WorksheetsQuiz Assignment no 1_Audit Course 6_International Buisness
Total questions: 30
Worksheet time: 15mins
Name
Class
Date
1.
Q.1 Which of the following approaches is most appropriate for an organization with little experience in international markets?
a)
Joint venture
b)
Acquisition
c)
Strategic alliance
d)
Exporting
2.
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
a)
Licensing
b)
Contract manufacturing
c)
Joint venture
d)
None of these
3.
Q.3 Which is the right sequence of 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
4.
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?
a)
The theory of comparative advantage.
b)
The theory of absolute advantage.
c)
The international product life cycle theory.
d)
The factor endowment theory.
5.
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?
a)
B
b)
No country should produce grain.
c)
Both A and B should produce grain.
d)
A
6.
Q.6 Privatization can be achieved by.
a)
Leasing.
b)
Franchising.
c)
Contracting.
d)
All of these.
7.
Q.7 Liberalization means.
a)
Free determination of interest rates.
b)
Liberating the industry, trade, and economy from unwanted restrictions.
c)
Opening of economy to the world by attaining international competitiveness.
d)
Reducing number of reserved industries.
8.
Q.8 What is an Embargo?
a)
It is a government order that restricts commerce with a specified country or the exchange of specific goods.
b)
It requires a certain percentage of a product’s total value to be produced domestically.
c)
It is a non-tax measure to favor the domestic firms against the foreign suppliers.
d)
None of the above
9.
Q.9 Quotas are government imposed limits on the ________ of goods trade between countries.
a)
prices
b)
quantity
c)
revenue
d)
costs
10.
Q.10 Govt. policy about exports and imports is called:
a)
Monetary policy
b)
Fiscal policy
c)
Commercial policy
d)
Finance policy
11.
Q.11 __________ refers to a political system in which government is by the people, exercised either directly or through elected representatives
a)
collectivism
b)
democracy
c)
totalitarianism
d)
Socialism
12.
Q12 . Which of the following is true of cultures?
a)
Cultures are multifaceted.
b)
Cultures are stable and unchanging
c)
Cultural knowledge is innate rather than learned
d)
Cultures give us one, single identity rather than several overlapping identities
13.
Q.13 By having business in different countries, a firm reduces
a)
credit risk.
b)
political risk.
c)
financial risk.
d)
business risk
14.
Q.14 India ranked ____ in World Bank's Ease of Doing Business Ranking 2020
a)
65
b)
64
c)
63
d)
77
15.
Q.15 International executives, market analysts, and policy makers study economic performance to better understand all of the following except:
a)
individualistic orientations.
b)
job creation
c)
income growth.
d)
wealth accumulation.
16.
Q.16 ______represents the total market value of all final goods and services currently produced within the domestic territory of a country in a year. It measures the market value of annual output of goods and services currently produced and counted only once to avoid double counting.
a)
GNP
b)
NNP
c)
GDP
d)
National value
17.
Q.17 A general, sustained rise in prices measured against a standard level of purchasing power is called _______.
a)
cost of living
b)
Hyperinflation
c)
relative income
d)
Inflation
18.
Q.18 An increase in digital camera resolution is an example of:
a)
Product innovation
b)
Process innovation
c)
Service extension
d)
None of the above
19.
Q.19 What will happen if a nation begins to print more currency and distribute it to people as the prices of everything are increasing day by day, and they are not able to meet their needs.
a)
Country will run smoothly as people are getting enough money to spend.
b)
Country's currency will get devaluation, and the economy will collapse.
c)
will have no impact on the economy.
d)
Economy will slightly move towards deflation.
20.
Q.20 Which one of the following is true statement?
a)
A balance of trade deals with export and import of invisible items only.
b)
A balance of payment deals with both visible and invisible items.
c)
The current account is not a component of balance of payment.
d)
All the above.
21.
Q.21 The foreign exchange market-
a)
is organized as an over-the-counter market in which several hundred dealers stand ready to buy and sell deposits denominated in foreign currencies.
b)
is very competitive.
c)
functions no differently from a centralized market.
d)
all of the above.
22.
Q.22 The exchange rate is
a)
the price of one currency relative to gold.
b)
the value of a currency relative to inflation.
c)
the change in the value of money over time.
d)
the price of one currency relative to another.
23.
Q.23 Foreign exchange market is considered 24 hours market because
a)
it is open all through the day
b)
all transactions are to be settled within 24 hours
c)
due to geographical dispersal at least one market is active at any point of time
d)
minimum 24 hours must lapse before any transaction is settled
24.
Q.24 Which of the following may be participants in the foreign exchange markets?
a)
bank and nonbank foreign exchange dealers
b)
central banks and treasuries
c)
speculators and arbitragers
d)
All of the above
25.
Q.25 Balance of Payment can be made favourable if
a)
Exports are increased
b)
Imports are increased
c)
Devaluation of money
d)
Both a and c
26.
Q.26 Balance of Payment on capital account includes:
a)
Balances of private direct investments
b)
Private portfolio investments
c)
Government loans to foreign governments
d)
All of the above
27.
Q.27 When an organization sells their product to a third party who then sells it in the foreign market, this process is known as-
a)
Indirect Export
b)
Direct Export
c)
Piggybacking
d)
Countertrade
28.
Q.28 Which of the following is not an advantage of exporting?
a)
Easier way to enter international markets.
b)
Comparatively lower risks
c)
Limited presence in foreign markets
d)
Less investment requirements
29.
Q.29 Which activity is not strictly prohibited in FDI?
a)
Gambling and Betting
b)
Lottery business
c)
Business of chit fund
d)
Production of cereals
30.
Q.30 All are advantages of foreign trade EXCEPT:
a)
People get foreign exchange
b)
Nations compete
c)
Cheaper goods
d)
Optimum utilization of country's resources
100 %
