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.
| 151. |
In international business cheaper alternatives to litigation is/ are |
| A. | Conciliation. |
| B. | Arbitration. |
| C. | Negotiations. |
| D. | Conciliation and arbitration. |
| Answer» E. | |
| 152. |
According to economic growth model of Rostow, passage of a country through thestages 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. | |
| 153. |
In relation to the PESTEL framework, which of the following statements is correct? |
| A. | It assists in the assessment of organisational strengths and weaknesses. |
| B. | It allows a detailed analysis of the structure of an industry. |
| C. | It can be used as a checklist to understand the different environmental influences in the macro environment. |
| D. | Takes an historical perspective on the main political, economic, sociocultural, |
| Answer» D. Takes an historical perspective on the main political, economic, sociocultural, | |
| 154. |
Credits transferable by original beneficiary in favor of secondary beneficiary are known as |
| A. | Deferred credits |
| B. | Transit credits |
| C. | Instalment credits |
| D. | Transferable credits |
| Answer» B. Transit credits | |
| 155. |
No new investment in the host country is created in the case of |
| A. | Greenfield FDI. |
| B. | Acquisition. |
| C. | Horizontal FDI. |
| D. | Vertical FDI. |
| Answer» C. Horizontal FDI. | |
| 156. |
The essential feature of FDI is |
| A. | Investment of a very high value. |
| B. | Investment in shares. |
| C. | Investor’s influence on the management of the enterprise. |
| D. | Investment of low value. |
| Answer» D. Investment of low value. | |
| 157. |
A contract drafted under civil law differs from that drafted under common law in thefollowing 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. | |
| 158. |
Porter suggests the following reasons for one nation being more competitive than another |
| A. | Ability to speak English; developed network of supporting industries; absence of competition; and low labour cost. |
| B. | Abundant natural resources; skilled labour force; temperate climate; and democracy. |
| C. | Factor conditions; demand conditions; related and supporting industries; and firm strategy, industry strategy and rivalry. |
| D. | Strong sporting ethos; emphasis on individual achievement; strong national party in power; large home market. |
| Answer» D. Strong sporting ethos; emphasis on individual achievement; strong national party in power; large home market. | |
| 159. |
For a country with relatively lower level of cost of living PPP per capita GNI will be |
| A. | lower than per capita GNI. |
| B. | higher than per capita GNI. |
| C. | same as per capita GNI. |
| D. | may be lower or higher than per capita GNI. |
| Answer» C. same as per capita GNI. | |
| 160. |
The role of women is restricted in |
| A. | Eastern countries. |
| B. | Middle East countries. |
| C. | Traditional Islamic countries. |
| D. | India. |
| Answer» D. India. | |
| 161. |
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. | |
| 162. |
B2B sector specific policy of Indian Government is |
| A. | FDI up to 100% subject to condition that they invest 26 % in favour of Indian Public within 5 yrs |
| B. | FDI up to 100% |
| C. | FDI up to 100% subject to condition that they invest 26 % in favor of Indian Public within 10 yrs |
| D. | FDI up to 49% |
| Answer» B. FDI up to 100% | |
| 163. |
_______ 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. | |
| 164. |
Typically the last step in the internationalization process is: |
| A. | Licensing |
| B. | Exporting |
| C. | Wholly owned subsidiaries |
| D. | Foreign Direct Investment |
| Answer» E. | |
| 165. |
Ultimately ……………… was replaced by the …………….on 1st Jan 1995 |
| A. | GATT/WTO |
| B. | GATS/IMF |
| C. | WTO/WORLD BANK |
| D. | WORLD BANK/WIPO |
| Answer» B. GATS/IMF | |
| 166. |
The first phase of globalization started around 1870 and ended with … |
| A. | The World War I |
| B. | The World War II |
| C. | The Establishment of GATT |
| D. | In 1913 when GDP was high |
| Answer» B. The World War II | |
| 167. |
The following factor does not differentiate international business from domesticbusiness |
| A. | different currencies |
| B. | product quality |
| C. | product mobility |
| D. | trade policies |
| Answer» C. product mobility | |
| 168. |
Theory of Mercantilism propagates |
| A. | Encourage imports and exports |
| B. | Encourage exports and discourage imports |
| C. | Discourage imports |
| D. | None of these |
| Answer» C. Discourage imports | |
| 169. |
Business across several countries with some decentralization of management decisionmaking to subsidiaries is |
| A. | Global business. |
| B. | Multinational business. |
| C. | Transnational business. |
| D. | Multi-regional business. |
| Answer» C. Transnational business. | |
| 170. |
According to this theory the holdings of a country’s treasure primarily in the form of goldconstituted its wealth. |
| A. | Gold Theory |
| B. | Ricardo Theory |
| C. | Mercantilism |
| D. | H .O. THEORY |
| Answer» D. H .O. THEORY | |
| 171. |
Which of the following would be an example of foreign direct investment from the United States to Taiwan? |
| A. | a u.s. bank buys bonds issued by a taiwan computer manufacturer. |
| B. | a u.s. car manufacturer enters into a contract with a taiwan firm to make and sell it spark plugs. |
| C. | microsoft hires a taiwanese computer programmer to debug some software for it. |
| D. | the state of california rents space in taipei for one of its employees to use promoting tourism in |
| Answer» C. microsoft hires a taiwanese computer programmer to debug some software for it. | |
| 172. |
Horizontal integration occurs when |
| A. | firm creates singular country production facilities, each of which produces different good or goods |
| B. | firm creates multiple production facilities, each of which produces the same good or goods. |
| C. | firm creates multiple production facilities, each of which produces different good or goods |
| D. | firm creates singular country facilities, each of which produces the same good or goods |
| Answer» C. firm creates multiple production facilities, each of which produces different good or goods | |
| 173. |
Locational advantages are based on which combination of the following specific country characteristics |
| A. | a large reserve of natural resources, a large local market and efficiency opportunities |
| B. | a small reserve of natural resources, a large local market and efficiency opportunities |
| C. | a small reserve of natural resources, a small local market and efficiency opportunities |
| D. | a large reserve of natural resources, a small local market and efficiency opportunities |
| Answer» B. a small reserve of natural resources, a large local market and efficiency opportunities | |
| 174. |
A multinational is a firm that controls and manages production facilities in |
| A. | both developed and developing countries |
| B. | at least two countries |
| C. | one country but relies on multiple markets for the consumption of goods it produces |
| D. | at least two developed countries and one developing country |
| Answer» C. one country but relies on multiple markets for the consumption of goods it produces | |
| 175. |
The theory of comparative cost advantage is given by |
| A. | david ricardo |
| B. | adam smith |
| C. | f w taussig |
| D. | ohlin and heckscher |
| Answer» B. adam smith | |
| 176. |
The Theory of Absolute Cost Advantage is given by |
| A. | david ricardo |
| B. | adam smith |
| C. | f w taylor |
| D. | ohlin and heckscher |
| Answer» C. f w taylor | |
| 177. |
The Theory of Relative Factor Endowments is given by |
| A. | david ricardo |
| B. | adam smith |
| C. | c. f w taussig |
| D. | ohlin and hecksher |
| Answer» E. | |
| 178. |
The first phase of globalization started around 1870 and ended with ….. |
| A. | world war i |
| B. | world war ii |
| C. | the establishment of gatt |
| D. | in 1913 when gdp was high |
| Answer» B. world war ii | |
| 179. |
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 | |
| 180. |
Key controllable factors in global marketing are: |
| A. | government policy and legislation |
| B. | social and technical changes |
| C. | marketing activities and plans |
| D. | all of the above. |
| Answer» D. all of the above. | |
| 181. |
……………...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 | |
| 182. |
Comparative Cost Trade Theory is given by |
| A. | adam smith |
| B. | david ricardo |
| C. | gottfried haberle |
| D. | heckscher ohlin |
| Answer» C. gottfried haberle | |
| 183. |
Globalization refers to: |
| A. | lower incomes worldwide |
| B. | less foreign trade and investment |
| C. | global warming and their effects |
| D. | a more integrated and interdependent world |
| Answer» E. | |
| 184. |
According to the principle of comparative advantage: |
| A. | south korea should export steel |
| B. | south korea should export steel and dvds |
| C. | japan should export steel |
| D. | japan should export steel and dvds |
| Answer» B. south korea should export steel and dvds | |
| 185. |
Country A has an absolute advantage in |
| A. | product x |
| B. | product y |
| C. | neither x nor y |
| D. | both x and y |
| Answer» C. neither x nor y | |
| 186. |
International trade forces domestic firms to become more competitive in terms of |
| A. | the introduction of new products |
| B. | product design and quality |
| C. | product price |
| D. | all of the above |
| Answer» E. | |
| 187. |
The movement to free international trade is most likely to generate short-term unemployment in which industries |
| 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 | |
| 188. |
If a nation has an open economy it means that the nation: |
| A. | allows private ownership of capital. |
| B. | has flexible exchange rates |
| C. | has fixed exchange rates |
| D. | conducts trade with other countries |
| Answer» E. | |
| 189. |
According to Adam Smith, the trade between countries should happen _____. |
| A. | naturally according to the market forces |
| B. | under government regulation |
| C. | using factors that are available |
| D. | only when a country has an absolute advantage |
| Answer» E. | |
| 190. |
What was the first economic theory of international trade to be developed? |
| A. | the theory of mercantilism |
| B. | the theory of comparative advantage |
| C. | the theory of absolute advantage |
| D. | the heckscher-ohlin theory |
| Answer» B. the theory of comparative advantage | |
| 191. |
International Trade is most likely to generate short-term unemployment in: |
| 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. | |
| 192. |
Transportation cost of trade affects: |
| A. | pattern of trade |
| B. | boundaries between tradable and non-tradable goods |
| C. | global supply chains |
| D. | all of the above |
| Answer» E. | |
| 193. |
A no-trade world will have which of the following characteristics: |
| A. | countries will have same relative endowments of production factors |
| B. | consumers across countries will have identical and homogenous tastes |
| C. | there will be no distortions or externalities |
| D. | all of the above |
| Answer» E. | |
| 194. |
The Heckscher- Ohlin model is principally focused on what aspect of economics? |
| A. | international trade |
| B. | supply and demand |
| C. | normative economics |
| D. | production possibility frontier |
| Answer» B. supply and demand | |
| 195. |
What are the four factor endowments? |
| A. | national resources, labor, physical capital and human capital |
| B. | types of technology |
| C. | material inputs used up in the process of production |
| D. | international differences in climate |
| Answer» B. types of technology | |