International Business Quiz

Q1. Which of the following is NOT a mode of entry into international markets?

• Franchising
• Licensing
• Subsidizing
• Joint Venture

Q2. Which theory suggests that countries should specialize in producing goods and services they are most efficient at and then trade with other countries for goods and services they lack efficiency in producing?

• Comparative Advantage Theory
• Mercantilism Theory
• Absolute Advantage Theory
• Protectionism Theory

Q3. What is the primary function of the World Trade Organization (WTO)?

• To regulate global currency exchange rates
• To facilitate negotiations for international labor laws
• To supervise international commodity markets
• To regulate international trade rules and settle disputes between member countries

Q4. What is the term for an agreement between two or more countries to reduce barriers to trade among themselves?

• Trade embargo
• Free trade agreement
• Protectionist policy
• Import quota

Q5. Which type of risk refers to the potential loss due to fluctuations in exchange rates when dealing with international business transactions?

• Market risk
• Political risk
• Currency risk
• Credit risk

Q6. Which of the following is NOT a form of regional economic integration?

• Economic Union
• Customs Union
• Common Market
• Singular Market

Q7. Which of the following is NOT a stage in the process of globalization?

• Domestication
• Internationalization
• Integration
• Globalization

Q8. Which international organization is primarily responsible for providing financial assistance to developing countries?

• IMF
• WTO
• World Bank
• UNCTAD

Q9. Which of the following is NOT a characteristic of a multinational corporation (MNC)?

• Operating in multiple countries
• Having centralized management
• Engaging in international trade
• Adhering strictly to domestic market operations

Q10. What is the term for the practice of selling goods in a foreign country at a price lower than their fair market price?

• Dumping
• Subsidizing
• Tariffing
• Sanctioning