NEW
Font size
WorksheetsMCQs on International Business
Total questions: 20
Worksheet time: 3mins
Which of the following best defines International Business?
Trade between states within a country
Any business activity involving transactions across national borders
Only export and import of goods
Only foreign direct investment
The scope of international business includes all EXCEPT:
International trade
International licensing and franchising
Domestic-only retail operations
Foreign investment
Which is NOT a reason why firms engage in international business?
Access to new markets
Diversification of risk
Exploitation of domestic monopolies abroad
Avoidance of innovation
The theory of comparative advantage was first introduced by:
Adam Smith
David Ricardo
Raymond Vernon
Michael Porter
The Heckscher-Ohlin theory emphasizes:
Differences in technology between nations
Differences in factor endowments
Economies of scale
Product life stages
According to the Product Life Cycle theory, a product is most likely to be produced in developing countries during which stage?
Introduction
Growth
Maturity
Decline
Porter's Diamond model does NOT include which of the following as a determinant of national competitive advantage?
Factor conditions
Demand conditions
Related and supporting industries
Exchange rate policies
Which of the following involves acquiring ownership or control in a foreign company?
Foreign Portfolio Investment
Foreign Direct Investment
Licensing agreement
Export contract
FPI differs from FDI primarily in:
The level of management control
The type of industry
The time horizon
Government involvement
An Indian company buying shares of a U.S.-listed company without seeking managerial control is an example of:
FDI
FPI
Joint venture
Strategic alliance
Digital globalization primarily refers to:
Physical movement of goods between countries
Cross-border data flows and digital trade
Restricting imports via tariffs
International mergers and acquisitions
Which of the following is an example of protectionism?
Lowering import duties
Offering subsidies to domestic industries
Removing non-tariff barriers
Promoting free trade agreements
The triple bottom line in sustainability includes:
People, Planet, Profit
Price, Place, Promotion
Power, Policy, Politics
Production, Process, Performance
Which of the following is a characteristic of a high-context culture?
Communication is explicit and direct
Reliance on non-verbal cues and context
Written agreements are prioritized
Minimal importance given to relationships
Political risk in international business refers to:
Risk of losing customers due to competition
Risk arising from changes in government policies
Risk of natural disasters
Risk from exchange rate fluctuations
Which economic system allows private ownership but with significant government regulation?
Command economy
Market economy
Mixed economy
Traditional economy
Which organization is primarily responsible for resolving trade disputes between member nations?
IMF
World Bank
WTO
OECD
The IMF's primary role is to:
Fund infrastructure projects in developing nations
Monitor global economic stability and provide financial assistance for balance of payments problems
Negotiate trade agreements
Promote cultural exchange
The AIIB was established mainly to:
Promote free trade
Fund infrastructure projects in Asia
Regulate foreign exchange
Support agricultural development
Which of the following is NOT a member-specific function of the G20?
Coordinating macroeconomic policy among major economies
Addressing global financial stability
Setting legally binding trade rules
Discussing sustainable development issues
