MCQOPTIONS
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MCQOPTIONS
This section includes 195 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
...is the payment method most often used in International Trade which offers the exporter best assurance of being paid for the products sold internationally. |
| A. | bill of lading |
| B. | letter of credit |
| C. | open account |
| D. | drafts |
| Answer» C. open account | |
| 2. |
According to this theory, the holdings of a country s treasure primarily in the form of gold constituted its wealth. |
| A. | gold theory |
| B. | ricardo theory |
| C. | mercantilism |
| D. | hecksher theory |
| Answer» D. hecksher theory | |
| 3. |
_______________ occurs when production shifts to more efficient producers for reasons ofcomparative advantage, allowing consumers access to more goods at a lower price than would havebeen possible without integration. |
| A. | trade diversion |
| B. | divestment |
| C. | trade creation |
| D. | retrenchment |
| Answer» D. retrenchment | |
| 4. |
In which of the following types of regional economic integration are internal tariffs eliminated with member countries levying a common external tariff on goods being imported from nonmembers. |
| A. | customs union |
| B. | free trade area |
| C. | common market |
| D. | complete economic integration |
| Answer» B. free trade area | |
| 5. |
A _______________ focuses on eliminating internal tariffs with member countries levying a commonexternal tariff on goods being imported from nonmembers. Additionally, this type of regional economicintegration allows free mobility of production factors such as labor and capital. |
| A. | free trade area |
| B. | common market |
| C. | customs union |
| D. | complete economic integration |
| Answer» C. customs union | |
| 6. |
corporation produces in the home country or in a single country and focuses on marketing these products globally or vice a versa. |
| A. | global |
| B. | international |
| C. | transnational |
| D. | none of the above |
| Answer» B. international | |
| 7. |
In the foreign exchange market, the ________ of one country is traded for the ________ of another country. |
| A. | currency; currency |
| B. | currency; financial instruments |
| C. | currency; goods |
| D. | goods; goods |
| Answer» C. currency; goods | |
| 8. |
Exchange rate between currency A and currency B, given the values of currencies A and B with respect to a third currency is known as |
| A. | golden standard |
| B. | flexible exchange rate |
| C. | fixed exchange rate |
| D. | cross exchange rate |
| Answer» E. | |
| 9. |
______________ involve the exchange of currency the second day after the date on which the two foreign exchange traders agree to the transaction. |
| A. | spot transactions |
| B. | outright forward transactions |
| C. | fx swaps |
| D. | reverse transactions |
| Answer» B. outright forward transactions | |
| 10. |
The demand for domestic currency in the foreign exchange market is indicated by the following transactions in balance of payment |
| A. | export of goods and services |
| B. | import of goods and services. |
| C. | export of goods and services and capital inflows. |
| D. | import of goods and services and capital outflows. |
| Answer» D. import of goods and services and capital outflows. | |
| 11. |
Outright forward transactions involve the exchange of currency beyond three days at a fixed exchange rate, known as the: |
| A. | spot rate. |
| B. | forward rate |
| C. | fx swap rate. |
| D. | reverse transaction rate |
| Answer» C. fx swap rate. | |
| 12. |
What is the name of the international organization that fosters monetary and financial cooperation and serves as a bank for central banks? |
| A. | wto |
| B. | eu |
| C. | world bank |
| D. | bank for international settlements |
| Answer» E. | |
| 13. |
Interest rate swaps are usually possible because international financial markets in different countries are |
| A. | efficient |
| B. | perfect |
| C. | imperfect |
| D. | both a & b |
| Answer» D. both a & b | |
| 14. |
Business across several countries with some decentralization of management decision making to subsidiaries is |
| A. | Global business. |
| B. | Multinational business. |
| C. | Transnational business. |
| D. | Multi-regional business. |
| Answer» C. Transnational business. | |
| 15. |
A contract drafted under civil law differs from that drafted under common law in the following respect |
| A. | It will be detailed. |
| B. | It will be shorter and less specific. |
| C. | It will provide less severe damages. |
| D. | It will be in detail. |
| Answer» C. It will provide less severe damages. | |
| 16. |
The following nationals would be aggressive at the beginning of business negotiations, but offer large concessions in the end |
| A. | American. |
| B. | Russian. |
| C. | German. |
| D. | Japanese. |
| Answer» C. German. | |
| 17. |
According to economic growth model of Rostow, passage of a country through the stages is |
| A. | in the order specified. |
| B. | in any order. |
| C. | in the order specified, but certain stages may be skipp |
| Answer» B. in any order. | |
| 18. |
According to this theory the holdings of a country s treasure primarily in the form of gold constituted its wealth. |
| A. | Gold Theory |
| B. | Ricardo Theory |
| C. | Mercantilism |
| D. | H .O. THEORY |
| Answer» D. H .O. THEORY | |
| 19. |
India is facing continuous deficit in its balance of payments. In the foreign exchange market rupee is expected to |
| A. | depreciate. |
| B. | appreciate. |
| C. | show no specific tendency. |
| D. | depreciate against currencies of the countries with positive balance of payment and appreciate against |
| Answer» B. appreciate. | |
| 20. |
Select example of Indian Multinational Company |
| A. | hindustan unilever |
| B. | videocon |
| C. | cargill |
| D. | tesco |
| Answer» C. cargill | |
| 21. |
If a German manufacturer of household appliances wants to take advantage of the cheaper labor available in the Czech Republic, which of the following actions will not serve that purpose? |
| A. | build a manufacturing subsidiary there and employ czech workers. |
| B. | build a plant in the czech republic and send all german workers to operate it. |
| C. | license a czech firm to produce its products under its own label. |
| D. | contract for a czech firm to do some of the processing for it. |
| Answer» C. license a czech firm to produce its products under its own label. | |
| 22. |
When the exporter, expects the importer, to make the payment immediately upon the draft being presented to him is called. |
| A. | Sight Draft. |
| B. | Usance Draft |
| C. | Demand draft |
| D. | Pay Note |
| Answer» B. Usance Draft | |
| 23. |
Specific cultural dimensions that does not have a significant impact on cross-national business interactions is |
| A. | Hofstede s five cultural dimensions |
| B. | Monochromatic vs polychromatic tune |
| C. | Communication |
| D. | Geography |
| Answer» E. | |
| 24. |
The following factor does not differentiate international business from domestic business |
| A. | different currencies |
| B. | product quality |
| C. | product mobility |
| D. | trade policies |
| Answer» C. product mobility | |
| 25. |
When the transaction is of high value, complex In nature and more technical __________ method of the export sales contract is used. |
| A. | Performa invoice |
| B. | Purchase order |
| C. | Sales contact |
| D. | None of the above |
| Answer» D. None of the above | |
| 26. |
Which of the following are institutional banks that provide financial support and professional advice for developing countries? |
| A. | multilateral development banks |
| B. | central banks |
| C. | investment banks |
| D. | barclays bank |
| Answer» B. central banks | |
| 27. |
Business across several countries with some decentralization of management decision making to subsidiaries is |
| A. | global business. |
| B. | multinational business. |
| C. | transnational business. |
| D. | multi-regional business. |
| Answer» C. transnational business. | |
| 28. |
Which of the following was developed with the rationale that the U.S.-Canadian trade was the largest bilateral trade in the world and that the United States is Mexico s and Canada s largest trading partner? |
| A. | cefta (the central european free trade agreement) |
| B. | nafta (the north american free trade agreement) |
| C. | asean (association of south east asian nations) |
| D. | eu (the european union) |
| Answer» C. asean (association of south east asian nations) | |
| 29. |
_______________ occurs when trade shifts to countries in the group at the expense of trade withcountries not in the group, even though the nonmember country might be more efficient in the absenceof trade barriers. |
| A. | trade creation |
| B. | divestment |
| C. | retrenchment |
| D. | trade diversion |
| Answer» E. | |
| 30. |
Which organisations strain on the liberalisation of foreign investment and foreign trade? |
| A. | international monetary fund |
| B. | world health organisation |
| C. | world trade organisation |
| D. | international labour organisation |
| Answer» D. international labour organisation | |
| 31. |
A country records its international finance accounts in it’s |
| A. | balance of payments accounts. |
| B. | import/export log accounts. |
| C. | trade payments accounts. |
| D. | net exports payments account. |
| Answer» B. import/export log accounts. | |
| 32. |
According to the concept of the value chain, of an international firm is profitable if: |
| A. | the value it commands exceeds the costs involved in creating the product |
| B. | the value it commands is lower than the costs involved in creating the product |
| C. | it operates in global industries |
| D. | the value it commands equals the costs involved in creating the product. |
| Answer» B. the value it commands is lower than the costs involved in creating the product | |
| 33. |
When Safeway supermarkets in the United States buys strawberries from Mexico, |
| A. | it must use dollars to pay mexican farmers. |
| B. | it may use any currency it chooses. |
| C. | it must use pesos to pay mexican farmers. |
| D. | the transaction shows up in the u.s. capital account. |
| Answer» D. the transaction shows up in the u.s. capital account. | |
| 34. |
Within an international context, what are 'economies of scope' synonymous with? |
| A. | decreased cost per unit of output. |
| B. | buying components in bulk. |
| C. | reusing a resource from one business/country in additional businesses/countries. |
| D. | all of the above. |
| Answer» E. | |
| 35. |
Which one of the following is renowned for its high-quality databases on economic and social data? |
| A. | wto |
| B. | eu |
| C. | oecd |
| D. | world bank |
| Answer» D. world bank | |
| 36. |
Which one of the following has a single currency managed by a common central bank? |
| A. | asean |
| B. | european union |
| C. | world trade organization |
| D. | the organization for economic cooperation and development |
| Answer» C. world trade organization | |
| 37. |
Firm that operates internationally is able to |
| A. | earn a greater return from their skills and core competencies |
| B. | realize location economies where they can be performed most efficiently |
| C. | realize greater experience curve economies, which reduces the cost of production |
| D. | all the above |
| Answer» E. | |
| 38. |
The European Union is a free trade association that is based on a(n) |
| A. | economic and monetary union. |
| B. | economic union. |
| C. | monetary union. |
| D. | a commonly agreed upon list of lowered tariffs. |
| Answer» B. economic union. | |
| 39. |
The country that attracts the largest FDI inflow is |
| A. | india |
| B. | china |
| C. | usa |
| D. | brazil |
| Answer» C. usa | |
| 40. |
Which of the following is an advantage of turnkey projects? |
| A. | can earn a return on knowledge asset |
| B. | will not create a competitor |
| C. | tight control of operations |
| D. | all the above |
| Answer» B. will not create a competitor | |
| 41. |
Apart from India, Pakistan and Bangladesh who are the other member countries of SAARC? |
| A. | nepal, bhutan, thailand and singapore |
| B. | nepal, bhutan, malaysia and maldives |
| C. | nepal, bhutan, maldives, sri lanka and afghanistan |
| D. | none of the above |
| Answer» D. none of the above | |
| 42. |
Which of the following was developed with the rationale that the U.S.-Canadian trade was the largestbilateral trade in the world and that the United States is Mexico’s and Canada’s largest trading partner? |
| A. | cefta (the central european free trade agreement) |
| B. | nafta (the north american free trade agreement) |
| C. | asean (association of south east asian nations) |
| D. | eu (the european union) |
| Answer» C. asean (association of south east asian nations) | |
| 43. |
_______________ occurs when production shifts to more efficient producers for reasons ofcomparative advantage, allowing consumers access to more goods at a lower price than would havebeen possible without integration. |
| A. | trade diversion |
| B. | divestment |
| C. | trade creation |
| D. | retrenchment |
| Answer» D. retrenchment | |
| 44. |
_______________ occurs when trade shifts to countries in the group at the expense of trade withcountries not in the group, even though the nonmember country might be more efficient in the absenceof trade barriers. |
| A. | trade creation |
| B. | divestment |
| C. | retrenchment |
| D. | trade diversion |
| Answer» E. | |
| 45. |
A _______________ focuses on eliminating internal tariffs with member countries levying a commonexternal tariff on goods being imported from nonmembers. Additionally, this type of regional economicintegration allows free mobility of production factors such as labor and capital. |
| A. | free trade area |
| B. | common market |
| C. | customs union |
| D. | complete economic integration |
| Answer» C. customs union | |
| 46. |
75). In which of the following types of regional economic integration are internal tariffs eliminatedwith member countries levying a common external tariff on goods being imported from nonmembers. |
| A. | customs union |
| B. | free trade area |
| C. | common market |
| D. | complete economic integration |
| Answer» B. free trade area | |
| 47. |
The main promoter of trade liberalization was |
| A. | gatt |
| B. | nafta |
| C. | cepta |
| D. | cisa |
| Answer» B. nafta | |
| 48. |
A simultaneous purchase and sale of foreign exchange for two different dates is called |
| A. | currency devalues |
| B. | currency swap |
| C. | currency valuation |
| D. | currency exchange |
| Answer» C. currency valuation | |
| 49. |
The current system of international finance is a |
| A. | gold standard |
| B. | fixed exchange rate system |
| C. | floating exchange rate system |
| D. | managed float exchange rate system |
| Answer» E. | |
| 50. |
Under a gold standard, |
| A. | a nation’s currency can be traded for gold at a fixed rate |
| B. | a nation’s central bank or monetary authority has absolute control over its money supply |
| C. | new discoveries of gold have no effect on money supply or prices |
| D. | a & b |
| Answer» B. a nation’s central bank or monetary authority has absolute control over its money supply | |