum of Consumer Dispute Redressal System?

9.
Match the following components of Business Environment.

List-I List-II

a. Economic environment 1. EXIM policy

b. Social environment 2. Customs

c. Political environment 3. Social values

d. Legal environment 4. Business Law and Banking Act