IB MCQs

International Business MCQ with answers
1. _______ holds that there are advantages to trade because different

countries can produce different goods more efficiently than others.
The theory of absolute advantage
The tradable goods theory
The product life cycle theory
A favorable balance of trade
2. The form of government whereby a single person, political party, or
organized group controls many if not all facets of life in the nation is
called a _____ system.
Capitalist
Totalitarianism
Socialist
Democratic
3. Ultimately ………………was replaced by the …………….on 1st Jan
1995
GATS, WTO
WTO, GATT
GATT, WTO
IMF, GATT
4. Which of the following best defines international business?
It includes all economic flows between two or more countries.
It includes all private economic flows between two or more countries.
It includes all business transactions involving two or more countries,
whether the transactions are conducted by private or governmental
organizations.
It includes all business transactions in countries other than your home
country.
5. The first phase of globalization started around 1870 and ended with
_______.
World War I
World War II
The Establishment of GATT
In 1913 when GDP was high
6. 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
7. Ultimately ______ was replaced by the ______ on 1st Jan 1995.
GATS, WTO
WTO, GATT
GATT, WTO
IMF, GATT
8. ______ is the application of knowledge which redefines the
boundaries of global business.
Cultural Values
Society
Technology
Economy
9. Globalization refers to ______.
Lower incomes worldwide
Less foreign trade and investment
Global warming and their effects
A more integrated and interdependent world
10. 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
11. Outsourcing a part of or entire production and concentrating on
marketing operations in international business is known as
Licensing
Franchising
Joint venture
12. When two or more firms come together to create a new business
entity that is legally separate and distinct from its parents it is known as
Franchising
Joint ventures
Licensing
13. Which of the following is not an advantage of exporting?
Easier way to enter international markets.
Comparatively lower risks
Limited presence in foreign markets
Less investment requirements
14. Multinational National Corporations have a world management
based on………..
Subsidies.
Trade.
Production.
Industries.
15. Which among these is Monopolistic Trade Practices?
Manufacturing only one product.
Selling only one product.
Limiting technical development.
Unreasonably limiting competition.
16. The migration of employable workers from low-paying nations to
high-paying nations tends to decrease.
Total wage income in the world.
Wage disparities.
Business or Capitalist income in the World.
The productivity of labour.
17. Firm’s undertake multinational operations to………….
Hire low-income workers.
Manufacture in nations they have difficult exporting to.
Obtain necessary factor inputs.
All the above.
18. _______refers to relaxation of produce government restrictions
usually in areas of social and economic policies.
Privatization.
Globalization.
Disinvestment.
Liberalization.
19. Privatization can be achieved by.
Leasing.
Franchising.
Contracting.
All of these.
20. The Foreign Trade Policy has…………….
Identified certain thrust areas for growth.
Started ‘served from India abroad’.
Started duty free export credit.
All above.
21. Disinvestment means selling of a public investment to a…………
Private Enterprise.
Public Enterprise.
Capital Market.
Departmental Enterprise.
22. 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 from 17 to 8.

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International Business MCQ with answers

1. _______ holds that there are advantages to trade because different

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