Quiz Assignment no 1_Audit Course 6_International Buisness

Q.1 Which of the following approaches is most appropriate for an organization with little experience in international markets?

• Joint venture
• Acquisition
• Strategic alliance
• Exporting

Q.2 In which of the following modes of entry, does the domestic manufacturer give the right to use intellectual property such as patent and trademark to a manufacturer in a foreign country for a fee

• Licensing
• Contract manufacturing
• Joint venture
• None of these

Q.3 Which is the right sequence of stages of Internationalization?

• Domestic, Transnational, Global, International, Multinational
• Domestic, International, Multinational, Global, Transnational
• Domestic, Multinational, International, Transnational, Global
• Domestic, International, Transnational, Multinational, Global

Q.4 Which trade theory holds that nations can increase their economic well-being by specializing in the production of goods they produce more efficiently than anyone else?

• The theory of comparative advantage.
• The theory of absolute advantage.
• The international product life cycle theory.
• The factor endowment theory.

Q.5 In country A, it takes 10 labor hours to produce cloth and 20 labor hours to produce grain. In country B, it takes 20 labor hours to produce cloth and 10 labor hours to produce grain. Which country should get cost advantage to produce grain?

• B
• No country should produce grain.
• Both A and B should produce grain.
• A

Q.6 Privatization can be achieved by.

• Leasing.
• Franchising.
• Contracting.
• All of these.

Q.7 Liberalization means.

• Free determination of interest rates.
• Liberating the industry, trade, and economy from unwanted restrictions.
• Opening of economy to the world by attaining international competitiveness.
• Reducing number of reserved industries.

Q.8 What is an Embargo?

• It is a government order that restricts commerce with a specified country or the exchange of specific goods.
• It requires a certain percentage of a product’s total value to be produced domestically.
• It is a non-tax measure to favor the domestic firms against the foreign suppliers.
• None of the above

Q.9 Quotas are government imposed limits on the ________ of goods trade between countries.

• prices
• quantity
• revenue
• costs

Q.10 Govt. policy about exports and imports is called:

• Monetary policy
• Fiscal policy
• Commercial policy
• Finance policy