The movement to free international trade is most likely to generate short-term unemployment in whichindustries

industries that sell to domestic and foreign buyers

industries in which there are neither imports nor exports

industries that sell to domestic and foreign buyers

industries that sell to only foreign buyers

Specific cultural dimensions that does not have a significant impact on cross-national businessinteractions is

Hofstede’s five cultural dimensions

Monochromatic vs polychromatic tune

Ownership of intellectual property is recognized in law by granting

Patent, copyright or trademark as appropriate.

The disadvantages of Greenfield FDI as compared to acquisition is

Size of investment will be high.

Professional culture refers to

Shared belief of top managers about how they should manage themselves and their employees

Shared code of ethics and other commonalities shared by members of a given group

Wholly owned subsidiary can be set up

to have products marketed overseas.

to have management is overseas.

The income level of residents in a country is indicated by

per capita gross domestic product.

per capita gross national income.

per capita gross domestic product.

Lower power distance countries are characterized by

authority being accepted without question.

relationships based on equality and informality.

authority being accepted without question.

Social mobility is measured by

The promptness with which an individual accepts foreign assignments.

The extent to which an individual can move the strata to which he/she belongs.

The promptness with which an individual accepts foreign assignments.

The extent to which inter- caste marriage is encouraged by the society.

The extent to which the society as a whole shifts its habitat.

In 90’s the global management perception was based on

Global integration v/s Local Responsiveness

The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year 1999 is an example of

Strategic International Alliance

The basic objective of export Promotion Council is to promote and develop the Exports of the

Only attractive projects of the country

Only services industry products of the country

Overall exports of the country.

By entering into international business, a firm expects improvement in

All spheres of marketing, operation and finance simultaneously.

Any or all spheres of marketing, operation and finance.

Geographical indications specify

Place or special characters of the product.

Special characteristics of the product associated with the place of origin.

Place and special characters of the product.

Place or special characters of the product.

Conglomerate FDI refers to

FDI made in unrelated products.

Which is the right sequence of a stages of Internationalization

Domestic, Multinational, International, Transnational, Global

Domestic, Transnational, Global, International, Multinational

Domestic, International, Multinational, Global, Transnational

Domestic, Multinational, International, Transnational, Global

Domestic, International, Transnational, Multinational, Global

Non- verbal communication

should be learnt by business managers to communicate with foreigners.

includes written communication.

has no place in international business.

should be learnt by business managers to communicate with foreigners.

Uneven distribution of natural resources

is not a cause for international business.

is the only cause for international business.

is the major factor for international business.

is among the major factors for international business.

is not a cause for international business.

A country with high uncertainty avoidance will witness

less dependence on rules and regulations.

lower level of stress among people.

decision taken as a result of group consensus.

less dependence on rules and regulations.

A Most Favoured nation status doesn’t necessarily refer to

Same and equal economic treatment

Monetary policy relates to controlling

money supply and interest rate.

money supply, interest rate and exchange rate.

The five forces that affect the level of competition in an industry are

Threat of buyers; power of entry; power of substitutes; threat of suppliers; threat of recession.

Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry.

Threat of buyers; power of entry; power of substitutes; threat of suppliers; threat of recession.

Threat of recession; power of buyers; power of suppliers; threat of management failure; competitive rivalry.

Threat of entry; power of buyers; power of suppliers; threat of substitutes; government action.

Which of these is/are the characteristic of a licensing agreement

The licensor might provide access to some of its patents or trademarks

The licensor might provide access to technology

It might be used to avoid the risks of foreign involvement

Religion of a person affects his/her

attitude towards entrepreneurship.

As per cultural dimensions of Hofstede, masculinity refers to

Male- female ratio in the country.

Society dominated by male members.

Society characterized by aggressive and materialistic behaviour.

Which of these is a characteristic of multinational corporations>

The affiliates are responsive tio a number of important environmental forces

At least one -third directors are foreign nationals

The company does 40% of its business in foreign markets

The overseas markets are larger than the domestic market

The affiliates are responsive tio a number of important environmental forces

CISF pricing includes the following

Commission is paid to the agent involved in the transaction

Freight & Insurance charges for the goods exported

195 + Mcqs in International Business in Bachelor of Business Administration (BBA) Page 3 McqOptions

101.	……………...is the payment method most often used in International Trade which offers the exporter bestassurance 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

Discussion

102.	The movement to free international trade is most likely to generate short-term unemployment in whichindustries
A.	industries in which there are neither imports nor exports
B.	import-competing industries.
C.	industries that sell to domestic and foreign buyers
D.	industries that sell to only foreign buyers
Answer» C. industries that sell to domestic and foreign buyers

Discussion

103.	Specific cultural dimensions that does not have a significant impact on cross-national businessinteractions is
A.	Hofstede’s five cultural dimensions
B.	Monochromatic vs polychromatic tune
C.	Communication
D.	Geography
Answer» E.

Discussion

104.	Ownership of intellectual property is recognized in law by granting
A.	Licenses.
B.	Patents.
C.	Copyrights.
D.	Patent, copyright or trademark as appropriate.
Answer» E.

Discussion

105.	________theory states that, lack of resources often helps countries to become competitive
A.	Competitive theory
B.	Porters Diamond Model
C.	Theory of Mercantilism
D.	Product life cycle theory
Answer» E.

Discussion

106.	For the society, religion has no influence on
A.	holidays.
B.	language.
C.	role of women.
D.	marketing practices.
Answer» C. role of women.

Discussion

107.	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

Discussion

108.	The disadvantages of Greenfield FDI as compared to acquisition is
A.	Profit will be less.
B.	Size of investment will be high.
C.	Lesser control in management.
D.	Delay in establishment.
Answer» E.

Discussion

109.	Capitalistic, communistic and mixed are the types of
A.	Economic system
B.	Political system
C.	Social System
D.	Cultural Attitudes
Answer» B. Political system

Discussion

110.	Professional culture refers to
A.	Shared belief of top managers about how they should manage themselves and their employees
B.	Shared code of ethics and other commonalities shared by members of a given group
C.	Both (a) and (c)
D.	None of the above
Answer» C. Both (a) and (c)

Discussion

111.	Wholly owned subsidiary can be set up
A.	as a Greenfield venture.
B.	to acquire an existing firm.
C.	to have products marketed overseas.
D.	to have management is overseas.
Answer» B. to acquire an existing firm.

Discussion

112.	In a business cycle, the phase preceding prosperity is
A.	recession.
B.	depression.
C.	recovery.
D.	recession or depression.
Answer» D. recession or depression.

Discussion

113.	Which one of the following is a method for an exporter to get a contract
A.	Proforma invoice
B.	Purchase order
C.	Sales contract
D.	All the above
Answer» E.

Discussion

114.	IBRD (International Bank for Reconstruction and Development) also known as
A.	EXIM Bank
B.	World Bank
C.	IMF
D.	International Financial Bank
Answer» C. IMF

Discussion

115.	The income level of residents in a country is indicated by
A.	gross national income.
B.	gross domestic product.
C.	per capita gross national income.
D.	per capita gross domestic product.
Answer» D. per capita gross domestic product.

Discussion

116.	When the exporter, expects the importer, to make the payment immediately upon the draftbeing presented to him is called.
A.	Sight Draft.
B.	Usance Draft
C.	Demand draft
D.	Pay Note
Answer» B. Usance Draft

Discussion

117.	A firm investing in a foreign country to distribute the products there in creation of
A.	Asset seeking FDI.
B.	Backward vertical FDI.
C.	Forward vertical FDI.
D.	Distribution FDI.
Answer» D. Distribution FDI.

Discussion

118.	Lower power distance countries are characterized by
A.	relationships based on equality and informality.
B.	authority being accepted without question.
C.	managers being paternalistic.
D.	tall organizations structure.
Answer» B. authority being accepted without question.

Discussion

119.	Social mobility is measured by
A.	The extent to which an individual can move the strata to which he/she belongs.
B.	The promptness with which an individual accepts foreign assignments.
C.	The extent to which inter- caste marriage is encouraged by the society.
D.	The extent to which the society as a whole shifts its habitat.
Answer» B. The promptness with which an individual accepts foreign assignments.

Discussion

120.	In 90’s the global management perception was based on
A.	Standardization v/s adaptation
B.	Globalization v/s localization
C.	Global integration v/s Local Responsiveness
D.	Local responsiveness
Answer» D. Local responsiveness

Discussion

121.	A country in the stage of traditional society is characterized by
A.	existence of traditional rule.
B.	non existence of industries.
C.	predominance of agriculture.
D.	complete absence of literacy.
Answer» D. complete absence of literacy.

Discussion

122.	The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year 1999 is an example of
A.	Subsidiary
B.	Joint venture
C.	Strategic International Alliance
D.	License agreement
Answer» D. License agreement

Discussion

123.	The basic objective of export Promotion Council is to promote and develop the Exports of the
A.	Particular products of country
B.	Only attractive projects of the country
C.	Only services industry products of the country
D.	Overall exports of the country.
Answer» E.

Discussion

124.	Identify a factor that doesn’t play an important role in attracting FDI
A.	Language
B.	Laws, rules and regulations
C.	Cost of resources
D.	Infrastructure related factors
Answer» B. Laws, rules and regulations

Discussion

125.	By entering into international business, a firm expects improvement in
A.	Marketing.
B.	All spheres of marketing, operation and finance simultaneously.
C.	Any or all spheres of marketing, operation and finance.
D.	Finance only.
Answer» D. Finance only.

Discussion

126.	Geographical indications specify
A.	Place of origin of goods.
B.	Special characteristics of the product associated with the place of origin.
C.	Place and special characters of the product.
D.	Place or special characters of the product.
Answer» D. Place or special characters of the product.

Discussion

127.	The following is not a component of culture
A.	Attitudes.
B.	Beliefs.
C.	Education.
D.	Life expectancy.
Answer» E.

Discussion

128.	The country that attract the largest FDI inflow is
A.	USA
B.	INDIA
C.	CHINA
D.	BRAZIL
Answer» D. BRAZIL

Discussion

129.	Conglomerate FDI refers to
A.	FDI made by a group of firms.
B.	FDI made in subsidiaries.
C.	FDI made in similar products.
D.	FDI made in unrelated products.
Answer» E.

Discussion

130.	Countries/ regions with huge market size will attract
A.	Market seeking FDI.
B.	Efficiency seeking FDI.
C.	Vertical FDI.
D.	Created assets seeking FDI.
Answer» B. Efficiency seeking FDI.

Discussion

131.	Which is the right sequence of a stages of Internationalization
A.	Domestic, Transnational, Global, International, Multinational
B.	Domestic, International, Multinational, Global, Transnational
C.	Domestic, Multinational, International, Transnational, Global
D.	Domestic, International, Transnational, Multinational, Global
Answer» C. Domestic, Multinational, International, Transnational, Global

Discussion

132.	Non- verbal communication
A.	includes written communication.
B.	has no place in international business.
C.	includes body language.
D.	should be learnt by business managers to communicate with foreigners.
Answer» D. should be learnt by business managers to communicate with foreigners.

Discussion

133.	Uneven distribution of natural resources
A.	is the only cause for international business.
B.	is the major factor for international business.
C.	is among the major factors for international business.
D.	is not a cause for international business.
Answer» D. is not a cause for international business.

Discussion

134.	Social stratification is done based on
A.	Income level.
B.	caste.
C.	education.
D.	any of the above.
Answer» C. education.

Discussion

135.	India is an
A.	Emerging economy
B.	Developed economy
C.	Less developed economy
D.	None of these
Answer» B. Developed economy

Discussion

136.	A country with high uncertainty avoidance will witness
A.	lower level of stress among people.
B.	decision taken as a result of group consensus.
C.	less dependence on rules and regulations.
D.	people are serene.
Answer» C. less dependence on rules and regulations.

Discussion

137.	A Most Favoured nation status doesn’t necessarily refer to
A.	Same and equal economic treatment
B.	Non-discriminatory treatment
C.	Same tariff rates applicable
D.	Uniform civil code
Answer» E.

Discussion

138.	Monetary policy relates to controlling
A.	money supply.
B.	money supply and interest rate.
C.	money supply, interest rate and exchange rate.
D.	credit creation by banks.
Answer» D. credit creation by banks.

Discussion

139.	The five forces that affect the level of competition in an industry are
A.	Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry.
B.	Threat of buyers; power of entry; power of substitutes; threat of suppliers; threat of recession.
C.	Threat of recession; power of buyers; power of suppliers; threat of management failure; competitive rivalry.
D.	Threat of entry; power of buyers; power of suppliers; threat of substitutes; government action.
Answer» B. Threat of buyers; power of entry; power of substitutes; threat of suppliers; threat of recession.

Discussion

140.	Factor of Interdependence in Multi-domestic strategy is
A.	Low
B.	Moderate
C.	High
D.	Very High
Answer» B. Moderate

Discussion

141.	…………… is application of knowledge which redefine the boundaries of global business
A.	Cultural Values
B.	Society
C.	Technology
D.	Economy
Answer» D. Economy

Discussion

142.	Subsidiaries consider regional environment for policy / Strategy formulation is known as
A.	Polycentric Approach
B.	Regiocentric Approach
C.	Ethnocentric Approach
D.	Geocentric Approach
Answer» C. Ethnocentric Approach

Discussion

143.	An attribute that doesn’t contribute to Porters Diamond model is
A.	Government
B.	Organized Trade union
C.	Factor Conditions
D.	Demand Conditions
Answer» C. Factor Conditions

Discussion

144.	Which of these is/are the characteristic of a licensing agreement
A.	The licensor might provide access to some of its patents or trademarks
B.	The licensor might provide access to technology
C.	It might be used to avoid the risks of foreign involvement
D.	All of the above
Answer» E.

Discussion

145.	General electric follows ___________ as its international operational strategy
A.	GLOBAL
B.	TRANSNATIONAL
C.	INTERNATIONAL
D.	MULTI-DOMESTIC
Answer» C. INTERNATIONAL

Discussion

146.	Religion of a person affects his/her
A.	attitude towards entrepreneurship.
B.	gifting practices.
C.	use of products.
D.	all of the above.
Answer» E.

Discussion

147.	As per cultural dimensions of Hofstede, masculinity refers to
A.	Male- female ratio in the country.
B.	Society dominated by male members.
C.	Society characterized by aggressive and materialistic behaviour.
D.	War- ridden societies.
Answer» D. War- ridden societies.

Discussion

148.	Which of these is a characteristic of multinational corporations>
A.	At least one -third directors are foreign nationals
B.	The company does 40% of its business in foreign markets
C.	The overseas markets are larger than the domestic market
D.	The affiliates are responsive tio a number of important environmental forces
Answer» D. The affiliates are responsive tio a number of important environmental forces

Discussion

149.	The stage indicating highest level of economic growth is
A.	age of mass consumption.
B.	age of mass production.
C.	maturity.
D.	drive to maturity.
Answer» B. age of mass production.

Discussion

150.	CISF pricing includes the following
A.	Commission is paid to the agent involved in the transaction
B.	Cost of the goods exported
C.	Freight & Insurance charges for the goods exported
D.	All of the above
Answer» E.

Discussion

Explore topic-wise MCQs in Bachelor of Business Administration (BBA).

……………...is the payment method most often used in International Trade which offers the exporter bestassurance of being paid for the products sold internationally.

The movement to free international trade is most likely to generate short-term unemployment in whichindustries

Specific cultural dimensions that does not have a significant impact on cross-national businessinteractions is

Ownership of intellectual property is recognized in law by granting

________theory states that, lack of resources often helps countries to become competitive

For the society, religion has no influence on

When the transaction is of high value, complex In nature and more technical __________method of the export sales contract is used.

The disadvantages of Greenfield FDI as compared to acquisition is

Capitalistic, communistic and mixed are the types of

Professional culture refers to

Wholly owned subsidiary can be set up

In a business cycle, the phase preceding prosperity is

Which one of the following is a method for an exporter to get a contract

IBRD (International Bank for Reconstruction and Development) also known as

The income level of residents in a country is indicated by

When the exporter, expects the importer, to make the payment immediately upon the draftbeing presented to him is called.

A firm investing in a foreign country to distribute the products there in creation of

Lower power distance countries are characterized by

Social mobility is measured by

In 90’s the global management perception was based on

A country in the stage of traditional society is characterized by

The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year 1999 is an example of

The basic objective of export Promotion Council is to promote and develop the Exports of the

Identify a factor that doesn’t play an important role in attracting FDI

By entering into international business, a firm expects improvement in

Geographical indications specify

The following is not a component of culture

The country that attract the largest FDI inflow is

Conglomerate FDI refers to

Countries/ regions with huge market size will attract

Which is the right sequence of a stages of Internationalization

Non- verbal communication

Uneven distribution of natural resources

Social stratification is done based on

India is an

A country with high uncertainty avoidance will witness

A Most Favoured nation status doesn’t necessarily refer to

Monetary policy relates to controlling

The five forces that affect the level of competition in an industry are

Factor of Interdependence in Multi-domestic strategy is

…………… is application of knowledge which redefine the boundaries of global business

Subsidiaries consider regional environment for policy / Strategy formulation is known as

An attribute that doesn’t contribute to Porters Diamond model is

Which of these is/are the characteristic of a licensing agreement

General electric follows ___________ as its international operational strategy

Religion of a person affects his/her

As per cultural dimensions of Hofstede, masculinity refers to

Which of these is a characteristic of multinational corporations>

The stage indicating highest level of economic growth is

CISF pricing includes the following