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

21.
Consider the following statements.
Statement I: During the period of prosperity changes in incomes of the people and prices of goods affect exports and imports of goods and thereby influence the balance of payments.
Statement II: Cyclical disequilibrium is caused by the fluctuations in the economic activity or what are known as trade cycles.

A. Statement I is correct, but II is incorrect

B. Statement II is correct, but I is incorrect

C. Both the statements I and II are correct

D. Both the statements I and II are incorrect

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22.
With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?
(i) Balance of trade
(ii) Foreign assets
(iii) Balance of invisibles
(iv) Special Drawing Right

A. (i) only

B. (ii) and (iii)

C. (i) and (iii)

D. (i), (ii) and (iv)

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23.
For the following statements of Assertion (A) and Reason (R), indicate the correct answer:
Assertion (A): Liberalization means corporatization of departmental undertakings and public undertakings.
Reason (R): Freedom to public sector undertakings to access capital market.

A. Both (A) and (R) are true and (R) is correct explanation of (A)

B. Both (A) and (R) are true but (R) is not a correct explanation of (A)

C. (A) is true but (R) is false

D. (A) is false but (R) is true

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24.
World Trade Organization is the only global international organization dealing with the rules of trade between nations. Which of the following statements support this?
Statement I: At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments.
Statement II: The goal is to ensure that trade flows as smoothly, predictably and freely as possible.

A. Only Statement I is true

B. Only Statement II is true

C. Both Statements are true

D. None of the above statement is true

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25.
Match the following.

List-I (Concepts) List-II (Advantages)

a. Foreign direct investment 1. It gives a boost to the industrial activities of home country

b. Multinational corporations 2. It enables the owners or creators to protect their work

c. Intellectual property rights 3. It helps strengthen the political relationships between various nations

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

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

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

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

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26.
Key currencies acceptable internationally are

A. US dollar

B. UK pound sterling

C. Both A and B

D. Neither A nor B

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27.
Match the following.

List-I List-II

a. Social factors 1. Increment and reduction in price of fuel

b. Political factors 2. Primary function of business

c. Economic factors 3. Customs, traditions and assumptions

d. Analysis of needs and interest of customers 4. Industrial policy of government

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

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

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

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

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28.
According to which of the following management thinkers, business environment is defined as total of all things external to firms and industries which effect their organization and operations?

A. Arthur M. Welmer

B. John Wick

C. Bayord O. Wheeler

D. Mathew Smith

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29.
Suppose a Mexican firm imports bananas at $ 1000 and sells them for $ 2000. The effect on GDP would be that:

A. the GDP will decrease by $ 3000

B. the GDP will increase by $ 3000

C. the GDP will increase by $ 2000

D. the GDP will increase by $ 1000

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30.
What is not the advantage of SEZ?

A. improvement of infrastructure in the hinterland

B. diversion of large tracts of farm land

C. attracting foreign investment

D. all of the above

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1 2 3 4 5 6 7 8 9 10

List-I (Concepts)	List-II (Advantages)
a. Foreign direct investment	1. It gives a boost to the industrial activities of home country
b. Multinational corporations	2. It enables the owners or creators to protect their work
c. Intellectual property rights	3. It helps strengthen the political relationships between various nations

List-I	List-II
a. Social factors	1. Increment and reduction in price of fuel
b. Political factors	2. Primary function of business
c. Economic factors	3. Customs, traditions and assumptions
d. Analysis of needs and interest of customers	4. Industrial policy of government

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

Answer & Solution

22. With reference to Balance of Payments, which of the following constitutes/constitute the Current Account? (i) Balance of trade (ii) Foreign assets (iii) Balance of invisibles (iv) Special Drawing Right

Answer & Solution

23. For the following statements of Assertion (A) and Reason (R), indicate the correct answer: Assertion (A): Liberalization means corporatization of departmental undertakings and public undertakings. Reason (R): Freedom to public sector undertakings to access capital market.

Answer & Solution

Answer & Solution

Answer & Solution

26. Key currencies acceptable internationally are

Answer & Solution

27. Match the following. List-I List-II a. Social factors 1. Increment and reduction in price of fuel b. Political factors 2. Primary function of business c. Economic factors 3. Customs, traditions and assumptions d. Analysis of needs and interest of customers 4. Industrial policy of government

Answer & Solution

28. According to which of the following management thinkers, business environment is defined as total of all things external to firms and industries which effect their organization and operations?

Answer & Solution

29. Suppose a Mexican firm imports bananas at $ 1000 and sells them for $ 2000. The effect on GDP would be that:

Answer & Solution

30. What is not the advantage of SEZ?

Answer & Solution

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22.
With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?
(i) Balance of trade
(ii) Foreign assets
(iii) Balance of invisibles
(iv) Special Drawing Right

23.
For the following statements of Assertion (A) and Reason (R), indicate the correct answer:
Assertion (A): Liberalization means corporatization of departmental undertakings and public undertakings.
Reason (R): Freedom to public sector undertakings to access capital market.

26.
Key currencies acceptable internationally are

28.
According to which of the following management thinkers, business environment is defined as total of all things external to firms and industries which effect their organization and operations?

29.
Suppose a Mexican firm imports bananas at $ 1000 and sells them for $ 2000. The effect on GDP would be that:

30.
What is not the advantage of SEZ?