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Contents
1 INTERNATIONAL BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 INTERNATIONAL BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1. INTERNATIONAL BUSINESS
NARAYAN CHANGDER
1.1 INTERNATIONAL BUSINESS
1. 52) Which of the following BEST explains 4. What is it called when the government of
how a firm reduces risk by operating inter- a nation places a restriction on the import
nationally? of certain products from certain countries?
A. taking advantage of business-cycle dif- A. boycott
ferences among countries B. trade embargo
B. buying competitive risk insurance un- C. tarriff
available domestically
D. exappropriation
C. preventing competitors from operat-
ing in the countries it has entered 5. What is the purpose of trade policies for-
D. operating in less competitive environ- mulated by governments?
ments than those at home A. To enforce strict immigration laws
2. The instruction issued by the superinten- B. To protect domestic industries and pro-
dent to the staff at the gate of the port to mote exports
permit the entry of cargo inside the dock C. To regulate domestic economic poli-
is called: cies
A. Mate’s Receipt D. To control environmental regulations
B. Bill of Entry
6. The following are the important to study
C. Carting order international business
D. None of these A. most companies are either interna-
tional or compete with international com-
3. A country is the country in which a panies
multinational enterprise is a guest.
B. global events and competition affect
A. home almost all companies, regardless of indus-
B. host try
1. A 2. C 3. B 4. A 5. B 6. D
1.1 INTERNATIONAL BUSINESS 3
C. understanding of IB helps you make C. Economic integration between coun-

better career decisions tries that have similar cultures

D. All of these D. Economic integration between coun-
tries that share a common language
7. A high school student
E. Economic integration between coun-
tries that share the same religion
11. Why has the Global Capital Market grown
rapidly?
A. It has solved the Global Crisis
B. It has impulse the development of eco-
nomic for the Europe
A. is a member of several different sub- C. It capital for the Investor
cultures D. It has solve the Global Crisis and im-
B. can be a member of any subculture pulse the development of economic for
the Europe
C. is usually too inexpereienced to have
developed any cultural baggage 12. A country should produce only those prod-
D. none of the above ucts which it can produce using fewer re-
sources than another country
8. One potential disadvantage for a country A. Comparative advantage
of encouraging a multinational business to
set up is that: B. Absolute advantage
A. jobs might be lost in existing national C. Competitive advantage

businesses D. none of above
B. tax revenue to the government will fall 13. Which of the following arguments sup-
C. these companies never export any ports the Paul Samuelson’s critique?
products from the countries they operate A. A rich country cannot produce net
in gains by engaging in free trade with a
D. costs of production are likely to be high poor country.
and this will raise prices B. Governmental intervention will reduce
the likeliness of countries’ economic suc-
9. Scarcity refers to not having enough re- cess.
sources to fulfill everyone’s needs.
C. Countries should attempt to specialize
A. True in the production of goods and services.
B. False D. Trade is a positive-sum game in which
all countries that participate realize eco-
10. What is meant by regional economic inte-
nomic gains.
gration?
A. Economic integration between coun- 14. pre-shipment finance is provided to small
tries around the world scale manufacturers?
B. Economic integration between coun- A. yes
tries in one geographic area B. no
7. A 8. A 9. A 10. B 11. D 12. B 13. A 14. A 15. B

15. What is the definition of business? 20. What are trade barriers?
A. The exchange of goods and services A. Taxes imposed on domestic goods and
within a country services
B. The organized efforts to produce B. Agreements between countries to pro-
goods and services for profit mote free trade
C. The sale of products to customers lo- C. Government subsidies for domestic in-
cated abroad dustries
NARAYAN CHANGDER
D. The procurement of products from sup- D. Government-imposed restrictions on
pliers located abroad the flow of goods and services between
16. Value creation enable the firm to reduce countries.
the costs of value creation and/or to cre- 21. An airline like South West and Jet Blue.
ate perceived value in such a way that pre-
mium pricing is possible A. Wholesaling
A. True B. Retailing
B. False C. Manufacturing
D. Providing a Service
17. World Trade Organization (WTO) is
A. Agreement that created a free-trade 22. What is meant by FDI?
area among the United States, Canada, A. The flow of foreign capital from one
and Mexico. country to another
B. is a company that conducts business in B. The flow of foreign capital from one
only one country, which is known as the country to another involving the purchase
home country. of shares
C. a permanent global institution to pro-
C. The flow of foreign capital from one
mote international trade and to settle in-
country to another involving the purchase
ternational trade disputes
of productive assets
D. none of above
D. The flow of foreign capital from one
18. Eddie Stobart Logistics is an example of country to another involving the purchase
which type of business? of non-productive assets
A. Importing business E. The flow of foreign capital from one
B. Exporting business country to another involving the purchase
of shares and productive assets
C. ME
D. Associated Business 23. The term “expat” means “out of the coun-
try” worker.
19. Which of the following are sme changes in
trade agreements?
A. Tariffs
B. Laws to protect inventions
C. Increase in percentage ownership of a
business
D. none of above
16. B 17. C 18. D 19. A 19. B 19. C 20. D 21. D 22. C 23. A
A. True 28. Usually, the more taxes there are on a

B. False business, the higher the price the business
charges consumers for its products.

C. Don’t know
D. none of above
24. The objective/mission of the WTO not only
covers but expands the objective of the
GATT
A. TRUE
B. Falso A. True
25. Which of the following staffing policies is B. False
concerned with filling all key management
positions by parent-country nationals? 29. Which type of financing may exclude cer-
tain products or services?
A. Bank Loans
B. Export Credits
C. Letters of Credit
D. Importer Payment in Advance
A. Global
B. Polycentric 30. 29) What is the most likely reason that
governments cooperate with each other
C. Ethnocentric
through treaties, agreements, and consul-
D. Geocentric tations?
26. One possible disadvantage to businesses A. to gain an advantageous division of la-
of globalisation is that: bor
A. all products will become more expen- B. to be in compliance with United Na-
sive tions’ requirements
B. there will be more international com- C. to attack problems jointly that one
petition country acting alone cannot solve
C. there will be less choice and variety for D. to assure that all countries get an eq-
their consumers uitable share of taxes from multinational
D. they will tend to produce on a small enterprises
scale and this will raise costs
31. Why was McDonalds so successful?
27. Which are the two countries with which
India trades? A. Their friendly clown
A. China and Japan B. Lots of nutrients in their food
B. USA and Japan C. Red and yellow make people spend
C. USA and China money
D. China and Canada D. Their adaption to cultures
24. A 25. C 26. B 27. B 28. A 29. B 30. C 31. D 32. B

32. International trade is a relatively new de- C. ANALYZING

velopment in the world.
D. ANALYSIS
A. True
B. False 38. If you do business in Afghanistan, you
should know that there could be
33. Companies are usually more concerned
with making the package of a product easy
to use than they are with capturing the at-
NARAYAN CHANGDER
tention of customers.
A. True
B. False
34. Which of the following is a driver of glob-

alization?
A. terrorism acts
A. greater emphasis on proactive interna-
tionalization B. macro risks
B. internationalization of firm’s value C. political instability

chain D. All the above
C. integration of world financial markets
39. Presently, which of the following countries
D. globalization of services is BEST characterized as a pure example of
35. Identify the first step in the export a command economy?
procedure- A. Russia
A. Receipt of enquiry B. North Korea
B. export licence C. China
C. intent
D. Vietnam
D. production of goods
40. A country has an absolute advantage in
36. law is the body of law governing the production of a product when it
legally enforceable agreements between
parties to engage in economic exchange. A. has the capability to produce the prod-
uct within its boundaries
A. Theocratic
B. is more efficient than any other coun-
B. Contract
try in producing it
C. Democratic
C. has the largest domestic demand for
D. Common the product
E. Criminal
D. has access to the raw materials
37. I AM DOING AN OF CONSUMER needed to produce the product
TRENDS IN CELLULAR MARKETS SUCH AS
JAPAN 41. When Nike says that they pay their work-
ers in Honduras $2 per day because that
A. ANALYSE is what other companies pay, they follow
B. ANALYZE the doctrine
33. B 34. C 35. A 36. B 37. D 38. D 39. B 40. B 41. A

C. Subsidies
D. Import Quotas

46. Countries adopting mercantilism:
A. favour trade surplus
A. naive immoralist B. favour trade deficit
B. righteous moralist C. encourage import more than export
C. Utilitarian D. encourage export more than import
D. Kant 47. Which of the following is not a part of ex-
42. The definition of the exchange rate of a port documents?
currency is: A. Commercial invoice
A. the price level in the country B. Certificate of origin
B. the rate at which imports can be C. Bill of entry
bought from export revenue
D. Mate’s receipt
C. the price of one currency in terms of
how much it buys of another 48. An association of 12 member nations
of southeast Asia to promote economic
D. the price of a currency in terms of the
growth, free trade and economic collabo-
goods that can be bought with it
ration between member nations.
43. A language that is not considered a ma- A. ASEAN
jor language for international business pur-
B. EU
poses is
A. German C. NAFTA
B. Spanish D. none of above
C. French 49. A(n) is a citizen of one country who is

D. Indonesian working abroad in one of the firm’s sub-
sidiaries.
44. In which of the following modes of entry, A. international manager
does the domestic manufacturer give the
right to use intellectual property such as B. global citizen
patent and trademark to a manufacturer C. expatriate manager
in a foreign country for a fee
D. ethnocentric manager
A. Licensing
50. A document wherein a shipping company
B. Contract manufacturing
gives its official receipt of the goods put
C. Joint venture on board ofits vessel.
D. None of these A. Bill of lading
45. refers to the tax imposed on imports. B. Indent or order
A. Imported tax C. Certificate of origin
B. Tariffs D. Proforma invoice
42. C 43. D 44. A 45. B 46. A 46. D 47. C 48. A 49. C 50. A 51. A
51. (a) is a system in which the government 57. Absolute advantage theory was proposed
owns the nation’s land, factories, and by in 1776.
other economic resources A. David Ricardo
A. a Centrally planned system B. Adam Smith
B. Free market system C. John Dunning
C. open system D. Karl Marx
D. none of above
58. Import businesses
NARAYAN CHANGDER
52. In mercantilism, The objective of each coun- A. sell goods and services to other coun-
try is to have trade deficit and to avoid tries
trade surplus.
B. buy goods and services from other
A. TRUE countries
B. FALSE C. buy and sell between a range of com-
53. Which of the following is NOT a key part of panies
the international business environment? D. help other business buy and sell inter-
A. Geography nationally
B. Culture 59. What are the different market entry

C. Political & Legal strategies?
D. Marketing A. exporting, licensing, franchising, joint

ventures, and direct investment
54. A tax on imported goods. B. e-commerce, crowdfunding, angel in-
A. import vesting, venture capital
B. export C. importing, leasing, outsourcing, merg-
C. tariff ers and acquisitions
D. none of above D. strategic alliances, divestitures,

greenfield investments, piggybacking
55. What is the factor allowed the Global Cap-
ital Market bloom? 60. Which is not a reason why a business ex-
pand abroad?
A. IT( Information Technology) and
Deregulation A. to increase turnover and profit
B. Banking B. create new ideas
C. Deregulation C. strengthen the business’ reputation
D. Finance D. ensure the sourcing of raw materials
56. How many steps are in our decision mak- 61. what are the four steps to advertising
ing model? planning?
A. 5 A. operation costs, customer demand,

competition, taxes and fees
B. 6
B. analyze target market, create and ad-
C. 7 vertising, message, select media, execute
D. 8 and evaluate
52. B 53. D 54. C 55. A 56. B 57. B 58. B 59. A 60. B 61. B
C. organizational market, consumer mar- B. FDI refers to when a company or in-

ket, motivation, comprehension dividual from one country invests in real
estate properties located in another coun-

D. analyze target market, operation cost,
select media, taxes and fees try.
C. FDI refers to when a company or indi-
62. A means of preventing a foreign product vidual from one country invests in stocks
or service from freely entering a nation’s or bonds of another country.
territory.
D. FDI refers to when a company or indi-
A. trade surplus vidual from one country invests in a busi-
B. trade embargo ness or project located in the same coun-
try.
C. trade barriers
D. none of above 67. Which agency was established to lend
money to the governments of troubled
63. An import quota is a states?
A. tax on import quantities above the le- A. GATT
gal limit. B. IMF
B. way to increase tariff revenues for the C. WTO
exporting country.
D. FDI
C. legal limit on the amount of a good that
can be imported into a country. 68. A situation where a government does not
attempt to influence through quotas or du-
D. legal incentive for members of WTO to ties what its citizens can buy from another
increase their exports of a good or ser- country or what they can produce and sell
vice. to another country.
64. What is it called when a global product A. New trade
or service is adapted to the local practices B. Free trade
and cultural expectations of local country?
C. International trade
A. Glocalisation
D. none of above
B. Coca-colonisation
69. Theory of Absolute advantage was devel-
C. Dependence theory
oped by
D. International mobility A. David Ricardo
65. How can a business increase its profits? B. Adam Smith
A. Increase revenue; increase costs C. Michael Porter
B. Decrease revenue; decrease costs D. Mr Preston
C. Decrease revenue; increase costs 70. refers to a fundamental global shift
D. Increase revenue; decrease costs in which developing economies that were
once dependent upon industrialized coun-
66. What is foreign direct investment (FDI)? tries for economic advancement, begin to
A. FDI refers to when a company or indi- solidly grow based on their own underly-
vidual from one country invests in a busi- ing economic strengths.
ness or project located in another country. A. A multi-polar world
62. C 63. C 64. A 65. D 66. A 67. B 68. B 69. B 70. E

B. Exporting D. is not a cause for international busi-

C. Globalization ness.
D. Outsourcing 75. Is the following an advantage or a dis-

E. Decoupling advantage of international business loca-
tions? “Avoiding import tariffs”
71. Which of the following accounts records
transactions that involve the purchase or A. Advantage
sale of assets? B. Disadvantage
NARAYAN CHANGDER
A. Capital account
76. Standardization marketing strategy fol-
B. Current account lows by
C. Principal account A. Global industries
D. Financial account
B. Local industries
72. How can cultural differences affect negoti- C. Local responsiveness
ations in international business?
D. All
A. Cultural differences have no impact on
negotiations in international business. 77. a trade policy that does not restrict im-
B. Cultural differences only affect com- ports or exports.
munication styles in negotiations. A. Free trade
C. Cultural differences can affect negoti-
B. Insurance
ations in international business in various
ways, including communication styles, ne- C. Trade barrier
gotiation strategies, decision-making pro- D. VAT
cesses, and time orientation.
D. Cultural differences only affect Explanation:
decision-making processes in negotia-
free trade = free trade
tions.
73. Performance of trade and investmentactiv- 78. A grocery retailer such as Tesco might cap-
ities by firms across nationalborders. italize on the infrastructure of stores al-
ready in place by
A. International Trade
B. Internationalization
C. International Business
D. Globalization
74. Uneven distribution of natural resources

A. is the only cause for international busi- A. exporting
ness.
B. establishing a joint venture with a local
B. is the major factor for international
enterprise
business.
C. licensing
C. is among the major factors for interna-
tional business. D. franchising to local companies
71. D 72. C 73. C 74. C 75. A 76. A 77. A 78. B 79. B 80. A
79. Prospects for growth is a benefit of inter- 84. What are international trade policies and
national business to Nations agreements?

A. True A. Rules and regulations for international
B. False trade
B. Guidelines for domestic industries
80. When one country buys its products from
another country, these products are called C. Agreements for local market expan-
sion
A. imports
B. exports D. Regulations for foreign investments
81. The situation where a government does 85. 64) Which term refers to two or more com-
not attempt to restrict what its citizen can panies that share ownership of an FDI?
buy form another country or what they can A. turnkey operation
sell to another country
B. transnational firm
A. Free Trade Agreement
C. joint venture
B. Free Trade
D. franchising
C. International trade
D. Regional trade 86. OPEC stands for
82. 80) When companies face the same com- A. Organisation for Power and Electricity
petitors in almost all countries where they Commission
operate, B. Organisation for Petroleum Export
A. what they learn about one another in Countries
one country is useful in predicting the oth- C. Oil, Petroleum and Electricity Corpora-
ers’ strategies and actions elsewhere tion
B. the market leader is the same every- D. none of above
where
C. there is less need to understand the 87. 83) Which of the following is NOT a com-
physical and societal factors of each coun- mon argument for the slowing of future
try globalization?
D. they are less likely to enter joint ven- A. Antiglobalization interests have been
tures with other companies successful in electing parties that oppose
freer movement of trade or people.
83. What is the main characteristic of the
B. Technological, transportation, and
‘global’ international strategy model?
communication advances will decline in
A. Low cost pressure and high local re- the near future.
sponsiveness
C. Major countries have either ignored
B. High cost pressure and high local re- certain international treaties or have re-
sponsiveness fused to sign them.
C. Low cost pressure and low local re- D. The growing split between those who
sponsiveness succeed in a global environment and
D. High cost pressure and low local re- those who do not will foster greater
sponsiveness antiglobalization sentiments.
81. B 82. A 83. C 84. A 85. C 86. B 87. B

88. When a group of countries join together 93. When members of a society believe that
to eliminate duties and other trade barri- the group is more important than the indi-
ers, allow companies to invest freely in vidual, they are practicing
each other’s country, and allow workers A. individualism
to move freely across borders, what has
been established? B. collectivism
A. most favored nation status 94. What is a disadvantage of contract manu-
B. free trade agreement facturing?
NARAYAN CHANGDER
C. free trade zone A. Not having full control over product
D. a common market quality
B. Easier-to-scale production
89. In Poland, offer to remove your shoes be-
fore entering someone else’s home is sim- C. Access to people with specific skill
ilar to most Muslim countries. It is not al- sets
ways necessary to do so, but it is a polite D. Reduced costs
gesture to ask.
95. In which of the following types of eco-
A. True
nomic integration systems will the estab-
B. False lishment of a common currency be possi-
ble?
90. Going international can help companies cre-
ate value A. Customs union
A. TRUE B. Economic union
B. Falso C. Free trade area
91. Which of the following is a way that D. Common market

people can change negative attitudes &
96. Any activity involving business operations
broaden our perspectives about various
across national borders is called:
cultures?
A. domestic business
A. learn about positive body language
that the culture practices B. trade business
B. learn the language of that particular C. corporate business
county/culture
D. international business
C. communicate with other cultures
97. An is a Customs area where one is al-
D. all of these can help people change
lowed to import plant, machinery, equip-
their negative attitudes
ment and material for the manufacture of
92. What is NOT considered as a typical exam- export goods under security, without pay-
ple of economic sanctions? ment of duty.
A. Trade barriers A. Export processing zone
B. Travel bans B. Import processing zone
C. Restrictions on financial transactions C. Technology park
D. Exchange rate fluctuations D. None of the above
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98. Which of the following is an example of 102. 6) Proponents of argue that individ-
political risk? ual interests are not as important as the
welfare of the group.

A. pluralism
B. capitalism
C. collectivism
D. individualism
103. A(n) is an association of producers

A. Putting a quota on the number of car-
that control supply and prices.
simported
A. independent agent
B. Civil unrest/war
C. Having a custom’s duty on a product B. foreign direct investment
D. Double-taxing a corporation Double- C. cartel

taxing a corporation D. quota
99. The top export destination for the UK is 104. “Company activity inputs may come
A. Germany partly from other countries but outputs
come entirely from the home country” is
B. France not considered as international business
C. USA A. True
D. China
B. False
100. What makes international trade via ship-
105. what is the meaning of ethics?
ping possible?
A. Moral habits that govern the behavior
of society
B. Legal moral principles and values that
govern the behavior of people, firms, and
governments, regarding right and wrong
C. Moral principles and values that gov-
ern the behavior of people, firms, and gov-
A. Climate ernments, regarding right and wrong
B. Access to water D. None of them
C. Political situation 106. Where does the US import most of our

D. Terrain goods from?
A. India
101. Which is broader in scope, international
business or globalization? B. Indonesia
A. globalization C. China
B. international business D. Japan

107. “I couldn’t agree more” is: B. is more efficient than any other coun-
A. strong agreement try in producing it
B. weak agreement C. has the largest domestic demand for

the product
C. strong disagreement
D. has access to the raw materials
D. weak disagreement needed to produce the product
108. What is the technical definition of inter-
112. Who is this character?
NARAYAN CHANGDER
national business?
A. All commercial transactions that take
place within a country
B. All commercial transactions that take
place between two or more countries
C. All commercial transactions that in-
volve transportation
D. All commercial transactions that in-
volve investments
109. Why is it necessary to understand the

economy of a foreign planet when doing
business?
A. To compete in intergalactic sports
events
B. To ensure the business is culturally A. Mickey Mouse
sensitive and respectful B. Baloo the Bear
C. To adapt business strategies accord-
C. Winnie the Pooh
ing to the economic conditions
D. Piglet
D. To learn the alien language
113. What measures the amount of money a
110. ‘’A stage of regional integration in which
country owes another country?
the member countries agree to adopt com-
mon tariff and nontariff barriers on im- A. Foreign policy
ports from non-member countries” this B. Balance of Trade
statement is best explain on
C. Foreign Debt
A. political union
D. Import
B. common market
C. customs union 114. A government may assess a tariff on a
per unit basis, here a tariff is applied
D. economic union
A. International
111. A country has an absolute advantage in
B. Anti-dumping
the production of a product when it
A. has the capability to produce the prod- C. Specific
uct within its boundaries D. In transit

115. An agreement between more than two plate, applicable law, disput settlement,
nations. closing part

A. Ethics D. Title, Introductory paragraph, pream-
B. Multilateral agreement bule, finition, boiler plate, applicable law,
disput settlement, closing part
C. Trade
119. When drawing up a written contract, you
D. Depreciate
do not need to cover the general clause
116. has the authority to administrate for- like insurance, inspection, claim True
eign exchange in India. or False?
A. Commercial banks A. True
B. Financial institutions B. False
C. RBI 120. What are INCOTERMS?

D. Money changers A. International Commerce Conditions
B. International Commercial Terms
117. Which of the following constitutes For-
eign Direct Investment? C. International delivery agreements
A. A speculator trying to make a profit by D. Terms and conditions for international
buying company shares on a foreign stock trade contracts
exchange. E. International rules for international
B. A UK energy company buying territory delivery and payment
abroad where it expects to find oil re- 121. A concept that states that all countries
serves depend on one another for trade is called:
C. A tourist purchasing foreign currency A. globalization
to spend on a holiday abroad.
B. global dependence
D. A company signing an agreement with
a wholesaler to distribute its products in C. global democracy
foreign markets D. global tariff
118. these below are anatomy of Interna- 122. The CGV cinema chain is included in this
tional business contract, except, form of business
A. Heading (opening), designation of par- A. Licensing
ties (comparison), recitals, operative part, B. Joint venture
Definition, boiler plate, applicable law, dis-
C. Merger
put settlement, closing part
D. Franchising
B. Title, Introductory paragraph, pream-
bule, definitions, condition precedent, rep- 123. Making, buying, and selling goods and
resentation and warranties, covenants, services within a country is called
indemnity, guaranty, default, bolerplate, A. international business
closing
B. global dependency
C. Table of contents, Heading (open-
ing), designation of parties (comparison), C. domestic business
recitals, operative part, Definition, boiler D. none of these

124. The utilitarian approach to ethics could be 128. This action distinguishes the WTO from
compared to the GATT
A. It is a better means to resolve busi-
ness disputes
B. Responsible for enforcing agreements
C. Resolve disagreements in less than 6
months
NARAYAN CHANGDER
D. Answers 1 and 2
A. a scale that weigh the good more than 129. 2 Good scanning helps managers avoid
the bad the need to make a detailed analysis of
countries when deciding where to operate.
B. a balance sheet where good is more
than bad A. True
C. an evaluation of consequences so that B. False

benefits are more than negatives 130. Which of the following statements is true
D. All the above in relation to goods and services?
125. Brazilians, like the U.S., communicate di- A. Services can be touched and held,
rectly and you have to be careful with the whilst goods are usually invisible
use of slang. Their communication style is B. Goods can be touched and held, whilst
A. high-context services are intangible
B. low-context C. Services are visible, whilst goods are

usually invisible
126. Restate words from one language into D. Both goods and services are intangible
another language
A. Export 131. When working with Franchising and/or
Licensing the difference is that
B. Translate
A. When licensing the foreign firm does
C. Resource not handle marketing
D. Negotiate B. When licensing the foreign firm han-
127. What are the key factors to consider dles marketing
when conducting market research for inter- C. When franchising the foreign firm
national business? does not handle marketing
A. Understanding the target market and D. When franchising the foreign firm
nothing else does not handle marketing
B. Understanding the target market, cul- 132. Which of the following balance-of-
tural differences, language barriers, le- payment accounts records one-time
gal and regulatory requirements, compe- changes in the stock of assets?
tition, and economic factors.
A. Capital account
C. Not considering legal and regulatory
requirements B. Current account
D. Ignoring cultural differences and lan- C. Financial account
guage barriers D. Monetary account

133. What are tariffs? 139. What does NAFTA stand for?
A. political boundaries between nations A. North America Fund Trade Agreement

B. military blockades of specific coun- B. North American Free Trade Agreement
tries C. North America Free Trade Agreement
C. disputes between state governments D. North Africa Free Trade Agreement
over boundaries
140. Refers to accepted principles of right or
D. taxes on the import or export of goods wrong that govern the conduct of a per-
from a country son, the members of a profession, or the
actions of an organization.
134. It refers to the systematic reductions in
production costs that have been observed A. International Business
to occur over the life of a product. B. Business Ethics
A. Learning effects C. Ethics
B. Economies of scale D. Awareness
C. . Experience curve 141. International transfers of resources, such
D. A Global web as people, intellectual property, and con-
tractual assets or liabilities, do not form a
135. An individual with a strong sense of per- part of international business.
sonal ethics is more likely to behave in an A. TRUE
unethical manner in a business setting.
B. FALSE
A. True
142. Company Mochi faces high pressures for
B. False local responsiveness, but low pressures
forcost reductions. Which is most likely to
136. Initiator of international business trans-
be the IB strategy the company apply?
action, including MNEs and SMEs
A. International strategy
A. focal firm
B. Global standardization strategy
B. distribution channel intermediary
C. Localization strategy
C. facilitator
D. Transnational strategy
D. none of above
143. is explained in the Indent.
137. It is important to study international busi- A. Name of goods
ness because you may work for a firm that
B. Quality of goods
is owned by a corporation that is head-
quartered in another country C. Price of goods
A. True D. All of the above
B. False 144. How does currency devaluation impact in-
ternational business?
138. 7) Globalization refers to all economic
A. It has no impact on international busi-
transactions among countries.
ness
A. True B. It leads to a decrease in demand for
B. False both domestic and foreign products

C. It makes exports more expensive and 149. 44) Critics of offshoring claim all EXCEPT
imports cheaper which of the following?
D. It can make exports cheaper and im- A. Cost savings are seldom passed on to
ports more expensive, leading to changes final consumers.
in demand for domestic and foreign prod- B. Offshoring reduces the incomes of peo-
ucts. ple in low-wage countries.
145. What country has a comparative advan- C. Incomes of workers in countries
NARAYAN CHANGDER
tage in the production of steel whose companies offshored production
have gone down as a percentage of na-
tional income.
D. Many workers who have been dis-
placed by offshoring do not have the skills
needed for higher-value jobs.
150. Which of the following would be a stan-

A. Avagentia
dard franchise issue to consider?
B. Gianluccistan
A. Contract manufacturing
Explanation:
B. Foreign direct investment
146. If a person spends more than 24 hours
C. Compliance with permanent laws
in a place outside his country, is he consid-
ered an international tourist? D. none of above
A. True 151. Which of the following terms is used to
B. False refer to the positive or negative evalua-
tions, feelings, and tendencies that individ-
147. Which trade theory suggests that trade uals harbor toward objects or concepts?
can be explained by differences in technol-
A. customs
ogy and resource endowments between
countries? B. attitudes
A. Comparative advantage theory C. traditions
B. Absolute advantage theory D. values
C. New trade theory 152. 24) A company starting out with a global
D. Heckscher-Ohlin theory focus, usually because of the international
experience of its founders, is called a
148. Michael Porter has argued that and
A. multinational enterprise
are two basic strategies for creating
value and attaining a competitive advan- B. transnational company
tage in an industry. C. strategically allied company
A. differentiation; price competition D. born-global company
B. economies of scale; diversification.
153. List the four types of competitive situa-
C. low cost; differentiation tions from the lowest degree of competi-
D. efficiency; promotion tion to the highest.

A. monopoly, oligopoly, monopolistic B. To understand and respect cultural dif-

competition, pure competition ferences and adapt to the preferences of
the target market.

B. oligopoly, monopoly, pure competition
C. To create misunderstandings and con-
C. pure competition, monopoly, oligopoly
flicts with the target market.
D. To limit business opportunities and hin-
D. none of above der growth in the target market.
154. Which of the following is NOT a phase of 158. A fiduciary agent for the buyer (importer)
the business cycle? and the seller (exporter), guarantees the
A. Reaction exchange of documents giving title to the
merchandise.
B. Peak
A. Commercial Law
C. Expansion
B. Industrial Revolution
D. Contraction
C. Banking Institution
155. Differences among countries require that D. Let it happen
an international business vary its practices
country by country. 159. Culture in which there are many different
groups of people in a multicultural country:
A. TRUE
A. Corporate Culture
B. FALSE
B. subculture
156. The Central Bank of Brazil is the issuing C. homogeneous culture
authority of this currency: D. heterogeneous culture
160. Economic resources are also called factors
of production.
A. True
B. False
161. In which international strategy model is
there less cost pressure and less need to
adapt to the market?
A. International strategy model
A. Weight
B. Multidomestic strategy model
B. Pound
C. Transnational strategy model
C. Lira
D. Global strategy model
D. Real
162. NAFTA is an example of a(n)
157. Why is cultural consideration important
A. free trade area
in international business?
B. customs union
A. To ignore cultural differences and im-
pose one’s own preferences on the target C. common market
market. D. economic union

163. Organizational architecture involves the 168. Identify the importance of International
following elements, except: Business
A. Organizational structure A. Expanding sales
B. Organizational culture B. Distance barrier
C. Financial decisions C. Difference in Law

D. To spread business risks
D. Aliran informasi
NARAYAN CHANGDER
169. It refer to the payment methods in Im-
164. When countries make intensive use of lo- port and Export when the exporter uses an
cally scarce factors, they should that open account, the buyer pays the exporter
product. at some future time following receipt of
A. import the goods.
B. export A. LETTER OF CREDIT
C. produce B. OPEN ACCOUNT

C. Countertrade
D. specialize
D. none of above
165. Religion in Latin America requires busi-
ness people avoid working during which 170. War and unlawful activity are two exam-
of the following? ples of conditions that influence inter-
national business.
A. Lent
A. economic
B. Epiphany
B. cultural and social
C. Holy Week C. political and legal
D. Ramayana D. geographic
166. What is the potential consequence of not 171. The extra cost of travelling to work is
adapting a product to the local market in by the lower price of houses here.
an international strategy with less cost A. balance
pressure and local responsiveness?
B. offset
A. The risk of reduced brand recognition
C. countered
B. The risk of high production costs
D. none of above
C. The risk of facing legal challenges
172. What is the world’s busiest seaport?
D. The risk of losing market share
167. An extended family consists of

A. The children
B. The parents
C. The parents and or the children’s chil-
dren A. Hong Kong
D. All of the above B. Rotterdam

C. Busan 178. Companies produce new products for

which of the following reasons
D. Shanghai

A. old products become unpopular with
173. What is the primary goal of international customers.
business? B. competitors enter the market and at-
A. Maximizing domestic sales tract customers.
B. Expanding market share within a sin- C. sales decline because the product be-
gle country comes obsolete.
D. All of these
C. Expanding operations and sales be-
yond national borders 179. An import is a
D. Reducing production costs A. Good/service brought into a country
B. Good/service sent to another country
174. Which agreement can replace the Court of
International Trade on duty disputes? C. Good brought into a country
A. WTO D. none of above
B. NAFTA 180. According to the book The World is Flat,

flatteners denote
C. FTA
A. no walls
D. ITC
B. limited
175. There is an international branch that C. closed
deals with the trade of products or ser- D. discrete
vices with other countries
181. NAFTA stands for?
A. True
A. North African trade association
B. False
B. Northern Atlantic trade agreement
176. A corporation is considered a legal “per- C. Northern association for trade
son” that acts on behalf of the company’s
D. North American free trade agreement
owners.
A. True 182. What is the culture element must be con-
cern when setting the selling price in dif-
B. False ferent countries
A. social structure
177. The Internet has helped small businesses
compete in global markets because it B. silent language
A. allows them to establish a physical C. social distance
presence in each country D. religions
B. avoids transactions involving foreign 183. Political globalization is the process of
exchange
C. reduces entry costs A. change in political systems
D. eliminates price controls B. emergence of political strategy

C. rise of World Trade Organization 188. Which option should be considered when
D. changes in the rules and structures of choosing Rich Media types for inclusion in
global governance a website?
A. the complexity of CSS used
184. How do local production costs influence a
B. the database structure
company’s decision in choosing a source of
supply? C. the availability of necessary plug-ins
A. Low local production costs encourage D. the education level of the users
NARAYAN CHANGDER
companies to choose in-house supply
189. these below are boilerplate clause, ex-
B. High local production costs encourage cept
companies to look for foreign suppliers
A. choice of law, choice of jurisdiction,
C. Local production costs do not influence choice of language
the company’s decision in choosing a sup-
ply source B. force majure, duration and term,
Amendment, Assignment
D. All answers are wrong
C. Concludinh Clause, signature block, ex-
185. Which of the following is a statement hibits
that supports the theory of comparative D. cover page, table of contents, num-
advantage? bers
A. International trade is a zero-sum gain
where one nation’s gain is another’s loss. 190. Which of the following EPZs is located in
Gujarat?
B. Domestic industries are at risk when a
A. Right
country engages in free trade.
B. Santa Cruz
C. A country should maintain trade sur-
plus to succeed in global trade. C. Lack
D. Global production is greater with free D. Cochin
trade than it is with restricted trade.
191. Reducing the number of resources avail-
186. The most successful Australian export is able to the global community is one of the
ways in which economic conditions affect
international business.
A. Hugh Jackman
A. True
B. Kraft Peanut Butter
B. False
C. Kingaroy Peanuts
D. The Veggies 192. When in doubt concerning business prac-
tices in Europe, it is better to assume
187. A rule or law that slows or prevents trad- is the norm and adjust after learning more.
ing with other nations
A. Informality
A. Trade Barrier
B. Formality
B. Export
193. The WTO was established to implement
C. Import the final act of Uruguay Round agreement
D. Tariff Barrier of

A. MFA 198. Bread, juice drinks and a newspaper are

all
B. GATT

A. Convenience Goods
C. TRIP’s
B. Shopping Goods
D. ONE
C. Specialty Goods
194. the buyer understands that the seller D. none of above
owns the exclusive rights in the design,
patents, trademarks, trade name and com- 199. The ASEAN Free Trade Area was signed
pany name used in connection with the in this country in 1992. Further, this coun-
seller’s goods. what the right title of that try is known for its highly developed free-
clause? market economy.-
A. right and obligation A. Vietnam
B. recitals B. Singapore
C. the object C. China

D. none of above
D. intellectual property protection
200. What is the role of international trade in
195. Political system in which individuals gov- country’s economy?
ern without the support of the people,
tightly control people’s lives, and do not
tolerate opposing viewpoints is a sys-
tem
A. Anarchist
B. Unjust
C. Democratic
D. Totalitarian A. Allows to satisfy the needs of popu-
lation and stimulates development of the
196. Course of action, that does not violate country
these accepted principles.
B. Helps get more products from abroad
A. Business Ethics
C. Helps broaden the range of available
B. Compliance Base Code goods
C. Ethical Strategy D. none of above
D. Corruption 201. A(n) is a government order forbidding
exportation and/or importation of a par-
197. Which one is correct? ticular product from a particular country.
A. familiar with A. subsidy
B. familiar to B. local content law
C. familiar on C. embargo
D. none of above D. quota

202. Why was Buy American initially passed? 207. VER refers to
A. To force people to pay a lot of money. A. Voluntary Export Restraints
B. To establish an export system. B. Voluntary Export Reserves
C. To stimulate foreign relationships. C. Voluntary Export Registration
D. To stimulate domestic economy. D. Voluntary Export Renewal
203. The Silicon Valley of India. 208. A common disadvantage of partnerships
NARAYAN CHANGDER
is
A. dhaka city
A. disagreements among owners.
B. Mumbai City
B. ease of creation.
C. Bangalore City
C. double taxation of earnings.
D. Hyderabad
D. limited liability.
204. What are currency fluctuations? Changes
in the value of one currency relative to 209. In 2018, China announced a 25 percent
tax on $16 billion worth of US-made
A. changes in the price of gold
goods, including vehicles and crude oil.
B. another currency caused by govern- What type of trade barrier did China use?
ment regulations.
A. import quota
C. another currency over a period of
B. import tax (tariff)
time.
C. embargo
D. another currency due to inflation.
D. export quota
205. It is not easy to pursue since it places a
conflicting demand in the company. 210. The following are global products from In-
donesia, EXCEPT
A. Global Standardization strategy
A. California Fried Chicken
B. Local Responsiveness Pressure
B. Curved
C. Cost-Reduction Pressure
C. Wakai
D. Transnational Strategy
D. Danone
E. International Strategy
211. Which of the following characterizes
206. What are Non-Tariff Barriers (NTBs) in in-
country risk?
ternational trade?
A. The political and legal systems of ad-
A. Restrictions and obstacles to trade
jacent nations greatly impact the country
that do not involve direct taxation
risk of nations that host foreign firms.
B. Taxes imposed by governments on im- B. Country risk will change only after the
ported goods creation of laws and regulations that af-
C. Financial assistance provided to do- fect foreign firms.
mestic industries C. A nation’s country risk level remains
D. Regulations related to food safety and fairly constant until the election and instal-
animal/plant health lation of a new political leader.

D. Country risk is always present, but its C. A strategy to protect domestic indus-
nature and intensity vary over time and tries from foreign competition
from country to country.

D. The act of imposing trade barriers to
212. Who is this character? limit imports
215. Being orderly
A. Neatness
B. Sociability
C. Machismo
D. Hug
216. It is important to note that international
trade takes place between businesses, not
countries.
A. True
B. False
A. Minnie Mouse 217. A consumer surplus can be thought of as
B. Mickey Mouse
C. Donald Duck
D. Goofy
213. Which of the following indicates the right

procedure of import trade?
A. Procurement of import license, Placing
order or indent, Trade Enquiry, Customs A. what the consumer has “left-over” af-
clearance and release of goods. ter a purchase
B. how much extra a consumer has to pay
B. Trade enquiry, Procurement of import
for a product
license, Obtaining letter of credit, arrival
of goods. C. value for the money
C. Arrival of goods, Retirement of import D. the higher price the consumer must
documents, Obtaining foreign exchange, pay for getting a quality product
Obtaining letter of credit.
218. headquarters in Jakarta was established
D. Receipt of shipment advice, Trade en- on August 1967 by five founding mem-
quiry, Arranging for finance, Customs bers:Indonesia, Malaysia, Singapore, Thai-
clearance and release of goods. land and the Philippines. As of 2021
the additional members are Brunei, Burma
214. What is globalization?
(Myanmar), Cambodia, and Vietnam.
A. The process of making a product avail- A. EU
able in multiple countries
B. NAFTA
B. The integration and interdependence
of countries through the exchange of C. APEC
goods, services, and ideas D. ASEAN

219. Goods and services purchased abroad 224. What are taxes a country places on prod-
and brought into a country are called ucts as they cross its borders?
A. gross domestic products A. Laws
B. gross national products B. Tariffs
C. imports C. Quotas
D. none of above
D. exports
225. Is WILL used for stipulating the rights and
NARAYAN CHANGDER
220. Many countries have that require obligations of the relevant parties?
that products sold in a particular country
be partly made there.
A. quotas
B. business practice laws
C. tariffs A. True
D. local content laws B. False
221. Which is the first step of the procedure 226. What does international business refer
of import trade? to?
A. The exchange of goods and services
A. Obtaining Import LIcence
within a country
B. Trade Enquiry
B. The sale of products to customers lo-
C. Placing an Order cated abroad
D. Sending Letter of Credit C. The procurement of products from sup-
pliers located abroad
222. What does Devil’s Advocate mean?
D. The commercial activities that occur
A. someone who always disagrees across national borders
B. someone who always agrees 227. refers to the superior features of
C. someone who may agree or disagree a country that provide unique benefits in
global competition, typically derived from
D. someone who does not agree or dis-
either natural endowments or deliberate
agree
national policies.
223. Which of the following characterizes a A. Comparative advantage
customs union? B. Competitive advantage
A. It requires each member to maintain C. Absolute advantage
different external policies regarding non-
D. Industrial cluster
members.
B. It imposes common external policies 228. A subsidy is
on non-members. A. a cash grant or loan from the govern-
ment to support the business.
C. It integrates the political and eco-
nomic affairs of a region. B. a law that promotes safety.
D. It permits the free movement of goods C. a tax on imports.
and people among its members. D. a specific number of imports allowed.

229. International trade usually reduces the B. beliefs

product choices available to consumers.
C. customs

A. True
D. habits
B. False
230. When your exports are less than your im- 235. 8) Under mercantilism, governments
ports, this exists? sought to influence trade by
A. Trade fails A. A) establishing bilateral trading agree-
B. Trade surplus ments with other countries
231. Which of the following staffing policies B. B) limiting exports

seeks the best people for key jobs, regard- C. c) limiting imports and subsidizing ex-
less of nationality? ports
D. D encouraging the development of
manufacturing in their colonies
236. 39) Which of the following statements

would most likely be made by a SUP-
PORTER of globalization?
A. Global
A. Globalization encourages the adoption
B. Ethnocentric of uniform and superior standards for
C. Geocentric combating environmental problems.
D. Polycentric B. Economic growth created by globaliza-
tion is largely in services, which involves
232. Involves selling a good or service in an- the use of few nonrenewable resources.
other country with a limited adaptation,
there’s no need to invest in factories C. Global competition discourages
A. Foreign Direct Investment resource-saving technologies, which are
costly.
B. Exporting
D. Air pollution and toxic runoff problems
C. Licensing
increase with global economic growth.
D. Joint Venture
E. Internet 237. Associated enterprises
233. On a graph of supply and demand, the A. sell goods and services to other coun-
market price is where the supply line and tries
the demand line intersect.
A. True countries
B. False
C. buy and sell between a range of com-
234. Which is not part of the substances of cul- panies
ture D. help other business buy and sell inter-
A. values nationally

238. A country concerned about lack of skilled B. globalization

workers to complete jobs in emerging ca- C. international
reers would have potential business part-
ners concerned with which component? D. increase
A. Political 243. Why is it important to take a class in in-

B. Legal ternational business?
C. Social A. To learn about domestic business
NARAYAN CHANGDER
D. Technological B. To become an exchange student in an-
other country
239. 86) Managers need to understand not C. To understand the differences in doing
only the laws of countries where they op- business across borders
erate, but also how those laws are en-
D. To learn how to translate languages
forced.
A. True 244. Expanding to international business will
create more jobs
B. False
A. True
240. 22) Because consumers want a greater
B. False
variety of goods and services at lower
prices, many governments have 245. What are foreign exchange markets?
A. reduced their restrictions on the inter- A. Markets for buying and selling com-
national movement of goods and services modities
B. acted to tax most imports at a lower B. Centralized markets for buying and
rate than domestic products selling currencies
C. sought to eliminate reciprocal advan- C. Markets for buying and selling stocks
tages negotiated through international or-
D. Decentralized markets for buying and
ganizations and treaties
selling currencies
D. increased their participation in multi-
national problem-solving efforts 246. Limitations on amounts permitted to en-
ter or dollar amount counted.
241. What spice should you avoid in Egypt?
A. Quell
A. Paprika
B. Quota
B. Salt C. Queue
C. Pepper D. none of above
D. Oregano
247. Which of the following countries are
242. the word used to describe the growing there strong ties between family and busi-
interdependence of the world’s economies, ness
cultures, and populations, brought about A. Mexico
by cross-border trade in goods and ser-
vices, technology, and flows of invest- B. Australia
ment, people, and information. C. Canada
A. national D. The United States

248. Which of the following saying means 252. SEZs located in Funcational area
“Businesspersons who are assertive get A. 6
rewarded. “

B. 7
C. 8
D. 9
253. Language, family, religion, customs, tra-
ditions, and food refer to which factor of
the international business environment?
A. geographic
A. There’s more than one way to skin a
B. economic
cat
C. political and legal
B. A stitch in time saves nine.
D. cultural and social
C. The squeaky wheel gets the grease
254. What is the main consideration for hav-
D. You’ve made your bed; now sleep in it.
ing local teams in the new geography in an
249. According to the , a country benefits international strategy with less cost pres-
by producing only those products in which sure and local responsiveness?
it has complete advantage or that it can A. To centralize decision-making
produce using fewer resources than an- B. To increase market share
other country.
C. To adapt the product to the local mar-
A. absolute advantage principle ket
B. comparative advantage principle D. To reduce production costs
C. factor proportions theory 255. Which is correct? big → biggerfun →
D. international product cycle theory
A. funner
250. When the production and sales capacity
was higher than the distribution capacity B. funnier
causing difficulties in the timely and effi- C. more fun
cient delivery of resources D. more fun
A. 2800 to 2900
256. If one partner buys expensive equipment
B. 1950 for the partnership without consulting the
C. 1960 other partner, only that partner is liable
for the cost of the equipment
D. 20th century
A. True
251. Which is NOT a positive adjective about B. False
a drink?
257. When food products are exported, they
A. crunchy
can usually be standardized for most coun-
B. fizzy tries.
C. delicious A. True
D. wonderful B. False

258. 58) which of the following is the most 263. Country will produce only ONE product
accurate statement about culture? that it has absolute advantage. This refers
A. cultural variables can easily be iso- to:
lated from other factors such as economic A. Absolute advantage
and political conditions B. Comparative advantage
B. although most cultural variables are C. Efficiency
universal, the forms these variables take
differ from culture to culture D. Specialization
NARAYAN CHANGDER
C. most cultural variables are superficial 264. What is the one positive direct impact for
and can easily be influenced by environ- business from enhancing their ethical be-
mental factors. havior
D. within a culture, everyone responds A. Accruing more market shares
to particular cultural variables the same B. Building consumer based operation
way.
C. Enhancing foreign investment
259. A nation’s transportation, communica- D. Enhancing corporate image
tion, and utility system is known as its
A. Telecommunications 265. What is a reason(s) for using home-
country nationals?
B. Infrastructure
C. Per capita distribution
D. Automation
260. Walt Disney permits a German clothing
manufacturer to market children’s paja-
mas embroidered with Mickey Mouse in
return for a percentage of company sales.
This is an example of
A. franchising A. Provide key technical expertise.
B. licensing B. The need to maintain and facilitate or-
ganizational coordination and control
C. leasing
C. Provide the company’s more promis-
D. piracy
ing managers with international experi-
261. Exports are goods that are sold to an- ence to equip them better for more re-
other country for sale in that country. sponsible positions
A. True D. All are correct
B. False 266. What is the average GDP growth in
262. It is necessary to fill copies of Bill of emerged nation markets in 2020 during
Entry. COVID-19?
A. Two
B. Three
C. Four
D. Five

A. +1.0
B. 0

C. -0.8
D. -12.7
267. How does cross-cultural communication

impact international business? A. Polycentric
A. Cross-cultural communication has no B. geocentric

impact on international business. C. ethnocentric
B. Cross-cultural communication only im- D. none of the above
pacts communication within a single cul- 272. The idea that you can carry your beliefs,
ture. values, and assumptions with you at all
C. Cross-cultural communication only im- times is referred to
pacts local businesses. A. Culture
D. Cross-cultural communication impacts B. Subculture
international business by influencing how
C. Cultural Baggage
people from different cultures interact
and understand each other. D. Contexting
273. It is an example of international strategy
268. The percentage increase in net profits
that developed innovative new products
over time measures:
and then transferred them wholesale to lo-
A. capital return cal markets.
B. profitablity A. Microsoft
C. net profit B. Nestle
D. profit growth C. Texas instruments
D. Komatsu
269. post shipment finance can be availed for
E. Procter & Gamble
A. short term
274. If the CEO of Firestone in Liberia says
B. medium term
that his only responsibility is to satisfy
C. long term shareholders, he is following the (a) doc-
D. all of the above trine
270. Who proposed Product Life Cycle Theory?

A. Donald B Keesing
B. Philip Kotler
C. Raymond Vermon
D. Linder A. a Friedman
B. Utilitarian
271. If you make use of highly secret technol-
ogy, it would be better to use a ap- C. Human rights
proach when appointing staff D. Kant

275. what is an advantage of owning a sole B. Land

proprietorship
C. Labor
A. easy to create
D. none of above
B. easier to raise money
C. easy to start 281. David Ricardo’s theory of comparative
advantage explains global trade in terms
D. none of above of the
276. Which of the following is a benefit of U.S.
NARAYAN CHANGDER
A. first mover advantage that certain
companies doing business domestically in- countries and firms enjoy
stead of internationally?
B. geographical differences between var-
A. Having to learn about different cus- ious countries
toms, taboos, and mannersfrom different
C. international differences in labor pro-
countries
ductivity
B. Having to exchange currencies
D. late mover advantage that certain
C. Having familiarity with laws and regu- countries and firms possess
lations
D. Having to negotiate payment options 282. International business relates to any situ-
with the World Bank ation where the production or distribution
of goods or services crosses country bor-
277. 13) The specific learned norms based on ders.
attitudes, values, and beliefs of a group of
A. TRUE
people are known as ethnology.
A. True B. FALSE
B. False 283. loans upto 10 crore are sanctioned by

278. A system of learned, shared, and unifying A. exim bank
beliefs, values, and assumptions is known B. private bank
as
C. commercial bank
A. Culture
D. public bank
B. Collectivism
C. Individualism 284. The main promoter of trade liberalization
D. Values was
A. GATT
279. What is one disadvantage of importing?
B. NAFTA
A. Political and economic instability
C. ACCEPTED
B. Vulnerability to currency fluctuations
C. Technology advancement D. CISA
D. Access to resources 285. Total or part payment in advance may be

necessary when importing goods if:
280. . A Customer Service Representative is a
product created by what type of resource? A. Political situation
A. Capital B. Little trust

C. High demand for goods and paying in 290. Which of the following is a positive effect
advance price can be fixed at a particular of globalization?
level

A. Reduced business competition
D. Importer new and cannot negotiate B. Increased geopolitical tensions.
better terms
C. Greater access to goods and services
286. Resource endournment was offered by from different parts of the world.
A. Ohlin D. Loss of cultural identity.
B. Porter 291. Managers should be more precise in their
C. Vernon directions to subordinates when
D. Ricardo A. the company has a philosophy of geo-
centrism
287. What are the different global market en-
try strategies? B. the society believes age equals wis-
dom
A. exporting, licensing, franchising, joint
ventures, and direct investment C. uncertainty avoidance is high
B. importing, leasing, outsourcing, D. power distance is low

strategic alliances, and indirect invest-
292. Which of the following is a theory that
ment.
can be used to justify limited government
C. importing, leasing, outsourcing, intervention to support the development
strategic alliances, and indirect invest- of certain export-oriented industries?
ment.
A. Comparative advantage theory
D. importing, leasing, outsourcing,
B. Ricardo’s theory
ment. C. New trade theory
D. Heckscher-Ohlin theory
288. The world tourism organization says that
international tourism is:traveling and stay- 293. Two major forces that underlie the expan-
ing in places that are in your usual envi- sion of globalization are falling barriers to
ronment for no more than one consecutive trade and investment, and
year for leisure, business and other rea-
sons. A. elevation of nationalism
A. True B. rise of closed economies
B. False C. political stagnation

D. technological innovation
289. When one country refuses to trade with
another country because of political or in- 294. A US high school sophomore belongs to
fringements of human rights it is called: the subculture of
A. standard of care A. Senior citizens
B. subsidy subsidy B. Professional althetes
C. embargo C. Students
D. revenue tariff D. Baby boomers

295. Australia’s top company revenue earner C. economic policy of imports from other
in 2015 was countries
A. Woolworths D. economic policy of exports from other
countries
B. Wesfarmers
C. Westpac 299. Selling a product abroad for less than the
cost of production is referred to as
D. Walmart
A. dumping
NARAYAN CHANGDER
296. Great companies solve problems that B. setting up quotas
matter like:
C. direct foreign investment
A. 1. Refreshing Time Away-from-it-all2.
Productivity over presence D. imposing tariffs
B. 1. FOCUS ON THE AREA THAT’S HOLD- 300. Stowage es

ING YOU BACK2. BE WILLING TO PAY A. Store
FOR GREAT TALENT3. DON’T MAKE FEAR-
BASED DECISIONS4. UNDERSTAND THE B. Storage
RULES C. Estiba
C. 1.Enrichment (outside of money)2.Health D. Length
Options
301. T/F:Banking is an example of an interna-
D. none of above tional service trade.
297. (a) is an economic system in which land, A. False
factories, and other economic resources B. True
are rather equally split between private
and government ownership. 302. What do governments aim to achieve by
formulating trade policies?
A. a Mixed economic
A. To regulate domestic industries
B. Capitalist economic
B. To enforce strict immigration laws
C. Socialist economic
C. To control environmental regulations
D. Centrally planned
D. To protect domestic industries and pro-
298. What is PROTECTIONISM? mote exports
303. 62) In societies where trust is high,

A. people tend to be more future-
oriented
B. business costs are typically lower
C. people tend to be more fatalistic
D. family businesses are dominant
A. economic policy of restricting imports
from other countries 304. The GDP of an economy measures
B. economic policy of restricting exports A. The value of the nation’s output

from other countries B. The national income

C. The money spent buying all of the na- 310. What is one potential difference between
tional output international business and domestic busi-
ness?

D. All of the above
A. The need to modify existing business
305. When a country has an advantage in principles and practices
more than one area, it specializes in the
production of the good that is more effi- B. The assumption that the government
cient will not mind opening another business
A. Comparative advantage C. The availability of realtors to help find

a building
B. Trade surplus
D. The ability to negotiate the price of a
C. Absolute advantage building
D. Trade fails
311. The may, from time to time, formu-
306. A global company can its experience late and announce, by notification in the
to expand its global operations Official Gazette, the export and import
policy
A. Contract
A. State government
B. Expand
B. Central government
C. Leverage
C. Both a & b
D. Minimize
D. None of the above
307. In the context of global trade, what are
tariffs? 312. A manufacturing firm based in country C
buys in raw materials from country A and
A. Taxes on imports
sells the finished goods to country B. The
B. Limits on exports firm could gain if country C’s currency:
C. A complete ban on imports A. depreciated against both other curren-
D. Political weapons cies
B. depreciated against currency A but ap-
308. :Selling goods in foreign markets at
preciated against currency B
a price below cost.
C. appreciated against currency A but de-
A. Ditching
preciated against currency B
B. Directing
D. appreciated against both currencies
C. Dumping
313. What is the key difference between do-
D. Deserting
mestic business and international busi-
309. Which of the following is NOT a charac- ness?
teristic of capitalism? A. There is greater mobility of factors
A. private ownership of assets of production compared to domestic busi-
ness
B. right to profit from individual effort
B. There is greater homogeneity in terms
C. state control of factors of production of the nature of customers in international
D. private control of investment business

C. The buyer and seller belong to the 319. An example of a multinational company
same country in domestic business NOT acting with social responsibility is
D. The buyer and seller belong to differ-
ent countries in international business
314. How many basic international business

strategies are there?
A. 3
NARAYAN CHANGDER
B. 4
A. Providing host country citizens with
C. 5 free education resources
D. 6
B. Allowing children under 14 to work
315. Which 3 of the following are exports? with hazardous materials
A. US cars sold in Europe C. Investing money into the economy of
the host country
B. Nebraska beef sold in Japan
C. Brazillian bananas sold in Canada D. none of above
D. Saudi Arabian oil sold in the US 320. When the buyer of the product pays for
it before it is delivered, this is called
316. The processes of globalisation have
meant that if the US sneezes, the rest of A. A letter of credit
the world catches a cold. B. Prepayment by the importer
A. True C. An export credit
B. False
D. A bank loan
317. A global dependency exists when
321. democracy is a pure form of democ-
A. massive crop failures require buying racy, in which all adult male non-slave citi-
food from another country. zens vote directly on matters affecting the
B. a country buys tools from another community.
country because it does not have the tech-
A. Representative
nology to make the tools.
B. Totalitarianism
C. doctors travel to another country to
provide healthcare because there is a C. Communism
shortage of medically-trained profession- D. Athenian
als in that country.
E. Egalitarian
D. all of the options
318. Which factors can influence trade rela- 322. What is the main reason for the growth
tions? of international business?
A. cultural and social factors A. Trade Alliances

B. political and legal factors B. United States
C. economic factors C. Peace
D. all of these D. Profit

323. Subset of a larger culture 326. Why do states have COMMERCE DEPAR-
MENTS?

A. to actively seek ways to sell products
made within their borders
B. to actively seek ways to trade products
with other states in the US
C. to actively seek ways to cut costs of
production
A. Cultural baggage D. to actively seek ways to change adver-
tising methods for products
B. Subculture
C. Culture 327. The UAE has free trade agreements with
neighboring Arab states.
D. none of above
A. True
324. A situation where parents, children, and B. False
other relatives live together is
328. Tariffs, quotas, and boycotts are exam-
ples of
A. civil unrest.
B. political unrest.
C. trade barriers.
D. free-trade agreements
A. a nuclear family 329. Which of the following tries to counter

ethnocentrism by promoting the under-
B. an extended family standing of common practices in cultures?
C. family class system A. Cultural bias
D. none of the above B. Cultural baggage
C. culture shock
325. How many border trade points are there
on the Vietnam-China border? D. cultural relativism
330. What is an embargo?

A. A government-imposed restriction on
trade or other commercial activity with a
particular country or group of countries.
B. A government-imposed restriction on
A. 4 communication with a particular country.
C. A government-imposed restriction on
B. 11
travel to a particular country.
C. 21
D. A government-imposed restriction on
D. 27 trade within a particular country.

331. The following are positive societal conse- 336. 72) The fact that a company is the market
quences of market globalization, except: leader in one country is no guarantee that
it will be the leader in another country.
A. More jobs
A. True
B. Natural Environment
B. False
C. Economic development
D. Technology and knowledge transfer 337. Social media is used by marketing profes-
sionals to share content, network, raise
NARAYAN CHANGDER
332. Business is customer awareness and drive sales.
A. Any activity involvingbusiness opera- A. True
tions across national borders.
B. False
B. any activity that seeks to provide
goods and services to others while oper- 338. A selected area where products can be im-
ating at a profit ported duty-free and then stored, assem-
bled, and/or used in manufacturing.
C. increasing integration of the world
economy A. Free-trade zones
D. none of above B. Free-trade agreements
C. Common markets
333. 9) It is difficult to compare globalization
of business over time because shifting na- D. none of above
tional borders have changed the nature
of transactions from domestic to interna- 339. The higher per capita income in a country,
tional and vice versa. the more globalized that country is. This
argument is true because:
A. True
A. Because there is more income
B. False
B. People can afford imported products,
334. The Foreign Exchange Regulation Act travel, communicate abroad
came into force in the year C. Because there is greater cultural diffu-
A. 1973 sion
B. 1974 D. The economic system is more stable
C. 1975 340. Country A can produce product X, but it
D. 1976 can also buy it at a cheap rate from Coun-
try B. Which of the following courses of ac-
335. We will recommend alternative products tion is suitable in this situation according
in the event that we are stock of that to Adam Smith’s theory of absolute advan-
particular item. tage?
A. in A. Country A should import product X
from country B and it should not attempt
B. out of
to produce it at home.
C. without
B. Country A should partly import the
D. none of above product and produce it domestically.

C. Country A should produce more of

product X and should attempt to obtain an
absolute advantage for the product.

D. Country A should subsidize the produc-
tion of product X to obtain an absolute ad-
vantage over country B.
A. immigrant manager
341. Superior features of a country that pro-
B. expatriate manager
vide it with unique benefits in global
competition-derived from either national C. virtual manager
endowments or deliberate national poli- D. host country manager
cies
A. Comparative advantage 346. Watches made in Norway are worn by
people in California.
B. Absolute advantage
A. import
C. Competitive advantage
B. export
D. none of above
347. It is a step in Systematic Approach to Ex-
342. Which stage of going global includes es- porting where They identify qualified inter-
tablishing a production presence? mediaries and other foreign business part-
A. Product specialization ners.
B. Market entry A. ORGANIZE FOR EXPORTING
C. Value chain disaggregation B. ACQUIRE NEEDED SKILLS AND COM-
D. Creation of new markets PETENCIES
C. ASSESS GLOBAL MARKET OPPORTU-
343. Consists of the exchange of goods and NITY
services by different countries.
D. none of above
A. International Business
B. International Trade 348. The following are the common types of
political risk except:
C. International Exchange
A. Expropriation/government interfer-
D. National Business
ence
344. Which of the following is characteristic of B. Transfer and Conversion
globalization of markets?
C. Currency devaluation
A. lack of skilled labor
D. Political violence
B. conservatism
349. Liberalisation is
C. declining trade barriers
A. more trade
D. diminishing gap between the rich and
the poor B. removing barriers or restrictions set
by the Government
345. Megan, a U.S. citizen, is the operations
manager at the Middle East office of an C. Checking barriers by the Government
American firm. She is an example of a(n): D. Help by the Government

350. This is the most restrictive of the trade A. Communism

restrictions a nation can use to close off B. Egalitarian
all importation of a product.
C. Athenian
A. tariff
D. Representative
B. quota
E. Totalitarianism
C. subsidy
D. embargo 355. This phenomenon occurs when the aver-
age cost per unit produced is reduced as
NARAYAN CHANGDER
351. Define the concept of foreign direct in- the number of units produced increases.
vestment (FDI). A. dynamic movements
A. Investment made by a company or in- B. Law of supply and demand
dividual from one country into a business
or project located in the same country. C. Scale economics
B. Investment made by a company or in- D. Lean manufacturing

dividual from one country into a business 356. How is foreign investment divided?
or project located in multiple countries.
A. Direct and indirect
C. Investment made by a company or in-
B. Formal and informal
dividual from one country into a business
or project located in another country. C. Globalization and Globalization
D. Investment made by a company or indi- D. none of above
vidual from one country into a business or
357. It is the procurement of selected value-
project located in a different country but
adding activities, including production of
with the same currency.
intermediate goods or finished products,
352. Performa Invoice is issued by the- from independent suppliers.
A. Shipping company of importer A. Business Process Outsourcing (BPO)
B. Exporter to importer B. Outsourcing
C. Importer to exporter C. Offshoring
D. Exporter to the shipping company D. none of above
353. Which global market entry strategy in- 358. Which country has this flag?
volves a company collaborating with a lo-
cal company to establish a new business
entity in a foreign market?
A. Exporting
B. Licensing
C. Joint venture
D. Franchising
A. China
354. democracy is a form of government in B. Cook Islands
which citizens vote to elect given individu-
als to serve as their representatives for a C. Malaysia
certain period of time. D. Sri Lanka

359. Buying or selling on credit is called a let- 364. The standard of something as measured
ter of credit. against other things of a similar kind; the
A. True degree of excellence of something.

B. False A. Process
B. Procedures
360. Type of government, political stability
and laws towards business are all exam- C. Quality
ples of which of the elements of the inter- D. Distribution and delivery
national business environment?
A. Culture 365. The belief that the group is more impor-
tant than the individual
B. Economic Conditions
A. Culture shock
C. Geography
D. Political & Legal B. Ethnocentrism
C. Communism
361. was replaced by WTO on January 1,
1995. D. Collectivism
A. NAFTA 366. NAFTA is an agreement among the U.S.,
B. IMF Canada, and Mexico primarily intended to
C. IRDB promote
D. GATT A. environmental protection

B. military defense
362. Capitalistic, communistic and Mixed are
the types of C. human rights
A. Economic System D. free trade
B. Social System
367. Country X, a poor country, invents a rev-
C. Cultural Attitudes olutionary electronic product. The country
D. Political System markets this new product in other poor
countries to garner large profits. This oc-
363. What is bulk cargo transportation? currence is against the idea of
A. If you have a heavy cargo shipment, it A. Product life-cycle theory
may require equipment such as cranes or
lifting platforms for transporting it.
C. Theory of absolute advantage
B. Is that which is transported in large
quantities without packing or packing, D. Theory of comparative advantage
where the means of transport itself acts
as a container. 368. What is classical theory?
C. Speak of dry cargo or general cargo in A. It is from the perspective of a country.
road transport, we refer to merchandise
B. It is from the perspective of a firm.
that does not require equipment or special
transport conditions C. Both A and B
D. It is the most economical means. D. none of above

369. There are companies that combine prof- B. Bretton Woods Agreements
itable actions with environmental respon- C. European Steel and Coal Community
sibility
D. GATT
A. TRUE
B. Falso 374. Define Arbitration
A. A legal system that relies on the accu-
370. determines what type of crops can
mulation of decisions made in prior cases
be grown and whether or not tourism will
NARAYAN CHANGDER
thrive. B. a method of conflict resolution that
uses a nuetral third party to make a blind-
ing decision
C. Those laws that have been enacted by
a body of lawmakers
D. A dispute resolution method that
makes use of a neutral third pary.
375. What movie is this from?

A. Farming methods
B. Climate
C. Terrain
D. Geology
371. From the statement below, which is best

describe the importance of size quota in In-
ternational Monetary Fund (IMF)? A. Aladdin
A. To promote international monetary co- B. Jasmine

operation C. Prince Ali
B. To facilitate the expansion and balance D. Magic Carpet
growth of international trade
376. is what happens when good and ser-
C. To determine its voting power within
vices are bought and sold.
the IMF
D. To assist in the establishment of a mul-
tilateral system of payment
372. Bangkok declaration is associated with

A. SAARC
B. WTO
C. ADB
D. ASEAN A. human resource
373. Formed in 1947 with the purpose of abol- B. capital resource

ishing quotas and reducing tariffs C. economy
A. FMI D. trade

377. “Shura” is a Middle Eastern term describ- 383. The agency with which one should reg-
ing which of the following? ister before traveling abroad; compiles
country-specific information for travelers

A. A type of greeting reserved for women
and issues travel alerts and warnings
B. A decision made by the group
A. Nonverbal Signal
C. A religious ceremony for families
B. U.S. Department of State
D. A strong feeling of trust and admira-
tion C. Individualist Culture
D. Good appetite
378. Currently, a good part of the world’s pro-
duction is sold outside the country of ori- 384. The rate at which prices for goods and
gin. services is rising and therefore the pur-
A. TRUE chasing power of the currency is falling is
B. Falso
A. Interest
379. What principle guides a country’s deci-
sion to specialize in certain goods for ex- B. Unfair
port? C. Inflation
A. Law of Absolute Advantage D. Appreciation
B. Law of Supply and Demand 385. Universal needs exist in conventional
C. Law of Diminishing Marginal Returns commodity (gasoline) and industrial and
D. Law of Comparative Cost consumer products (smartphones).
A. True
380. Boeing, an American firm, sells commer-
cial aircraft to Lufthansa in Germany. This B. False
is an example of
386. What is the account name of IPMI’s Tik-
A. exporting Tok?
B. importing A. ipmi.ac.id
C. licensing B. ipmi.bachelor
D. franchising C. ipmi.master
381. To make products by hand or machinery D. ipmi.youngster
A. Manufacture Explanation:You may visit & check our Tik-
tok Account @ipmi.youngster for many
B. Resource
moment of students & campus activities.
C. Translate
387. A new round of talks Doha focusing on
D. Embargo
these term, except
382. General Agreements on Tariffs and Trade A. Cutting tariffs on industrial goods and
was established in service
A. 1945 B. Increasing subsidies
B. 1947 C. Reducing barriers to cross-border in-
C. 1957 vestment
D. 1974 D. Limiting the use of anti-dumping laws

388. Profitability can be increase by adding B. To monitor safety regulations

value to the product and raise prices, and C. To analyze competitor landscapes
selling more products in the existing mar-
D. To predict market potential
ket.
A. True 395. Christmas decorations are now 75% off
at Walmart. This means you can buy a
B. False strand of 100 multicolored lights for just
389. Name one international trade agreement. $.50. As a result, every remaining pack-
NARAYAN CHANGDER
age was sold in a three day span. This is
A. WTO (World Trade Organization) because
B. NAFTA (North American Free Trade A. $.50 is the equilibrium price
Agreement)
B. $.50 is the market price
C. EU (European Union) C. The law of demand
D. ASEAN (Association of Southeast D. All of these are correct
Asian Nations)
396. Governments can encourage MNEs into
390. Public sector that is also active in inter- their country by offering which incentive?
national business as suppliers, buyersand A. Subsidy
regulators.
B. Tariffs
A. TRUE
C. Quota
B. FALSE
D. none of above
391. By having business in different countries, 397. The company produces, markets, in-
a firm reduces vests and operates across the world
A. Credit Risk A. Global
B. Political Risk B. International
C. Financial Risk C. Transnational
D. Business Risk D. Multinational
392. No nation is either completely individual- 398. Vietnam has just signed a Free Trade
ist or completely collectivist in its cultural Agreement with the European Union (EU).
orientation How many members of the EU are there
now?
A. True
B. False
393. The idea of establishing Aibus by 4 Euro-

pean governments is an example of
A. strategic trade theory
B. product life cycle trade theory A. 15
394. What is one way companies can use AI? B. 27
A. To manage cross-cultural communica- C. 28
tion D. 33

399. What is the main motive for expanding 405. based on competition, profit and per-
into interplanetary markets? sonal gain.

A. To acquire new insights on spandex A. Capitalism
bands B. Socialism
B. To reduce risks and absorb attacks C. Communism
C. To decrease environmental waste D. none of above
D. To increase sales and grow the busi- 406. Select all of the characteristics of global-
ness isation.
400. International business has no branches A. Falling transport costs
A. False B. Impact of ICT and the internet
B. True C. Growing international mobility of capi-
tal
401. The following are the forces driving glob- D. Brexit
alization EXCEPT
E. Trade wars
A. increase in and application of technol-
ogy 407. When a country can create products at a
lower cost than other countries, this is a(n)
B. growth of consumer pressures advantage.
C. increased global competition A. comparative
D. people behaviour B. absolute
402. A tariff is 408. WTO stands for
A. a specific number of imports allowed. A. World Time Organization
B. a cash grant or loan from the govern- B. World Technology Outcomes
ment to support the business. C. World Trade Organization
C. an official ban on trade. D. World Tourism Organization
D. a tax on imports. 409. There are two forms of direct for-
403. Mercantilism is the earliest theories on eign investment:wholly ventures and sub-
international trade. sidiaries
A. true
A. TRUE
B. false
B. FALSE
410. Which of the following are challenges
404. the value of a currency is pegged to the that come with globalization? Check all
value of another currency. This is the char- that apply.
acteristics of
A. Higher standard of living across the
A. Fixed Exchange Rate globe
B. Flexible Exchange Rate B. Tariffs and export fees
C. None of above C. Spread of technology and innovation
D. Both of them D. International recruiting

411. What Finland is doing when they sell ship- C. Small and medium sized Enterprises.
ments of cars to the United States? D. none of above
A. Importing
417. International business is more complex
B. Dumping
than domestic business.
C. Embargo
A. True
D. Exporting
B. False
412. Gross Domestic Product (GDP) is:
NARAYAN CHANGDER
418. Setting a limit on the quantity of a prod-
A. The measure of the amount of money
uct that may be imported or exported
a country owes to other countries.
within a given period to regulate interna-
B. The measure of the difference be- tional trade is called?
tween what a country sells versus what a
A. Tariff
country buys from other countries
C. The measure of the output of products B. Embargo
created within a country C. Quota
D. none of above D. Deal
413. Select 2 Dimensions of Culture 419. Which of the following institutions can-
A. Values not be included in the international finan-
cial and monetary system?
B. Languages
C. Attitudes and preferences A. IMF
D. Interactions B. WTO
C. WORLD BANK
414. The belief that the concerns of individuals
should be placed above the group’s wel- D. Bank for International Settlements
fare is called
420. What is a tariff?
A. Personalization
A. A tax that a government places on cer-
B. Self Centricity tain imported products
C. Individualism
B. A limit on the quantity of a product
D. Collectivism that may be imported or exported within
a given time period
415. Which one of the following is not
amongst India’s major export items? C. A complete stoppage of trade with a
country
A. Textiles and garments
D. A restriction to free trade
B. Oil and petroleum products
C. Gems and jewellery 421. What is the full form of EOUs?
D. Basmati rice A. Export Outsourcing Units
416. SMEs stands for: B. Export Oriented Units
A. Small and medium entrepreneurs. C. Export Organization Units
B. Small management of Enterprises. D. none of above

422. Products that are made by your company 428. post shipment finance can
in the United States and sold to Europe are
A. pay ECGC premium
called

A. imports B. undertake export promotion
B. exports C. pay custom duty

C. trade barriers D. all of the above
D. domestic products
429. Currently, Mexico is ranked in terms
423. Mercantilism is an economic philosophy of auto exports
advocating that countries should simulta- A. 5
neously encourage imports and discourage
exports. B. 1
A. True C. 4
B. False D. 3
424. Which of these is NOT a reason compa- 430. These are typically found in airports &
nies’ choose to do business internation- seaports and do not follow the regular
ally? trade customs and are considered duty-
A. To increase sales free
B. Increased cultural awareness A. Free-trade zones
C. New knowledge & resources B. Free-trade agreements
D. Risk reduction
C. non-tariff alliances
425. Sports teams having their logo on memo- D. Common markets
rabilia is considered?
A. Licensing 431. Protectionism, tariffs, and quotas are
B. Franchising used because
C. Joint venture A. the government wants to make it
harder for companies in other countries to
D. Infrastructure
compete with local companies.
426. A company is planning to sell the rights to B. consumers need to be protected from
its brand name for use in other countries inferior or hazardous products.
A. Joint venture
C. the country needs additional revenue.
B. Trade agreement
D. world leaders hate each other.
C. Franchise
D. Licensing agreement 432. The devices used to reward appropriate
managerial behavior is known as
427. Greeting someone is an example of
A. processes
A. Language
B. Social structure B. people
C. Education C. culture
D. Behavior D. incentives

433. Of the following choices, the one that is B. The productivity of the poor country
NOT a characteristic of a culture is that it will decline rapidly.
is
C. The poor country will rapidly improve
A. Learned its productivity.
B. Unifying D. Both the countries will garner benefits
C. Shared from the exchanges between them.
D. Always written down
439. 14) Similarity among people is both a
NARAYAN CHANGDER
434. International business activites can help cause and effect of national boundaries.
improve political relations and make it less
A. True
likely to become involved in wars.
A. True B. False
B. False 440. What is most favorable for a countries
435. Which of the following is NOT a driver of economy
globalization? A. trade surplus
A. The fragmentation of consumer tastes B. embargo
between countries.
C. the trade fails
B. The competitive process.
C. Multinational companies successfully D. Trade fails
persuading governments to lower trading
barriers. 441. “Strategic” industries are the ones that
usually require high start-up costs and in-
D. The spread of affordable communica- vestments in innovations and research.
tion technology
A. yes
436. All of the following are benefits of inter-
national business except B. no
A. expanded business opportunities 442. Education, occupation, and income are fac-
B. increased sources of raw materials tors that may determine
C. decreased competition A. Mobility
D. improved political relationships B. Gender roles
437. Government regulation can restrict what C. Class level
appears on the package of a product.
A. True
B. False 443. All of the following are benefits of inter-
national business except
438. What will happen, according to Paul
Samuelson’s critique, if a rich country en- A. expanded business opportunities
ters into a free trade agreement with a B. decreased competition
poor country?
C. increased sources of raw materials
A. Both the countries will incur losses
due to the exchanges between them. D. improved political relationships

444. The term used for an embrace in Latin 449. When you a receive a business card in
America; used in personal greetings in this country, nod your head as a gesture
Latin America of respect and thank the person. It is then

A. Personal Space appropriate to put the card away immedi-
ately. This country is known for its rise
B. Hug from one of the poorest countries to a de-
C. Machismo veloped country, known as Miracle on the
Han River.
D. Cleanliness
A. South Korea
445. What are the different modes of entry
B. North Korea
into international markets?
C. China
A. importing, outsourcing, mergers and
acquisitions, strategic alliances, and indi- D. none of above
rect investment
450. What are the components of interna-
B. licensing, exporting, outsourcing, tional business
A. Foreign trade
ment
B. International trade
C. exporting, licensing, franchising, joint
ventures, and direct investment C. Foreign trade and international trade
D. franchising, exporting, outsourcing, D. None of the above
mergers and acquisitions, and indirect in-
451. The concept of face translates roughly to
vestment
A. how someone looks
446. Abstract ideas about what a society be-
B. duty, sincerity, and loyalty
lieves to be good, right and desirable, are
C. honesty, ethics, and morals
A. Values
D. honor, good reputation, or respect
B. Mores
C. Folkways 452. In 1990, 6 percent of the fruits and veg-
etables available in the United States came
D. Politics from Mexico and Canada. In 2007, that
percentage had increased to about 12 per-
447. are permitted to offer forward cover
cent. Based on this information, which
only with respect to genuine export and
statement best describes a benefit of the
import transactions.
1994 North American Free Trade Agree-
A. National Bank ment (NAFTA)?
B. International Bank A. trade agreements protect domestic in-
C. Commercial Bank dustries through subsidies
D. Industrial Bank B. a limited membership results in in-
creased prices for trade goods
448. 70) A joint venture is an example of a C. a reduction in tariffs encourages an in-
portfolio investment. crease in trade
A. True D. trade agreements require improve-
B. False ments in exchange rates

453. Selling goods and services to another A. assume you know everything about
country is considered? someone’s culture
A. Exporting B. do not ever initiate the conversation
B. Reseller C. never afraid to learn new things
C. Exporting D. assume that your way of doing things
is the right way
D. Importing
459. 79) Elway, a computer firm, has high for-
NARAYAN CHANGDER
454. For a host country that receives the in- eign sales in Asia and wants to expand
vestment, it cannot provide:a source of sales into Europe. Which of the following
new technologies, capital, processes, prod- statements provides the most appropriate
ucts. advice for Elway executives?
A. True A. Although countries’ market sizes dif-
B. False fer, companies usually face about the
same number of competitors in each na-
455. Quotas may be set by a country to pro- tional market.
tect one of its industries from too much for-
B. In most industries, companies face the
eign competition.
same competitors in each country where
A. True they operate.
B. False C. It takes about the same amount of
resources to gain national distribution in
456. Which are TRUE about comparative ad- one country versus another.
vantage theory?
D. Being a leader in one country does not
A. Initiated by David Ricardo guarantee market leadership in another
B. When a country has absolute advan- country.
tage in more than 1 product, they should
460. NAFTA is an example of
not specialize
A. Common Market
C. When a country has absolute advan-
tage in more than 1 product, they should B. Customers Union
specialize goods they most efficient C. Economic Community
D. When a country has absolute advan- D. Free Trade Area
tage in more than 1 product, they should
buy goods that they produce less effi- 461. IEC Number is issued by:
ciently from other countries A. Import Export Licensing authority
457. A country with a large agricultural base is B. Foreign Minister
usually more economically developed than C. Minister of Commerce & Industry
one with a large manufacturing base.
D. Chamber of Commerce
A. True
462. 2) Which of the following best defines in-
B. False
458. Cultural sensitivity means you should do A. It includes all economic flows between
the following except: two or more countries.

B. It includes all private economic flows B. Export, import and foreign direct in-
between two or more countries. vestment

C. It includes all business transactions in- C. Duties, levies and taxes
volving two or more countries. D. Solid, liquid and gaseous
D. It includes all business transactions in
467. Multinational companies only pay taxes
countries other than your home country.
to the government in their home countries.
463. In what region should men wait and see A. True
if a hand is extended when introduced B. False
to a woman because interaction between
sexes is still not encouraged? 468. Identify the SAARC logo.
A. The Middle East
B. Latin America A.
C. Europe
D. Australia
464. Who was the Dutch sociologist that con- B.

ducted a study to determine how national
culture influences?
A. Geert Hofstede C.
B. Gene Hofbreau
C. Gerry Herbert
D. none of these D.
465. pressures for global integration-

highpressures for local responsiveness-
low 469. International business refers to the trade
of
A. global strategy
A. Goods
B. transnational strategy
B. Service
C. international strategy
C. Technology
D. multidomestic strategy
D. All the above
466. What are the main types of international 470. The United States gets a lot of goods
business from China. This is an example of the
United States using
A. CFR, FOB, FAS, CIF

A. imports 476. Which one of the following organisations

B. exports lay stress on liberalization of foreign trade
and foreign investment?
471. This international trade organization was A. International Monetary Fund
created after WWII to provide loans for re-
building. B. International Labour Organisation
C. World Health Organisation
A. World Trade Organization
D. World Trade Organisation
B. The EU
NARAYAN CHANGDER
C. International Monetary Fund 477. Whites plan is associated with
D. World Bank A. WTO
B. WHO
472. A multinational enterprise in a host coun-
try needs to operate within the host C. White Revolution
country’s economic, social, and legal con- D. World Bank
straints.
A. True 478. the following image shows which busi-
ness activity
B. False
473. Who said:the only social responsibility of

business is to increase profits, so long as
the company stays within the rules of law
A. international business
B. domestic business
A. Immanuel Kant
479. this types of decision is made based on
B. Friedman economic logic without consideration for
C. Karl Marx ethics.
D. Bill Gates A. Leadership

B. Personal ethics
474. Communication that does not involve
words C. Decision making process
A. Body language D. Organizational Culture
B. Nonverbal communication 480. The British term for the trading of tangi-
ble goods is
475. Countries that trade with one another
usually have improved political relation- A. visible trade
ships. B. invisible trade
A. True C. merchandising
B. False D. service franchising

481. How can international business partners C. Environment firm

counteract negative attitudes & broaden
D. none of above
their perspectives about various cultures?

A. by learning about body language and 487. There are two main categories of interna-
what it means in other cultures tional investment and
B. by learning the language of the culture A. portfolio investment
C. by communicating with the people in B. foreign direct investment (FDI).
that culture
C. Both a & b
D. alll of these are correct
482. According to factor proportions theory,
factors that were in great supply relative 488. As per theory, firms undertake FDI
to demand would be cheaper. to exploit resource endowments or assets
that are location-specific
A. YES
B. NO A. Eclectic paradigm
B. internationalizationtheory
483. Is the following an advantage or a dis-
advantage of international business loca- C. imitative theory
tions? “Ethical concerns” D. theory of absolute advantage
A. Advantage
489. Resources available = 200 units for each
B. Disadvantage country Production in GhanaCocoa = 10
484. Authoritarian regimes such as commu- tonsRice = 5 tons Production in South Ko-
nism and fascism are examples of reaCocoa = 2.5 tonsRice = 10 tons Ques-
tion:South Korea has the absolute advan-
A. Individualism tage in producing which product?
B. Collectivism
A. Cocoa
C. Pluralism
B. Rice
D. Totalitarianism
490. The processes, procedures and rules used
485. International business consists of all com- in business
mercial transactions including
A. Etiquette
A. Logistic and Transportation
B. Business Practices
B. Private & Government, Sales, Invest-
ment, Logistics and Transportation C. Personal Space
C. Private & Government D. Sociability
491. Where is Ghana located?
486. Lack of complete information about the A. North Africa
current and future environment of the
firm. B. South Africa
A. Environment Uncertainty C. West coast of the Old Continent
B. Environment complexity D. west African

492. Because all markets need institutions, C. Face ethical issues-child labour, pollu-
global markets require global rules, too. tion and human rights
A. True D. Close offshore manufacturing because
B. False of different ethics
493. Any organization that engages in cross- 497. When determining the comparative ad-
border commercial transactions with indi- vantage, one must determine
viduals, private firms, and/or public sec-
NARAYAN CHANGDER
tor organizations is a(n) A. Specialization
A. multinational corporation B. Opportunity cost

B. multinational enterprise C. Absolute Advantage
C. international business D. none of above
D. franchise
498. 54) A flag of convenience is
494. If the CEO of Firestone in Liberia says
that his only responsibility is to satisfy A. the declaration that a product is made
shareholders, he is following the doc- in a country that has easier legal access
trine to a given foreign market
B. a designation for products originating
within a particular trading group
C. the registration of a ship by a ship-
ping company in a country that charges
low taxes
D. the indication that a shipping organiza-
A. Utilitarian tion can sail in international waters
B. Human rights
C. Friedman 499. Which of the following is an element of
the comparative advantage principle?
D. Kant
A. per unit cost advantage
495. Which functionality is used to create and
store code for reuse? B. relative efficiency of production
A. snippets C. absolute cost of production

B. macros D. negative balance of trade
C. assets
500. Which of the following is NOT a cul-
D. templates tural factor that would impact interna-
496. International production and sales of tional business
goods has caused many companies to A. Social structure
A. Ignore ethical standards to be more B. Religion
competitive
C. Language
B. Respect and care for their employees
with higher standards D. Geographical location

501. One of the Sustainable Development B. False

Goals (SDGs) of United Nations is to
conserve and sustainably use the oceans, 507. BCG STANDS FOR:

seas, and marine resources for sustainable A. BOSTON CONSULTING GROUP
development.
B. BOSTON CONSULTING GROUP
A. True
C. BOSTON CONSULTING GROUP
B. False
D. none of above
502. Which of the following is NOT a cultural
508. An informal contract may be made with
barrier to international business?
or without writing. This is also termed as
A. Language differences bargain or simple contract.
B. Different business practices and A. YES
norms
B. NO
C. Currency exchange rates
D. Religious beliefs 509. The order of the Product Life Cycle is
A. Introduction, Growth, Maturity, De-
503. How many EPCs are working at present cline
in India?
B. Decline, Maturity, Growth, Introduc-
A. 20 tion
B. 21 C. Introduction, Decline, Growth, Matu-
C. 22 rity
D. 23 D. Growth, Maturity, Introduction, De-
cline
504. WITHIN THE STRATEGIC PLANNING FOR-
MULATION PHASE 510. Infrastructure is a significant factor that
A. It is based on the vision and mission of affects the economic development of a
the company country.
B. Competitive strategies are modified A. TRUE
C. The impact of stakeholders is mea- B. FALSE
sured
511. This country is known for having the
D. Strategies are measured largest international tourist arrivals.
505. Which country is an example of an emerg- A. France
ing economy? B. Switzerland
A. Brazil C. Spain
B. United Kingdom D. none of above
C. Europe
512. What are the main drivers of interna-
D. United Arab Emirates tional trade?
506. All position on efficiency frontier are vi- A. government regulations
able. B. supply and demand, comparative ad-
A. True vantage, and economies of scale

C. tariffs and trade barriers 517. Which organization promotes global

D. currency exchange rates economic cooperation and international
trade?
513. The exchange of goods and services be-
A. WTO (World Trade Organization)
tween countries is know as?
B. UN (United Nations Organization).
A. Domestic trade
C. WHO (World Health Organization).
D. IMF (International Monetary Fund).
C. Export
NARAYAN CHANGDER
D. Commerce 518. Which is usually considered to be the
world’s most expensive city to live?
514. When a country can produce one thing
more efficiently than it can produce an-
other thing this is known as
A. Economies of scale
B. Comparative advantage
C. Globalisation
D. Financial Investment
515. The attitudes and behavior that are char-
acteristic of a particular social group or or-
ganization( this can include religion, lan- A. Hong Kong
guage, customs, traditions, food and etc.)
B. Geneva
A. Trade
C. Hanoi
B. Tariff
D. Singapore
C. Culture
D. Export 519. The right granted to the inventor of a
product or process that excludes others
516. If a business is looking to expand interna- from selling, making, or using the inven-
tionally and is researching a countries lit- tion for a certain period of time is called
eracy level, technology, and infrastructure
the business is looking into a countries A. intellectual property
B. a genericized trademark
C. a contract
D. a patent
E. a trademark
520. This model explains that the interaction

of these four groups of characteristics will
A. Cultural Influences determine a country’s competitive advan-
B. Geography tage in the global arena.
C. Legal Concerns A. Theory of Comparative Advantage
D. Economic Development B. Theory of Absolute Advantage

C. Factor Price Equalization Theory 526. 5) The principle that an individual has the
D. Porter’s Diamond Model of National freedom to pursue his or her interests is
called

Competitive Advantage
A. socialism
521. One of the subjects that will be taken in
BIB is B. totalitarianism
A. Cross Cultural Management C. individualism
B. Management in Service Industry D. collectivism
C. Early Childhood Management 527. Consumer choice is a DISADVANTAGE of
D. Business Optional Management international business
A. true
522. For employee comfort, many companies
allow animal friends to come to work too. B. false
Scripps, a healthcare organization (for peo-
528. What is a reason why firms internation-
ple) offers health insurance for employees’
alize?
furry friends.
A. To limit market expansion
A. Health Options
B. To reduce costs
B. Bring your pets to work
C. Personalized Space C. To access resources
D. none of above D. To increase cultural risks
523. International trade and investment are 529. It constitutes the largest and most suc-
vital drivers of cessful regional commercial group
A. Company A. NAFTA
B. Globalization B. Mercosur
C. Economic growth C. BRICS
D. Investment D. European Union
524. A company that conducts business in sev- 530. Companies that enter international busi-
eral countries and is capable of conducting ness by directly opening branches abroad
business worldwide A. Direct investment
A. Multinational Corporation B. Merger
B. Global Strategy C. Joint venture
C. Multinational Strategy D. Acquisition
D. Foreign Exchange
531. the Declaration of human rights is the
525. Silk is a product created by what type of common standard of achievement for all
resource? peoples and all nations.
A. Labor A. International
B. Capital B. Global
C. Land C. Universal
D. none of above D. National

532. Involves selling goods and services in an- A. Comparative advantage

other countries, there’s no need facilities B. Protectionism
or factories overseas
C. Mercantilism
A. Exporting
D. Absolute advantage
B. Licensing
C. Franchising 538. Apple Inc. suit with strategy
D. Joint venture
NARAYAN CHANGDER
533. In global economy, the term perfect
storm refers to the coming together of ex-
treme weather conditions that culminate
to produce a storm of such a magnitude
as never seen before.
A. True
B. False A. international
534. The US exports the most products to this B. global standardization

country: C. localization
A. China D. transnational
B. Japan
539. What are the key components of a global
C. Canada supply chain?
D. England A. suppliers, manufacturers, distributors,
535. One reason direct exporting is a rela- retailers, and customers
tively low-risk method of getting involved B. manufacturers, distributors, whole-
in international business is because the ex- salers, and customers.
porting company does not have an exten-
C. suppliers, producers, wholesalers,
sive investment in another country.
and retailers.
A. True
D. producers, wholesalers, transporters,
B. False and consumers.
536. 60) People generally prefer little con- 540. 28) Governments have signed treaties
sultation between superiors and subordi- to protect foreign-owned property rights,
nates in cultures where is high. such as investments and patents. A pri-
A. power distance mary reason for doing so is to
B. fatalism A. gain reciprocal advantages
C. individualism B. reduce the domestic effects of other
D. self-actualization countries’ economic policies
537. Which trade theory suggests that coun- C. deal with areas of concern outside the
tries should specialize in producing goods territory of any one country
in which they have an opportunity cost ad- D. reduce national conflicts leading to vi-
vantage? olent political demonstrations

541. Define autocractic managers 546. What is the main characteristic of

the ‘transnational’ international strategy
A. Managers who centralize power and
model?

tell employees what to do
A. Low cost pressure and high local re-
B. Managers who respect their employ-
sponsiveness
ees opinions
B. High cost pressure and high local re-
C. Managers who make their employees sponsiveness
feel safe
C. Low cost pressure and low local re-
D. none of above sponsiveness
542. Licensing does not involve the sale of in- D. High cost pressure and low local re-
tellectual property, only the right to its sponsiveness
use. 547. Which of the following is the reason why
A. True most economists prefer Heckscher-Ohlin
theory to Ricardo’s theory?
B. False
A. Heckscher-Ohlin stresses on the dif-
C. Can be true ferences in productivity between nations.
D. It happens in leasing process B. Ricardo’s theory considers factor en-
dowments to describe national competi-
543. Which item was our most valuable ex- tiveness.
port to Japan in 2014?
C. Heckscher-Ohlin theory makes fewer
A. Beef simplifying assumptions.
B. Coal D. Ricardo’s theory considers the law of
C. Cheese marginal returns.
D. Copper 548. The first phase of globalization started

around 1870 and ended with what?
544. This country’s economy is dependent on A. World War 2
oil and their economy is the largest in the
Arab world. B. The Cold War
A. Saudi Arabia C. The establishment of GAAP

D. World War 1
B. South Korea
C. Russia 549. Nation places tax on imported goods
D. none of above A. Quotas

B. Tariffs
545. When one country does not trade with
C. Embargo
another country that is called a(n)?
D. Balance of Payments
A. quota
550. 6) An economic system is the set of struc-
B. tariff
tures and processes that in a country.
C. embargo
A. guides the allocation of resources and
D. none of above shapes the conduct of business activities

B. directs the movement of specific prod- 555. What occurs when a country depends too
ucts to specific consumers greatly on imports from one single country
C. sets the standards of competitive suc- or when a country depends too greatly on
cess for companies in the economy exporting a very large number of exports
to one single country?
D. stipulates the roles and responsibili-
ties of consumers A. Credit/Sale Risk
B. Economic Risk
551. occurs when a firm invests directly in
NARAYAN CHANGDER
facilities to produce and/or market a prod- C. High Dependency Risk
uct in a foreign country. D. Exchange Rate Risk
A. Foreign direct investment
556. Which strategy is make sense when there
B. Exporting are low cost pressures and low pressures
C. Importing for local responsiveness?
D. Fixed capital formation A. Localization strategy
552. Allows the free flow of goods, services, B. Global standardization strategy
capital and people C. Transnational strategy
A. NAFTA D. International strategy
B. Mercosur
557. Who needs to be satisfied with the qual-
C. Brexit ity of products?
D. European Union A. Rivals
553. The foreign direct investment includes B. Suppliers
A. Intellectual Property C. Customers
B. Intangible Goods D. none of above
C. Tangible Good
558. 32) The recent expansion of technology
D. Human Resource has contributed to the growth in interna-
554. Statements below are part of the advan- tional business by creating new products
tages / benefits from IPMI’s Career Sup- that are important in world trade.
port System program that established at A. True
IPMI International Business School ex- B. False
cept?
A. Thesis Defense 559. Important cultural and social factors influ-
encing international business
B. Coaching Class
C. Company Visit / Internship
D. Professional Certification
Explanation:“Thesis Defense” is among
the list of requirements for earning an
advanced degree / Students need to be
passed or through the thesis defense in
a final year of study to get the Bachelor / A. Religious beliefs and traditions
Master Degree. B. Wealth, health and economic situation

C. Language, religion, education, values, C. The alien planet’s economy and laws
traditions D. The availability of spaceships for trans-

D. Language and traditions portation
560. They are an important component in com- 565. A market economy is also known as
panies’ strategy to promote ethical behav-
A. Socialism
ior
B. Free Enterprise System
A. Employee morality
C. Communism
B. Legal actions by governments
D. Capitalism
C. Paris Agreement
D. code of Conduct 566. Minimum barriers or restrictions; how-
ever, circumstances arise when it is nec-
561. Which one of these is not part of a ‘5C’ essary to have barriers is
analysis?
A. Guarded Trade
A. Customers
B. Partnership
B. Curry
C. Free Trade
C. Company
D. Competition
D. Climate
567. NAFTA stands for
562. Which one of the following modes of en-
try requires a higher level of risks? A. North American Free Trade Agreement
A. Licensing B. North African Free Trade Association
B. Franchising 568. Which of the following is a primary rea-
C. Contract manufacturing son that firms acquire resources and sup-
D. Joint venture plies from other countries?
A. comply with trade regulations
563. Which of the following agreements was
in direct violation of the principles of B. minimize resource competition
GATT? C. decrease shipping and handling costs
A. Trade policy review D. obtain items unavailable in home coun-
B. Multifibre Arrangement try
C. General Agreement on Trade in Ser- 569. The advantages of decentralized architec-
vices ture in international business are:
D. Trade-Related Aspects of Intellectual A. Better coordination between global
Property Rights business units
564. What factors should be considered when B. Quick adaptation to local market
setting up shop on a foreign planet? changes
A. The socio-cultural factors of the alien C. Central decision making at company
planet headquarters
B. The distance between Earth and the D. Utilization of shared expertise with
foreign planet other companies

570. How can organizational architecture influ- 575. Involves buying foreign-made products
ence international business performance? and selling them in local markets
A. Improving the quality of products and A. Exporting
services B. Importing
B. Expanding the company’s geographic C. Bargaining
area
D. none of above
C. Determine the company’s financial
576. Standardizes products and services for
NARAYAN CHANGDER
goals
worldwide use
D. Expanding marketing networks in local
markets A. Multinational Corporation
B. Global Strategy
571. War and unlawful activity are two exam-
C. Multinational Strategy
ples of conditions that influence inter-
national business. D. Foreign Exchange
A. political and legal 577. to official stop trading with another coun-
try
A. Embargo
C. economic
B. Turnkey projects
D. geographic
C. Licensing
572. A company is the same thing as a D. Customs
multinational company. Explanation:Embargo = embargo
A. uninational
578. When a country has the ability to produce
B. transnational more of a product relative to another coun-
C. international try.
A. Absolute Advantage
D. none of these
B. Favorable Balance of Favorable Bal-
573. A(n) risk refers to a political risk that ance of Trade
affects all businesses in a given country. C. Positive Net Export
A. environmental D. Comparative Advantage
B. micropolitical
579. 12) Escalation of commitment is best de-
C. macropolitical scribed as the
D. individual A. strategy of first entering a country on
E. political a small scale
B. process of entering a country because
574. The theories of Smith and Ricardo show “everyone else is going there”
that countries should not engage in inter-
C. expectation of a higher return in more
national trade for products that it is able
politically risky environments
to produce for itself.
D. increased likelihood of investing in a
A. True country because of having spent consider-
B. False able time and money in examining it

580. In 1990, the Japanese Government an- 584. Which market has become one of the
nounced it would extend its voluntary biggest and most important for Microsoft?
limit on automobile exports to the United

A. European market
States. This is a(n)
B. Chinese market
A. Tariff
C. US market
B. Quota
D. Japan market
C. Embargo
D. none of above 585. Limited liability means that stockholders
can lose their investment if the corporation
581. A caste system is a closed system of fails.
stratification in which social position is de-
termined by the family into whichA person A. True
is born. B. False
586. The Middle East encompasses parts of

which continents?
A. Africa and Europe
B. Europe and Asia
C. Asia and Africa
D. North America and South America
587. First Special Economic Zone in India is

A. Kerala
A. TRUE B. Tamil Nadu

B. FALSE C. Gujarat
D. Hyderabad
582. Two features of an economic boom are
A. Deflation and rising unemployment 588. Social responsibility is a duty to do
what’s best for the good of
B. Labour shortages and inflation
C. Rising business investment and low A. Your career
consumer confidence B. Society
D. Rising profit levels and falling wage C. Your organization
rates
D. Corporate culture
583. What is a reason why firms internation-
alize? 589. A nation with relatively few natural re-
sources will be less dependent on interna-
A. To access resources tional business than a nation with many
B. To reduce costs natural resources.
C. To increase cultural risks A. True
D. To limit market expansion B. False

590. It is the total value of production gener- A. True

ated within the borders of a country, re- B. False
gardless of whether it is the product of
a national or foreign company, during a 594. After staying outside of your home coun-
fixed period: try, you may experience “reverse culture
shock” upon your return
A. True
B. False
NARAYAN CHANGDER
595. Country X is in the process of transform-
ing from a command economy to a mar-
A. PNB ket economy. This process most likely in-
B. INB volves
C. PBI A. standardized procedures implemented
D. None of the above by the state
B. high economic growth rates for the
591. Which type of product would most likely long term
need careful planning and cultural consider-
ation when marketing it to another coun- C. privatization of many factors of produc-
try? tion
A. steel D. violent political and legal upheaval
B. soap 596. Pressure for local responsiveness de-
C. tools clines when
D. movies A. consumer tastes and preferences be-
come similar thanks to globalization
592. An USA company in Botswana have lo-
B. infrastructure is different in various
cal workers and a US CEO. The US par-
countries
ent makes all policies and decisions. They
Zoom every day to enforce it. C. distribution channels are not similar
D. All of these choices
597. The company produces, markets, in-

vests and operates across the world.
A. Global
B. International
A. This is geocentric C. Multinational
B. This is an ethnocentric attitude D. Transnational
C. This is polycentric management 598. Import quotas are used to help protect
D. This shows trust in the local workers domestic companies from foreign competi-
tion.
593. Inventions that improved communication,
distribution and production of products de- A. True
creased interest in international business. B. False

599. Which of the following theories empha- A. Power Distance

sizes the interplay between the propor-
B. Masculinity vs Femininity
tions in which the factors of production are

available in different countries and the pro- C. Uncertainty aversion
portions in which they are needed for pro- D. Individualism vs Collectivism
ducing particular goods?
A. Porter’s theory 604. Key international institutions that facili-
B. Smith’s theory tate the Globalization
C. Ricardo’s theory A. The International Monetary Fund

(IMF)
B. The World Bank (WB)
try requires higher level of risks? C. The World Trade Organization (WTO)
A. Licensing D. All of the above

B. Franchising 605. Which of the following is NOT a goal of
C. Contract manufacturing international trade policies procedures and
D. Joint venture agreements?
A. Protecting domestic industries
601. Agency that sets production quotas to in-
fluence oil prices B. Promoting exports
A. I’LL TAKE C. Regulating the exchange of goods and
B. UNCTAD services between countries compared to
inland trade?
C. OECD
D. Encouraging unfair competition
D. OPEC
602. A rule or law that slows or prevents trad- 606. In which stage of going global would a
ing with other nations. company separate their production process
and focus each activity in the most advan-
A. Trade barrier
tageous location?
B. Import
A. Product specialization
C. Export
B. Value chain disaggregation
D. International
C. Value chain re-engineering
603. It is a dimension that tells us about
the existing degree of interdependence be- D. Creation of new markets
tween people in a given society.
607. How many branches of international busi-
ness are there?
A. 8
B. 5
C. 6
D. none of above

608. A promotional strategy used to encour- C. threats to national sovereignty

age specific actions or behaviors from a D. all of the above
group of people is known as an incentive
program. E. none of the above
A. True 614. What is the role of international trade
B. False agreements in promoting global business?
609. is the difference between a country’s A. International trade agreements in-
NARAYAN CHANGDER
total exports and total imports. crease trade barriers and hinder global
business.
A. Balance of Scales
B. International trade agreements re-
B. Balance of Payments duce trade barriers and establish rules
C. Balance of Beams that facilitate global business.
D. Balance of Trade C. International trade agreements have
no impact on global business.
610. Who has the following roles & responsi-
bilities in international trade? Which op- D. International trade agreements only
tion is the least important? benefit certain countries and do not pro-
mote global business.
A. Distributors (Suppliers)
B. Exporter 615. Focus groups and personal interviews
C. Importer might not provide useful information in
some cultures.
D. Customs
A. True
E. Bank
B. False
611. The last nation which became member in
WTO? 616. Before becoming an international com-
pany it starts from
A. North Sudan
B. South Sudan A. Global market
C. Nauru B. Domestic market
D. afghanistan C. Both a & b

D. None of them
612. Spain restricts all imports of automobiles
from Germany 617. This culture emphasizes punctuality and
A. tariff sticking to set rules.
B. quota A. Monochronic Cultures
C. embargo B. Polychronic Cultures
D. none of above
618. Maritime groupage is used to?
613. Which of the following is/are a criti- A. They are metal boxes designed for the
cism/s of globalization transport of goods
A. economic growth B. When you do not have enough cargo to
B. growing income inequality completely fill a container

C. Is suitable for general and container- 622. home country is the country other than a
ized cargo traffic, which are usually higher firm’s home country in which it operates.
value merchandise

A. True
D. None of the above B. False
619. According to the law of one price, which 623. is defined as selling goods in a foreign
of the followings is true? market at below their costs of production
or as selling goods in a foreign market at
A. A mobile phone of 400$ that is sold in
below their “fair market” value
Vietnam must be sold for the same price
as in Singapore including tax and relevant A. dumping
costs B. subsidies
B. A mobile phone of 400$ in Singapore C. tariffs
can be sold at a higher price in other coun- D. quotas
tries excluding all relevant costs
C. A mobile phone of 400$ in Singapore 624. Some words that are similar (synonyms)
can be sold at different prices within the include global, world, worldwide, and for-
countries when there are less demands eign.
A. Culture
D. A mobile phone of 400$ in Singapore
must sell at the same price in other coun- B. Translate
tries C. International
D. Business
620. Which of the following best describes sit-
uational analysis? 625. Subsidiaries consider the regional envi-
A. Review of historical and current busi- ronment for policy / Strategy formulation
ness conditions as well as internal and ex- is known as
ternal factors that might impact marketing A. Polycentric Approach
decisions and operations.
B. Regiocentric Approach
B. Outline of budgets and employee C. Ethnocentric Approach
turnover.
D. Geocentric Approach
C. The information needed to prepare an
executive summary. 626. is a quota on trade imposed by the
exporting country, typically at the request
D. Ways a business can analyse each sit- of the importing country’s government
uation it may encounter.
A. voluntary trade restraint
621. Basic human needs such as food, clothing, B. anti-dumping policies
sports, education, festivals etc. passed
C. To the value of tariffs
down from one generation to the next.
D. Export tariffs
A. Customs and traditions
627. Which of the following does not include
B. Government
the objectives of World Bank?
C. Language
A. Assistance in the reconstruction of
D. Social Organizations member countries

B. Supplement private investment by its technology, and political barriers across

own loans and finances countries, which could lead to increased
C. Short term assistance to member economic growth and geo-political integra-
countries tion and interdependence among nations of
the world?
D. Encourage long term balanced growth
of international trade A. IMF
B. Adaptive institutions
628. What has led to the rise in inflation and
C. Globalization
NARAYAN CHANGDER
the worsening of US foreign trade?
D. Sustainable development
A. The increase in inflation and the wors-
ening of the U.S. foreign trade position E. Antitrust laws
gave rise to speculation in the foreign ex- 632. The immediate space surrounding an indi-
change market that the dollar would be de- vidual making them feel comfortable and
valued safe
B. The increase in inflation and the wors- A. Personal Space
ening of the U.S. foreign trade position
gave rise to speculation in the foreign ex- B. Etiquette
change market that the dollar would be C. Sociability
valued D. Cleanliness
C. The increase in inflation and the wors-
633. Why is sustainability important in inter-
ening of US foreign trade position have led
national business?
to speculation in the market that the dollar
will depreciate. A. To increase regulatory costs
D. The increase in inflation and the wors- B. To attract eco-conscious travelers
ening of US foreign trade position have led C. To reduce market potential
to speculation in the market that the dollar D. To promote financial risk
will not depreciate.
634. In Hofstede’s theory, the extent to which
629. (a) has the comparative advantage choco- people try to control their desires and
late. (b) has the comparative advantage in impulses, based on the way they were
grapes raised:
A. a Switzerland A. masculinity vs femininity
B. b Brazil B. power distance
630. South Korea, Taiwan, Hong Kong, and C. short vs long-term orientation
Singapore are all examples of the D. indulgence v restraint
A. Pacific Reef 635. What is a franchise?
B. Pacific Reach
C. Pacific Railway
D. Pacific Rim
631. Which of these encompasses the socio-

economic reform process of eliminating
trade, investment, cultural, information

A. Where a business sells the rights to C. It gives countries access to products

their brand that they cannot produce.
B. Where you have full control D. It allows the governments to exert

more control on businesses.
C. Where you keep all the profits
D. none of above 640. What is the term for the practice of sell-
ing goods in a foreign market at a price
636. Which of the following is an example of lower than their production cost to gain
a primary activity in a firm’s value chain? market share?
A. Information systems A. Subsidy
B. Research and development B. Quota
C. Logistics C. Dumping
D. Human relations D. Tariff
637. Which makes foreign goods costlier in 641. The float exchange rate is determined by
terms of the domestic currency and thus A. central bank
it discourages imports B. private enterprise
A. Revaluation C. government
B. Devaluation D. market forces
C. Realisation
642. A country that lacks ability to logistically
D. Inflation transport imports & exports would be con-
cerned with which component of the inter-
638. What is the definition of globalization?
national business environment?
A. Globalization is the term used to de- A. Social
scribe the decline of international trade
and communication. B. Environmental
B. Globalization is the concept of promot- C. Political

ing cultural diversity and preserving local D. Economic
traditions.
643. Which of the following is NOT a factor in
C. Globalization refers to the process of the international business environment?
isolating and separating countries from
each other. A. political and legal
B. sociological
D. The definition of globalization is the in-
creasing interconnectedness and interde- C. cultural and social
pendence among countries. D. geographic
639. Which of the following is a major benefit 644. Products that a country cannot produce
of engaging in free trade? on its own or will not produce; they are
A. It helps to reduce the financial volatil- only available through trade-select the
ity in global markets. matching answer
B. It helps the countries protect the jobs A. increased competition

that are available to their citizens. B. political/historical

C. specialization 649. If the Government of Sweden announces

D. surplus a tax on the importation of Computers
from Japan it is a
645. Which of the following is the most com-
mon approach to expatriate pay, so em-
ployees can enjoy the same living standard
in their foreign posting that they enjoyed
at home? approach
NARAYAN CHANGDER
A. micro risk
B. macro risk
650. is a large organization with a network of

production plants, regional headquarters,
and country subsidiaries in numerous coun-
A. Merit tries.
B. Correspondence A. ME
C. Balance Sheet
B. SME
D. Parity
C. Born Global
646. Observational research allows a com- D. none of above
pany to gather data about consumer atti-
tudes and opinions. 651. McDonalds Corporation has its corporate
A. True headquarters based in the Chicagoland
area, but has thousands of restaurant lo-
B. False
cations located around the world. The host
647. big → biggerexpensive → country is located:
A. more expensive A. in the U.S.
B. more expensiver B. outside of the U.S.
C. expensiver
652. A fair price for goods, specifically for de-
D. most expensive veloping country producers for better trad-
ing conditions. Some goods it usually in-
648. A computer business in Taiwan decides to
cludes are crafts, coffee, cocoa, sugar, tea,
take a major risk to advance the sales of
bananas, honey, cotton, fresh fruit, choco-
its product. Which of Hofstede’s six value
late, and flowers.
dimensions does this relate to?
A. uncertainty avoidance A. International
B. individualism B. Fair trade

C. collectivism C. Domestic trade
D. short-term orientation D. World Trade Organization

653. What is true about the Translation expo- C. Reginocentric approach

sure?
D. Ethnocentric approach

A. Negative Translation exposure shows
the influence when the currency value 657. This rice cooker is easy to use because
of another country where a foreign com-
pany’s subsidiary is placed depreciates
A. you only need to push one button
against the currency value of the country
of that company B. it is a nice colour
B. Positive Translation exposure shows C. it costs 5000 yen
how the currency value of one foreign
D. it weighs 2 kilograms
company’s subsidiary in another country
depreciates against the currency value of 658. Is the following an advantage or a dis-
the country of that company advantage of international business loca-
C. Translation exposure is merely “pa- tions? “Quality issues”
per” gains and losses and it barely affects
A. Advantage
the company at all
B. Disadvantage
D. Translation exposure is concerned
with the measurement at time of current
659. What clause pattern that this sentence
events and is not much important to the
belong to? “In case, there are quality infe-
company’s performance
rior and quantity deficiencies, party A will
654. Which of the following is a reason for in- be responsible for resolving them as expe-
ternational business. ditiously as possible after party A receive
the report made by party B within 10 days
A. Geographical Specialisation from the date of receiving goods”
B. This is an equal distribution of re-
A. Main clause + main clause
sources
B. Main clause in between two subordi-
C. Both of the above
nate clauses
C. Subordinate clause + main clause
655. Form of licensing whereby a company D. Subordinate + 2 main clauses
grants another firm the rights to use
the former’s brand name and operating 660. Define the concept of intellectual prop-
method erty rights (IPR).
A. Franchising A. Rights granted to individuals or organi-
B. Exporting zations for their financial assets.
C. Licensing B. Rights granted to individuals or organi-
D. none of above zations for their personal information.
C. Legal rights granted to individuals or
656. An approach in which whole world is a organizations for their creations or inven-
market place is known as: tions.
A. Polycentric approach D. Rights granted to individuals or organi-
B. Geocentric approach zations for their physical property.

661. Buying goods or services from another B. In competitive markets with the exclu-
country because your country does not pro- sion of transportation costs and barriers
duce them will build: to trade, identical products sold in same
A. International Business countries must sell for the same price
when their price is expressed in terms of
B. Global Dependency the same currency
C. Domestic Business C. In competitive markets without the ex-
D. None of these clusion of transportation costs and bar-
NARAYAN CHANGDER
riers to trade, identical products sold in
662. If a country has low literacy levels, lit- different countries can be sold for the
tle to no technology and focuses on agricul- same price when their price is expressed
ture or mining, that country is considered in terms of the same currency
to be:
D. In competitive markets with the exclu-
A. Less-developed sion of transportation costs and barriers
B. Industrialized to trade, identical products sold in differ-
C. Industrialized ent countries must sell for the same price
when their price is expressed in terms of
D. Developing the same currency
663. When capital and labour are moved inter- 666. The order of issues on the agenda is fixed.
nationally, it will help in developing True or false?
A. More gains from income A. true
B. More gains from trade B. false
C. Capital gain
667. What does the “Joint Venture” mean?
D. Economic gain
A. A joint venture entails establishing a
664. Identify the theory that argues that ad- firm that is jointly owned by two or more
vanced nations have an incentive to de- otherwise independent firms.
velop a new offering and hence such na-
B. I don’t know
tions always tend to create a good or ser-
vice for the first time. C. Joint Venture is simply a system for ex-
panding a business and distributing goods
A. Absolute advantage
and services, and is based on a relation-
B. Ricardo ship between the brand owner and the lo-
C. Product life-cycle cal operator
D. Heckscher-Ohlin D. none of above
665. What is withdrawn about the law of one 668. One of the objectives of international
price? business is to increase sales fluctuations?
A. In competitive markets with the exclu- A. True
sion of transportation costs and barriers B. False
to trade, identical products sold in dif-
ferent countries can be sold with varied 669. If Brazil has a comparative advantage in
prices when their price is expressed in producing rubber, and trade in rubber is al-
terms of the same currency. lowed

A. Brazil will become an importer of rub- A. True

ber.
B. False

B. Brazil will become an exporter of rub-
ber. 674. It requires a firm to try to lower the cost
of value creation.
C. Brazil could become either an exporter
or importer. A. differences in distribution channels
D. It is impossible to determine whether B. pressure for cost reduction
Brazil will become an importer or an ex- C. international strategy
porter of rubber without additional infor-
mation about rubber prices. D. host government demands
E. ow pressures for local responsiveness
670. When doing a creditability study of your
counterpart, which of the following is not 675. Which of the following is not an economic
included in the creditability report? factor?
A. capital held A. Quality of Living
B. business scope
B. Government Stability
C. executive’s hobbies
C. Employee Benefits
D. credit status
D. Infrastructure
671. is an agreement between the nations
often multiple nation that allows certain 676. The United States employee tends to mul-
goods and services flow across the border. titask in order to save time; in other coun-
tries, this behavior might be considered as
A. Free trade rude.
B. Domestic trade A. TRUE
C. Global B. FALSE
677. All of the following choices are examples
672. Which of the following is a political real of nonverbal communication except
life example of a factor affecting interna-
A. Standing two feet from your friend
tional business
B. Speaking to your teacher
A. The U.S. outsourcing technology work
to India C. Wearing red on Valentine’s Day
B. Donald Trump testing positive for D. Waving to a friend
COVID-19
678. Which company is an example of the
C. Locating headquarters to Switzerland
international business which follows the
for tax related purposes
Transnational strategy? (multiple answer)
D. Honda marketing motorcycles in China
A. VinGroup
instead of cars
B. KFC
673. The culture in some businesses does en-
C. Unilever
courage people to think through the ethical
consequences of business decisions. D. McDonald’s

679. How a country manages its resources is 685. What is the purpose of licensing patents?
an example of its condition, which in- A. To access a franchisor’s business
fluences international business. knowledge
A. political and legal
B. To license brand names
B. economic
C. To license creative works
C. geographic
D. To use a specific technology protected
D. cultural and social by a patent
NARAYAN CHANGDER
680. Currency Swaps:A currency swap is a 686. The global economic crisis that started in
purchase and sale of a given amount of
foreign exchange for two different value
dates A. 2005
A. Simultaneous B. 2006
B. Separate C. 2007
C. Dispersed D. 2008
D. Autonomous 687. The difference between a country’s total
export and total imports
681. Intercultural communication can be diffi-
cult. A. balance of payments
A. TRUE B. trade surplus
B. false C. unfavorable
682. To make products by hand or machinery. D. balance of trade
A. Resource 688. Religion of a person affects his/her
B. Manufacture A. Attitude towards entrepreneurship
C. Translate B. Gifting practices
D. Embargo C. Use of products
683. GATT agreement was signed by 23 coun- D. All of the above
tries on
689. Which of the following is the reason why
A. 1945
most economists prefer Heckscher-Ohlin
B. 1946 theory to Ricardo’s theory?
C. 1947 A. Heckscher-Ohlin stresses on the dif-
D. 1948 ferences in productivity between nations.
B. Ricardo’s theory considers factor en-
684. HOW DO YOU WRITE “STRENGTHS AND
dowments to describe national competi-
WEAKNESSES” IN ENGLISH?
tiveness.
A. STRENGTHS AND WEAKNESSES
C. Heckscher-Ohlin theory makes fewer
B. STRENGTH AND WEAKNESS simplifying assumptions.
C. STRENGTHS AND WEAKNESSES D. Ricardo’s theory considers the law of
D. none of above marginal returns.

690. Identify the theory that supports the 695. Of the following, which is NOT a cultural
view that in some cases countries export aspect of doing business in Korea?
for the reason that the world market can

A. “We” is more important than “I.”
support only a limited number of firms.
B. Children are not supposed to say their
A. Heckscher-Ohlin theory
parents’ names, even when used with a
B. Smith’s theory title.
C. Ricardo’s theory C. “Inwha” involves harmony among un-
D. New trade theory equals.
D. Younger brothers and sisters are not
691. What does FDI stand for in the context
allowed to use the names of their older
of international business?
siblings.
A. Foreign Domestic Income
E. The left hand is viewed as “unclean.”
B. Foreign Direct Investment
C. Federal Duty on Imports 696. China’s economy has grown 7 times as
fast as the economy in
D. Financial Development Index
A. Canada
692. In what way is socialism different from B. the United States
capitalism?
C. Mexico
A. In socialism, the government controls
productive resources; In contrast, capital- D. Europe
ism focuses on private ownership.
697. Based on the definition of economic de-
B. In socialism, the government controls velopment (ED), which of the following is
what consumers can buy; Meanwhile, NOT stated?
capitalism controls what businesses can
bring to market. A. ED is an improvement in the material
well-being of the poorer half of the popu-
693. What is a multinational company? lation.
A. A company that operates in only one B. ED is a decline in agriculture’s share of
country GNP and a corresponding increase in the
B. A company that operates in multiple GNP share of industry and services.
countries C. ED is a decrease in the education and
C. A company that operates in multiple skills of the labour force.
cities D. ED is a substantial technical advances
D. A company that operates in multiple originating within the country.
continents
698. When a country is specialised in particu-
694. Which one of the following is NOT in- lar good and then trade with other coun-
cluded in GDP? (choose all that apply!) tries is called
A. a newly produced and sold computer. A. Dependence
B. a newly imported computer. B. Correlation
C. a newly constructed house that is sold. C. Interdependence
D. an old house that is resold. D. Agreement

699. A restriction on the number of imports is 704. T/F:When products mature and decline,
a it is profitable for businesses to take
A. Tariff the product overseas where the prod-
uct/service is in the introduction stage.
B. Embargo
A. True
C. Quota
B. False
D. Subsidy
705. The transformation of an MNE’s products
NARAYAN CHANGDER
700. determines whether agriculture or from raw materials to a finished good or
mining will be areas of focus. service is called the international value
chain.
A. TRUE
B. FALSE
706. What is the term for a currency’s value
being determined by supply and demand
in the foreign exchange market, without
A. Climate
government intervention?
B. Terrain A. Fixed exchange rate
C. Economic conditions B. Managed exchange rate
D. none of above C. Floating exchange rate
701. send (goods or services) to another coun- D. Pegged exchange rate
try for sale. 707. A good or service purchased and brought
A. Embargo in from another country.
B. Export A. Import
C. Import B. Export
D. none of above C. Trade
D. Negotiate
702. Which option? Not in the same category
708. According to comparative advantage
A. UCP600
trade theory offered by Ricardo
B. letter of credit A. nation should produce one good only
C. Shipping company B. produce most of what it is the best +
D. Bill for collect some other goods and trade for the rest
E. Open Account C. produce equal amount of all goods
D. be completely self-sufficient
703. Pakistan is not associated with
709. 45) Supporters of globalization as-
A. SAARC
sert that the process helps countries
B. NAFTA strengthen their sovereignty.
C. OIC A. True
D. None of these B. False

710. Which of the following is considered to be 716. It is the degree to which a society empha-
the most dangerous country in the world, sizes short-term thinking versus greater
with its considerable piracy and general un- concern for the future or long-term think-

rest? ing
A. Sudan A. Power Distance
B. Zimbabwe
B. Uncertainty Avoidance
C. Somalia
C. Individualism-Collectivism
D. Cuba
D. Masculinity-Feminity
E. Haiti
E. Time Orientation
711. Airway Bill is same as which of the fol-
lowing documents when goods are sent
717. IBRD (International Bank for Reconstruc-
through air instead of ship?
tion and Development) also known as
A. Bill of Entry
A. EXIM Bank
B. Mate’s receipt
C. Bill of Lading B. International Bank
D. None of these C. International Monetary fund
712. What kind of currency is typically used in D. World Bank

foreign trade transactions?
718. What are the types of international fran-
A. Local currency of the exporting coun-
chises?
try
B. Foreign currency A. Territory model and property model
C. Cryptocurrency B. Unit model and master franchisee
D. Digital currency
719. Merchandising is used to refer to the way
713. FDI stands for
A. Foreign Direct Investment A. shops and businesses organize the
B. Foreign Direct Intervention sale of their products
714. Performance of trade and investment ac- B. products are displayed and the prices
tivities by firms across national borders. that are chosen
A. International business Administration C. Both of them
B. International Investment D. none of above
C. International portfolio Investment
D. Multinational Enterprise (MNE) 720. In the economic cycle the order of the
phases is
715. Another word for agreement is
A. Boom, recovery, recession, slowdown
A. Agree
B. Boom, slowdown, recession, recovery
B. Dealing
C. Treaty C. Boom, recession, recovery, slowdown
D. Trade D. Boom, recovery, slowdown, recession

721. According to most studies, which is the 725. Which of the following options is a disad-
most important reason for expatriate fail- vantage for the franchisor?
ures for U.S. multinationals? A. A good opportunity to build a visible
business
B. Less capital investment
C. Failure will damage your brand
D. none of above
NARAYAN CHANGDER
726. Series of related tasks or methods that
together turn inputs into outputs
A. Inability of spouse to adjust
A. Process
B. Insufficient pay
B. Procedures
C. Lack of technical competence
727. Which among the following countries
D. Personal or emotional problems is not part of the ‘Five Dragons’ who
were successful in moving from “rags to
722. Making, buying and selling goods and ser-
riches”?
vices within a country
A. Taiwan
A. Domestic Business
B. Singapore
B. International Business
C. South Korea
C. Foreign Trade
D. Vietnam
D. World Trade
728. If a person is only a hiker, is he consid-
723. What is the plan US use for solving the ered an international tourist?
Global Crisis?
A. True
A. The Opening Case B. False
B. London Interbank Offered Rate(LIBOR)
729. Something of value that can be useful
(natural, human, capital.)
C. The Closing Case
A. Culture
D. Conduct to upgrade and reform eco-
nomic B. Resource
C. Quota
724. When two or more firms come together
D. Export
to create a new business entity that is
legally separate and distinct from its par- 730. What does the importer send to the ex-
ents it is known as porter, after making trade inquiries?
A. Contract manufacturing A. Railway Receipt
B. Franchising B. Indent
C. Joint ventures C. Letter of Credit
D. Licensing D. Foreign currency

731. A trade agreement between 27 countries 736. Most countries require extensive docu-
of with the same currency and open trade mentation if they wish to hire a foreign na-
between those nations. tional. Which of the following approaches

is most likely to be affected by this?
A. NAFTA
B. EU
C. WTO
D. ABC
732. Which year was NAFTA established?

A. 1994
A. Geocentric
B. 2004 B. regiocentric
C. 1990 C. Polycentric
D. 1987 D. Local
733. Which of the following best defines glob- 737. Which of these is a benefit of becoming
alization? international
A. How businesses or other organiza- A. Cultural homogenisation

tions develop international influence and B. Encourages lower wages
operate on an international scale C. Economies of scale
B. The process of removing manufactur- D. none of above
ing and industrial sites from foreign na-
tions 738. The kind of trade that is limited geo-
graphically within a country. It involves
C. Long periods of recession followed by commercial exchanges that are only done
sharp economic upturn worldwide within that country.
D. none of above A. DOMESTIC BUSINESS
B. INTERNATIONAL BUSINESS
734. Porter’s five forces model focused on ri-
valry among existing firms C. GLOBAL DEPENDENCY
A. Suppliers D. none of above
B. Industry competitors 739. What are the challenges faced in interna-

tional supply chain management?
C. substitute
A. Currency exchange rates, customs and
D. none of above import/export regulations, lack of visibil-
ity in the supply chain
735. A culture creates differences among con-
tinents and nations, as well as within na- B. Infrastructure limitations, political in-
tions. stability, quality control issues
C. Language barriers, cultural differ-
A. True
ences, legal and regulatory complexities,
B. False transportation and logistics issues, and

managing multiple stakeholders across 745. Which 4 of the following influence inter-
different time zones. national business?
D. Supplier reliability, inventory manage- A. geographic conditions
ment challenges, competition from local B. cultural and social factors
suppliers
C. political and legal factors
740. Goods and Services are D. economic conditions
A. Products E. trade partners
NARAYAN CHANGDER
B. Provided by people and are tangible.
746. a young entrepreneurial companythat ini-
C. Wastes of money.
tiates international business activity very
D. Always needs early inits evolution, moving rapidly into
foreign markets.
741. Abstract ideas about what a society be-
lieves to be good, right and desirable, are A. SME
A. Economics B. ME
B. Politics C. Born Global
C. Values D. none of above
D. Technology 747. What is a global supply chain?
742. In product life cycle theory, a products A. A global supply chain refers to the pro-
mature, both the and the optimal cess of transporting goods within a single
will change affecting the flow and direc- country.
tion of trade. B. A global supply chain is the manage-
A. location of sales ment of resources and activities within a
single organization.
B. location of packaging
C. A global supply chain is the coordina-
C. location of production tion of production and distribution activi-
D. location of distribution ties within a specific region.
743. Sustainability refers to accepted princi- D. The network of organizations, re-

ples of right or wrong that govern the con- sources, activities, and technologies in-
duct of a person, the members of a profes- volved in the production, distribution, and
sion, or the actions of an organization. delivery of goods and services on a global
scale.
A. True
B. False 748. Some U.S. customs are considered disre-
spectful or inappropriate in other cultures.
744. The dispute settlement body under WTO When visiting another country, which coun-
settles disputes within months tries customs should you respect?
A. 3 A. U.S. customs
B. 12 B. The country you are visiting
C. 18 C. Neither country
D. 24 D. none of above

749. Which of the following is not a demo- D. Electronic commerce and the growth
cratic country? of capitalism

A. North Korea 754. The term relates to patent, trade-
B. Nepal marks, copyrights and trade secrets.
C. USA A. Priority right
D. Sri Lanka B. Intellectual property right
750. The United States importing bananas, cof- C. Tariff & Trade Act
fee, tea, spices and silk because they can- D. Madrid agreement
not be produced domestically is an exam-
ple of which of the following? 755. is the first step in the international-
ization process.
A. Trade Barrier
A. License
B. Tariff
C. Global Dependency B. Foreign Investment
D. Export C. Sales
D. Export
751. EOUs can engage in
A. Manufacturing 756. Diamonds mined in South Africa are used
to make rings in the UAE
B. Services
A. Import
C. Development of software
B. Export
D. All the above
757. Which of the following is an example of
752. 1) Comparing countries in international globalization of production?
business is LEAST useful for determining
the A. Canadian consumers who import food
products from Australia
A. best location for sales and production
B. A German company which sells car
B. sequence of entering different coun-
components to British car makers
tries
C. A U.S. company that builds a computer
C. amount of resources to allocate in
hardware manufacturing facility in India
each country
D. A Swiss watch manufacturer that
D. selection of which managers to send
builds a manufacturing facility in Switzer-
to which countries
land
753. Factors or forces that have driven global-
758. Which of the following is NOT a country
ization
in which punctuality is particularly impor-
A. Technology, consumer pressure, inter- tant?
national cooperation
A. Germany
B. International Monetary Fund and cur-
rency control B. Italy
C. The free movement of goods and ser- C. Switzerland

vices across borders D. Norway

759. In 2011, the United States Department 765. A government in which the power is in
of Agriculture increased its annual sugar- the hands of the emir (ruler of a Muslim
import limit to 1.6 million tons for the year. state)
This is a(n) A. Pofta Buna the term u
A. Tariff B. Shura
B. Quota C. Emirate
C. Embargo D. Signal
NARAYAN CHANGDER
D. none of above 766. a trade partner is
760. The integration of markets, nation- A. countries that trade products with one
states, and technologies in a way that another
is enabling individuals, corporations, and B. people who trade items with other
nation-states to reach around the world countries
farther, faster, deeper, and cheaper than
C. industries that trade products with
ever before is referred to as
other industries
A. international business organization
D. none of above
B. globalization
767. Needs that exist when the tastes and
C. market internationalization
preferences of consumers in different na-
D. economic integration tions are similar if not identical are called
Universal needs
761. If a country trades with other countries
because it has more than it needs of a cer- A. True
tain product, the trade reason is: B. False
A. Political/Historical 768. 13 Which of the following has the great-
B. Specialization est potential to transform an industry’s
structure?
C. Increased competition
A. a change in a competitor’s manage-
D. Surplus
ment
762. Cultural Differences B. a change in a competitor’s pricing
A. benefits structure
B. limitations C. the expansion of a distribution channel
D. the exit of a competitor from the indus-
763. It answers the part of what you need to try
do in the business part
769. 74) Managers who are knowledgeable
A. Process
about are better able to identify the
B. Procedures location, quantity, quality, and availability
of the world’s natural resources.
764. 10) Most countries’ imports account for
more than half of their citizens’ consump- A. political factors
tion. B. geographic factors
A. True C. competitive factors
B. False D. cultural factors

770. The main purpose of which of the follow- 775. Which from the list are major compo-
ing businesses is to provide a service to nents of balance of payment (BOP) ac-
customers? counting system? i.Errors and Omissions ii.

A. An independent bakery Portfolio Investment iii. Official Reserves
iv.Foreign Direct Investment
B. A specialist skateboard producer
A. i and ii
C. A dog grooming parlour
B. i and iii
D. A farm
C. ii and iii
771. What is a source of cultural change? D. ii and iv
776. What are the same as certain “socially

accepted behaviors?”
A. values
B. norms
C. beliefs
D. none of these
A. natural change
777. South Africans do not like
B. Change by choice
A. Physical contact
C. Change due to taxation
B. Talk about food and soccer
D. b y c
C. Eye contact
772. Consumers have no benefits after NAFTA D. Receive gifts
A. True
778. A BRAND NAME, SYMBOL, DESIGN THAT
B. False DEFINES AND DIFFERENTIATES A COM-
PANY’S PRODUCTS OR SERVICE IS
773. All business activities needed to create,
ship, and sell goods and services across na- A. BRAND
tional borders are considered to be B. BRAND IDENTITY
A. domestic business C. BRAND AWARENESS
B. international business D. BRAND NOTORIETY
C. global dependency
779. Corporate earnings can be taxed
D. none of these twice:first as business income and second
as dividend income to stockholders.
774. Which of the following documents is
not required in connection with an import A. True
transaction? B. False
A. Bill of lading
780. What is a type of risk in international
B. Shipping bill business?
C. Certificate of origin A. Operational risks
D. Shipment advice B. Supply Chain Risks

C. Economic Risks 785. A research method that measures con-

sumer behavior is
D. Technological Risks
A. conducting a survey or interview.
781. Which of the following statement is cor-
B. holding a focus group session.
rectStatement 1:All the members of ICSID
are members of World Bank.Statement C. referring to computerized databases.
2:India is not a member of ICSID. D. observational research.
A. Statement 1 is correct but statement 2
NARAYAN CHANGDER
is incorrect 786. The MSU Foundation Scholarship can be
applied for by all students who wish to
B. Statement 2 is correct but statement 1 continue their studies at the Bachelor’s
is incorrect level instead of a diploma.
C. Both statements are correct A. OF
D. Both statements are not correct B. NO
782. Which of the following statement is true 787. The difference between import tariffs
about Comparative Advantage theory? and quotas is:
A. The most efficient country is the one A. tariffs are a tax on locally produced
that can produce goods at the lowest op- goods but quotas limit the quantity of im-
portunity cost. ports
B. It does not support free trade among B. tariffs are a tax on imports and quotas
nation. are a tax on exports
C. A country should import goods that it C. tariffs are a tax on imports and quotas
is most efficient in production. limit the quantity of imports
D. Countries should not trade with each D. tariffs are a tax on all products but quo-
other and produce all goods indepen- tas just limit the quantity of imports
dently.
788. Why is the involvement of middlemen
783. Corporations share their profits with considered necessary in foreign trade?
stockholders by paying
A. To increase restrictions on trade
A. taxes
B. To simplify the rules and regulations of
B. bonds trade
C. dividends C. To facilitate the smooth conduct of
D. none of above trade due to complicated
D. To reduce the risk element in trade
784. Citizens of the country where the sub-
sidiary or affiliate is located are called 789. IPR stands for
A. PCNs A. Intellectual property rights
B. TCNs B. International property rights
C. HCNs C. Internal promotion rights
D. None D. Interior promotional rights

790. If a country has low literacy levels, little C. The process of conducting business
to no technology and focuses on agricutlre within a single country.
or mining, that country is considered to be:

D. Exchange of goods, services, and re-
A. Developing sources between different countries.
B. Industrialized 795. distribution chanel intermerdiaries is a
C. Less-Developed firm that
D. none of above A. State-Owned enterprise (SOE)
791. What is the hidden culture? B. a firm or individual with special ex-
pertise in banking, legal advice, customs
A. Eaten manners of different countries
clearance, or related support services
B. Religious practices different religions
C. multinational enterprises (MNEs) and
C. Spoken languages of different coun- small and medium-sized exporting firms.
tries (SMEs)
D. Business etiquettes of different cul- D. provides various logistics and market-
tures ing services
792. Communication in Latin America is pre- 796. Ron lives in a small, isolated town in
dominantly done in which language? Central Montana. There is only one hos-
A. Portuguese pital within 100 miles of where he lives.
B. English What type of competitive situation does
this BEST represent for the hospital?
C. French
A. monopolistic competition
D. Spanish
B. monopoly
793. This is the flag from
C. pure competition
D. oligopoly
797. With more cultural diversity, residents

of the United States share the same lan-
guage, customs and traditions throughout.
This is an example of a
A. homogeneous culture
A. China
B. heterogeneous culture
B. Malaysia
C. neither of these
C. Singapore
D. both of these
D. Korea
798. Profit growth can be achieved through
794. What is international business?
A. Importing and exporting goods within A. increase cost
the same country.
B. decrease cost
B. The exchange of goods and services
between different companies within the C. add value and raise prices
same country. D. enter new markets

799. this is an abstract of idea of what is right 804. It involves pulling of resources among
and what is wrong. foreign and local coinventors to operate
the business.
A. Norms
A. Strategic Alliance
B. Values
B. joint ventures
C. Beliefs
C. franchising
D. Culture
D. none of above
NARAYAN CHANGDER
800. Indian rupee was partially convertible
since March 805. IBRD (International Bank for Reconstruc-
tion and Development) also known as
A. 1989
A. EXIM Bank
B. 1990
B. World Bank
C. 1991
C. International Monetary fund
D. 1992
D. International Bank
801. Comparative advantage
A. A situation in which a country special- 806. A is a subset or part of a larger cul-
izes in the production of a good or service ture
at which it is relatively more efficient A. Culture
B. Items bought from other countries B. Subculture
C. A situation in which a country can pro- C. Second Family
duce a good or service at a lower cost than
D. Nuclear Family
other countries.
D. Items sold to other countries. 807. Globalization receives criticism that fo-
cuses on:
802. Which strategy focuses on increasing
A. loss of national sovereignty
profitability by customizing the firm’s
goods or services so they provide a good B. on exploitation and damage to the en-
match to tastes and preferences in differ- vironment
ent national markets?
C. increasing income inequality and gen-
A. Global standardization strategy eration of stress in people
B. Transnational strategy D. all of the above
C. Localization strategy
808. Ongoing economic integration and
D. International strategy growinginterdependency of countries
worldwide.
803. A surplus in the balance of payments
A. International Trade
means that exports are greater than im-
ports B. Internationalization
A. TRUE C. International Business
B. Falso D. Globalization

809. Textile industry in a nation is character- 813. Communication in Asia relies heavily on
ized by vigorous domestic rivalry. Which which of the following?
of the following observations of this na-

A. Emotions
tion’s international competency is most
likely to be true? B. Nonverbal signals
A. The nation will have access to such ba- C. Translators

sic factors of textile industry as natural re- D. none of above
sources.
814. Companies that transfer some of their
B. The nation’s textile firms will have business processes to other companies
a competitive advantage in international abroad, such as call centers
trade.
A. Offshoring
C. The domestic customers of the textile
firms will be less demanding. B. Franchising
D. The nation’s textile industry will lack C. Outsourcing

the advanced factors that are necessary D. Acquiring
to be internationally competent.
815. Corruption has been a problem in almost
810. There is an agreement whereby a firm, every society in history and continues to
called a licensor, grants a foreign firm the be one today.
right to use the intangible (intellectual) A. True
property for a specific period of time, usu-
B. False
ally in return for a royalty.
A. licensing 816. The European Union is an example of
B. franchising A. Monetary union
C. exporting B. Free trade area
D. foreign direct investment C. Common market
D. Economic union
811. Which is a global product from Indonesia
A. J.Co Donuts & Coffee 817. In cultures that value , the focus is on
something larger such as a political party,
B. Dunkin Donuts
religion, or employer/company & the indi-
C. Axe vidual makes sacrifices for that group, sac-
D. Burger King rificing individual success.
A. collectivism
812. Which trade theory suggests that
economies of scale and network effects B. patriotism
can lead to trade even when countries C. individualism
do not differ in terms of resource endow- D. none of these
ments or technology?
A. Comparative Advantage 818. is the belief that national prosperity
is the result of a positive balance of trade,
B. Absolute Advantage achieved by maximizing exports and mini-
C. Heckscher-Ohlin Theory mizing imports.
D. New Trade Theory A. Positivism

B. Imperialism 824. pressures for global integration-

lowpressures for local responsiveness-
C. Communism
high
D. Mercantilism A. global strategy
819. A telephone operator is an example of a B. multidomestic strategy
A. Service C. transnational strategy

D. international strategy
B. Good
NARAYAN CHANGDER
825. A company that would like to build a
820. The risks that economic problems or mis- golf course that could be played year
management in a given country will have a round would need to consider which com-
meaningful negative impact upon the con- ponent of the international business envi-
duct of business in that country are called ronment?
risks.
A. Environmental
A. financial
B. Social
B. environmental C. Economic
C. political D. Political
D. individual
826. Services are intangible products available
E. economic for sale by a company.
A. True
821. Currency appreciation could be caused by
B. False
A. Supply Increase or Demand Increase
827. A country’s strategy for dealing with
B. Supply Increase or Demand Decrease
other countries is called its
C. Supply Decrease or Demand Decrease A. foreign policy
D. Supply Decrease or Demand Increase B. national interest
822. When a parent/parents and their unmar- C. guidelines

ried children live together, it is referred to D. goals
as a(n) family
828. There are fees in the form of royalties
A. Extended family paid for using parts of other companies
B. Nuclear family such as names, brands, etc., which occur in
the form of entry into international trade.
C. Second family
A. Multinational Company
D. Half family
B. Franchising
823. If a person communicates indirectly and C. Licensing
attaches little value to the literal meaning D. Outsourcing
of words, their communication is
829. What is one of the characteristics that
A. low-context
distinguishes foreign trade from inland
B. high-context trade?

A. The separation of buyers and produc- 834. What is the definition of exchange rate?
ers from different countries A. The value of currency in one country as

B. The need for foreign currency compared to the value of currency in an-
other
C. The involvement of middlemen
B. The value of currency within a country
D. The absence of restrictions
C. The value of goods and services in one
830. An office building is a product created by country as compared to another
what type of resource? D. The value of goods and services within
A. Capital a country
B. Labor 835. What is a tariff?

C. Land A. An Asian coin
D. none of above B. An import tax
C. A type of business
831. 53) Carnival Cruise Lines lowers its taxes
by all of the following EXCEPT D. A type of commodity
A. hiring host-country nationals who pay 836. Which transportation according to the
no taxes graphic is the most used in Colombia?
B. taking advantage of taxation laws in A. Air
foreign countries B. Land
C. sailing in international waters outside C. Maritime
countries’ tax jurisdiction
D. Railway
D. paying substantial port fees instead of
taxes during stopovers 837. Individuals should most likely study inter-
national business to
832. Rapid integration or interconnection be- A. comply with graduate school certifica-
tween countries is known as tion requirements
A. Privatization B. ensure that an employer has a global
B. Liberalisation online presence
C. Globalization C. remain current on the latest business

methods
D. Socialisation
D. remain current on the latest communi-
833. It is the constant process that deepens cation method
and expands interdependence between 838. The customary conduct which is consid-
countries. ered polite among a particular group
A. Globalization A. Sociability
B. Cultural diversity B. Cleanliness
C. International cooperation C. Etiquette
D. Government regulations D. Machismo

839. Which is NOT a role of international strat- A. True

egy?
B. False
A. Help the company compete effectively
in international markets 844. The degree of mobility of factors of pro-
B. Oriented toward smaller steps and a duction like labour and capital across na-
shorter time frame along the way tions is relatively more in International
business
C. Help managers identify and utilize
A. true
NARAYAN CHANGDER
business opportunities, incorporate indi-
vidual and collective efforts, allocate time B. false
and resources appropriately, and mini-
mize mistakes 845. 59) An example of a U.S. merchandise im-
D. Coordinate all departments within the port is an automobile made in and sold
company to achieve the most effective
goals A. the United States by a Japanese com-
pany; in the United States
840. Country A exports electronic goods from
Country B although there are no underly- B. the United States by a Japanese com-
ing differences in factor endowments be- pany; outside the United States
tween the two countries. Which of the fol- C. Japan by a Japanese company; in the
lowing theories explains this anomaly? United States
A. Comparative advantage theory D. Japan by a U.S. company; outside the
B. New trade theory United States
C. Ricardo’s theory
846. Can people produce all their needs?
D. Smith’s theory
A. Yes
841. Considering communication in Egypt, Al- B. No
geria and other Arab countries, it is natu-
ral to 847. What are some concerns related to inter-
A. Stand very far from one another national business? ( problems)
B. Stand very close to one another A. Outsourcing
C. Speak softly B. Human rights and labour abuses
D. Speak loudly C. Damage to the Environment
842. Although most international trade and in- D. More markets to enter
vestment is still conducted by large firms,
many medium-size and small businesses 848. A trade agreement that eleminates bar-
are becoming increasingly involved in in- riers between the United States, Canada,
ternational trade and investment. and Mexico.
A. TRUE A. ASEAN
B. FALSE B. EU
C. NAFTA
843. True or False? Exporting is selling goods
and services to other countries. D. none of above

849. This country has been the birthplace B. UK Finance Agency

of many innovative companies such
C. UK Export Finance
as:Electrolux, H&M, IKEA, Spotify, and

Skype. D. none of above
A. Sweden 855. . Free-float is the ratio of free-float to
B. Switzerland the total number of currently circulat-
C. Germany ing in the market.
D. none of above A. Stock
B. Currency
850. 5) The view calls for companies to de-
velop low-cost, high-powered, resource- C. Capital
minimizing innovations that can be mar- D. Stocks
keted to the billions of people living on less
than a few dollars a day. 856. is any activities needed to create,
A. Base of the Pyramid ship, and sell products across national bor-
ders.
B. Hierarchy of Needs
C. Happy Planet Index A. International business
D. Gini coefficient B. Global economy

C. Domestic business
851. 1 USD is equal to AED.
D. none of above
A. 5.75
B. 3.67 857. An example of global dependency is
C. 2.50 when products are produced and used in
the same country.
D. 10000
A. True
852. limit the integration of trade activ-
ities to one geographic area and involve B. False
more than two countries
858. Ultimately was replaced by the
A. International Trade on 1st jan 1995.
B. Regional trade agreements A. GATS, WTO
C. Triad B. WTO, GATT
D. Geographic globalization C. GATT, WTO
853. The international sales contract is consid- D. IMF, GATT
ered a “consensual contact, “
A. TRUE 859. Absolute advantage theory was intro-
duced by
B. FALSE
A. Michael Porter
854. This is a government agency that sup-
B. David Ricardo
ports UK businesses to help them access
credit C. Adam Smith
A. Bank of England D. Raymond Vernon

860. Any commercial transaction that crosses 865. In some countries business women should
the borders of two or more nations is only shake hands if
known as
A. a business man offers his hand first.
A. international business
B. it is with another business woman.
B. global manufacturing
C. she is being introduced to men and
C. domestic marketing
women.
D. market segmentation
D. the business meeting is over
NARAYAN CHANGDER
861. The following factor does not differenti-
ate international business from domestic 866. It may take a long time for economic con-
business ditions to improve if a country has a large
A. Different Currencies population of:
B. Product Quality A. unemployed people

C. Product Mobility B. educated people
D. Trade Policies C. fully-trained people
862. a sole proprietorship is a business owned D. uneducated people
by?
867. What do we do with the comments on
A. four people
Facebook?
B. one person in each department of the
business A. link
C. two people B. log in
D. one person C. post
863. It is an easy way to enter markets with D. access
high trade restrictions as a company gives
the right to use the property to another 868. Zero sum game is related to which of the
company in a new market in exchange for following theory?
a fee A. Mercantilist View on Trade
A. Foreign Direct Investment B. Absolute Advantage Theory
B. Licensing
C. Comparative Advantage Theory
C. Joint Venture
D. Linder’s Income
D. Internet
E. Export 869. Arrangement between two or more coun-
tries to remove restrictions between them
864. WE HOPE TO INCREASE OUR (OUR while imposing the barriers from countries
PERCENTAGE OF SALES ON THE MARKET) NOT included in the bloc.
TO 20 PERCENT WITHIN 3-4 YEARS
A. Trading Bloc
A. MARKET PART
B. MARKET SHARING B. Treaty
C. MARKET SHARE C. Tariff
D. none of above D. none of above

870. are people who assume the risk of 876. What is the potential consequence if the
business ownership. key competency of a product starts to ex-
ist in the international markets?

A. sole proprietors
B. general partners A. The need to centralize decision-
making
C. entrepreneurs
B. The need to increase production costs
D. limited partners
C. The need to reduce local responsive-
871. The term used for masculinity in Latin ness
America D. The need to adapt the product to the
A. Hug local market
B. Neatness 877. Which of the following is an example of
C. Machismo a non-tariff trade barrier?
D. Cleanliness A. Import quotas
872. Transaction that are carried out across na- B. Value-added tax (VAT)
tional border to satisfy the objective of C. Export subsidies
and
D. Bilateral trade agreements
A. Individuals
878. 12) The distinguishing feature of politi-
B. Organization
cal ideologies along the political spectrum
C. both a & b is , with some emphasizing its primacy
D. None of the above and others opposing it.
A. capitalism
873. Which of the following terms refers to
the unit cost reductions associated with B. socialism
large sized outputs? C. freedom
A. Absolute advantage of production D. liberalism
B. Economies of scale
879. A comparison of amount of foreign cur-
C. Constant marginal returns rency taken into a country versus amount
D. Diminishing marginal returns of domestic currency paid out
A. Quotas
874. Markets can be segmented in only one
way:by socio-cultural factors. B. Tariffs
A. TRUE C. Embargo
B. FALSE D. Balance of Payments
875. The set of beliefs, customs, and attitudes 880. A telephone is an example of a
of a distinct group of people: A. Good
A. subculture B. Service
B. folkways and mores
881. The more taxes there are on a business,
C. culture the higher the price the business charges
D. values consumers for its products.

A. True B. Multi National Companies (MNC)

B. False C. Global Corporations(GC)
882. Emigration means D. Multinational Enterprises (MNE)
A. going in to a country from another
887. Firms such as Intel or Texas Instruments
country to reside permanently
that produce products serving universal
B. going out from one country to another needs follow a strategy.
country to reside permanently
NARAYAN CHANGDER
C. going in and going out from country to
another country
D. going in and going out in a single coun-
try
883. Which country has this flag?

A. global standardization
B. localization
C. international
D. transnational
888. Which ASEAN city had the worst air qual-

ity in 2019?
A. China
B. Cook Islands
C. Malaysia
D. Sri Lanka
884. Municipal corporations do not usually en-

gage in international business activities.
A. True
B. False A. Hanoi
885. The commercial invoice is B. Ho Chi Minh City

A. A proof of sale C. Chiang Mai
B. Required by foreign buyer D. Jakarta
C. Proof of ownership of the merchandise
889. When the focus is, “the company’s pro-
jection”, we refer to:
D. none of above
A. Business plan
886. The companies having business in a large
B. Project evaluation
number of countries around the world at
present are called C. Feasibility study
A. Transitional Companies (TNC) D. Strategic plan

890. In 1949, NATO began its journey with C. The income earned from sales
member countries. D. Revenue minus costs

A. 10
896. In acronym SAARC, “C” stands for
B. 11
A. Committee
C. 12
B. Commonwealth
D. 14
C. Conference
891. The country of Baskland relies heavily on D. Cooperation
goods and services produced in other na-
tions. Baskland likely has which of the fol- 897. The following are items traded during the
lowing? Middle Ages which were known to have
contributed toward the enrichment of Eu-
A. a balanced budget
ropean manorial and monastic life EXCEPT
B. a trade balance for ONE.
C. a trade deficit A. condiments
D. a trade surplus B. milk
892. All businesses suffer falling profits in a C. spices

recession D. silk
A. True 898. What is federal minimum wage?
B. False A. $.25
893. How has the internet impacted interna- B. $5.15
tional business? C. $7.25
A. It has made international business op- D. $10.10
portunities more limited
899. In absolute advantage theory, with spe-
B. It has made international business op- cialization, total world output will
portunities more expensive
A. increase
C. It has expanded international business
opportunities B. decrease
D. It has made international business op- C. remain unchanged

portunities more difficult D. fluctuate
894. What are your favourite color? 900. When visiting another country, you
should practice their customs and beliefs
A. Blue
even if it is harmful to your personal be-
B. Red liefs
C. Brown A. False
D. White B. true
895. Profit is 901. Quality issues
A. Another name for revenue A. benefits
B. Revenue plus costs B. limitations

902. The negotiating team should not be too 907. SMEs stands for:
large, it should not exceed ( ). A. Small and Medium Entrepreneurs
A. 4 B. Small and Medium-sized Enterprises
B. 5 C. Small Management of Enterprises
C. 6 D. Societies for Managing Exports
D. none of above
908. Assertion (A):Indent may be open or
NARAYAN CHANGDER
903. How many types of business plans are closed. Open indent does not specify the
there? price and other details of the goods. The
closed indent specifies the brand, price,
A. There is only 1 type number, packaging, shipping mode, insur-
B. There are 2 types ance etc.Reason (R):This is required as a
part of export procedures.
C. There are 3 types
A. Both A and R are correct
D. There are 4 types
B. Both A and R are not correct
904. What is export credit? C. A is true but R is false
A. When exporters borrow money from D. R is true but A is false
the bank
909. What does Ethnocentric orientation mean
B. When importers receive an extension
on their bank loan A. The company views regions as unique
and seeks to develop an integrated re-
C. Financial support or guarantees that
gional strategy
are given to foreign businesses to help
in buying goods or services from UK ex- B. The company assumes that its home
porters country is superior to the rest of the world
D. When part of the payment is paid up- C. The company views the entire world as
front a potential market and strives to develop
integrated world market strategies
905. THE PROCESS OF GATHERING, RECORD- D. The company assumes that each coun-
ING AND ANALYZING DATA ABOUT CUS- try in which the company does business is
TOMERS, COMPETITORS AND THE MAR- unique
KET IS CALLED MARKET
A. TRENDS 910. The South African government tries to re-
duce inequality and the concentration of
B. REVIEW power through
C. RESEARCH A. Regressive taxes
D. SEARCH B. Salary increase
906. The 4 Ps pf Marketing are the uncontrol- C. Gender equality

lable factors in International Marketing D. Progressive Taxes
A. True
911. What is a benefit of contract manufactur-
B. False ing?

A. Not having full control over product 916. Starbucks gives its coffee grounds for
quality free to be used as fertilizers. Starbucks
has

B. Reduced costs
A. commercial approach
C. Access to people with specific skill
sets B. corporate social responsibility
D. Easier-to-scale production 917. Mexico has strong family business ties
compared to a lot of other cultures
912. 85) Geographical barriers typically affect
distribution channels within countries, but A. True
they rarely affect distribution channels be- B. False
tween countries.
918. 17) Which of the following has NOT been
A. True a major force increasing globalization in re-
B. False cent decades?
A. liberalization of cross-border trade
913. A cause of globalization is
B. increase in and expansion of technol-
ogy
C. growing pressure from consumers
D. decreasing prices of natural resources
919. WHO IS MOANA’S PET?
A.
A. the fall of communism
B. the internet
B.
C. faster transport worldwide
D. all the above
C.
914. The simplest, low risk method of get-
ting involved in international business is
to form a joint venture with a company in
another country.
D.
A. True
B. False
920. Why is it important to change the orga-
915. Pressure for cost reduction is greatest in
nization’s architecture to better align with
some condition, except
global strategy?
A. excess capacity
A. To reduce company operational costs
B. products are of universal needs
B. To increase collaboration between
C. major competitors are in high-cost lo- global business units
cation C. To achieve the company’s financial
D. pricing wars goals

D. To take advantage of global market op- 926. In 1963, President Kennedy issued sanc-
portunities tions, which prohibited all trade with
Cuba.
921. There are 4 shipping terms, they are
A. embargo
these below except,
B. tariff
A. FAS
C. subsidy
B. FOB
D. quota
NARAYAN CHANGDER
C. CIF
D. FOG 927. The word “encompass” means
E. CAF A. To get out

B. To involve
922. Internal and external factors of globaliza-
C. To take care
tion can be divided into market, environ-
mental and competitive. D. To come up with
A. TRUE 928. It refers to the official forms and other
B. FALSE paperwork required in export transactions
for shipping and customs procedures
923. Includes tourism that travels abroad (out- A. Documentation
going or outgoing) and that which comes
from abroad (incoming or incoming). B. Incoterms
C. Certificate of Origin
A. Inland tourism
D. none of above
B. National tourism
C. International tourism 929. Which of the following are not the drivers
of globalisation?
D. none of above
A. Technological Advancement
924. Cultural Relativism in International busi- B. Reduction in Government Control
ness is the same thing as:
C. Communication
A. “staying loyal to your culture”
B. “listening to what your boss tells you
to do” 930. Why do workers benefit from interna-
tional trade?
C. “keeping an open mind”
A. They have more options as consumers
D. none of these
B. Real wages have risen
925. The fundamental reason behind interna- C. Export wages have risen
tional business is that the countries cannot
D. Trade creates greater employment op-
produce or all that they need.
portunity
A. goods, services
931. Religion and language are two examples
B. equally well, cheaply
of conditions that influence interna-
C. Sufficiently, cheaply tional business.
D. equally well, costly A. political and legal


C. geographic

D. economic
932. THIS IS AN INTERNATIONAL PRICE DIS-

CRIMINATION PRACTICE
A. INFANT INDUSTRY A. Tariff
B. CONSERVATION OF NATURAL RE- B. Expropriation
SOURCES C. Licensing Requirements
C. NATIONAL DEFENSE D. Quotas
D. DUMPING 937. What is the definition of licensing?
E. RETALIATION A. Selling the right to use some type of in-
tangible property
933. Globalization refers to:
B. The right to use a company’s pro-
A. Lower incomes worldwide cesses and/or business name
B. A more integrated and interdependent C. An agreement between two or more
world companies to share a business project
C. Less foreign trade and investment D. A tax that a government places on cer-
D. Global warming and their effects tain imported products
938. It’s an option in which a parent company

934. 6) According to the A.T. Kearny/Foreign
grants another company/firm the right to
Policy Globalization Index, countries
do business in a prescribed manner.
A. tend to be ranked similarly on all four A. licensing
dimensions
B. foreign direct investment
B. are more globalized on the political di-
mension than on personal contact C. exporting
D. franchising
C. that are large in land mass and popu-
lation are less globalized than small coun- 939. Generally accepted principles of right and
tries wrong governing individual conduct are
D. sometimes rank high on one dimension known as what?
and low on another A. ethical dilemmas
935. A convenience good is usually purchased B. ethical imperialism

after consumers compare brands and C. corruption
stores. D. personal ethics
A. True
940. Where is Microsoft Corporation head-
B. False quartered?
936. Which of the following is NOT an exam- A. Redmond, Washington

ple of a trade barrier? B. San Francisco, California

C. Seattle, Washington A. Ghana

D. New York City, New York B. South Korea
941. The U.S. purchases oil from many other 946. What benefits has the licensing of Win-
companies. For the U.S., oil, in this case, dows and Office in the Chinese market
is an example of an: brought to Microsoft?
A. Export A. Expand the market, generate revenue
and protect intellectual property rights
B. Import
NARAYAN CHANGDER
B. Create competition with local tech
942. Why use letters of credit? Select two. companies
A. This provides security for both parties C. Meet the needs of Chinese users and
B. This provides security for the exporter, develop technology in this market
knowing that they do not have to worry D. Strengthen cooperation with local
about credit control technology companies and develop new
C. This is a more traditional style arrange- products
ment, with businesses borrowing directly 947. 40) Limitation of logging in the Amazon
from financial institutions to import prod- region is generally viewed as environmen-
ucts tally beneficial for the planet as a whole;
D. This transfers the risk from the seller however, unemployed Brazilian workers
to the bank have felt that job creation inside Brazil
is more important than climate protection
943. exposure deals with cash flows that outside Brazil. This example best illus-
result from existing contractual obliga- trates which of the following?
tions
A. why smaller countries are concerned
A. Translation that large international companies are
B. Operating powerful enough to dictate operating
terms
C. Transaction
B. why globalization is needed to foster
D. Economic uniform standards for combating environ-
944. The relationship between the value of a mental problems
country’s exports and the value of its im- C. how cultural homogeneity threatens
ports. the cultural foundation of smaller nations
A. Trade Failure D. how global interests can conflict with
B. Trade Surplus a country’s local interests
C. Balance of Trade 948. A business that has direct investments

(in the form of marketing or manufacturing
D. Balance of Payments
subsidiaries) abroad in several countries is
945. Resources available = 200 units for each called a
country Production in GhanaCocoa = 10 A. shell corporation
tonsRice = 5 tons Production in South Ko- B. multinational corporation
reaCocoa = 2.5 tonsRice = 10 tons Ques-
tion:Which country should specialize in pro- C. domestic corporation
ducing Cocoa? D. shell corporation

949. Wal-Mart makes bulk purchases from its 954. Religion has no influence on international
vendors and hence it is able to get bet- business.
ter deals than its competitors. This allows A. True

Wal-Mart to offer greater discounts to its
B. False
customers. In this case, Wal-Mart benefits
from 955. Which of the following is not an advan-
A. First mover advantage tage of exporting?
B. Constant marginal returns A. Easier way to enter into international
business
C. Economies of scale
B. Comparatively lower risks
D. Absolute advantage of production
C. Limited presence in foreign markets
950. Which Chinese company has Microsoft
D. Less investment requirements
signed a partnership with to distribute
Windows and Office products in the Chi- 956. A belief that products should be free to
nese market? move from country to country without bar-
A. Ali Baba riers or obstacles.
B. Baidu A. Quota
C. Tencent B. Entrepreneur
D. China Electronics Technology Group C. Free trade

(CETC) D. Translate
951. Multinational Companies such as Johnson 957. The peso is the official currency of which
& Johnson, and Coca-Cola usually have a three countries listed below?
A. “Parent” Company Headquarters in a
home country.
B. Limited time offer of sellling products
internationally.
C. An exclusive deal with one country.
D. Other
A. Mexico
952. is the belief in the superiority of one’s
B. Argentina
own ethnic group or culture.
C. Spain
A. Power distance
D. Cuba
B. Ethnocentrism
E. Portugal
C. Individualism
D. Dynamism 958. War and unlawful activity are two exam-
ples of conditions that influence inter-
953. Impact of globalization are national business.
A. Rapid growth A. geographic
B. New technology B. economic
C. Opportunity to go global C. political and legal
D. All the above D. none of above

959. Which of the following is an example of 963. What is the definition of outsourcing?
cultural globalization? A. The practice of merging two compa-
A. Restrictions on food imports. nies to perform certain tasks or provide
services that were previously done in-
B. Broadcasting of international films and
house.
music.
B. The practice of automating tasks or
C. Closure of borders for migration.
services that were previously done in-
D. Greater state control over the media. house.
NARAYAN CHANGDER
960. What is one advantage of international C. The practice of hiring additional em-
business? ployees to perform certain tasks or pro-
vide services that were previously done in-
A. Cultural and language differences house.
B. Access to resources D. The practice of hiring a third-party
C. Stability in supply company or individual to perform certain
tasks or provide services that were previ-
D. Reduced dependency on a single mar-
ously done in-house.
ket
964. The largest importing country is
961. What happens when a culture is isolated
from other cultures? A. The United States
B. China
C. Russia
D. Japan
965. When visiting another country for busi-
ness, you may need a(n) to help you
communicate in the other language
A. translate
A. Changes in lifestyle occur quickly. B. sign-language interpreter
B. There is a plethora of technology. C. local citizen
C. Changes in lifestyle occur slowly. D. agent
D. There is a large foreign born popula- 966. Why are most countries better off spe-
tion (immigrants). cializing in the production of particular
962. How does regional economic integration goods, and then trading with other nations
help economic growth? to obtain whatever else they need?
A. Transportation costs are lower than
A. Increase production costs
they were a century ago.
B. Increasing competition between coun-
B. Resources are not evenly distributed
tries
among countries.
C. Increase trade between countries
C. Greater investment of capital goods in-
D. Increasing protectionism between creases productivity.
countries D. People have limited resources to sat-
E. All answers are wrong isfy unlimited wants.

967. In Heckscher-Ohlin theory, factor endow- B. the practice of obtaining power, per-
ments normally refers to , and sonal gain, or influence through legal
means, usually at others’ benefits

A. land
B. money C. The practice of gaining influence for
the public interests
C. labor
D. capital
973. China is the fourth largest country in the
968. What does etiquette refer to? world after Russia, Canada, and
A. The laws of a group of people A. Germany
B. The customary foods of a group of peo- B. Africa
ple
C. the United States
C. The traditional holidays of a group of
people D. Mexico
D. The customary polite conduct of a 974. 55) By operating internationally, a com-
group of people pany may take advantage of business-
cycle differences among countries and
969. The (a) allows the (b) to waive the (c)
thereby reduce its financial risks.
A. a Trade Agreements Act
A. True
B. b President
B. False
C. c Buy American Act
975. This country has the largest population in
D. none of above
the world.
970. HOW TO TRANSLATE “AVANTAGE CON- A. USA
CURRENTIEL” INTO ENGLISH?
B. Russia
A. COMPETITIVE ADVANTAGE
C. China
B. COMPETITION ADVANTAGE
D. none of above
C. COMPETITIVE ADVANTAGE
976. International business refers to
D. none of above
A. Global
971. Products purchased after the consumer
B. Transactional
compares brand, store, price, quality
and/or features C. Both a & b
A. Shopping Goods D. None of them are true
B. Convenience Goods 977. Which of the following organisations lays
C. Specialty Goods stress on liberalisation of foreign trade
D. None of them and foreign investment?
A. International Labour Organisation
972. What is the meaning of corruption?
B. International Monetary Fund
A. the practice of obtaining power, per-
sonal gain, or influence through illegiti- C. World Health Organisation
mate means, usually at others’ expense D. World Trade Organisation

978. any regulation or policy that restricts in- C. Absolute advantage theory
ternational trade, especially tariffs, quo- D. Comparative advantage theory
tas, etc.; the most common barrier is a tar-
iff 983. North American Free Trade Agreement
A. Embargo (NAFTA)
B. Trade Barrier A. Agreement that created a free-trade

area among the United States, Canada,
C. Trade Alliance and Mexico.
NARAYAN CHANGDER
D. Trade War B. a permanent global institution to pro-
979. 27) Which of the following is NOT one of
the three main reasons affecting interna-
tional business for governments to coop- C. is a company that conducts business in
erate with each other? only one country, which is known as the
home country.
A. to attack problems jointly that one
country acting alone cannot solve D. none of above
B. to deal with issues that lie outside the 984. What is one potential disadvantage of
territory of any nation international trade in terms of goods im-
C. to gain reciprocal advantages ports?
D. to establish a common language A. It promotes the well-being of the peo-
ple.
980. Resources available = 200 units for each B. It leads to a shortage of goods in the
country Production in GhanaCocoa = 10 domestic market.
tonsRice = 5 tons Production in South Ko-
reaCocoa = 2.5 tonsRice = 10 tons Ques- C. It has no impact on the economy and
tion:Which country should specialize in pro- well-being of the people.
ducing Rice? D. It has a positive effect on the economy
A. Ghana and well-being of the people.
B. South Korea 985. It is the accounting instrument that re-

ports the transactions of a country with
981. Items we sell to other countries the rest of the world.
A. Importing A. Interest rate
B. Exporting B. Balence of payments
C. Foreign Exchange Market C. Payment accounts
D. Exchange Rate D. none of above
982. Which trade theory suggests that a coun- 986. What are the types of regional economic
try should specialize in producing and ex- integration?
porting goods that intensively use factors A. Free trade area, customs union, com-
of production that are abundant in that mon market, economic union, political
country? union
A. Heckscher-Ohlin theory B. Free trade area, customs union, com-
B. Mercantilism theory mon market, economic union, social union

C. Free trade area, customs union, com- B. The theory failed to explain the domi-
mon market, economic union, cultural nance of developed nations.
union C. The theory applies only when a poor

D. Free trade area, customs union, com- nation invents a new product.
mon market, economic union, environ- D. The theory cannot be used to explain
mental union the production of luxury products.
E. Free trade area, customs union, com- 991. It is a social, cultural and economic phe-
mon market, economic union, religious nomenon that involves the displacement
union of people to countries or places outside
987. The only Latin American company in- their usual environment for personal, pro-
cluded in a list of the 100 companies that fessional or business reasons.
have prospered during the pandemic. A. Tourism
A. Amazon B. Immigration
B. Shein C. Migration
C. Free market D. none of above
D. Ago 992. The principle that a country benefits from

specializing in the production at which it is
988. What is the aim of regional economic in- relatively most efficient thus has the com-
tegration? parative advantage. This is true because
A. Increase international trade of lower opportunity costs
B. Increasing competition between coun- A. Law of Comparative Advantage
tries B. Globalization
C. Increasing the political influence of C. Law of Incresing Costs
the countries involved D. Exports
D. Improve the national security of the 993. What is the definition of comparative ad-
countries involved vantage?
E. Increasing profits for the countries in- A. When a country can produce/export
volved an item relatively better than other coun-
tries
989. Government sets regulations to ensure
safety of goods. B. When a country can produce/export
an item better than any other country
A. embargo
C. When a country sells the right to use
B. standard
some type of intangible property
C. subsidy D. When a country has a trade surplus
D. none of above
994. A report published by the government
990. Which of the following is a major disad- of Italy listing the number of children in
vantage of the product life-cycle theory in- households with different incomes is an
troduced by Vernon? example of
A. The theory’s arguments seem ethno- A. Primary Data
centric and increasingly dated. B. Secondary Data

995. Foreign debt is: 1000. From which nation we have learned a
lot of things about QUALITY
A. The measure of the difference be-
tween what a country sells versus what a A. Germany
country buys from other countries.
B. China
B. The measure of the amount of money
C. Japan
D. U.S.A
C. The measure of the output of products
NARAYAN CHANGDER
created within a country. E. Mexico
D. none of above
1001. You don’t need to state the names and
job titles of the team members in the ne-
996. Examples of this include buildings and
gotiation plan. True or false?
equipment
A. Natural resources A. true
B. Human resources B. false
C. Capital resources 1002. South Africa has a large percentage of

D. Resource York the world’s diamond deposits. This is an
example of
997. Which barrier can be used against reces- A. comparative advantage.
sion induced exports into the country?
B. absolute advantage.
A. Quotas
C. a developing country.
B. Voluntary export restraints
D. a market economy.
C. Tariff
D. All of theses 1003. STP STANDS FOR:
A. SEGMENTING TARGETING POSITION-
998. The two basic strategies for creating ING
value are
B. SEGMENTING TARGETING POSITION-
A. value and cost ING
B. differentiation and low cost C. SEGMENTING TARGETING POSITION
C. profitability and profit growth D. none of above
D. R&D and production
1004. Which international business strategy
999. Which of the following refers to a set of involves adapting products and marketing
beliefs and practices usually concerning the strategies to suit the specific preferences
nature of existence? and needs of each local market?
A. Etiquette A. Global standardization
B. Socialization style B. Ethnocentric approach
C. Superstition C. Polycentric approach
D. Religion D. Geocentric approach

1005. 20) Advanced communication systems A. Avoid competition with local compa-
have contributed to growth in interna- nies
tional business by

B. Increasing company investment diver-
A. enabling better oversight of global op- sification
erations
C. Gain access to global markets and re-
B. reducing the effects of global competi- sources
tion
D. Minimizes the risk of product failure
C. decreasing the cost of cargo trans-
portation 1010. Technology, education, inflation, ex-
D. reducing export regulations change rate, and infrastructure refer to
which factor of the international business
1006. 38) Which of the following is the LEAST environment?
likely reason that small countries worry A. geographic
about overdependence caused by global-
ization? B. economic
A. A large country on which they depend C. political and legal
may pressure them on political matters. D. cultural and social
B. A large international firm may dictate
its terms of operations in a small country. 1011. What is the BEST definition for money?
C. A large company may exploit legal A. anything that can be exchanged for
loopholes to avoid tax payments. good and services
D. A large country may substantially in- B. coins
crease its demand for the small country’s C. paper currency
production.
D. a standard of measurement for ex-
1007. What is a reason why firms internation- change
alize?
1012. A war or political unrest are the signs
A. To access resources
of
B. To increase cultural risks
C. To limit market expansion
D. To reduce costs
1008. Which of the following is a disadvan-

tage of being an entrepreneur?
A. Ability to pursue an interest
B. Flexible working hours A. Political stability which is positive for
C. Possible financial loss international trade
D. Being your own boss B. Political instability which has negative
influence on international trade
1009. Global production decisions and supply
C. Economic challenges
chain management help global companies
in which of the following ways? D. none of above

1013. What is it called when business trans- 1018. Which factor does NOT influence Cur-
actions take place between two or more rency’s Supply and Demand
countries outside their political bound- A. Economic Growth
aries?
B. Inflation
A. Local Business
C. Market Psychology
B. International Dominance
D. Overseas political Economy
C. International Corruption
NARAYAN CHANGDER
D. International Business 1019. The following are the characteristics of
the MoU except,
1014. What occurs when items that consumers
A. The content is concise and contains
want and need are created in other coun-
only the main things
tries?
A. competitive advantage B. regulates detailed matters and binds
the parties
B. absolute advantage
C. has no time frame
C. trade barrier
D. usually made in a contract under hand
D. global dependency
1020. Responding to requires that a firm
1015. What is the one positive direct impact differentiate its product offering and mar-
for business from enhancing their ethical keting strategy from country to country in
behavior an effort to respond to differences in con-
A. Accruing more market shares sumers tastes and preferences, business
B. Building consumer based operation practices, distribution channels, competi-
tive conditions, and government policies.
C. Enhancing foreign investment
D. Enhancing corporate image
1016. What are the main obstacles to regional

economic integration?
A. Religious differences
B. Language differences
A. pressure for cost reductions
C. Cultural differences
B. pressure for experience effects
D. Differences in economic policies
C. pressure for location economies
E. All answers are correct
D. pressure to be locally responsive
1017. Buying and selling of goods & services
across the borders of your national is 1021. what is operations management?
called: A. the process of designing and manag-
A. Internal Trade ing a production system
B. External Trade B. the process of designing a product
C. Retail Trade C. the process of managing a product
D. Wholesale Trade D. the process of managing a project line

1022. A company is worried that about the 1027. What do you mean by the term of man-
norms and customs of a country would agement franchises?
need to consider which component of the

A. That it is managed from the regional
international business environment? central offices and will involve the devel-
A. Geography opment, management of the network and
the coordination of a group of operations
B. Culture
for the service or product.
C. Economy B. It is the practice of using the success-
D. Infrastructure ful business model of another company.
1023. A command economy operates on the 1028. A particular number that an export firm
forces of supply and demand. needs to have is known as-
A. True A. IEC Number
B. False B. IFC Number

C. IIC Number
1024. It is acceptable to ridicule the religion,
D. IFC Code
customs and beliefs of other cultures.
A. True 1029. They are carried out by companies for
profit, or by governments, for political rea-
B. false sons.
1025. What is one advantage of Regional A. Global strategies
Trade Agreements (RTAS) listed in the pro- B. Scale economics
vided information?
C. International Business
A. Increased administrative burden for D. None of the above
member countries
B. Trade diversion leading to overall eco- 1030. The followings are true about Mercantil-
nomic inefficiencies ism EXCEPT:
A. It believes that national prosperity is
C. Boosting economic growth and creat-
the result of a positive balance of trade.
ing jobs through increased trade
B. It lead to a situation of zero sum game
D. Dependency on multiple regional mar-
for some nations.
kets
C. The mercantilist government see im-
1026. What is Import Trade? port as good and export as bad.
A. The purchase or buying of goods or D. Mercantilist countries colonized other
services from a foreign country for con- countries to gain resources and market
sumption in the importing country. finished goods.
B. The sale of goods to a foreign country. 1031. Gaining public attention for the purpose
C. The export of goods from one country of selling products or services through var-
to another. ious forms of media is known as
D. The re-export of goods from a third A. Advertising

country. B. Advertising Agency

C. Publicity 1035. The exchange of capital, goods, and ser-

D. Rebate vices across international borders or terri-
tories.
1032. Choose the correct option A. Consumer
C. Domestic trade
D. Subsidy
NARAYAN CHANGDER
1036. Which of the following is a major flaw
associated with mercantilism?
A. Mercantilists do not support govern-
ment intervention in trade.
B. Mercantilists view trade as a zero-sum
game.
C. Mercantilists recommend policies to
maximize imports.
A. Transnational strategy D. Mercantilists recommend countries to

maintain a negative trade balance.
B. Multidomestic strategy
C. International strategy 1037. A product you buy from another country
is considered
D. global strategy
A. export
1033. How is the unit model of an interna- B. import
tional franchise?
C. trade barrier
A. It is the best-known franchise model
D. none of these
and percentage of return of its franchises
and maintains control over product devel- 1038. Taiwan has lowered a raft of excise
opment and custom taxes on staple commodities
B. Group of franchises in a country, state to counter
or region designated to establish market A. deflation
potential
B. inflation
1034. What is one disadvantage of Regional C. slowdown
Trade Agreements (RTAS) mentioned in the
D. none of above
provided information?
A. Increased trade and economic cooper- 1039. is the use of power machines in
ation among member states factories which substituted for the use of
hands and simple tools to increase output
B. Fostering closer political and diplo- production
matic ties among member states
A. Commercial Documents
C. Complexity and potential compliance
costs for businesses B. Industrial Revolution
D. Economies of scale and lower produc- C. Let it happen
tion costs D. Commercial Law

1040. In 2014, Australia exported this item 1045. Define infrastructure.

the most to Singapore.
A. The process of building roads and

A. Milk bridges.
B. Beef B. The study of ancient civilizations.
C. Aircraft parts C. The development of software applica-
D. Petroleum tions.
1041. Domestic business is defined as the mak- D. Basic physical and organizational
ing, buying, and selling of goods and ser- structures and facilities needed for the
vices a country. operation of a society or enterprise.
A. within
1046. Of the following, which is NOT a cultural
B. outside aspect of doing business in Japan?
1042. 20) Which of the following is most likely A. Business card etiquette
a true statement about companies’ acqui- B. It is not appropriate to look directly
sition of resources/assets abroad? into the eyes of your Japanese hosts.
A. regardless of industry, cheap labor is
C. Children are not supposed to say their
the most sought after resource.
parents’ names, even when used with a
B. resource availability limits affirms pro- title.
duction location choices.
D. New potential business partners must
C. Developing countries are losing grow- have been referred to Japanese business
ing shares of their foreign-exchange re- representatives through a third party.
serves.
E. Upon meeting a Japanese executive, a
D. Emerging economies are adopting the
slight bow and handshake are appropri-
principles and practices of free markets.
ate.
1043. Why are so many auto factories moving
back to Mexico after NAFTA? 1047. Which one of the following is not
amongst India’s major trading partners?
A. The natural conditions in Mexico are
suitable for building factories A. USA
B. Low production and labor cost B. UK
C. The demand for cars in Mexico in- C. Germany
creases sharply
D. New Zealand
D. All of the above
1048. Which of the following is not a dimen-
1044. Only country to voluntarily abandon it’s
sion of the globalization of markets?
nuclear weapons program and has the only
street in the world to house two Nobel A. *Rise of regional economic integration
Peace prize winners. blocs
A. Brazil B. *Growth of global investment and fi-
B. Sweden nancial flows
C. South Africa C. *Globalization of production
D. none of above D. All of the above are dimensions

1049. Why does local product quality play an 1054. What does SWOT stand for?
important role in a company’s decision to
choose a source of supply?
A. The high quality of local products en-
courages companies to choose in-house
supplies
B. The low quality of local products en-
courages companies to look for foreign
NARAYAN CHANGDER
suppliers
A. Strengths, Work, Overtime, Try
C. The quality of local products does not
B. Strengths, Weaknesses, Opportuni-
influence the company’s decision in choos-
ties, and Threats
ing a supply source
C. Strategy, Weaknesses, Organization,
Time
1050. International Business is important for D. Situation, Wages, Opportunities, Trust
it provides a source of raw materials and
parts and demand for foreign products. 1055. What is the key competency of a prod-
A. TRUE uct in the context of international business
strategy?
B. FALSE
A. The brand recognition of the product
C. NONE OF THE TWO CHOICES
B. The market share of the product
D. none of above
C. The cost efficiency of the product
1051. High Uncertainty avoidance means
D. The unique selling proposition of the
A. Different cultures don’t socialize their product
members into accepting ambiguous situa-
tions 1056. What is one disadvantage of interna-
B. Lower organizational performance tional business?
C. Different cultures socialize their mem- A. Diversification of revenue
bers into accepting ambiguous situations B. Access to new customers
D. None C. Currency exchange risks
1052. English is widely considered to be the D. Increased market potential
language of international business.
1057. NAFTA has its own certificate or origin
A. True
A. yes
B. False
B. no
1053. According to the absolute advantage
theory, a country should specialize in pro- 1058. 4) Devon, an accounts manager at a
ducing goods that it can produce with large electronics firm, does not have any
direct international responsibilities; how-
A. equal resources or at an equal cost
ever, Devon would most likely benefit
B. more resources or at a higher cost from studying international business is-
C. less resources or at a lower cost sues so that he can
D. no resources or at no cost A. conduct better job interviews

B. better understand how foreign opera- 1063. It is a process of enlarging people’s

tions affect the company’s competitive po- choices.
sition

A. HDI
C. supervise and evaluate subordinates
B. SING
who have global assignments
C. GDP
D. understand the legalities of importing
and exporting products overseas D. GNI
1059. Define Trademark 1064. Which of the following is an example

of localization strategy given by the re-
A. The exclusive right of an inventor to
porter?
make, sell, and use a product or process
A. Intel company
B. Those laws that have been enacted by
a body of lawmakers. B. Caterpillar Inc.
C. A distinctive name, symbol, word, pic- C. Nestle
ture, or combination of these used by busi-
D. Pfizer Company
ness to identify its services or products.
E. Procter & Gamble
D. Everything that can be owned.
1065. Second step in International Market se-
1060. a risk which results in the decline of a
lection
company’s economic value from currency
movements, which causes a loss in com- A. Preliminary screening
petitive strength B. Final selection
A. Risk C. Direct experience
B. Economic Risk
D. In-depth screening
C. Exchange Rate Risk
1066. Global expansion allows firms to
D. Cred/Sale Risk
achieve all of the following except
1061. They developed the Factor proportions
Theory.
A. Heckscher and Ohlin
B. Heckscher and Ohlin
C. Heckscher and Ohlin
D. Heckscher and Ohlin
1062. Which factor of production can be re-

newable or non-renewable?
A. Capital A. minimize returns by failing to capture
skills developed in foreign countries
B. Enterprise
B. realize location economies by dispers-
C. Labour ing value creation activities on the optimal
D. Land location

C. realize cost economies from experi- C. individualism; socialism

ence effects generated by serving a larger D. theocracy; capitalism
market from a central location
D. expand the market for their domestic 1072. The United States follows a law le-
product offerings by selling those prod- gal system.
ucts in international markets A. civil
1067. What is NOT one of the key risk factors B. family
NARAYAN CHANGDER
in International Business? C. theocratic
A. Financial risk D. representative
B. Cybersecurity risk E. common
C. Political risk
1073. Select example of Indian Multinational
D. Technology risk Company.
1068. Currently how many members are in the A. Hindusthan Unilever
SAARC organisation? B. Cargill
A. 6 C. Videocon
B. 7 D. Tesco
C. 8
1074. Free trade is
D. 10
A. The ability for countries to trade with
1069. Which of the following statements best one another without restrictions.
describes the term, added value? B. The ability for countries to trade with
A. When a product stands out from those one another with restrictions.
of its competitors C. The ability for countries to trade with
B. Making a product widely recognisable one another with MANY restrictions.
C. The difference between the cost of a D. Countries can’t trade with each other.
product and its selling price
1075. An agent has to go to the before re-
D. Making a product convenient to use ceiving goods from the ship.
1070. 34) Many companies merge with or ac- A. Customs Office
quire other companies to gain operating ef- B. Import-export Controller
ficiencies that help them compete with or
become global leaders. C. The Reserve Bank of India
A. True D. Insurance Office
B. False 1076. Socialism is affiliated with which eco-

nomic system?
1071. Political systems that emphasize
tend towards totalitarianism, while A. Mixed
tend to be democratic. B. Market
A. individualism; collectivism C. Command
B. collectivism; individualism D. none of above

1077. Which of these is an international trade 1082. The value of one currency for the pur-
agreement/organization? pose of conversion to another.

A. United Nations Educational, Scientific A. Exemption Tax
and Cultural Organization (UNESCO) B. Exchange Rate
B. United Nations (UN) C. Excommunicate
C. World Trade Organization (WTO) D. Money Market
D. Student Nonviolent Coordinating Com- 1083. means the reduction of official rate
mittee (SNCC) at which the currency is exchanged for an-
other currency.
1078. Which method of financing carries the
A. Inflation
lowest risk for the exporter?
B. Deflation
A. Letter of Credit
C. Devaluation
B. Export Credit
D. Exchanged control
C. Importer Pre Payment
1084. The document containing detailed in-
D. Bank Loans formation regarding price, quality, size,
weight, shape, etc. of products which the
1079. The value of money measured by the exporter can supply, is called:
quality and quantity of products and ser-
vices the money can buy is known as A. (a) Performa Invoice
B. (b) Commercial Invoice
A. Credit/Sale Risk
C. (c) Both (a) & (b)
B. Venture
D. None of these
C. Credit
1085. A set of principles that establishes ethi-
D. Purchasing Power cal standards for employees and business.
1080. Globalization refers to: A. Global code of conduct
A. Less investment but more trade B. ethics in international business

C. Professional code
B. A more integrated and interdependent
world D. Ethics
C. More Foreign Direct Investments 1086. In which scenario does it make sense to
have a decentralized structure for interna-
D. All of the above
tional business?
1081. A non-trade barrier is A. When there is low cost pressure and
high local responsiveness
A. An import tax
B. When there is high cost pressure and
B. A law or regulation that makes trade low local responsiveness
more difficult
C. When there is high cost pressure and
C. A restriction on the number of imports high local responsiveness
D. A ban on imports from a certain coun- D. When there is low cost pressure and
try low local responsiveness

1087. Capital resources include B. Coca Cola

A. gold, silver, and other minerals C. McDonalds
B. buildings, money, and equipment D. Both a and b
C. factories, mines, and talented employ- 1092. What does the World Trade Organiza-
ees tion (WTO) enforce and regulate among its
D. water, land, and forestry member countries?
A. Global trade rules
NARAYAN CHANGDER
1088. In a culture with strong business and
family ties B. Environmental regulations
A. Protecting a family member is some- C. Domestic economic policies
times more important than a good busi- D. Immigration and citizenship
ness decision
B. Family members are usually promoted 1093. Choose the correct option
first in family owned business
C. Several members of a family may work
in the same business
D. All of the above
1089. Which of the following is NOT TRUE? A. Transnational strategy

A. international business has raised the B. International strategy
standard of living for some people in other
C. Multidomestic strategy
countries
D. Global strategy
B. trading relations are influenced by cul-
tural & social factors 1094. Reverse culture shock is
C. trading relations are influenced by po-
litical & legal factors
D. International Business is exactly the
same thing as globalization
1090. Which of the following is not a pressure

for local responsiveness? A. a reaction to becoming reacquainted
A. Host government demands with your own culture after having ac-
B. Differences in consumer tastes and cepted another culture
preferences B. frustration in adapting to a culture
C. Differences in distribution channel ohter than your own.
D. Excess capacity C. highly unusual when returning to your
own culture
1091. Which of the following is an example D. none of these
of business organisation that has entered
into international business through Licenc- 1095. A good is a product that you can see
ing system? and touch.
A. Pepsi A. spiritual

B. imitation 1099. One possible opportunity for a business

as a consequence of globalisation is:
C. physical

A. able to sell products successfully in
D. imaginary
all foreign markets without changing the
1096. Floating exchange rate system of products
regime is? B. able to increase prices as there will be
less competition
A. Exchange rate regime that allows the
supply and demand forces of the market C. more likely to be able to create a
to combine with each other to determine monopoly
the exchange rate between currencies D. able to buy a wider range of imported
B. Exchange rate regime that allows the materials and products
supply and demand forces of the market
1100. What is meant by “indirect eye con-
to interact with each other to determine
tact”?
the exchange rate between currencies
A. Looking downward at the ground
C. A method of adjusting the exchange
rate between currencies. B. Looking into someone’s eyes
D. A method of exchance the exchange C. Looking upward at the sky
rate between currencies. D. Looking at someone’s forehead or
shoulders
1097. The democratic socialists wants to get
in power through means 1101. Under which of the following is the
tasks relating to export/import of goods
are carried out by middlemen?
A. Direct export/import
B. Indirect export/import
1102. In this country people take great of-

fense to visitors putting salt on their food
particularly if you are a visitor at their
A. violent home. This country is also home to the
B. democratic longest river in the world.
A. South Africa
C. revolution
B. Egypt
D. military
C. Singapore
1098. Procurement of products or services D. none of above
fromsuppliers located abroad for consump-
tion inthe home country or a third country. 1103. NAFTA is an example of a(n)
A. Exporting
B. Trading
C. Importing
D. Value-adding

A. FTA 1109. A license to operate an individually

B. Common market owned business as though it were part of
a chain of outlets or stores ex. McDon-
C. Customs union ald’s, Burger King, KFC and Pizza Hut * *
D. Economic union A. Licensing
1104. NAFTA stands for B. Joint venture
A. North African trade association C. Franchising
NARAYAN CHANGDER
B. North American free trade agreement D. Infrastructure
C. Northern Atlantic trade agreement 1110. If a technological change makes a prod-

D. Northern association for trade uct obsolete, usually
A. demand will increase
1105. What is one advantage of going global
B. demand will decrease
in terms of access to customers?
C. supply will increase
A. Limited access to customers due to
economic pressures D. supply and demand will stay the same
B. Immediate access to a wide range of 1111. In Hofstede’s theory, when individual-
customers in areas with more available istic countries tend to take care of them-
spending selves & their immediate family first:
C. Reduced product range due to cultural A. individualism vs collectivism
differences
B. long vs short-term orientation
D. Dependence on the local market for
C. masculinity v femininity
sales
D. none of these are correct!
1106. A good is a product that you can see
and touch. 1112. A firm providing special expertise in
legal advice, banking, customs clearance,
A. imitation market research, and similar areas
B. physical A. focal firm
C. imaginary B. distribution channel intermediary
D. spiritual C. facilitator
1107. IBRD head office is at D. none of above
A. Washington 1113. The meanings of body language are uni-
B. Paris versal.
C. Newyork
D. India
1108. Buying goods and services from another

country is considered?
A. Exporting
B. Importing

A. True B. the advent of information technology

B. False and seamless communications
C. harnessing the power of globalisation

1114. Which of the following is NOT an argu-
D. to live a decent life
ment in favor of protectionism?
A. Protectionism shields infant industries 1119. Ultimate policy making body of the
from foreign competition World Bank is
A. Board of Governors
B. Protectionism safeguards workers’
jobs B. General Council
C. Protectionism promotes industries C. Ministerial Conference
that are essential to national security D. None of these
D. Protectionism makes domestic firms 1120. EFTA, NAFTA, AFTA is the example of
more competitive in the long run
1115. Which of the following is NOT a factor A. political union

affecting exchange rates? B. economic union
A. The color of the sky C. common market
B. Political stability D. free trade
C. Inflation 1121. A restaurant chain (McDonalds) modify-
D. Interest rates ing its menu to local tastes in a different
country would be an example of:
1116. How does international trade lead to A. global strategy
specialization?
B. multinational strategy
A. By discouraging the production of dif-
ferent goods in different countries. 1122. Sony partnering up with The Shanghai
Oriental Pearl Group to help increase sales
B. By promoting the production of goods of Playstation consoles is an example of a
with the highest production costs.
C. By restricting the production of goods
to a few select industries.
D. By encouraging the division of labor
and production of different goods in differ- A. Franchise
ent countries. B. Joint Venture
1117. POS STANDS FOR: C. Multinational Company
D. License
A. POINT ON SALE
B. POINT OF SALE 1123. Which of the following is NOT a top
trading partner with the UAE?
C. PRODUCT ON SALE
A. China
D. POINT OF SELL
B. India
1118. The world is flat means C. France
A. flattening of the world D. Saudi Arabia

1124. 67) In a democracy, D. all of these are true

A. citizens have the right to participate in 1128. Which of the following statements best
the decision-making process describes the term, entrepreneur?
B. the opportunity to truly participate in A. Someone who buys a product from a
the political process is restricted to a se- business
lect few
B. Someone who uses goods and ser-
C. the court system is directly supervised vices produced by a business
NARAYAN CHANGDER
by the political system
C. Someone who works for a business
D. the rights of the individual are merged
D. Someone who is willing to take the risk
with the state
involved in starting a business
1125. Is international logistics a branch of in-
1129. refers to a world economy with
movement of products and labor across in-
A. True ternational borders.
B. False A. International business
1126. Which of the following is TRUE state- B. Global economy
ment to define international operation? C. Domestic business
A. The set of processes and steps used D. none of above
by an organization in acquiring the various
resources and materials 1130. The following political factors can signif-
icantly restrict international business
B. Involves the creation of goods by
transforming raw materials and compo-
nents parts in combination with capital, la-
bor and technology
C. The extent to which organization pro-
vides its own resources pr obtains its re-
sources from other resources
D. The set of activities used by an inter-
A. Type, stability and business policies of
national business to transform different
government
kinds of resource inputs ( material, labor
and so forth) B. Government interventions
C. Government stability
1127. In countries where class system differ-
ences are strong: D. Taxation policies and trade regulations
A. people in the upper class have better 1131. What are the key strategies for manag-
access to education, work opportunities, ing international business operations?
and the legal system A. hiring only local employees, ignoring
B. A person might become part of the up- cultural differences, disregarding local
per class by inheriting a family name or laws and regulations
family wealth B. not conducting market research, rely-
C. It is difficult for people in lower social ing solely on intuition, not building rela-
classes to move to a higher social status tionships with local partners

C. not managing currency exchange and E. Large machinery

financial risks, having a narrow mindset,
not adapting to local cultures and customs 1135. The United Kingdom adds a tax on all

fabric imported from Italy.
D. conducting market research, adapting
to local cultures and customs, building A. tariff
strong relationships with local partners, B. quota
understanding and complying with local C. embargo
laws and regulations, managing currency
exchange and financial risks, and having a D. none of above
global mindset 1136. Finish the sentence:I am an engineer. I
1132. The “Hamburg Rules” came into force in am in the engineering
the year A. department
A. 1978 B. apartment
B. 1990 C. deployment
C. 1991 D. deposition
D. 1992 1137. services are
E. 1993 A. physical products
1133. Country A can produce product X, but it B. provided by people; cannot be touched
can also buy it at a cheap rate from Coun- C. something needed to survive
try B. Which of the following courses of ac-
D. a product or item you want
tion is suitable in this situation according
to Adam Smith’s theory of absolute advan- 1138. Which of the following is NOT a sug-
tage? gested way to measure economic success?
A. Country A should import product X A. Rate of inflation
from country B and it should not attempt
B. Immigration rate
to produce it at home.
C. Gross domestic product
B. Country A should partly import the
product and produce it domestically. D. Unemployment rate
C. Country A should produce more of 1139. International investing can be con-
product X and should attempt to obtain an trasted with investing
absolute advantage for the product.
A. Global
D. Country A should subsidize the produc- B. Domestic
tion of product X to obtain an absolute ad-
vantage over country B. C. Both a & b
D. None of them
1134. Select all of the following that are vari-
able costs. 1140. is one of the element of culture?
A. Wages for labour A. Reading
B. Raw materials B. Writing
C. A building C. Technology
D. Land D. Food

1141. If your main method of transportation

is by boat and air travel for your busi-
ness, which of the following should you
consider?
A. home country
B. host country
NARAYAN CHANGDER
C. the ethics of other companies in the
host country
D. United Nations
1145. Value of one nation’s currency to an-

other
A. Geography of the country
A. Importing
B. Culture Customs of the people
B. Exporting
C. Economic Development
C. Foreign Exchange Market
D. Political/Legal Concerns
D. Exchange Rate
1142. What are some assumptions that need 1146. The collection of financial institutions
to be questioned when doing business in- that facilitate and regulate the flows of in-
ternationally? vestment and capital funds worldwide
A. Assuming the U.S. dollar will hold its A. Global Financial System
value
B. International Monetary System
B. Assuming you can pay employees any C. single-currency systems
amount
D. None of them
C. Assuming the government will not
mind opening another business 1147. Absolute advantage offered by Smith
D. Assuming the local tastes and prefer- A. supports free trade
ences are the same B. supports specialization
1143. What is the purpose of the General C. offers England produce only grapes
Agreement on Tariffs and Trade (GATT)? and Portugal produce wool
D. reflects main ideas of WTO
A. To promote environmental regulations
B. To regulate global shipping 1148. Which is NOT the true meaning of The
Nature of The Foreign Exchange Market?
C. To reduce international trade barriers
and tariffs A. Located in big city London, New York
B. The foreign exchange market has been
D. To provide humanitarian aid
growing at rapid pace reflecting a gen-
1144. Righteous Moralist approach is that eral growth in the volume of cross-border
ethics are appropriate for companies to fol- trade and investment
low in foreign countries C. The market never sleeps

D. The most important vehicle currencies 1154. According to the video, what is the new
is Dollar vehicle called to make package deliveries?

1149. Represents the total exports and im- A. Badger
ports of goods of and services going in and B. DB Schenker
out of a country.
C. Fraunhofer
A. Balance of Trade
B. Comparative Advantage D. Hermes
1150. It is important to know French in which 1155. Globalisation was adopted by India dur-
African country? ing
A. Chad A. 1991
B. Egypt
B. 1992
C. Madagascar
C. 1993
D. Nigeria
D. 1994
1151. Ethnocentricity can be defined as the
1156. What does clean technology refer to?
A. scientific description of individual hu-
A. Maximizing pollutant creation
man societies
B. systematic study of an ethnic group’s B. Avoiding environmental damage
religious core through technology
C. merging of all ethnic practices into one C. Increasing waste management costs
homogeneous culture D. Promoting creation of pollutants
D. belief that one’s own ethnic group or
culture is superior to that of others 1157. When people in these countries commu-
nicate indirectly and place little value to
1152. Refers to the systematic reductions in
literal words, they are said to to be
production costs that have been observed
to occur over the life of a product A. Language differentiators
A. Learning effects B. Face saving
B. Experience curve C. High-context cultures
C. Core competencies
D. Low-context cultures
D. Global web
E. Value creation activities 1158. Select the answer which is a reason
AGAINST businesses importing?
1153. IBRD (International Bank for Recon-
struction and Development) also known as A. Wages are expensive for businesses in
the UK
A. Exim Bank
B. World Bank B. A lack of resources in the UK
C. International Monetary fund C. Encourages trade between nations

D. International Bank D. Increasing UK borrowing

1159. Which of the following is considered 1164. A is a political system in which all
rude in some countries in Europe? citizens take part in making the rules that
govern them.
A. Washing hands before a meal
A. democracy
B. Waiting for the host to sit down to the
meal B. totalitarian system
C. Having hands under the table while 1165. Selling goods and services from your
eating country to another country is considered?
NARAYAN CHANGDER
D. Eating with the right hand A. Exporting
B. Importing
1160. Inexpensive items that require little
shopping effort and offered in many loca- 1166. Which is the right sequence of a stage
tions. of internationalisation?
A. Shopping Goods A. Domestic, Transnational, Global, Inter-
B. Convenience Goods national, Multinational
B. Domestic, International, Multinational,
C. Specialty Goods
Global, Transnational
D. All of them
C. Domestic, Multinational, International,
1161. Which of the following documents is Transnational, Global
not required in connection with an import D. Domestic, International, Transna-
transaction? tional, Multinational, Global
A. Bill of lading. 1167. A tariff and import quota will both
B. Shipping bill. A. Increase the quantity of imports and
C. Certificate of origin. raise domestic price.
D. Shipment advice. B. Increase the quantity of imports and

lower the domestic price.
1162. Which of the following is not an exam- C. Reduce the quantity of imports and
ple of straw mans approaches. raise the domestic price.
A. Righteous moralist D. Reduce the quantity of imports and
B. Naive immoralist lower the domestic price.
C. Cultural relativism 1168. A cheap and easy way for businesses to

get involved in International Trade is to:
D. Utilitarian Approach
A. opening their own plant in the country
1163. The simultaneous sale of spot currency B. a joint venture
for the forward purchase of the same cur-
rency is called as C. licensing
D. none of above
A. Arbitrage
B. Forward 1169. The knowledge of both strategic man-
agement and entrepreneurship enhances
C. Swap
one’s understanding of international busi-
D. Option ness.

A. TRUE 1175. What does export credit mean for the

B. FALSE British company exporting overseas?

A. This means that they will receive only
1170. Who is the founder of IPMI Interna-
part of the payment up front
tional Business School?
A. Ridwan Kamil B. This means that the business will have
to fund the export itself
B. BJ Habibie
C. Bustanil Arifin C. This means that they will have to wait
for the bank’s approval
D. SBY
Explanation:He is dreaming of a school D. This means that there is little trust be-
that would train Indonesianmanagers tween the two companies
who can perform effectively in the face
of rigorous competition, familiar with In- 1176. is a tax that a government places
ternational Business Practices and yet re- on certain imported products
main solidly grounded in Indonesia, their
A. Tariff
home country.
B. Embargo
1171. Euro was introduced under which
treaty? C. Quota
A. Treaty of Rome D. Deal
B. Treaty of Lisbon
1177. Why are global production decisions and
C. Treaty of Maastricht
supply chain management so important for
D. None of the above many global companies?
1172. The difference between the value of the A. Allows companies to reduce produc-
goods a country exports and the value of tion costs
the goods it imports.
B. Expand potential markets and growth
A. Foreign Exchange opportunities
B. Exchange Rate
C. Increase operational efficiency and re-
C. Balance of Trade sponsiveness to customer requests
D. Trade Difference D. Limiting access to the latest technol-
1173. n some countries, it is illegal to publicly ogy and innovation
practice any religion other than one that is
nationally recognized. 1178. Which stage of going global includes
companies moving their production of a
A. TRUE
specific product to an inexpensive loca-
B. false tion?
1174. Globalization can be defined only in A. Value chain re-engineering
terms of markets but not in terms of pro-
B. Creation of new markets
duction.
A. TRUE C. Value chain disaggregation
B. FALSE D. Product specialization

1179. When a country has more than it needs B. Tariff and global barriers
of something, that’s called a C. Barriers affecting quotas and imports
A. Shortage D. Barriers affecting currency parity and
B. Surplus tariffs
C. False, it isn’t called anything. 1184. What is a characteristic of emerging
D. Specialization economies?
1180. Unique products that consumer make a
NARAYAN CHANGDER
special effort to obtain, usually high brand
recognition.
A. Shopping Goods
B. Convenience Goods
C. Specialty Goods
D. None of them A. Insufficient health care
1181. How does cultural diversity impact in- B. Poor public health services
ternational business? C. Rising income and prosperity
A. Cultural diversity only impacts interna- D. Incipient industrialization
tional business in terms of food and cui-
sine preferences. 1185. Communication problems
B. Cultural diversity only impacts interna- A. benefits
tional business in terms of language bar- B. limitations
riers.
1186. A negative balance of trade or pay-
C. Cultural diversity has no impact on in-
ments
ternational business.
D. Cultural diversity impacts interna-
tional business by influencing communi-
cation styles, negotiation tactics, and con-
sumer preferences.
1182. Riskiest way of entering a new market,

A. deficit
because it involves buying an existing busi-
ness or setting a new one B. dumping
A. Foreign Direct Investment C. protectionism
B. Joint Venture D. barter or counter-trade
C. Licensing 1187. What is one of the key risk factors in
D. Export international business?
E. Internet A. Economic risk
1183. There are two types of trade controls: B. Legal risk
A. Barriers that affect price and those C. Technological risk

that affect quantity D. Social risk

1188. Coca-Cola selling a very similar product 1193. Which of the following countries was
throughout the world would be an exam- listed as the world’s most dangerous in
ple of: 2013?

A. global strategy A. Pakistan
B. multinational strategy B. Somalia
C. Zimbabwe
1189. is the first step in the international-
ization process. D. Haiti
E. Sudan
A. License
B. Foreign Investment 1194. Continued:Why might English be consid-
ered a universal language
C. Sales
A. English contains many words from
D. Export other languages
1190. 21) The ability to compare production B. English is the easiest language to
costs among countries in an effort to de- learn
termine where to locate production is sig-
1195. is any activities needed to create,
nificantly hampered by all of the following
ship, and sell products across national bor-
EXCEPT
ders
A. A) the number of ways the same prod- A. Global economy
uct can be made
B. International business
B. B) restrictions on the international
flow of data C. Domestic business
D. none of above
C. C the ways that laws may be enforced
D. D) future costs from exchange rate 1196. Diminishing returns to specialization oc-
changes curs when
A. each additional unit is produced with
1191. Firms competing in the global market lesser number of laborers
face two pressures. What are they?
B. a nation’s gross domestic product de-
A. fixed and variable cost reduction clines for a few years
B. localization and distribution C. production possibility frontier appears
C. cost reduction and localization as a rectangle
D. more units of resources are required
D. cost increase and price increase
to produce each additional unit
1192. Which is one of the ways of doing busi- 1197. Looking at someone’s forehead or shoul-
ness overseas? ders rather than at the eyes
A. Internet A. Emirate
B. Anti-dumping B. Nonverbal Signal
C. Countervailing Duties C. Indirect Eye Contact
D. Buy America D. Shura

1198. A protective tariff is intended to “pro- B. Interest rates rise and more saving
tect” the takes place
A. Domestic consumer from higher prices C. Rising incomes means higher con-
on foreign goods. sumer spending
B. Domestic consumer from higher D. Higher levels of tax will be paid
priced goods produced within the coun-
try. 1203. A strategy that focuses on increasing
the attractiveness of a product is referred
NARAYAN CHANGDER
C. Domestic manufacturer from higher to as a(n):
priced foreign goods
A. differentiation strategy.
D. Domestic manufacturer or farmer
from lower priced goods imported into B. low cost strategy.
the country. C. effectiveness strategy.
1199. A summary of an economy’s transaction D. efficiency strategy

with the rest of the world for a specified
1204. Why might a successful watchmaker
period of time.
want to expand into interplanetary mar-
A. Summary kets?
B. Balance of Trade A. To decrease the overall cost of produc-
C. Statement ing watches
D. Balance of Payments B. To acquire resources and knowledge

from the foreign planet
1200. Pressures for cost reductions are great- C. To reduce risks by expanding beyond
est when Earth
A. major competitors are based in low- D. To compete against Rolex at an inter-
cost locations galactic level
B. differences in consumer tastes and
preferences 1205. Why can foreign subsidiaries be a valu-
able source of knowledge and expertise
C. differences in traditional practices and for the parent company?
infrastructure
A. Foreign subsidiaries can provide ac-
D. differences in distribution channels cess to international markets
1201. Trade between two or more than two B. Foreign subsidiaries can improve rela-
countries is known as tionships with local suppliers
A. Internal Business C. Foreign subsidiaries can develop new
technologies
B. External trade
D. Foreign subsidiaries can understand
C. International Trade
local market dynamics
D. Unilateral Trade
1206. Religion and language are two exam-
1202. Economic growth is good for most busi- ples of conditions that influence inter-
nesses because national business.
A. Inflation raises the cost of production A. political and legal

B. cultural and social B. The nation’s textile firms will have

C. economic a competitive advantage in international
trade.

D. geographic
C. The domestic customers of the textile
1207. 69) When a U.S. citizen flies Japan Air- firms will be less demanding.
lines, the airline acts as a service exporter D. The nation’s textile industry will lack
for Japan. the advanced factors that are necessary
A. True to be internationally competent.
B. False 1212. Committing resources to one coun-

try usually means forgoing or delaying
1208. Foreign Exchange Market projects in others.
A. Banks that buy and sell currency A. True
B. Value of currency in one country com- B. False
pared with the value in another.
1213. Open-ended interview questions that al-
C. The cost of using someone else’s low researchers to obtain comments from
money consumers about their attitudes and be-
D. none of above haviors is called
A. Quantitative Research
1209. The main promoter of trade liberaliza-
tion was B. Qualitative Research
A. NAFTA 1214. The Yen is the official currency of which
B. CISA country listed below?
C. GATT
D. CEPTA
1210. What is a benefit of joint venture?

A. Access to new markets and distribu-
tion networks
B. Increased capacity A. China
C. Sharing of risks and costs with a part- B. Japan
ner C. South Korea
D. Access to greater resources D. Vietnam
1211. Textile industry in a nation is character- 1215. A restricts the number of a certain
ized by vigorous domestic rivalry. Which type of product that can be imported into
of the following observations of this na- a country.
tion’s international competency is most A. tariff
likely to be true?
B. local government
A. The nation will have access to such ba-
sic factors of textile industry as natural re- C. local content law
sources. D. quota

1216. TRUE or FALSE. TRADE is the pathway 1221. A negotiation where I do not mind los-
to modern civilization! ing as long as the other party loses too, is
called negotiation
A. TRUE
B. FALSE
1217. A term describing a decision made by

the group in order to form the best deci-
sion
NARAYAN CHANGDER
A. Hug A. destructive
B. Emirate B. scorched earth
C. Shura C. lose-lose
D. Neatness D. all the above
1222. European Union (EU)
1218. In the United States, brides traditionally
dress in white for a wedding, but in China A. An alliance that promotes open trade
they dress in this color because it’s lucky. and economic and technical cooperation
among member nations throughout asia
A. blue
B. strongly held concepts that are
B. yellow present in a culture. Values are connected
C. black to powerful emotions
D. red C. a free trade zone encompassing 27 Eu-
ropean countries
1219. What is a type of risk in international D. none of above
business?
1223. Porter’s five forces model focuses on
A. Technological Risks the bargaining power
B. Economic Risks A. Buyer
C. Operational risks B. Industry
D. Supply Chain Risks C. Suppliers
D. none of above
1220. They are called
1224. Small businesses are usually not in-
volved in international business given the
cost restrictions.
A. True
B. False
1225. Who sets the foreign exchange rate?
A. truck A. State Bank
B. container B. Government Bank
C. vehicle C. Private Bank
D. freight transport D. Central Bank

1226. Amazon.com has spent enormous sums D. Sports

developing and maintaining its Web site
and building its customer base. Because 1230. A culture which stresses interdepen-

many of these costs are fixed, the com- dence and gives priority to GROUP wel-
pany expands its sales. Moreover, the fare
marginal cost of adding an additional prod- A. Individualist Culture
uct line to its Web site is relatively small.
B. Collectivist Culture
Accordingly, the company has expanded
from books to compact disc to videos to C. Shura
auctions. From the explanation above, D. Nonverbal Signal
Amazon.com competing in the global mar-
ketplace has numerous ways of obtain- 1231. the belief that one culture is better than
ing a sustainable competitive advantage others
through A. Supremes
A. Owning Intellectual Property Rights B. Supreme
B. Investing in Research and Develop- C. Ethnocentrism
ment
D. Unitism
C. Achieving Economies of Scale
D. Exploiting the experience Curve 1232. A Global Strategy for a business to en-
ter the International Market would be?
1227. A synonym of “cope with” is A. Marketing the same products the
A. Handle same way in all countries.
B. Coping B. Developing products and marketing
strategies based on the culture and ritu-
C. Deal
als of the people of the country you are
D. Talk with selling.
1228. These are the steps for the Solving situ- C. Neither of the above answers.
ations at work D. Incorporates both of those strategies.
A. 1. Identify the problem2.Explore infor-
mation and create ideas3.Select the best 1233. Many of the ethical issues and dilem-
ideas4. Build and test ideas5.Evaluate the mas in international business are rooted in
results. the fact that vary/varies significantly
from nation to nation.
B. *MRM, at its core, is divided
into 5 business processes / me- A. political systems
thodical concepts:*Planning and Bud- B. Culture
geting.*Business Process Manage- C. law
ment.*Approval.*Reusability.*Measurement.
D. economic development
1229. Which factor does NOT affect interna- E. All of these answers are correct
tional business?
A. Geography 1234. This word comes from the base “busy”
+ ness, or the act of being busy with
B. Economics money, financial, transactions, sales, and
C. Culture purchasing.

A. Quota 1239. Organization that facilitates reciprocal

trade negotiations and regulates compli-
B. Resource
ance with agreements between countries
C. Currency
A. International Monetary Fund
D. Business
B. Bretton Woods Organization
1235. 48) History suggests that if the eco- C. world Bank
nomic crisis worsens, we are likely to see D. World Trade Organization
NARAYAN CHANGDER
more people question the
A. fall of communism 1240. What is the meaning of import?
B. legitimacy of capitalism A. Exporting code or modules from the

current program.
C. practicality of mixed market
B. Bringing in external code or modules
economies
into the current program.
D. correlation between economic free-
C. Deleting code or modules from the cur-
dom and prosperity
rent program.
1236. G-8 is D. Renaming code or modules in the cur-
rent program.
A. The worlds 8 most powerful countries
B. The worlds 8 least powerful countries 1241. Collectivism is characterized by
C. The next developing 8 nations A. self-reliance
D. none of above B. consensus or group agreement
C. selfishness
1237. A disadvantage of an ethnocentric
staffing policy is that it produces resent- D. showing that you are an individual
ment in host-country nationals.
1242. Based on this chart, how many items
would we sell charging $60?
A. True
B. False
A. 50
1238. Which of these is the least integrated B. 100
level of economic integration?
C. 150
A. A common market
D. 200
B. An economic union
1243. 57) Because consumers want a greater
C. A customs union
variety of goods and services at lower
D. A free trade area prices, many governments have

A. reduce desire restrictions on the inter- 1248. Why is the per capita GDP is a better
national movement of goods and services measure of a nation’s economic develop-
ment than overall GDP?

B. acted to text most imports at a lower
rate than domestic products A. It shows how wealthy each person in
C. sought to eliminate reciprocal advan- the country is.
tages negotiated through international or- B. It uses the exchange rate of the cur-
ganizations and treatise. rency involved.
D. increase their participation in multina- C. It gives a better comparison between
tional problem-solving efforts countries of different population sizes.
1244. When two or more firms come together D. It shows how the unemployment rate
to create a new business entity that is affects GDP.
legally separate and distinct from its par-
1249. Before goods enters a country they
ents it is known as
must meet a certain criteria. This is known
A. contract manufacturing as
B. Franchising A. Subsidy
C. Joint ventures B. safe goods
D. Licensing C. Standards
1245. 71) A(n) outlines a firm’s ultimate D. non negotiable
goal and its guiding values in broad terms.
1250. What is Export Trade?
A. A) mission
A. The purchase or buying of goods or
B. By strategy services from a foreign country for con-
C. O) imperative sumption in the importing country.
D. D) vision B. The sale of goods to a foreign country.
1246. How can global production decisions and C. The export of goods from one country
supply chain management affect a com- to another.
pany’s global competitiveness? D. The re-export of goods from a third
A. Reducing dependence on information country.
technology
1251. Any activity which slows or outright
B. Increasing company investment diver- blocks the free exchange of goods and ser-
sification vices between nations.
C. Increase operational efficiency and re- A. Voluntary Trade
duce costs
B. Specialization
D. Expanding the need for cooperation
C. Currency Exchange
with local suppliers
D. Trade Barrier
1247. Is international finance a branch of inter-
national business? 1252. What is Euro III
A. True A. European Currency
B. False B. Group of European Countries

C. European Film Festival C. Direct import

D. Pollution Central Scale D. Indirect export
1253. A company that acquires kitchen appli- 1258. Which of the following is an example of
ances and sells them to a construction com- a basic factor that a nation will possess as
pany. proposed by Porter?
A. Wholesaling A. Communication infrastructure
B. Retailing
NARAYAN CHANGDER
B. Skilled labor
C. Providing a Service
C. Natural resources
D. Manufacturing
D. Technological knowledge
1254. Any motion or cue which communicates
without the use of words 1259. what is the meaning of ethics?
A. Nonverbal Signal A. Moral habits that govern the behavior
B. Good appetite of society
C. Emirate B. Legal moral principles and values that

govern the behavior of people, firms, and
D. Enjoy your food governments, regarding right and wrong
1255. Business Transactions can be done in C. Moral principles and values that gov-
various ways: ern the behavior of people, firms, and gov-
A. Licensing ernments, regarding right and wrong
B. Management Contracting D. None of them
C. Franchising 1260. theory talks about attaining
D. All of the above economies of scale and lowering the cost
of production by specialization in the pro-
1256. An example of exporting would be duction of certain goods
A. products made and sold in Japan. A. New Trade Theory
B. a European country’s tax on products
B. Product lifecycle theory
made in other countries.
C. Porter’s theory of national competitive
C. products that were made in Poland
advantage
and bought by Polish consumers.
D. products sold by a company in Mexico D. Theory of comparative advantage
for purchase by Italian consumers.
1261. 1) The widening set of interdependent
1257. What is the mode of entry into interna- relationships among people from different
tional business that involves selling goods parts of the world is known as
and services to customers located abroad A. globalization
from a base in the home country or a third
country? B. offshoring
A. Direct export C. franchising
B. Indirect import D. outsourcing

1262. A special right given to a business per- B. Economic Condition

son to sell a company’s products. (e.g. C. Economic Stability
Subway, Jimmy Johns, Sonic)

D. Economic Drivers
A. Subsidy
1268. What is the purpose of international
B. Franchise
trade agreements?
C. Quota
A. To limit the exchange of goods and ser-
D. Ethics vices between countries.
1263. Globalization has resulted worst access B. To restrict economic growth and in-
to external financing crease barriers to trade.
A. True C. To establish rules and regulations, pro-
mote economic growth, and reduce barri-
B. False ers to trade.
1264. In cultures with less power distance, D. To create chaos and confusion in the
employees have rights and managers global market.
may have a style of leadership.
1269. A free-trade agreement between two
A. more, collaborative companies results in increased trade be-
B. more, hierarchial tween the countries because barriers to
trade are removed.
C. less, collaborative
A. True
D. less, hierarchial
B. False
1265. A product that has no brand name, usu-
ally comes in a plain package or wrapper, 1270. Which is NOT a trade remedy under the
and is often sold for less than a name WTO?
brand product is a A. Countervailing Duties
A. Regional Brand B. Antidumping Duties
B. Store Brand C. The Buy American Act
C. Manufacture’s Brand D. Safeguard measures
D. Generic Brand 1271. A trade agreement between Canada,
Mexico, and the US
1266. theory suggests that trade is a pos-
itive sum game A. NAFTA
A. theory of absolute advantage B. EU

C. WTO
B. theory of comparative advantage
D. ABC
C. The Heckscher-Ohlin theory
D. New Trade theory 1272. A citizen of the United States who has
recently returned home after living in an
1267. It stands for the economic interconnect- underdeveloped section of Africa for two
edness of countries with the global econ- years is LEAST likely to say
omy as a whole. A. “Everything is exactly as it was when
A. Economic Globalisation I left two years ago”

B. “He has worn a different outfit to work 1277. Of all the factors that are important to
everyday for the last two months” doing business, geography is NOT impor-
C. “Wow! There are at least 20 flavors of tant to doing business
ice cream from which to choose” A. True
D. “This air conditioner works too well, B. False
I’m chilly”
1278. Which of the following is a form of trade
1273. The concept of balance of payments barrier?
NARAYAN CHANGDER
refers to the record of all economic trans- A. Quota
actions (a) during a specific time period.
B. praise
A. within a country
C. Embargo
B. a between a country and the rest of t
D. All of the above
C. between individuals within a countr
D. between countries during a specific 1279. Which of the following MNC structure is
suitable for the MNC having narrow prod-
1274. What is globalization? uct lines that are not differentiated by ge-
ographic area?
A. A process of isolation of nations.
A. Global Product Structure
B. A process of interconnection and inter-
dependence between different countries. B. Global Area Structure
C. A single global government system. C. Global Functional Structure
D. A process of economic exclusion. D. Transnational Network Structure
1275. Outsourcing a part of or entire produc- 1280. In market economies, most economic de-
tion & concentrating or marketing opera- cisions are made by the government.
tions in international business is known A. True
as:
B. False
A. Licensing
1281. What is the primary purpose NAFTA?
B. Franchising
A. To reduce trade barriers among the
C. Contract of manufacturing
US, Canada, and Mexico
D. Joint Venture
B. To reduce trade barriers among Cen-
1276. When an exchange rate of a currency de- tral America and Mexico
preciates, the following will be likely to C. To reduce trade barriers among Brazil
happen: and Mexico
A. import prices will fall and export prices D. To encourage free trade between the
will rise US, Europe, and Canada
B. export sales will fall and import pur- 1282. The process of rapid integration or inter-
chases will increase connection between countries through free
C. export prices will fall and import prices trade, free mobility of capital and labour is
will rise called
D. prices of all products will not change A. Foreign trade

B. Liberalisation 1288. Which strategy of international busi-

C. Globalisation ness is applied when both pressure for lo-
cal responsiveness and reducing cost are

D. Privatisation low?
1283. The selling of government-owned eco- A. International Strategy
nomic resources to private operators is
called B. Transnational strategy
A. Nationalization C. Global standardization strategy

B. Privatization D. Localization strategy
C. Socialization
1289. An export is a
D. Centralization
A. Good/service brought into a country
1284. Modes of operations in international
B. Good/service sent to another country
business as below EXCEPT
A. licensing C. Good brought into a country
B. domestic business D. none of above
C. FDI
1290. Which of the following authority sanc-
D. import & export tions exchange for import of goods?
1285. Who is the current president of South A. RBI
Africa?
B. Exim Bank
A. Nelson Mandela
C. Ministry of External Affairs
B. Abdallah Mohamed
C. Vladimir Putin
D. Cyril Ramaphosa 1291. SWIFT stands for
1286. Which is not an Indian Multinational A. Society for worldwide international
Company? foreign trade
A. UNILEVER B. Society for worldwide interbank finan-
B. WIPRO cial telecommunication
C. ASIAN PAINTS C. Society for worldwide international fi-
nancial telecommunication
D. Piramal
1287. An license is an express autho-
rization by a given country’s government 1292. Opportunity Cost Theory is propounded
to export a specific product before it is by
shipped.
A. David Ricardo
A. Import
B. Export B. Adam Smith
C. Quota C. Gottfried News
D. Customs D. Joel Dean

1293. Comparative advantage theory was 1298. When traveling to Saudi Arabia, you
proposed by in 1817 need a to enter the country.
A. Adam Smith A. Travel agent
B. John Dunning B. agent
C. That is, Hecksher C. Travel guide
D. David Ricardo
D. Interpreter
NARAYAN CHANGDER
1294. AN AD ON TV IS CALLED?
1299. WHAT ARE THE FACTORS WHERE DO-
A. A TV COMMERCIAL MESTIC Business AND INTERNATIONAL
B. COMMERCIAL TV BUSINESS DIFFER?
C. A TV PUBLICITY A. CONSUMER
D. none of above B. FREE TRADE
1295. What is meant by common market? C. CURRENCY
A. An area free of trade, customs duties, D. PRODUCT AND PACKAGING
and production factors between the coun-
tries involved 1300. An/A (a) views public government as
B. A free area of taxes, customs duties unnecessary and unwanted because it
and production factors between the coun- tramples personal liberties.
tries involved A. a anarchist
C. An area free of immigration, customs B. Confusionist
duties, and production factors between
the countries involved C. Pluralist
D. A free area of security, customs duties, D. Democrat

and production factors between the coun- E. Rebel
tries involved
E. A free area of culture, customs, and 1301. An MNE is a
production factors between the countries A. Multinational Economy
involved
B. Market National Emergence
1296. How many cases are fixed exchange
C. Multinational Enterprise
rates based on arguments?
A. 4 D. none of above
B. 5 1302. Which of the following is true about

C. 3 communication in Europe?
D. 2 A. It should include eye contact in most
countries
1297. The currency exchange rate is con-
stantly changing. B. It is usually conducted solely in English
A. True C. It should always be indirect
B. False D. It should always be direct

1303. True or False:The 5 stages of going 1308. These below are elements of import-
global are a strict format that all industries export contracts except,
must follow without skipping or combining

A. Risk, International Payments, Essen-
steps tial Terms
A. True B. Risk, International Payments, Default,
B. False Tarrifs
C. Risk, International Payments, Default,
1304. There are three primary kinds of le- Essential Terms
gal systems in countries throughout the
world:civil law legal systems, common law D. Risk, Default, Intellectual Property
legal systems, and law legal systems. Rights, Essential Terms
A. family 1309. Trade partners are countries that trade

products with one another.
B. representative
A. true
C. totalitarian
B. false
D. democratic
1310. Across many nations, services have
E. theocratic
been the most highly-regulated of all in-
dustries
1305. The first fast food restaurant to come to
Malaysia was A. Government
A. KFC B. Financial
B. McDonald C. Agricultural
C. A&W D. Health
D. Sugarbun 1311. firms potential loss or failure from

poorly developed or executed business
1306. Who participates significantly in inter- strategies, tactics, or procedures
national business? A. weaknesses
A. Small and Medium-sized Enterprises B. global threats
(SMEs)
C. commercial risk
B. Governments
D. SWOT
C. International Organizations
1312. selling goods abroad
D. Multinational Corporations (MNCs)
A. export
1307. A culture which stresses independence B. import
and give priority to INDIVIDUAL welfare
1313. Explains the process by which firms ac-
A. Individualist Culture quire and retain one or more value-chain
B. Emirate activities inside the firm-retaining control
over foreign operations and avoiding the
C. “Family Style” Meal
disadvantages of dealing with external
D. Good appetite partners

A. Globalization theory 1318. Chargeable weight es

B. Factors Production Theory A. Total load weight
C. Internationalization Theory B. The price of cargo
D. Internalization Theory C. The priced weight
1314. Among the factors that affect the bal- D. The quoted price
ance of trade figures are
1319. The stage of the product life cycle in
NARAYAN CHANGDER
A. Exchange rates, taxes, tariffs and which the product has few competitors
trade measures and marketing activities should create con-
B. The business cycle at home or abroad sumer awareness is the
C. Trade barriers and agreements A. Introduction Stage
D. Non tariff barriers B. Growth Stage
C. Decline Stage
1315. What is the risk of having a product
with a key competency that does not exist D. None of these
in the international markets?
1320. In the context of value chain analysis,
A. The risk of losing market share the primary activities of a firm include:
B. The risk of high production costs
C. The risk of needing to adapt to local re-
sponsiveness in the future
D. The risk of facing legal challenges in in-
ternational markets
1316. Which trade theory suggests that a

country should specialize in producing and
exporting goods that it can produce more
efficiently and import goods that it cannot
produce as efficiently? A. RD, human resources, materials man-
A. Comparative Advantage agement, and production
B. Balance of Trade B. service, human resources, production,
C. Opportunity Cost and materials management
D. Absolute Advantage C. company infrastructure, information

systems, human resources, and materials
1317. Which of the following factors, accord- management
ing to Porter’s national Diamond, is most D. RD, production, marketing sales, and
likely to give a country competitive advan- service
tage over another country?
A. Natural resources 1321. An investor wants to invest in a coun-
try that has a high gross national income
B. Climate (GNI). Which of the following countries
C. Skilled labor would most likely qualify as a prospect?
D. Demographics A. Nepal

B. India 1326. The Instruments used to manipulate

C. Japan international trade are the tariff, safe-
guards, export and import quotas and non-

D. Vietnam tariff barriers
1322. Select all of the following ways a busi- A. True
ness increase revenue. B. False
A. Increase price on inelastic prod- 1327. What is a multinational corporation
ucts/services (MNC)?
B. Decrease price on elastic prod- A. A non-profit organization
ucts/services
B. A government-owned enterprise
C. Market development C. A company that conducts business ac-
D. Increase promotion to attracts more tivities in multiple countries
customers D. none of above
E. Increase price on elastic prod-
1328. A culture in which people prefer to finish
ucts/services
one task before starting another is most
1323. 5) Rather than an inspirational state- accurately characterized as which of the
ment, a(n) statement is meant to mo- following?
tivate people to act and specify the objec- A. low-context
tives that the firm needs to attain. B. monochronic
A. mission C. pragmatic
B. vision D. high power distance
C. expectation 1329. This is financial support that is given to
D. strategy foreign businesses to help buying goods or
services from UK businesses
1324. In January 2020, the Philippines in-
A. Letter of credit
creased a tax imposed on alcohol products
to 22 percent of the net retail price. What B. Bank loan
type of tax is this? C. Export credit
A. VAT tax D. Prepayment by importer
B. sales tax 1330. A firm following a geocentric approach
C. excise tax to staffing will pursue a system
D. customs duty A. in which all key management positions
are filled by parent company nationals
1325. This country’s largest companies in- B. in which host-country nationals are
clude:Adidas, Bayer, and BMW. recruited to manage subsidiaries while
A. Germany parent-company nationals occupy key po-
sitions at corporate headquarters
B. Mexico
C. in which the best people, regardless of
C. France nationality, are recruited to fill key posi-
D. none of above tions throughout the organization

D. in which corporate bureaucracy over- 1335. One of the driving forces behind the dig-
whelms the system leaving key positions ital economy?
to be filled in a haphazard manner A. Expansion of traditional industries
1331. Which type of situational analysis con- B. Increase in geopolitical uncertainties
centrates specifically on competitor based C. Promotion of environmental policies
challenges and activities?
D. Industrial digitalisation
A. Porter’s 5 Forces
NARAYAN CHANGDER
B. SWOT 1336. What is the process of purchasing goods
from a foreign supplier through interme-
C. 3C diaries or middlemen who operate within
D. 5C the buyer’s home country?
1332. One of the main tasks of the World A. Indirect import

Trade Organization is to handle trade dis- B. Direct export
putes between its member countries C. Indirect export
A. True D. Direct import
B. False
1337. Which marketing strategy exemplifies
1333. With computer container technology, it Global integration?
is an analogous situation. Ever have the
A. Adaptation
situation where a program runs perfectly
great on one machine, but then turns into a B. Standardization
clunky mess when it is moved to the next? C. Pricing
This has the potential to occur when mi-
D. Global positioning
grating the software from a developer’s
PC to a test server, or a physical server in 1338. Which country suffered the worst
a company data center, to a cloud server. ever monthly hyperinflation rate of 41.9
Issues arise when moving software due quadrillion percent (4.19 x 10 to the
to differences between machine environ- power 16)?
ments, such as the installed OS, SSL li-
braries, storage, security, and network
topology. This statement refers to?
A. Information technology
B. Container technology
C. System technology
D. Cloud technology A. Turkey
1334. Data provided to media to convey a com- B. Vietnam

pany message. C. Hungary
A. Advertising D. Bolivia
B. Publicity 1339. If a company is headquartered in Tai-
C. News Release wan, then Taiwan is the company’s
D. Rebate A. host country

B. home country A. Merger:It is the mutual deci-

sion.Acquisition:It can be friendly
C. dominant country
takeover or hostile takeover.

D. competitive country
B. Merger:Less expensive.Acquisition:More
1340. A Multinational Strategy for a business expensive (higher legal cost).
to enter the International Market would C. Merger:It is time-consuming and the
be? company has to maintain so much legal
issues.Acquisition:It is faster and easier
A. Marketing the same products the
transaction.
same way in all countries.
D. Merger:Merging of two companies
B. Developing products and marketing into one.Acquisition:Buying one company
strategies based on the culture and ritu- by another.
als of the people of the country you are
selling. 1345. The sustainable firm does not pursue
C. Neither of the above answers. A. Economic interests
D. Incorporates both of those strategies. B. Social interests
C. Personal interests
1341. means goods that are tangible
D. Illegal interests
A. Merchandise
1346. When a country can create products at
B. products a lower cost than other countries, this is
C. import a(n) advantage.
D. Export A. absolute
B. comparative
1342. the following statement are disadvan-
tages of regional economic integration EX- 1347. TRUE or FALSE.By integrating other’s
CEPT worlds into your own, you enlarge and en-
rich your perspective and become enlight-
A. Trade diversion ened and elevated in the process.
B. creating of trading blocs A. TRUE
C. loss of national sovereignty B. FALSE
D. regional product and marketing 1348. What will happen, according to Paul
Samuelson’s critique, if a rich country en-
1343. A licensed property, trademark or con- ters into a free trade agreement with a
cept to another entity by a business owner poor country?
is known as a(n)
A. Both the countries will incur losses
A. franchise due to the exchanges between them.
B. strategic alliance B. The productivity of the poor country
C. joint venture will decline rapidly.
C. The poor country will rapidly improve
D. political risk
its productivity.
1344. Which is not the difference between D. Both the countries will garner benefits
Merger and Acquisition? from the exchanges between them.

1349. Bob is a journalist who intends to spend D. United Nations

the next five months exploring Konesia.
In order to be able to fit in with the lo- 1354. What is the most important direct port
cals, he studies their culture in detail. He that connects Colombia with Asia?
familiarizes himself with their tastes and
A. Is the inability of a system or tool at
preferences, takes note of their taboos,
the time of carrying out its activities
and memorizes many of their sayings and
phrases. Which of the following terms B. Also known as consolidation or LCL
NARAYAN CHANGDER
best describes his actions? (Less Than Container) is the solution for
A. material culture making small shipments in which the
weight or volume is not enough to fill a
B. popular culture container.
C. cultural imperialism
C. They are metal boxes designed for the
D. cultural literacy transport of goods.
1350. The acronym NAFTA means D. It is the documentation required to
A. North Atlantic Free Trade Association carry out said customs process.
B. North American Free Trade Associa- 1355. They acquire a global approach to mar-
tion kets and production; They have operations
C. North American Free Trade Agreement in more than one country
D. North Atlanta Free Trade Association A. innovative companies
E. Northern American Free Trade Agree- B. The IMF offices
ment
C. Multinational companies
1351. the interest rate payable on post ship-
ment is lower than normal rate? D. Transnational governments
A. true
1356. HOW MANY ARE THE PHASES OF THE
B. false STRATEGIC PLANNING PROCESS?
1352. Which of the following is NOT an exam- A. There are four phases
ple of a trade barrier?
B. There are five phases
A. political
C. There are three phases
B. emotional
D. There are two phases
C. physical
D. cultural E. There are six phases
1353. Which international organization aims 1357. What type of utility refers to using raw
to promote free trade by reducing trade materials?
barriers and tariffs among its member
A. Possession utility
countries?
A. International Monetary Fund (IMF) B. Time Utility
B. World Bank C. Form Utility

C. World Trade Organization (WTO) D. Information utility

1358. Why do we import goods, like t-shirts, 1363. Why does the United States need to im-
instead of making them ourselves? port products?

A. it is more expensive A. The US does not import products
B. it is cheaper B. Some are easier and cheaper to make
C. most people don’t buy t-shirts in other countries
D. all of the above C. The US makes all of its own products
1359. What is a function of language in inter- D. none of above
national business?
1364. It refers to the nature of home demand
for the industry’s product or service.
A. Factor Endowments
B. Demand Conditions
C. Related and Supporting Industries
D. none of above
A. Provides values of a culture
1365. FEMA came into force on
B. Serves as a basis for cross-cultural
similarities A. 1 January 1990
C. Allows access to local society B. 1 January 2000

D. Provide hierarchy of needs C. 1 January 2005
1360. 5) Because many regional trading D. 1 January 2008

groups prohibit companies from producing
in more than one member country, compa- 1366. Germany places a block on all imports
nies need to understand how to evaluate from Sri Lanka
international geographic alternatives. A. tariff
A. True
B. quota
B. False
C. embargo
1361. Domestic laws MUST be followed by
foreign marketers D. none of above
A. TRUE 1367. What are the potential benefits of doing

B. FALSE business on a foreign planet?
1362. The value of a currency in one country A. To learn about alien technology
compared with the value of another B. To expand market reach and increase
A. dollar value sales
B. exchange rate C. To compete in intergalactic sports
C. interest rate events
D. store of value D. To learn alien languages

1368. WHAT IS THE LAST PHASE OF THE

STRATEGIC PLANNING PROCESS FOR?
A. To create organizational objectives
B. To determine the strategy to execute
C. To control and measure the applied
strategy A. True
NARAYAN CHANGDER
D. To develop the best strategy that the B. False
organization will apply
1373. The percentage increase in net profits
over time is
1369. The process of concentrating on and be-
coming expert in a particular subject or
skill.
A. Spatial Concentration
B. Special Commission
C. Specialization
D. none of the above
A. capital return
1370. In which stage of going global do com- B. profitability
panies find ways to increase their cost C. net profits
savings by redesigning their manufactur-
D. profit growth
ing processes?
A. Market entry 1374. 7) In a country that emphasizes collec-
tivism,
B. Creation of new markets
A. the interests of the individual are more
C. Value chain re-engineering important than the interests of the state
D. Value chain disaggregation B. one person or political party exercises
absolute control over the political and eco-
1371. There are macro-scale factors that nomic systems
underline the trend of greater globaliza- C. the needs of society and the needs of
tion. individuals are treated as equally impor-
tant
A. 1
D. the needs of society take precedence
B. 2 over individual freedoms
C. 3 1375. ADVERTISING IS THE MOST OBVIOUS
D. 4 WAY A BRAND
A. TO PROMOTE
1372. Country’s overall level of economic de- B. TO PROMOTION
velopment reflects its economic condition,
which has an impact on the international C. TO SALE
business environment. D. TO BE PROMOTED

1376. Economic development factors include 1382. 1) consists of specific learned norms
all of the following EXCEPT based on attitudes, values, and beliefs of
a group of people.

A. Literacy level
B. Technology A. Ethnology
C. Agricultural dependence B. Civilization
D. Political system C. Culture
1377. Bill of Lading is issued by: D. Doctrine
A. Captain of the ship
1383. Name the resource which led to the de-
B. Shipping company
velopment of the UAE.
C. Export Council
D. Chamber of Commerce
1378. Historically, international business

A. is a relatively new concept made pos-
sibly by communications technology
B. probably occurred as long as 15, 000
years ago
C. declined when European countries cre-
ated colonies on other continents
D. none of these
1379. Negative reaction to a gesture or action

would be considered a A. Oil
A. Political Factor B. Tourism
B. Economic Factor C. Education
C. Sociocultural Factor D. Technology
D. Technological Factor
1384. Italy has more paid time off than Nor-
1380. The WTO was established to implement
way
the final act of Uruguay Round agreement
of A. False
A. MFA B. True
B. TRIP’s
C. TRIM’s
amongst India’s major import items?
D. GATT
A. Ayurvedic medicines
1381. DOES THE SWOT ANALYSIS CONSIDER
INTERNAL ASPECTS ONLY? B. Oil & petroleum products
A. YES C. Pearls & precious products

B. NO D. Machinery

1386. What is the nature of exchange rates? 1390. Watches made in Norway are worn by
A. The nature of an exchange rate is the people in the UAE.
price of a unit of currency and depends on A. import
the supply and demand of that currency B. export
in the market so the exchange rate will
change if supply and demand change. 1391. A major obstacle to conducting success-
ful international business is which is
B. The nature of an exchange rate is the
the belief that ones culture is better than
price of a unit of currency and depends on
NARAYAN CHANGDER
other cultures
the supply and demand of that currency in
the market so the exchange rate will not A. Collectivism
change if supply and demand change. B. Individualism
C. The nature of an exchange rate is the C. Contexting
price of a unit of currency and depends on D. Ethnocentrism
the supply of that currency in the market
so the exchange rate will change if supply 1392. India is an
and demand change. A. Emerging economy
D. The nature of an exchange rate is the B. Developed economy
price of a unit of currency and depends
C. Less developed economy
on the supply of that currency in the mar-
ket so the exchange rate will not change D. None of these
if supply and demand change.
1393. Globalisation is favourable in the theory
1387. China’s economy is larger than the rest of comparative advantage which states
of the BRICS combined that countries that are good at producing
a particular good are better off exporting
A. True it to countries that are less efficient at pro-
B. False ducing that good.
1388. Macro level of Globalisation includes A. True

B. False
A. At the World level
B. At the Country level 1394. Meaning can be conveyed in a nonver-
bal way by facial expressions, upper and
C. Both world and Country level
lower body movements, and gestures by
D. None using
1389. What are the benefits of international A. Contexting
business? B. Culture
A. Access to many markets outside of our C. Values
country D. Body language
B. Cheaper labour reduces production
1395. What does a Tariff do?
costs
A. Destroys the product it comes in con-
C. Increased quality of goods
tact with.
D. Decreases sales B. Places a tax on a product when it
E. Access to resources crosses the border.

C. Charges people money to be in the 1401. What NOT exchange rate regimes are
area of a company. used in the world today?

D. Charges people money to enter into a A. Fixed peg
store. B. Free-float
1396. Why do governments establish interna- C. Adjustable peg
tional trade policies and agreements? D. Purchase float
A. To restrict domestic industries 1402. Which one is the main elements of the
B. To protect domestic industries and pro- Jamaica agreement?
mote exports A. Money was abandoned as a reserve
C. To discourage exports asset.
D. To promote unfair competition B. Petrol was abandoned as a reserve as-
set.
1397. ‘Bill chooses to go to Florida to take his C. Land was abandoned as a reserve as-
children to the Disney theme park’. Is this set.
an example of an English
D. Gold was abandoned as a reserve as-
A. Import set.
B. Export
1403. How many primary types of language
1398. “Can I get something to go”. This term are there?
is usually used in the country which A. 2
refers to fast food. B. 3
A. United States of America C. 4
B. United Kingdom D. 5
C. Malaysia E. 6
D. Indonesia
1404. Good and services sold to other coun-
1399. In Argentina, a dinner invitation for 7 tries
pm should be accepted by arriving later. A. exports
This is an example of: B. imports
A. folkways and mores C. comparative
B. a value D. absolute
C. a role 1405. What are two kinds of cultural ap-
D. a culture proaches of a society?
A. Monochromatic culture and Polychro-
1400. A trade agreement between Canada,
matic cultures.
Mexico, and the US
B. Monochronic culture and Polychronic
A. FANTA
cultures.
B. NAFTA
C. Monochromatic culture and Poly-
C. WTO chronic cultures.
D. USCANMEX D. none of above

1406. All business activities needed to create B. Organizational structure and support-
ship and sell goods across national bor- ing elements
ders: C. Marketing and sales processes in
A. International Business global markets
B. Global Dependency D. Arrangement of tasks and responsibil-
C. Domestic Business ities in international business units
D. None of these 1412. To some extent, this approach ignores
NARAYAN CHANGDER
local customs, culture and religion.
1407. What will you learn when socializing
with other persons in society in interna-
tional business context
A. social rules, behavioral patterns
B. personal habits, values
C. communications
D. None of them
1408. International business involves the buy-

ing and selling of products or services be-
tween countries.
A. True
B. False A. Geocentricity
B. Ethnocentricity
1409. It is one of the main challenges of NAFTA
C. Polycentricity
A. Comply with the rule of origin
D. Egocentricity
B. That tariff reduction agreements be re-
spected 1413. . Two basic conditions determine a
C. illegal migration firm’s profits:
D. The logistical cost of imports
1410. China, Japan, and Korea are lagging

in developing aerospace because they are
missing
A. natural and human resources
B. domestic demand
C. supporting industries
D. none of above
A. the firm’s costs of production and the
1411. What is meant by organizational archi- state of the economy
tecture in the context of international busi- B. the amount of value customers place
ness? on the firm’s good and services and the
A. Physical design of company buildings firm’s costs of production

C. the quality of a firm’s products and the 1418. Imports are goods that are brought into
industry the firm participates in a country for sale.

D. the industry the firm participates in A. True
and the state of the economy B. False
1414. The exchange of capital, goods and ser- 1419. What is international business?
vices across international borders or terri- A. International business refers to the
tories trade of goods, services, technology, capi-
A. Consumer tal and/or knowledge across national bor-
ders and at a global or transnational
B. Domestic trade scale.
C. International Trade B. International business refers to a com-
D. Subsidy pany has economic transactions that are
done within the country’s geographical
1415. Located in Western Asia on the north- limits.
eastern coast of the Arabian Peninsula. C. International business refers to pri-
Also, one of the richest countries in the vately owned corporations, partnerships,
world. or sole proprietorships that have fewer
employees and/or less annual revenue
A. Saudi Arabia
than a regular-sized business or corpora-
B. Pakistan tion.
C. Qatar D. International business refers to busi-
nesses that maintain revenues, assets or
D. none of above
a number of employees below a certain
threshold.
1416. This mug is perfect for
A. drink coffee 1420. Value creation activities can be catego-
rize as
B. drinking coffee
A. Primary activities and Support activi-
C. eating coffee ties
D. to drink coffee B. Marketing and Sales
C. Research and Development
1417. Which of the following is a major dis-
advantage of the product life-cycle theory D. Primary activities and Information sys-
introduced by Vernon? tems
E. Human resources and Customer ser-
A. The theory’s arguments seem ethno-
vice
centric and increasingly dated.
B. The theory failed to explain the domi- 1421. Who are the key players in Interna-
nance of developed nations. tional Business
A. Multinational Enterprises
C. The theory applies only when a poor
nation invents a new product. B. Domestic Company
D. The theory cannot be used to explain C. Government Company
the production of luxury products. D. Ed Sheeran

1422. is (are) all goods and services pro- 1427. In a society that follows a “pure” com-
duced or based in one country that are sold munist ideology, who is the richest and
abroad. most powerful?
A. Necessities A. Manual workers
B. Exports B. Intellectual workers
C. Global Licensing C. Business owners
D. Imports D. The highest command levels of the ad-
NARAYAN CHANGDER
1423. (a) is a political system in which gov- ministrative, legal and political apparatus
ernment leaders are elected directly by the E. No one is the richest or has the most
wide participation of the people or by their power. All individuals in society are equal
representatives.
1428. What IS NOT one of the four factors
A. a Democracy
that affect international business?
B. Dictatorship
A. Geographic Conditions
C. Monarchy
B. Economic Conditions
D. none of above
C. Political and legal factors
1424. A situation in which a country special-
D. Cultural and Athletic standards.
izes in the production of a good or service
at which it is relatively more efficient? 1429. From the 1900’s to present, over 37
A. Absolute advantage US Companies operated production facili-
B. Concerning advantage ties in or more countries.
C. Comparative advantage A. one

D. Available advantage B. two
C. thirty
1425. Please see the attached file for photos
and price for our whole range of mice. D. one hundred
A. estimates
1430. When Cleanshot USA, a photography
B. estimation products company, decided to enter the in-
C. estimate ternational arena, it chose Russia as its
main market. Although Russia has been in
D. none of above transition for years, Cleanshot managers
1426. A country concerned about lack of believe their company has tremendous op-
skilled workers to complete jobs in emerg- portunities there.Which of the following
ing careers would have potential busi- challenges is Cleanshot most likely to face
ness partners concerned with which com- in Russia?
ponent? A. organized crime
A. Geography B. too many competitors
B. Culture C. low demand for the products of non-
C. Economy Russian companies
D. Infrastructure D. fading underground economy

1431. 41) Although globalization may bring 1435. Major factors influencing international
economic growth, critics nevertheless con- business
tend that

A. the growth is too fast
B. the inequality of gains puts some peo-
ple in a relatively worse economic situa-
tion
C. this growth is mainly for the future,
thus ignoring present economic growth
A. Geographic, social, economic, political
needs
B. Financial, linguistic, climate
D. the cultural foundations of sovereignty
are supported by globalization C. Cultural, historical
D. Economic, political
1432. What is the difference between imports
and exports? 1436. Balance of trade and balance of pay-
ments both measure the impact of global
A. Imports and exports are the same trade on a country’s economy. The differ-
thing. ence between the two is that the balance
B. Imports are goods and services sold, of trade is , whereas the balance of
while exports are goods and services payments is
brought in. A. net exports less imports; net monetary
C. Imports are goods and services inflow less monetary outflow
brought in, while exports are goods and B. net monetary inflow less monetary out-
services sold. flow; net imports less exports
D. Imports are only goods, while exports C. net imports less exports; net monetary
are only services. inflow less monetary outflow
1433. What is the major natural resource of D. none of above

the Middle East? 1437. These countries border South Africa
A. Diamonds A. Egypt and Tanzania
B. Apples B. Namibia and Botswana
C. Gold C. Namibia and Sudan
D. Oil D. Mozambique and Somalia
1434. Which of the following ensures that only 1438. What does international business in-
good quality products are exported from clude?
the country? A. Trade of goods and services within a
A. Pre shipment Finance country
B. Trade of goods and services between
B. Pre shipment Inspection
countries
C. Certificate of origin
C. Trade of goods and services within a
D. Proforma Invoice city

D. Trade of goods and services within a D. landlord

continent
1439. Imitative theory is a theory of Explanation:
A. FDI
B. International trade tariff = tariff
C. Foreign exchange 1444. Technology threatens the way of life of
NARAYAN CHANGDER
some cultural groups.
D. Export
A. True
1440. Which of the following is NOT a driver B. False
of globalization?
1445. Which of the following statement is
A. Technological advancements true?
B. Government regulations A. FDI gives the investor a control over
C. International trade agreements investment
B. The control of FDI need not be 100%.
D. Cultural exchange
C. FPI has a good control over invest-
E. None of the above
ment
1441. Four main stages in product life cycle D. All of the above
theory:
1446. How can overseas trade contribute to
A. Introduction-Maturity-Decline-Growth increased profit?
B. Introduction-Growth-Decline-Maturity A. By reducing the volume of products
sold
C. Introduction-Growth-Maturity-Decline
B. By decreasing the efficiency of opera-
D. Introduction-Maturity-Growth-Decline tions
1442. A country that wishes to enhance in- C. By increasing the volume of products
ternational trade activities would be most sold
likely use: D. By raising the prices of products
A. a tariff 1447. How a country manages its resources is
B. a common market an example of its condition, which in-
fluences international business.
C. an embargo
A. cultural and social
D. a quota B. geographic
1443. a tax imposed by the government of a C. economic
country or by a supranational union on im- D. political and legal
ports or exports of goods.
1448. There are no drawbacks to MNCs
A. Licensor only benefits.
B. Tariff A. True
C. Franchisor B. False

1449. An organization or enterprising entity 1455. GDP that has been adjusted to take ac-
engaged in commercial, industrial, or pro- count of inflation is called
fessional activities.

A. GDP per capita
A. goods or services B. Real GDP
B. business C. Trend GDP
C. international business D. Average GDP
D. licensing 1456. The marketing approach that promotes
the position of the home nation over the
1450. Government Incentives host nation is called
A. benefits A. Polycentricity
B. limitations B. Ethnocentricity
C. Geocentricity
1451. You can post your thoughts to Twitter in
China. #OpenInternet D. none of above
A. True 1457. What is the role of the World Bank’s?

B. False A. promote development
B. promote economic
1452. Which of the following accurately de-
fines tariff? C. promote market
D. promote Commerce
A. A ban on certain imports
B. A type of trade agreement 1458. Rephrase these sentences in the active
form:“Any supplement, amendment or an-
C. A tax on imports nex duly signed by both parties will insti-
D. A limit on the quantity of imports tute an integrated part of this contract.”
A. Both parties sign any supplement,
1453. Which is not an Indian Multinational amendment or annex duly will institute an
Company? integrated part of this contract.
A. Asian Paints B. Both parties signs any supplement,
B. Unilever amendment or annex duly will institute an
integrated part of this contract.
C. Piramal
C. Both parties signing any supplement,
D. Wipro amendment or annex duly will institute an
integrated part of this contract.
1454. Which Display Elements Change when
D. none of above
Viewed in Different Browsers and Moni-
tors? 1459. are given by government to en-
A. Colors, Page Layout sure its products produced in their country
would cost less and are more competitive
B. Color, Shape than those from other countries.
C. Back ground, Volume A. Quota
D. Color, Shape, Back Grounds B. Standards

C. Exchange control 1464. A stock is the bonus payment to

shareholders that is made in shares rather
D. Subsidies
than as cash.
1460. UNDERSTANDING CULTURE BEGINS A. divide
WITH RECOGNIZING THE VALUES,
B. profit
NORMS, AND FOLKWAYS & MORES OF
A REGION. C. dividend
A. TRUE D. none of above
NARAYAN CHANGDER
B. FALSE 1465. “Rajiv an exporter sent complete in-
formation about the quality, grade, size,
1461. Values are weight, type of packing about the product
A. a free trade zone encompassing 27 Eu- on his enquiry”.Such an above quotation
ropean countries prepared is known as-
B. strongly held concepts that are A. performa invoice
present in a culture. Values are connected B. intent
to powerful emotions
C. letter of information
C. people may blindly obey the orders of
their superiors and are less likely to ques- D. enquiry performa
tion authority. Companies tend to use cen- 1466. What does NAFTA stand for?
tralized decision-making and tall organiza-
tion structures (many levels of manage- A. North American Finance Trade Agree-
ment) ment
D. none of above B. North America Final Trade Agreement

C. North American Finance Tax Agenda
1462. Culver’s only operating in the Midwest
(and Florida!) is an example of which of D. North American Free Trade Agreement
these? 1467. An internationalization strategy in
A. International Business which the firm establishes a physical pres-
ence abroad through acquisition of produc-
B. Global Dependency
tive assets
C. Domestic Business
A. International Portfolio Investment
D. Non-Trade Barriers
B. Foreign Direct Investment
1463. What benefit does the export of goods C. Bond market
bring in terms of efficiency? D. Global firm
A. Smoothing the load for production
managers 1468. Which of the following is an example of
financial risk in international business?
B. Increasing seasonal peaks and
troughs A. Changes in international policies
C. Decreasing overall productivity B. Safety regulations
D. Reducing excess capacity in busi- C. Exchange rate fluctuations

nesses D. Tax laws

1469. 16) Most of the world’s goods and ser- 1473. which is the most important document
vices are sold used at customs

A. in international markets A. proforma invoice
B. in the countries where they are pro- B. certificate of origin
duced C. commercial invoice
C. through exports to small countries D. none of above
D. through exports to large countries
1474. When a government can seize control of
1470. What are taxes a country places on all company assets, this is known as
products as they cross its borders? A. privatization.
A. Laws B. expropriation.
B. Quotas C. commercial risk.
C. Tariffs D. granting most favored nation status.
D. none of above 1475. 61) An example of a Japanese service
export is a visit by a
1471. Free international trade’ means that:
A. Japanese citizen to Disneyland in the
A. goods can be transported between United States
countries free of charge for ever
B. Japanese citizen to the Japan Pavilion
B. all countries use the same currency so at Epcot Center in the United States
it does not cost anything to convert cur-
C. U.S. citizen to the Japan Pavilion at Ep-
rencies
cot Center in the United States
C. there are no tariffs or quotas to limit
D. U.S. citizen to Tokyo Disneyland in
trade between countries
Japan
D. businesses can produce in any country
without any legal controls 1476. The need to regulate international trade
arises from the unfair practices of some
1472. The franc is nolonger the official cur- multinational companies. Which of the fol-
rency of France, so what is the official cur- lowing practices is one of them?
rency accepted today? A. Price discrimination
B. Sale at a loss
C. All of the above
D. none of above
1477. If a country trades with other countries

because it has more than it needs of a cer-
tain product, the trade reason is:
A. gourds A. Surplus
B. Chrono B. Increased competition
C. Euro C. Specialization
D. Dollar D. Political/Historical

1478. A normal reaction to all the differences B. Consortium

of another culture is known as C. Bulk Purchase
A. culture shock D. Importing
B. reverse culture shock
1484. A country’s balance-of-payments ac-
C. ethnocentrism counts keep track of the
D. boycott A. basic factor endowments and ad-
vanced factor endowments that the nation
NARAYAN CHANGDER
1479. First, heat the water. Then, Next, possesses
pour hot water into the cup. After that,
B. payments to and receipts from other
Finally,
countries for a particular time period
A. put a teabag into the cup wait
C. income taxes paid by domestic firms
3-4 minutes enjoy your tea
and the spending on the firms
B. enjoy your tea put a teabag into
D. total value of taxes paid by domestic
the cup wait 3-4 minutes
firms and the spending on the firms
C. wait 3-4 minutes enjoy your tea
put a teabag into the cup 1485. The Economic Freedom Index indicates
that economic freedom is positively corre-
D. enjoy your tea wait 3-4 minutes lated with all of the following EXCEPT
put a teabag into the cup
A. life expectancy
1480. Which word best describes Globaliza- B. literacy
tion?
C. environment sustainability
A. Protectionism D. diversity
B. Openness
1486. The seller of an option is called
C. Individualism
A. Speaker
D. Closed borders
B. Reader
1481. It is an investment whose purpose is to C. Writer
create a lasting interest and for long-term D. Learner
economic or business purposes by a for-
eign investor in the host country. 1487. reduces trade barriers and encour-
ages trade between countries.
A. Foreign investment
A. Free-trade zones
B. Globalization
B. Free-trade agreements
1482. Is the following an advantage or a dis- C. non-tariff alliances
advantage of international business loca-
tions? “Communication problems” D. Common markets
A. Advantage 1488. What skills are required for interna-

tional business?
B. Disadvantage
A. Understanding diverse business prac-
1483. Buying goods and services from another tices, laws, economies, and cultures
country is considered? B. Understanding domestic business
A. Exporting practices only

C. Understanding technology and capital 1493. the money a country owes another coun-
try
D. Understanding physical goods and ser-

vices A. GDP
B. Foreign Debt
1489. High power distance countries
C. Franchise
A. people may blindly obey the orders of
D. Legal Risk
their superiors and are less likely to ques-
tion authority. Companies tend to use cen- 1494. Which mode of export refers to a manu-
tralized decision-making and tall organiza- facturer’s use of independent export orga-
tion structures (many levels of manage- nizations located in its own country (or a
ment) third country)?
B. flatter and decentralized organization A. Indirect export mode
structures, smaller ratio of supervisors. B. Direct export mode
Employees are more likely to question
their bosses. Participative management C. Cooperative export
may be used. D. none of above
C. strongly held concepts that are 1495. It refers to the presence or absence of
present in a culture. Values are connected supplier industries and related industries
to powerful emotions that are internationally competitive.
D. none of above A. Factor Endowments
1490. Challenge faced by international busi-
ness are C. Related and Supporting Industries
A. Political risk D. none of above
B. Current rates 1496. What is the focus of the current digital

economy?
C. Foreign rules & regulations
A. Integration of digital technologies
D. All the above
across economies
1491. 62) Reebok pays a royalty to the Ger- B. Development of environmental poli-
man Soccer League to use the team’s logo cies
on t-shirts that it sells. Reebok and the C. Promotion of industrial digitalisation
German Soccer League most likely have a
D. Expansion of traditional industries
A. turnkey operation contract 1497. Define trading bloc.
B. licensing agreement A. Groups of countries that agree to re-

duce or eliminate trade barriers between
C. portfolio investment themselves
D. joint venture B. Union that adopts a common currency
C. Measure of the the price of a country’s
1492. to have import greater than export
exports relative to its imports.
A. the trade fails
D. refers to the value of exports minus im-
B. trade proficite ports.

1498. This is the national flag located A. Trade

within the area
B. Business
C. Tourism
D. none of above
1503. Cross-border advertising is an activity

of international business
NARAYAN CHANGDER
A. True
A. Norway, Scandinavian B. False
B. Paris, Europe
1504. Purchasing the right to use a company
C. China, Asia name or business process in a specific way
D. Chile, South America ex. McDonald’s, Burger King, KFC and
Pizza Hut * *
1499. If a product is created by at least
A. Licensing
% in America, it can be labeled “Made in
America”. B. Joint venture
A. 25 C. Franchising
B. 51 D. Infrastructure
C. 45
1505. As of January 2015, this country was
D. 75
the last (19th) country to adopt the Euro
1500. What will you learn when socializing as its currency.
with other persons in society in interna- A. Lithuania
tional business context
B. Italy
A. social rules, behavioral patterns
C. France
B. personal habits, values
D. none of above
C. Communications
D. None of them 1506. IMF was created in year
1501. The structure can result in finger- A. 1942
pointing between divisions when some- B. 1947
thing goes wrong.
C. 1945
A. International divisional
D. 1949
B. Worldwide product divisional
C. Worldwide geographic divisional 1507. Firms that enter new markets can bene-
D. Matrix fit from economies of scale and diversified
revenue streams.
1502. Movement of goods and services
A. True
through different countries and their mar-
kets, whether internal or external B. False

1508. When a company invests in another 1513. A widening of the difference between
country, having facilities there, that is the return on corporate bonds and on gov-
called ernment bonds might suggest which of the

following?
A. Free Trade Agreement
A. Investors should avoid government
B. Foreign Indirect Investment
bonds
C. International Business Trade B. The economy is on the brink of reces-
D. Foreign Direct Investment sion
C. Government bonds are becoming
1509. The NIKKEI Stock Market is located in more risky compared to corporate bonds
this country.
D. Interest rates are going to rise in fu-
A. Singapore ture
B. Japan
1514. 2) International managers most likely
C. Vietnam need to understand how to evaluate inter-
national geographic alternatives because
D. none of above
1510. Globalization refers to A. they usually have a surplus of re-

sources and need to take advantage of all
A. Lower incomes worldwide
opportunities
B. Less foreign trade and investment
B. many regional trading groups prohibit
C. Global warming and their effects companies from outside of the trading
group from manufacturing in more than
D. A more integrated and interdependent
one member country
world
C. the commitment of resources to one
1511. The following is the component of sup- locale may require forgoing projects in
port activities except other locales
A. Information system D. decreased worldwide transportation
costs and increased trade liberalization
B. Logistics
now allow companies to serve worldwide
C. Human Resources markets from a single production location
D. Research and Development 1515. strategy is changing the way your
business has goals, strategies, products,
1512. Which theory states that a country and expectations based on the country
should export those products that it pro-
duces most efficiently and import from A. Quota
other countriesproducts that it cannot pro- B. Multi-national
duce efficiently? C. Franchising
A. Domestic trade D. Global
1516. Under which standard, the values of cur-
C. Free economic exchange rencies were fixed in terms of gold
D. Comparative advantage A. Gold-Silver

B. Silver-Gold 1521. 81) The view that globalization is in-

C. Gold evitable is most likely based on the belief
that
D. Gold Bond
A. international organizations will re-
1517. this is a situation with uncertaintly place nation-states
about what is right to do from a moral or B. protesters against globalization will be
ethics perspective. persuaded to change their views
A. ethics
NARAYAN CHANGDER
C. people want more global homogeneity
B. Business ethics of cultures
C. Ethical Dilemma D. technical advances in transportation
D. Ethical strategy and communications are highly persistent
1518. A company is worried that about ex- 1522. Import means

change rate would need to consider which A. buying goods from another country
component of the international business B. selling goods to another country
environment?
C. only making one kind of product
A. Geography
D. none of above
B. Culture
C. Economy 1523. Governments have reduced restrictions
on cross-border trade because:
D. Infrastructure
A. Citizens demand a variety of goods and
1519. 50) Assume that company executives services
at the firm would like to increase sales B. Competition makes local producers
by expanding into an international mar- more efficient
ket. Which of the following factors, if true,
best supports a decision to expand sales C. Citizens demand lower prices on
globally? goods and services
A. It can offshore most of its production. D. All of the above
B. It can obtain all of its resources for the 1524. The International Monetary System has
same price overseas. undergone many times of development?
C. Its costs of making additional sales A. 4
would not increase disproportionately. B. 5
D. The foreign market has higher real in- C. 6
terest rates.
D. 7
1520. In 2010, China announced that it would
impose and import a tax on American poul- 1525. Companies that move part or all of their
try of up 105.4 percent. This is a(n) production processes to other countries
with the consideration of cheaper produc-
A. Tariff tion costs, is a way of international busi-
B. Quota ness.
C. Embargo A. Offshoring
D. none of above B. Outsourcing

C. Direct Investment C. avoid cultural research studies be-

D. International Company cause they perpetuate unjustified stereo-
types and behaviors

1526. To gain in value. (For example, if you D. memorize the cultural variations that
bought a house in 1998 for $100, 000 and are typically encountered in a specific cul-
sold it in 2011 for $120, 000) tural environment
A. Culture
1531. Tariffs are used to protect “Infant Indus-
B. Appreciate tries”
C. Depreciate A. True
D. Trade B. False
1527. Foreign direct investment can provide a 1532. It involves selling locally made products
foreign company:Cheaper production facili- in foreign countries,
ties, access to new technologies, products, A. Importing
skills and financing. B. barter
A. True C. exporting
B. False D. none of above
1528. molar mass 1533. allow for global competition in retail
A. 100 A. E-commerce
B. 145 B. Business
C. 345 C. Firm
D. none of above D. Domestic
1529. An office building is a product created 1534. Computers made in China are used by
by what type of resource? students in the UAE.
A. Labor A. Import
B. Capital B. Export
C. Land 1535. What is international business?

D. none of above A. Selling goods within a country
B. Selling goods to other countries
1530. 6 Businesspeople seeking to understand
more about another culture in order to suc- C. Selling goods online
cessfully conduct business within that cul- D. Selling goods locally
ture would be best advised to do which of
1536. refer(s) to systematic reductions in
the following?
production costs that have been observed
A. observe the behavior of people who to occur over the life of a product.
have gained respect within that cultural
A. Economies of scale
environment
B. Location economies
B. rely on stereotypes, which are based
on averages, to gain an understanding of C. Production possibility
the culture D. Experience curve

1537. The economic system of transactions 1542. White Colour Bill of Entry is for:
conducted between businesses located in
A. Warehousing
different countries.
B. Ex-bond Bill of Entry
A. Trading Partner
B. Business Relationship C. Home Consumption
C. International Business D. None of these
D. Transaction 1543. If US currency , less dollars are
NARAYAN CHANGDER
1538. Which kinds of countries below can PPP needed to buy euro. Conversely, if US cur-
theory yield accurate predictions in the rency , more dollars are needed to buy
long run? euro.
A. Advanced industrialized countries, A. depreciates, appreciates
high-rate inflation countries B. has a floating exchange rage, has a
B. Underdeveloped capital markets coun- fixed rate
tries C. apreciates, depreciates
C. High-rate inflation countries, underde-
D. none of above
veloped capital markets countries
D. Countries with advanced industrializa- 1544. Country’s wealth was determined by
tion the amount of its gold and silver holdings.
1539. Gross Domestic Product (GDP) is: A. trade surplus
A. The measure of the amount of money B. mercantilism
C. absolute advantage
B. The measure of the output of products
D. competitive advantage
created within a country.
C. The measure of the difference be- 1545. Under which scheme an exporter is al-
tween what a country sells versus what a lowed duty free supply of imported inputs
country buys from other countries. for the manufacture of export goods?
D. none of above A. Duty drawback scheme
1540. Which stage of going global focuses on B. Advance licence scheme
market expansion?
C. Export Manufacturing under bond
A. Creation of new markets scheme
B. Value chain re-engineering D. EPCG
C. Market entry
1546. The lowering or elimination of protec-
D. Value chain disaggregation
tive tariffs and other trade barriers be-
1541. Gaining some understanding of interna- tween two or more nations.
tional business is important for any busi- A. free trade
ness student because global events and
competition affect almost all companies. B. protectionism
A. True C. balance of trade

1547. Some societies have a strong belief in B. speaking to your teacher.

, which means that the belief in the in- C. pointing your finger at an object
dividual and his or her ability to function

D. standing two feet from your friend.
relatively independent.
A. Collectivism 1552. Defined as “the participation of two or
more companies jointly in an enterprise in
B. Values
which each party contributes assets, owns
C. Individualism the entity to some degree, and shares
D. Ethnocentrism risk”.
A. wholly-owned subsidiary
1548. Pressure of cost reduction required
B. joint venture
?
A. the firm to change the design of their 1553. Companies frequently discontinue a
product product when sales continue to decline in
order to focus on more profitable products.
B. the firm to higher unit cost
A. True
C. the firm to lower unit cost
B. False
D. the customer to pay less for the price
1554. Serves as an extension of the firm in the
1549. rights lies at the basis of capitalism foreign market, performing many down-
stream marketing functions
A. Distributor
B. Foreign Brand
C. Headquarter
D. none of above
1555. Opportunities exapanding for company
A. legal workforce is an ADVANTAGE of interna-
tional business
B. property
A. true
C. animal
B. false
D. gender
1556. A partial refund to someone for the pur-
1550. The negotiating team should include chase of a good or service. The refund is
members in each of the following areas ex- distributed after the sale at a later time.
cept ( ).
A. Advertising
A. commercial
B. Advertising Agency
B. techinical C. Publicity
C. financial D. Rebate
D. psychological
1557. International tourism includes inbound
1551. All of the following choices are exam- tourism and outbound tourism
ples of nonverbal communication EXCEPT A. True
A. waving to a friend. B. False

1558. Which are true about Mercantilism the- A. Population size

ory? B. Economic growth rate
A. Country’s wealth is measured by its C. Purchasing power parity
holding of gold and silver
B. Government does not imposed any
control 1563. Is the following an advantage or a dis-
C. Among the first theory and served as tions? “*Access global markets”
NARAYAN CHANGDER
the foundation towards trading activities
A. Advantage
D. Countries will try to be in a trade
B. Disadvantage
deficit condition
1564. TRIMs stands for
1559. Emerging markets include countries such
as the United States and Britain that are A. Target Regarding Investment Modes
leading the globalization charge B. Trade-Related Investment Measures
A. True C. Trade-Related Insurance Markets
B. False D. Trade Relevant to International Mar-
kets
1560. Centralized organizational architecture
in international business is characterized 1565. International business is:
by: A. all activities needed to create, ship
and sell products across international bor-
A. High autonomy for local business units
ders.
B. Central decision making at company
B. making, buying, and selling products
headquarters
within a country.
C. Strategic alliances with local compa- C. refers to a world economy with move-
nies ment of products and labor across inter-
D. Flexible and decentralized organiza- national borders.
tional structure D. none of above
1561. A good or service produced in the home 1566. 64) The principle that an individual has
country and sold in another country. the freedom to pursue his or her interests
A. import is called
B. export A. A) socialism
B. By totalitarianism
1562. It is an economic indicator that controls
C. C) individualism
differences in the relative cost of living be-
tween countries D. D) collectivism
1567. A tax levied as a proportion of the value
of the imported good is the definition of
A. Tariffs
B. Specific tariffs
C. Import quotas
D. To the value of tariffs

1568. Multinational Companies such as John- C. Work groups

son Johnson, and Coca-Cola usually have
D. Equipment
a

1572. maximum duration of credit period is
A. 90 days
B. 180 days
C. 365 days
D. all of the above
A. “Parent” Company Headquarters in a 1573. To be culturally sensitive, international
home country. businesses must be careful about how
B. Limited time offer of sellling products brand names
internationally.
A. affect domestic sales
C. An exclusive deal with one country.
B. translate into other languages
D. Other
C. look in different fonts
1569. The roots of unethical behaviour lies in D. relate to the company
1574. The prohibits U.S. companies from

paying bribes to foreign government offi-
cials in order to gain business
A. Personal ethics
B. Unrealistic performance expectations
C. Leadership
D. Organizational culture A. United Nations
E. All the above
B. Foreign Corrupt Practices Act
1570. Franchising differs from licensing in the C. World court
sense that it usually requires the fran-
D. International Law
chisee to follow much stricter guidelines in
running the business than does licensing.
1575. Of the following, which is not a repre-
A. true sentative sector of the South African econ-
B. false omy?
A. Technology
1571. They are temporary teams created to
solve a specific organizational problem: B. Agriculture
A. Link roles C. Mining
B. Direct contact D. Manufacturing

1576. One or more nation(s) halt(s) the export 1581. The name, symbol, or design that iden-
of a product to another nation tifies a product is called a brand
A. Quotas A. True
B. Tariffs B. False
C. Embargo 1582. Wal-Mart makes bulk purchases from
D. Balance of Payments its vendors and hence it is able to get bet-
ter deals than its competitors. This allows
NARAYAN CHANGDER
1577. Enterprise is the act of Wal-Mart to offer greater discounts to its
A. Making a profit customers. In this case, Wal-Mart benefits
from
B. Borrowing money
A. first mover advantage
C. Buying shares
B. constant marginal returns
D. Taking the risk of starting a business
C. economies of scale
1578. The US imports the most from this coun- D. absolute advantage of production
try
A. China 1583. Globalisation is best defined as
B. Japan A. increased international trade as a re-
sult of free movement of goods and capi-
C. Canada tal between countries
D. England B. a situation where all of the world uses
1579. Which of the following are similarities the same common currency
of the two kinds of trade? Choose more C. the growing trend for companies to
than one (1) answer. stop making products within their own
A. Both deal in a uniform currency. country
D. the increase in the world tourist indus-
B. Both deal in the same objects of ex-
try leading to more global travel
change, that is goods and services.
C. Both are carried on by individuals and 1584. What is NOT a presentation skill?
business firms. A. putting your hands behind your back
D. Both are stimulated by the desire for B. using gestures when you speak
profit.
C. making strong eye contact
1580. How can excessive exports negatively D. speaking loudly and clearly
impact a country’s natural resources?
A. It accelerates the exhaustion of natu- 1585. Focal firm grants the right to the for-
ral resources. eignpartner to use certain intellectual prop-
erty inexchange for royalties.
B. It leads to a more sustainable use of
resources. A. Facilitator
C. It has no impact on natural resources. B. Franchisor
D. It increases the availability of natural C. Licensor

resources. D. Intermediary

1586. In the language of international trade their bosses. Participative management

placing order for goods is known as may be used.

A. Import D. none of above
B. Export 1591. Translating to “waste” orwasteful ac-
C. Indent tivity, “ the third M of the 3 Ms in Lean
D. Purchase aims to reduce unnecessary work and im-
prove efficiency. If a plant can reduce
1587. Which of the following is an example of it can increase productivity and prof-
a political union? its while stayingcost-efficient. It is use in
the Toyota Production System,
A. The EU
A. Time
B. The United States
B. Mura
C. The British Commonwealth
C. Later
D. The Andean Community
D. none of above
1588. Are the stakeholders affected on the
managers decision on ethical issue? 1592. A cooperative is an example of a
government-owned corporation.
A. Yes!
A. True
B. No!
B. False
C. Maybe!
D. I don’t know? 1593. 8) International business includes all
commercial transactions between two or
1589. Free upgrades with purchase are an ex- more countries.
ample of a/an
A. True
A. Rebate
B. False
B. Contest
1594. THE WORLD BANK WAS FORMED IN
C. Giveaway
THE YEAR
D. Incentive Program
A. 1944
1590. Low power distance countries: B. 1945
A. strongly held concepts that are C. 1946
present in a culture. Values are connected
D. 1947
to powerful emotions
B. people may blindly obey the orders of 1595. Pressures of cost reduction and pres-
their superiors and are less likely to ques- sures of local responsiveness place conflict-
tion authority. Companies tend to use cen- ing demands on a firm.
tralized decision-making and tall organiza- A. True
tion structures (many levels of manage-
ment) B. False
C. flatter and decentralized organization 1596. pressures for global integration-

structures, smaller ratio of supervisors. lowpressures for local responsiveness-
Employees are more likely to question low

A. global strategy A. culture

B. international strategy B. opinions
C. transnational strategy C. habits
D. multidomestic strategy D. norms
1597. To accomplish this goal, each firm must 1602. What is one advantage of direct import?
develop its individual strategy and ap- A. Global networking
proach to
NARAYAN CHANGDER
B. Technology advancement
A. Lower cost
C. Access to resources
B. Maximize value
D. Stability in supply
C. Increase profit
1603. Dell buys many components for its com-
D. All the above
puter from Malaysia firm. The Malaysia
1598. A toy store like Toy’s R Us. companies must be paid in Malaysia’s
A. Manufacturing currency-the ringgit so Dell must to con-
vert money from Dollars into the Ringgit
B. Providing a Service to pay them. What function does Dell per-
C. Retailing form in the exchange market?
D. Wholesaling A. Currency conversion
1599. Of the following, which dimension iden- B. Currency Swap
tified by Hofstede refers to the worth C. Forward exchange rates
of an individual versus the worth of the D. Arbitrage
group?
A. Internal control vs. external control 1604. Multinational businesses
B. Uncertainty avoidance A. sell goods and services to other coun-

tries
C. Masculine vs. feminine
D. Individualism vs. collectivism countries
E. Power distance C. buy and sell between a range of com-
1600. Unfavorable balance of payment it also panies
termed as D. help other business buy and sell inter-
A. Surplus nationally
B. Adverse 1605. 19) When examining economic and de-
mographic variables to compare countries’
1601. Those elements that are shared by a sales potential for your product, which the
group of people; ex:values, language, spe- following should you NOT consider?
cial foods, religion is called
A. Countries may depend heavily on the
import of raw materials.
B. Consumers in some countries may
more conveniently substitute certain prod-
ucts than consumers in some other coun-
tries.

C. Consumers in developing countries concentration of risk, and potential for

may leapfrog technologies by first pur- lower profits.
chasing the latest products.

C. No market opportunities, no access to
D. Trading blocs may enhance sales po- resources and technologies, no diversifi-
tential above what is indicated in individ- cation of risk, and potential for no profits.
ual country figures. D. Limited market opportunities, re-
stricted access to resources and technolo-
gies, concentration of risk, and potential
political risk?
for lower profits.
1609. globalization effects the slow flows

of information between geographically re-
mote locations because of the improve-
ment in communication tools.
A. True
B. False
A. Putting a quota on the number of cars 1610. Ethnocentrism helps to stimulate Inter-
imported national Business
B. Civil unrest/war A. True
C. Having a custom’s duty on a product B. False
D. Double-taxing a corporation 1611. Why should we study international busi-
ness?
1607. 51) Kevin, marketing manager of the
North American Bowling League, has de- A. To reduce costs
cided to televise major bowling compe- B. To increase political risks
titions to viewers in multiple countries
C. To access new markets and distribu-
rather than only in Canada and the U.S.
tion networks
Which of the following goals would this
most likely help Kevin accomplish? D. To foster cultural awareness and sen-
sitivity
A. acquiring new resources
B. minimizing corporate risks 1612. The company said that it had always
acted in with environmental laws.
C. increasing sales and profits
A. accord
D. obtaining competitive advantages
B. compliance
1608. What are the advantages of interna- C. way
tional business?
D. none of above
A. Increased market opportunities, ac-
cess to new resources and technologies, 1613. An organization acting as a court to hear
diversification of risk, and potential for and settle trade disputes among its mem-
higher profits. bers; also abbreviated WTO.
B. Decreased market opportunities, lim- A. International

ited access to resources and technologies, B. World Trade Organization

C. International trade 1618. With globalization, which of the follow-

ing are exchanged?
D. Domestic trade
A. culture
1614. *Originating from the 1960s as part of B. ideas & beliefs
the Toyota Production System, aims to
create fail-safes and prevent human error C. goods & services
where possible. It’s usually a mechanism D. all of these
or added step built into the process to alert
NARAYAN CHANGDER
the operator of a mistake that needs imme- 1619. Why might a company NOT have to pay
diate corrective or preventive action. upfront?
A. Later A. Long standing business relationship

B. Bad Debt
B. Just in time
C. Bad Credit
C. Poka Yoke
D. No trust
D. none of above
1620. Programs that allow students to expe-
1615. refers to a world economy with move- rience the atmosphere of learning abroad
ment of products and labor across interna- are
tional borders.
A. Global Mobility Programme
A. Global economy
B. Global Leadership Programme
B. Domestic business C. Global Internship Programme
C. International business D. Internalization
D. none of above
1621. . Free trade is the ability for countries
to trade with one another with restric-
1616. Country X, a poor country, invents a
tions.
revolutionary electronic product. The coun-
try markets this new product in other poor A. false
countries to garner large profits. This oc- B. true
currence is against the idea of
1622. What is the tense in IBC used most?
A. product life-cycle theory
A. Present simple
B. Future simple
C. theory of absolute advantage
C. Past simple
D. theory of comparative advantage
D. Present perfect
1617. What is the first step when you make 1623. duties are confined agricultural prod-
Cup Noodle? First, you need to ucts.
A. take off the plastic and open the cup A. Protective duty
B. put hot water in the cup B. Specific duties
C. wait three minutes C. Compound duty
D. stir your noodles and enjoy your lunch D. Seasonal duties

1624. An opportunity cost is 1628. International Business

A. The cost of doing business domesti- A. Any activity involvingbusiness opera-

cally tions across national borders.
B. The most attractive alternative given B. any activity that seeks to provide
up goods and services to others while oper-
ating at a profit
C. The purchase price of a prod-
uct/service without including your C. increasing integration of the world
markup economy
D. The investment in international consul- D. none of above
tants to offer suggestions on how to im-
prove your product/service. 1629. Most countries in northern Africa are
primarily , while countries in southern
1625. What is the concept of ‘Globalization of Africa are largely
Markets’ in international business? A. Hindu; buddhist
A. The exchange of products and services B. Buddhist; hindu
across national borders
C. Muslim; Christian
B. The transfer of assets to another coun-
try or the acquisition of assets in that D. Christian; Muslim
country 1630. the importance of international business
C. The procurement of products from sup- firm have a competitive advantage and
pliers located abroad low economic well being.
D. Ongoing economic integration and A. True
growing interdependency of countries B. False
worldwide
1631. (a) is the belief that ownership of the
1626. The idea that you carry your beliefs val- means of production belongs in the hands
ues and assumptions at all time of individuals and private businesses
A. Cultural baggage A. a Capitalism
B. Subculture B. Communism
C. Culture C. Socialism
D. Extended family D. none of above
1627. It is defined as a company in a country 1632. Comprises the planning tasks, control
that makes a physical investment to build and all processes concerning the flow of
a factory, warehouse, distribution center goods and information between produc-
or other in another country. tion companies and customers.”
A. Foreign Direct Investment A. Logistics
B. Indirect Foreign Investment B. Procedures
C. Globalization C. Quality
D. none of above D. Distribution and delivery

1633. In a high-context culture, language is 1637. 66) Political systems based on the
very direct and words are taken literally. paradigm, such as those of Japan and
China, accept the principle that govern-
ment may intervene to ensure that busi-
ness practices benefit society.
A. individualistic
B. collectivistic
NARAYAN CHANGDER
C. pluralistic
A. True
D. laissez-faire
B. False
1634. When individuals learn the most effi- 1638. 12) Most people’s basic values are ac-
cient ways to perform particular tasks, quired during childhood and are not readily
there are changed later in life.
A. True
B. False
1639. how direct or indirect communication

A. Contexting
A. location economies B. Non verbal communication
B. value creation effects
C. Body language
C. experience curve effects
D. none of above
D. learning effects
1635. The activity of buying and selling, espe- 1640. Business practices in Latin America re-
cially on a large scale: quire less emphasis on than in the U.S.
A. industrialization A. Trust
B. business ethics
B. Punctuality
C. global dependence
D. commerce C. Hierarchy
1636. Which of the following are the branches D. Family

of international finance?
1641. How many steps are there in the pro-
A. Foreign trade international franchises,
cess of global strategic planning?
international finance
B. Domestic trade, international tourism A. 5
technology transfer B. 6
C. Finance, international tourism, tech-
nology transfer C. 7
D. none of above D. 8

1642. As a person conducting business interna- 1647. If the United States hosts a six-month-
tionally, you should: long World’s Fair and it attracts over a
million tourists from other countries, the

A. keep to your own time frame as set by
the standards of your own culture revenue from this World’s Fair would be
included in its:
B. not worry about your own mental and
social reactions, even if they are inappro- A. balance of trade
priate B. balance of payments
C. recognize the preconceived notions C. GDP
we have that make us think our way of do- D. none of above
ing things is better than another’s
D. speak clearly in your own language so 1648. Business subcultures would probably be
that the other person will learn your lan- very similar in which three countries?
guage eventually A. France, Egypt, and Chile.
1643. Which strategy is applied when pres- B. the U.K., U.S.A., and Italy.
sure for local responsiveness is high and C. Argentina, Chile, and Venezuela.
pressure for cost reduction is low?
D. China, Russia, and Australia
A. Localization
1649. Define the concept of cultural diversity
B. International
in the context of international business.
C. Global standardization
A. The absence of any cultural differ-
D. Transnational ences within a business environment.
1644. A product you buy from another country B. The presence of different cultures, lan-
is considered: guages, customs, and traditions within a
A. Import business environment.
B. Export C. The integration of different cultural

practices into a single business culture.
C. Trade Barrier
D. The exclusion of employees from dif-
D. None of these ferent cultural backgrounds in interna-
1645. The value of a currency in one coun- tional business.
try compared with the value of another is
1650. The item imported the most from
called the
Malaysia in 2014 was
A. balance of payments
A. Computers
B. exchange rate
B. Petroleum
C. inflation rate
C. Furniture
D. currency
D. TV’s
1646. A subset or part of a larger culture.
1651. It is/are one/some of the economic rea-
A. subculture sons why governments intervene in inter-
B. semiculture national trade:
C. halfculture A. To protect infant industries
D. none of above B. To promote industrialization

C. To maintain spheres of influence B. Franchising

D. Answers 1 and 2 C. Joint venture
1652. The more closed a society is, the more D. none of above
important group membership is.
1658. In order to limit the amount of foreign
A. acquired competition and allow U.S. peanut grow-
B. age based ers to charge more for their crops, the
United States limits the amount of peanuts
NARAYAN CHANGDER
C. education
that can be imported each year to 1.7 mil-
D. ascribed lion pounds. What type of trade barrier
does this illustrate?
1653. Refers to how direct or indirect commu-
nication is A. import tax
A. Cultural Baggage B. quota
B. Culture C. embargo
C. Values D. licensing
D. Body Lanuage 1659. 47) The process of shifting production to
a foreign country is known as outsourcing.
1654. labour productivity and production costs
differ among nations due to A. True
A. socio-economic reasons B. False
B. geographical reasons
1660. Fixed exchange rate system is?
C. political reasons
A. Exchange rate regime that allows the
D. none of above supply and demand forces of the market
to combine with each other to determine
1655. In a area, barriers to trade among the exchange rate between currencies
member countries are removed, and a com-
mon external trade policy is adopted B. Exchange rate regime that allows the
supply and demand forces of the market
A. free trade
to interact with each other to determine
B. customs union the exchange rate between currencies
C. common market C. A method of adjusting the exchange
D. economic union rate between currencies.
D. A method of exchance the exchange
1656. Developed countries are industrialised rate between currencies.
countries.
A. True 1661. The hospital has set up a special to
buy new equipment.
B. False
A. fund
1657. McDonald use the following method
B. account
entry in its international operation in
Malaysia. C. bond
A. Export D. none of above

1662. Which of the following statement is not C. Decreased Competition

correct? D. Improved political relations

A. Balance of payment follows double en-
try book keeping system 1668. The main mode of transportation in
China is
B. Balance of Payment reveals foreign ex-
A. car
change position of the country
B. train
C. Balance of Payment normally publish
annually C. bicycle
D. Balance of Payment is always in bal- D. bus
ance
1669. Services are provided to you by other
1663. If companies do not have ethical conduct,
they provoke consumer actions against A. countries
them. B. companies
A. TRUE C. employees
B. Falso D. people
1664. TRUE or FALSE. Government business is 1670. What is the attraction of global capital
also motivated by profit. market with the Borrower?
A. TRUE A. The cost of capital tends to be higher
B. FALSE than it is a global market.
B. The lower the cost of capital is the less
1665. The easiest way to get involved in inter-
money borrower can borrow
national trade is
C. Global capital market to borrowers is
A. Melalui Expor-Impose
higher than the cost of capital.
B. Via Marketplace D. The lower cost of capital is the money
C. Franchise borrower can borrow
D. Offshoring 1671. Examples of Joint Ventures in India
1666. To lose value. For example, if you A. multi suzuki
bought a new Toyota Corolla in 2001 for B. Hero Honda
$30, 000, the value of the car decreased
C. Bajaj Kawasaki
and you can now only sell it for $11, 000.
D. Vistara and Air Asia
A. Ethics
B. Translate 1672. Currency speculation:It’s typically in-
volves the movement of fund from one
C. Depreciate
to another in the hope of profiting from
D. Appreciate shifts in exchange rates
1667. International Business does all of the A. Long-term
following EXCEPT: B. Short-term
A. Expands business opportunities C. Recently
B. Increased sources of raw materials D. High priority

1673. The positive and negative ideals, cus- 1679. What are corporations of A Capital mar-
toms, and institutions of a group is known ket?
as A. Equity loans
A. Beliefs B. Debt loans
B. Values C. A and B are wrong
C. Assumptions D. A and B are correct
D. Culture
1680. What is a trade deficit?
NARAYAN CHANGDER
1674. A personal computer for home use is A. When the value of exports exceeds the
A. a convenience good value of imports
B. a shopping good B. when the value of imports exceeds the

value of exports
C. a specialty good
C. when the values of imports and ex-
D. an intangible good ports are equal
1675. o gain a trade advantage a country D. when the value of imports for one na-
should specialize in products or services tion is greater than the value of imports
that it can provide more efficiently than for another nation
other countries.
1681. How do sustainability and corporate so-
A. Balance of Trade cial responsibility (CSR) factors influence
B. Comparative Advantage companies’ decisions in choosing supply
sources?
1676. Canada practice civil law and Germany A. Companies that are committed to sus-
practice common law. tainability and CSR tend to look for local
A. True suppliers
B. False B. Companies that are committed to sus-
tainability and CSR tend to choose in-
1677. If you have a social meeting in France house supply
and you are going to buy your outfit, C. Sustainability and corporate social re-
which do you think is the right one? sponsibility factors do not influence the
A. normal clothing, no major concern company’s decision in choosing a supply
B. Designer clothing source
C. the best clothes they can afford
D. none of above 1682. The US agrees to allow imports from
chosen countries at the lowest customs
1678. A foreign currency swap is simply an duty rates
agreement between two parties to ex-
change one currency for another at a yet-
to-be-determined future date but at a
specified exchange ratio.
A. TRUE
B. FALSE A. Free-Trade Zone

B. Most Favored Nation status 1688. Australia’s top two way trading partner
C. Free-Trade Agreements is as of 2014

D. Common Markets A. Singapore
B. Japan
1683. What is culture?
C. South Korea
A. Culture is the mindset.
D. China
B. Culture is reading
1689. In 2012, the United States Commerce
C. Culture is food
Department announced that it would im-
D. Culture is life development. pose a tax ranging from 2.9% to 4.7%
on Chinese made solar panels. This is a(n)
1684. BIB refers to
A. Bigger is better A. Tariff
B. Bachelor of International Business B. Quota
C. Business Investment Board C. Embargo
D. Break In Box D. none of above
1685. refers to what is perceived as taste 1690. An agreement between two nations
and beauty in society.
A. Trade Barrier
A. Material culture
B. Franchise
B. Social institution
C. Bilateral Agreement
C. Stratification
D. Multilateral Agreement
D. Aesthetics
1691. Which are the main elements of the in-
E. Intangible culture
ternational business environment?
1686. Means rapid increase in the shares A. Geographic factors
of economic activities taking place across
B. Economic factors
national border
C. Cultural factors
A. Liberalisation
D. Political and legal factors
B. Privatization
C. Socialization 1692. Low cost and differentiation are two ba-
sic strategies for creating value and attain-
D. Globalisation
ing a competitive advantage in the indus-
1687. An agreement between two or more try.
companies to share a business project-this A. True
business is on a limited basis for control
B. False
A. Licensing
1693. Companies conduct value-adding activi-
B. Joint venture ties on a global scale, primarily to orga-
C. Franchising nize, source, manufacture, and market
D. Infrastructure A. International Trade

B. Internationalization 1699. Determine where decision-making

C. International Business power is concentrated in your hierarchy:
A. Horizontal differentiation
D. Globalization of Markets
B. Vertical differentiation
1694. The GATT Anti-Dumping Agreement was
C. Organizational structures
the result of which round of negotiations?
A. Dillion
NARAYAN CHANGDER
B. Tokyo 1700. 63) In a country with a high masculin-
ity score, people have a tendency to feel
C. Kennedy sympathy towards individuals who are un-
D. Uruguay employed or homeless,
A. True
1695. The higher its individual quota, the more
the country has the right to votes in the B. False
IMF.
1701. What is the purpose of OPEC?
A. TRUE A. set the price of petroleum
B. Falso B. encourage the use of oil throughout
the Middle East
1696. The OECD stands for:
C. Develop new ways to extract oil from
A. Organization for Economic Coordina-
the Earth
tion and Development
D. increase the sale of petroleum in 1st
B. Organization for Economic Co- world nations
operation and Development
C. Organization for Environmental Coop- 1702. What is the meaning of IB?
eration and Development. A. International Bank
D. Organization for Environmental Con- B. International Business
trol and Development C. International Block
1697. Locating a value-creation activity in the D. International Bobba
optimal location for that activity can lower
the costs of value creation and help the 1703. Global Business took place over how
firm to achieve a low-cost position, or en- many years ago?
able a firm to differentiate its product of- A. 10, 000
ferings from those of competitors. B. 14, 000
A. True C. 15, 000
B. False D. none of these
1698. Caution should not be taken when mak- 1704. A direct restriction on the quantity of
ing shipping mark guides on high-demand some good that may be imported into a
products. country
A. TRUE A. Import quota
B. Falso B. Tariff rate quota

C. Voluntary export restraint 1709. In which scenario does it make sense

to have a centralized structure for inter-
D. Quota rent
national business?

1705. 21) Imported flowers are now a A. When there is low cost pressure and
stronger competitor to U.S. grown flowers low local responsiveness
in the U.S. market. Which of the following
B. When there is low cost pressure and
is likely the MOST important factor for this
increase in imports?
A. more effective production techniques
B. advances in communication systems
D. When there is high cost pressure and
C. advances in transportation and logis- low local responsiveness
tics
1710. Germany sends a shipment of cars to
D. cross-national cooperation
the United States. This is an example of
what type of business?
1706. Contract manufacturing can be a form of
international business if the manufacturer A. Domestic
produces products for a company located B. International
in another country.
C. Multinational
A. True
D. Franchising
B. False
1711. A global web is created when different
1707. Who participates significantly in inter- stages of a value chain are dispersed to
national business? locations where value added is maximized-
A. Multinational Corporations (MNCs) bor where the costs of value creation are
minimized
B. International Organizations
A. True
C. Governments
B. False
D. Small and Medium-sized Enterprises
(SMEs) 1712. In order for all of your business’s pro-
cesses, procedures and standards to be ef-
1708. David Ricardo’s theory of comparative fective, they must be:documented
advantage explains global trade in terms
of the A. true
A. first mover advantage that certain B. false

countries and firms enjoy
1713. The headquarters of Coca-Cola would be
B. geographical differences between var- called what?
ious countries
A. Coca-Cola firm
C. international differences in labor pro-
B. Parent firm
ductivity
C. Local firm
D. late mover advantage that certain
countries and firms possess D. Global firm

1714. The first phase of globalisation started 1720. Belief in individual and her or his ability
around 1970 and ended with to function relatively
A. The World War 1 A. Time
B. The World War 2 B. Individualism
C. The establishment of GATT C. Technology
D. None of the above D. none of above
1721. In a real-life communist society, who
NARAYAN CHANGDER
1715. selling makes it easier to order
goods that can be sent abroad are the wealthiest and most powerful peo-
ple?
A. Retail
B. Wholesale
C. Online
D. Bulk
1716. The belief that one’s own culture is bet-

ter than all other cultures:
A. ethnocentrism
B. cultural relativism
C. cultural bias
D. culture shock
1717. External influences on a business refer

to A. Intellectuals
A. Factors that are good for the business B. Business leaders
B. Factors that are bad for a business C. Military leaders
C. Factors that are outside the control of D. Whoever controls the government
the business
1722. Releasing information about a person or
D. Illegal actions by a business a company for promotional purposes.
1718. Cultures communicate either directly or A. Advertising
indirectly B. Publicity
A. True C. Advertising Agency
B. False D. Rebate
1719. This country is the largest in the world 1723. Total exports-Total imports = Net Bal-
by area and has a mixed economy. ance of Trade
A. Qatar A. Net Carbs
B. Russia B. Net Surplus
C. Japan C. Net Balance
D. none of above D. Net Failure

1724. Porter argues that a nation’s firms gain 1729. The goal of most firms is to choose a
competitive advantage if strategy that

A. their domestic consumers lack techni-
cal awareness
B. they function in a labor intensive mar-
ket
C. the country has abundant supply of un-
skilled workers
D. their domestic consumers are de-
manding
1725. International business by sending goods

from a country to the customs area A. maximizes the value of the firm for its
A. Impor shareholders
B. Expose B. that minimizes costs

C. Expedition C. that emphasizes high sales
D. Transportation D. that controls both costs and expenses
1726. Expatriate managers located in cultures 1730. What is the mission of IFM?
characterized by have noticed that lo-
A. The IFM was given the task of main-
cal employees are highly motivated by re-
taining order in the monastery system.
tirement programs.
A. low uncertainty avoidance B. The IFM was given the task of main-
taining order in the international mone-
B. high future orientation tary system.
C. low masculinity C. The IFM was given the tasks of stabi-
D. high power distance lizing order in the international monetary
system.
1727. Milka is using Disney characters on the
packaging of its chocolate bars. Which D. The IFM was given the tasks of stabi-
statement is correct? lizing order in the monetary system.
A. This is a case of franchising 1731. According to Adam Smith, A country
B. Milka is the franchisee should specialize in the production of a
C. Disney is the licensor good when it has
D. Disney is the licensee A. an absolute advantage in the produc-

tion of the good
1728. This is an example of activities you can
B. a strong domestic demand for the
make as Paid Volunteer Days
good
A. Cleaning the city
C. the ability to help country increase its
B. Visiting sick people national output
C. Play football D. the necessary raw materials for pro-
D. Skip days at work duction

1732. Being free of dirt. B. distribution channel intermediary

A. Etiquette C. facilitator
B. Cleanliness D. none of above
C. Sociability
1738. barriers do not affect the price of
D. Neatness the imported goods but only the quantity
1733. TO TAKE ADVANTAGE OF IMPORT PRO- of import.
MOTION DRIVE IS AN REASON ON IN-
NARAYAN CHANGDER
A. Tariff
TERNATIONAL MARKETING.
B. Non-Tariff
A. INTERNAL
C. Customs
B. EXTERNAL
D. Specific
1734. Historically, international business
1739. Subsidiaries consider regional environ-
A. is a relatively new concept made pos-
ment for policy/strategy formulation is
sibly by communications technolgy
known as
B. probably occurred as long as 15, 000
A. Polycentric Approach
years ago
C. declined when European countries cre- B. Regiocentric Approach
ated colonies on other continents C. Ethnocentric Approach
D. none of these D. Geocentric Approach
1735. Kodak, Sony, an Nike are examples of 1740. A situation in which parents, children,
A. Global Brands and other relatives live together is
B. National Brands A. a nuclear family.
C. Manufacture’s Brands B. an extended family.
D. Generic Brands C. family class system.
1736. limits the amount or number of units of D. uncommon in developing countries.
products that can be imported to a coun-
try. This are worse than import tariffs be- 1741. It’s okay to be a few minutes late to a
cause when a quota is reached that par- business meeting in China.
ticular good can no longer be imported or A. True
purchased.
B. False
A. Export Quotas
B. Domestic Content Provision 1742. Resources available = 200 units for
each country Production in GhanaCocoa =
C. Import Quotas
10 tonsRice = 5 tons Production in South
D. Voluntary Export Restrain KoreaCocoa = 2.5 tonsRice = 10 tons
Question:After specialization, which coun-
1737. Specialist firm providing logistics and
try will import Cocoa?
marketing services in the international
supply chain A. Ghana
A. focal firm B. South Korea

1743. It is a dimension that tells us about A. New Zealand

the existing degree of interdependence be- B. Italy
tween people in a given society.

C. Mexico
D. Canada
1746. What is the difference between abso-
lute and comparative advantage?
A. Absolute is when your country is
the only country that can produce a
good/service and comparative is when
A. Power distance you can produce it the cheapest
B. Masculinity vs Femininity B. Absolute is when your country can pro-
duce a good/service the cheapest and
C. Uncertainty aversion comparative is when you specialize in the
D. Individualism vs Collectivism efficiency of offering the good/service
C. Comparative advantage is when you
1744. In 2013, Chavez died and Maduro was
collaborate to offer goods/services in
elected president. There were complaints
conjunction with other countries, and ab-
of vote-rigging; critics started claiming
solute is when a country specializes in the
that the new president had adopted
good/service
Chavez’s tactic of misusing state re-
sources. By 2014, there was total unrest D. none of above
in Venezuela. Scenes of anti-government
1747. Safe work environments motivate ;
protests became commonplace; dozens
challenges motivate
died in clashes with security forces. The
people were angry because A. individualists; collectivists
B. collectivists; individualists
C. non-fatalists; fatalists
D. materialists; non-materialists
1748. Which of the following disadvantages
belongs to air transport?
A. Transport is inappropriate and un-
economic for short distances and small
A. they did not realize that Maduro tried freight traffic
his best for them B. Climatic factors affect transport with
B. government control of the economy greater frequency and intensity since air-
has only long term success craft run a greater risk than a ship can run
in the same situation
C. State control of the economy did not
benefit the people C. Retentions on highways and dense
traffic are responsible for delaying deliv-
D. all the above
eries of goods at times.
1745. Where does the US export most of our D. Although much of the earth’s surface
goods to? is covered by water, there are times when

it may be more interesting to use another D. Offer to buy or sell Either one is fine
means of transport. first.
1749. 14 The potential of new entrants is one E. The payment transfer was successful.
characteristic of industry structure.
1755. A telephone is an example of a
A. True
A. Service
B. False
B. Good
1750. Which of the following is not an advan-
NARAYAN CHANGDER
tage of exporting? 1756. The process by which ideas and infor-
A. Limited presence in foreign markets mation are exchanged; includes language,
B. Less investment requirements body language and facial expression, and
eye contact and physical contact
1751. 61) Assume a firm has operations in
A. Sociability
Tokyo, where there is a collectivist culture.
Which of the following would most likely B. Business Practices
motivate the firm’s Japanese employees? C. Communication
A. A)-employee-of-the-month” programs
D. Hug
B. B) extensive vacation line
C. C on-the-job challenges 1757. International business most commonly
affects consumers by creating
D. D) good health benefits
A. a greater variety of buying choices.
1752. To take advantage of tax incentives is
an reason why companies venture into B. fewer buying choices.
International Marketing. C. a change in taxes.
A. Internal D. fewer stores to shop in.
B. External
C. Not in the choices 1758. Because of , it may be legal to bribe
other businesses and government officials
D. none of above in some South American countries, while
1753. A multinational company is said to have this practice is illegal in the U.S.
a world-wide market view because it A. local content laws
views the entire world as a potential cus-
B. business practice laws
tomer.
A. True C. quotas
B. False D. imposing tariffs
1754. Trade negotiation process What transac- 1759. freight forwarders is part of the
tion does it start with?
A. distribution channel intermediary
A. A bid was made. At the same time as
the offering B. focal
B. bid C. ME
C. Offering D. State-Owned enterprise (SOE)

1760. It was founded on January 1st 1995 ac- 1766. Which of the following is/are not
cording to the General agreement on trade cost/s of globalization
and tarrif.

A. standardization
A. WHO B. unemployment
B. FAO C. inequality
C. IMF D. all of the above
D. WTO
E. none of the above
1761. International Sales only occur between
1767. Largest trading bloc in the world is
countries with the same legislation.
A. COMESA
A. TRUE
B. APEC
B. Falso
C. European Union
1762. Exporting generates foreign-
exchange earnings for nations.
A. Enormous 1768. 26) When a company successfully re-
sponds to foreign production and market
B. Small
opportunities,
C. Even
A. other companies will likely emulate its
D. none of above successful practices
1763. The belief that your own culture is bet- B. it likely has a long-term advantage
ter than any other culture is known as over competitors
A. cultural relativism C. it will downsize its domestic opera-
tions
B. ethnocentrism
D. its home government likely raises
1764. Outsourcing a part of or entire produc- taxes on the company
tion and concentrating on marketing oper-
ations in international business is known 1769. Study of governments and nations, in-
as dustries and economies
A. Licensing A. Microeconomics
B. Franchising B. Macro-economics
C. Contract manufacturing C. Trade surplus
D. Joint venture D. the trade fails
1765. The U.S. president increases the amount 1770. 66) The term used by the United Na-
of imported peanuts allowed into the coun- tions as a synonym for multinational en-
try by 100 million pounds per year. terprise is
A. embargo A. multinational corporation
B. tariff B. transnational company
C. subsidy C. international firm
D. quota D. born-global

1771. Most people’s basic value system is 1775. Which of the following options is an ad-
vantage for the franchisor?
A. modified significantly between child-
hood and adulthood A. Failure will damage your brand
B. altered during adulthood through im- B. A motivated and motivated workforce
position C. Less operational control on the ground
C. affected primarily by teenage peer
pressure D. none of above
NARAYAN CHANGDER
D. acquired mainly during early childhood 1776. What are the challenges of international
business?
1772. The United States sends billions of dol-
lars worth of computers to other countries A. Cultural differences, language barri-
for sale. This is an example of an ers, legal and regulatory complexities,
currency exchange rates, political instabil-
ity, and logistical challenges.
B. Lack of government support, lack of in-
frastructure, lack of access to capital
C. High competition, lack of financial re-
sources, lack of market knowledge
D. Lack of technological advancements,
lack of skilled workforce, lack of market
A. export demand
B. import 1777. Fill in the blank: market matches
those who want to invest with those who
1773. A trade pattern is: want to borrow money.
A. what a country trades A. Equity
B. what direction a country trades in B. Capital
C. what a country trades and in what di- C. Bond
rection D. Foreign exchange
D. when a country trades 1778. Letter of credit is issued by:
1774. What is scarcity? A. Importer
A. The limited resources available to sat- B. Banker of Importer

isfy unlimited needs and wants C. Customs Officer
B. A city just north of Gotham D. None of these
C. The study of how people chose to use 1779. Country risk is considered similar to
their limited resources to satisfy their un-
A. political risk
limited needs and wants
B. commercial risk
D. The measurement of total value of all
goods and services produced by the re- C. currency risk
sources of a country D. cross-cultural risk

1780. This umbrella is ideal for people who B. Facilitate the exchange of one cur-
rency for another

A. like to go out in rainy weather C. To regulate the stock market
B. buy hamburgers on Wednesdays D. To provide loans to foreign countries
C. wear shorts in the summer 1786. Select example of Indian Multinational
D. are named Eigotaro Company
A. Hindustan Unilever
1781. “Hi! My name is Eigotaro. I’m an engi-
neer Asahi Beverage Company.” B. Videocon
C. Cargill
A. for
D. Tesco
B. with
C. working 1787. MANY BRANDS FIND IT DIFFICULT TO
FOREIGN BRANDS
D. beside
A. COMPET WITH
1782. What is the meaning of exchange rate? B. COMPETE ON
A. The value of one currency in terms of C. COMPETE WITH
another currency.
D. COMPETITION WITH
B. The cost of exchanging one currency
for another. 1788. Company gives the right to use the prop-
erty to another company in a new market
C. The interest rate at which banks lend in exchange for a fee
money to each other in the foreign ex-
change market. A. Exporting
B. Licensing
D. The rate at which a country’s currency
can be exchanged for gold. C. Joint venture
D. none of above
1783. It answers the part of how you do the
series of steps 1789. WHAT IS DONE IN THE SECOND PHASE
A. Process OF THE STRATEGIC PLAN PROCESS?
B. Procedures A. The values are determined

B. The strategy is implemented
C. The organization’s values are exe-
the unit cost reductions associated with
cuted
large sized outputs?
D. The best strategy is chosen according
A. Absolute advantage of production to the direction
B. Economies of scale
1790. Which is NOT a positive adjective about
C. Constant marginal returns a smartphone?
D. Diminishing marginal returns A. heavy
1785. What is the main purpose of foreign ex- B. compact
change markets? C. reliable
A. To sell foreign goods D. high-quality

1791. A is an agreement between two 1796. Business transactions between parties

or more companies to share a business from more than one country are known as
project. international business.
A. franchise A. True
B. multinational company B. False
C. joint venture 1797. Protectionist governments encourage
D. none of above their citizens to “buy domestic”, this is an
NARAYAN CHANGDER
example of
1792. In a democratic country, holds
power.
A. Law
B. People
C. Labor power
D. none of above A. Trade Sanction
B. Expropriation
1793. The following are nature of Interna-
tional Business, except for ONE: C. Customs Duty
D. Economic Nationalism
A. Partial Information
B. Timely Information 1798. A nation’s transportation, communica-
tion, and utility systems are part of its
C. Large Size
A. scientific resources
D. More Potential
B. natural resources
1794. If a country has improving educational C. infrastructure
systems, increasing technology and ex- D. human resources
panding industries, that country is consid-
ered to be: 1799. The difference between a country’s to-
tal earnings from exports and its total ex-
A. Developing
penditure on imports.
B. Less-developed
C. Industrialized
D. none of above
1795. Markets are not always perfectly com-

petitive and some firms consistently out-
perform industry averages. This suggests
that firm performance is also influenced
by the presence of bright, motivated man-
agers and their keen sense of innovative A. autarky
products or processes. B. balance of trade
A. True C. barter or counter-trade
B. False D. balance of payments

1800. A is a restriction on the amount of C. The rules help states cope with the
goods that can be imported into a country. challenges presented by economic global-
ization

A. Tariff
D. It is the need to achieve a greater mea-
B. Quota
sure of equity in international economic
C. Embargo relations.
D. Non of the above 1803. What is the definition of exchange
rates?
1801. In 1999, wrote a new Constitution for
Venezuela. The members of this Assem- A. The value of one currency in relation to
bly were all Chavez’s followers; and they another currency.
went on to dissolve the democratically B. The rate at which interest is charged
elected Congress and dismiss all the mem- on loans and credit cards.
bers of the Supreme Court, the Attor-
ney General, the General Comptroller, and C. The rate at which stocks and bonds are
most of the judges in the country. All traded on the stock market.
these positions were filled with bureau- D. The rate at which goods and services
crats loyal to the President. Corruption in are exchanged between countries.
government became worse than ever be-
fore. In doing business in Venezuela today 1804. 30) All of the following are areas in
which commercial activities take place out-
side the territory of any nation EXCEPT
A. noncoastal areas of the oceans

B. the Panama and Suez Canals
C. outer space
D. Antarctica
A. it will be of little use to go to court 1805. Global Economy refers to

B. you could do well if you can influence A. a world economy with movement of
government officials products and labors across international
borders.
C. the government think they can make
better decisions than the citizens B. The entire world creating and using
the same currency.
D. all the above
C. A snow globe for sale.
1802. The following are reasons explaining D. A snow globe with fake money inside.
why there is a need for international trade
rules, except for ONE: 1806. In which areas has the Chinese market
A. The rules satisfy the need of traders experienced rapid development?
and investors for a degree of security and A. Information technology and telecom-
predictability munications
B. The rules allow countries from taking B. Manufacturing and manufacturing in-
trade-restrictive measures dustry

C. Agriculture and forestry 1811. A franchise allows a company to expand

to other countries.
D. Traffic and transportation
A. True
1807. refers to the unrestricted flow of goods, B. False
services, and productive resources be-
tween countries 1812. The global equity markets don’t allow
firms to
A. free trade
A. Raise funds by issuing equity or debt
NARAYAN CHANGDER
B. balance of trade globally
C. trade surplus B. List stock on multiple exchanges
D. the trade fails C. Attract capital from international in-
vestors
1808. When watching the McDonald’s clip,
D. Increase the cost of capital
what concept was the hardest for cus-
tomers in China to adopt? 1813. is the payment method most often
used in International Trade which offers
the exporter best assurance of being paid
for the products sold internationally.
A. CASH IN ADVANCE
B. LC
C. BANK DRAFTS
D. BILLS OF LADING
A. AmericanCuisine
1814. One of the key internal drivers for inter-
B. Kiosk Machines national business is technology.
C. Drive-thru A. TRUE
D. To-go Counters B. FALSE
1815. Which country is involved in a huge
1809. what measures the amount of money a
countervailing and antidumping duty crisis
country owes to other countries
with the United States over solar panel
A. tariffs materials?
B. balance of trade A. China
C. foreign debt B. India
D. none of above C. Mexico
D. Bahrain
1810. Nations engage in international trade
because most countries do not have the 1816. This Japanese company has a lot of qual-
factors of production needed to produce ity methods
all the goods and services needed by their A. Samsung
population. B. Nokia
A. True C. Toyota

1817. By what other name is capitalism often

referred?

A. Parallel market
B. State market
C. Controlled market
D. Free market
1818. Which global market entry strategy in-

volves partnering with a local company? A. Canada
A. franchising B. Denmark
B. exporting C. Israel
C. licensing D. Saudi Arabia
D. joint venture 1823. What percentage of the global economy

do Europe and the U.S. account for?
1819. is the making, buying and selling of
A. 35%
products within a country.
B. 40%
A. International business
C. 45%
B. Global economy
D. 50%
C. Domestic business
D. none of above 1824. Which one among the following is not a
member in SAARC?
1820. In societies where trust is high, A. India
A. people tend to be more future- B. Maldives
oriented
C. Bhutan
B. business costs are typically lower D. Myanmar
C. people tend to be more fatalistic
1825. Which of the following is most likely a
D. family businesses are dominant true statement about the global economy
since the 1980s?
1821. A code of conduct that helps determine
what is good, right and proper. A. Socialist governments are intervening
more in global exchanges.
A. Ethics
B. Wealthy countries are exercising total
B. Depreciate control over emerging markets.
C. Consumer C. Developing countries are losing grow-
ing shares of their foreign-exchange re-
D. Curency
serves.
1822. What country would make you hesitant D. Emerging economies are adopting the
to send female employees to? principles and practices of free markets.

1826. 5) Which of the following is an indica- 1831. 48) Critics of offshoring assert that the
tion of the increased globalization of busi- short-term cost savings derived from off-
ness since the end of World War II? shoring hinder firms from developing more
A. Foreign trade has largely replaced for- efficient production methods.
eign ownership as a means of conducting A. True
international business. B. False
B. World trade has grown more rapidly 1832. It is possible to identify multinational
than world production.
NARAYAN CHANGDER
firms that find themselves in the fortunate
C. Globally, consumers now depend on position of being confronted with low cost
foreign output for more than half their con- pressures and low pressures for local re-
sumption. sponsiveness.
D. Countries have increased their import A. International Strategy
restrictions to counter the rising tide of B. Localization Strategy
imports. C. Differences in consumer tastes and
preferences
1827. Currency depreciation could be caused
by D. Global Standardization Strategy
A. Supply Increase or Demand Increase E. Differences in distribution channels
B. Supply Increase or Demand Decrease 1833. It is a permitted exception to the Most

Favored Nation clause.
C. Supply Decrease or Demand Decrease
A. Give preference to imports from devel-
D. Supply Decrease or Demand Increase oping countries
1828. Export means B. When there is an agreement between
importing and exporting companies
A. buying goods from another country
C. When there is a promise of production
B. selling goods to another country at scale
C. only making one kind of product D. Answers 1 and 2
D. none of above 1834. a risk in which the exchange rates of ei-
ther of the two countries will fluctuate
1829. It is polite to wear a face mask in Japan
if you are sick? A. Risk
A. True B. Economic Risk

C. Exchange Rate Risk
B. False
D. Legal Risk
1830. What are imports?
1835. 13) A(n) ideology is the system of
A. Consist of sending goods out of the ideas that expresses the goals, theories,
country and aims of how society should work.
B. consist of bringing goods into the coun- A. technological
try B. economic
C. none of the above C. legal
D. none of above D. political

1836. The development of a worldwide econ- A. true

omy where resources flow fairly freely
B. false
across borders.

Explanation:Trade barrier-are government-
induced restrictions on INTERNATIONAL
trade. According to the theory of com-
parative advantage, trade barriers are
detrimental to the world economy and de-
crease overall economic efficiency.
A. Globalization 1841. Which Indian industries have been hit by

globalisation?
B. Economy
A. Toy making
C. GDP
D. Economic Independence B. Jute
C. Cement
1837. Refers to the extent to which a country
is endowed with such resources as land, D. Information technology
labor, and capital.
1842. Which of the following is a major bene-
A. Comparative advantage fit of engaging in free trade?
B. Factor endowments A. It helps to reduce the financial volatil-
C. Factors of production ity in global markets.
D. none of above B. It helps the countries protect the jobs
that are available to their citizens.
1838. Confucianism was founded in the 5th
century B.C in C. It gives countries access to products
that they cannot produce.
A. Japan
D. It allows the governments to exert
B. China
more control on businesses.
C. Thailand
D. Nepal 1843. Select example of Indian Multinational
Company
1839. Effective policy measures that promote A. Hindustan Unilever
Globalization which is not included
B. Videocon
A. Anticorruption Policies
C. Cargill
B. Competitive Market
D. Tesco
C. Bad Governance
D. Property Rights 1844. A person who starts his or her own busi-
ness in hope of earning a profit.
1840. Trade barrier-are government-induced
restrictions on national trade. According A. Consumer
to the theory of comparative advantage, B. Currency
trade barriers are detrimental to the world
C. Manufacture
economy and decrease overall economic ef-
ficiency. D. Entrepreneur

1845. Conditions of supply and demand inter- 1851. A citizen of the United States who has
action include which of the following? recently returned home after living in an
A. Surpluses underdeveloped section of Africa for two
years is least likely to say
B. Shortages
C. Equilibrium
D. All of the above
NARAYAN CHANGDER
1846. Which is not a function of primary activ-
ities
A. Research and Development
B. Customer service
C. Human Resources A. “This air-conditioning works too well;
I’m chilly.”
D. Marketing and Sales
B. “Everything is exactly as it was when
E. Production I left two years ago.”
1847. Body language is universal C. “He has worn a different outfit to work
A. True every day for the last two months.”
B. False D. “Wow! There are at least 20 flavors of
ice cream from which to choose.”
1848. A manages a nation’s currency,
money supply, and interest rates. 1852. National Competitive advantage trade
A. commercial bank theory corresponds with
B. central bank A. factor endournment
C. World Bank B. mercantilism

D. Bank for International Settlements 1853. They are taxes that governments apply
to a good that is traded internationally.
1849. Countries should specialize in the pro-
duction of goods for which they have an A. Duty
absolute advantage and then trade these B. Dumping
goods for those produced by other coun-
tries. C. Dues
A. Absolute Advantage D. All of the above
B. Comparative Advantage 1854. According to the textbook, .they are
1850. One of the international universities a mechanism that has allowed and facili-
partnering with MSU mentioned in the tated the globalization process
video is A. International Monetary Fund and
A. Harvard University World Bank
B. Michigan State University B. Exchange rate and consumer credits
C. Tanjung Pura University, Pontianak C. International Business
D. Josai University D. Offer and demand

1855. What is globalization? C. domestic corporation

A. The increasing interconnectedness D. shell corporation

and interdependence of countries through
the exchange of goods, services, informa- 1860. regional economic integration
tion, and ideas on a global scale. A. aim to reduce or eliminated tariff and
B. The process of isolating countries non tariff barrier between member coun-
from each other tries
C. The decline of international trade and B. limits free flow of goods and services
communication as well as factor of production among
member countries
D. The restriction of cultural exchange be-
tween countries C. reduces economy activity and makes
doing business more difficult among na-
1856. Which of the following are cultural tions within the alliances
aspects that affect global marketing? D. discourages member companies to in-
Choose all that apply. ternationalize into neighboring countries
A. Language within blocs
B. Product specialization 1861. Special Economic Zone (SEZ) has been
C. Time & Punctuality created in the
D. Business Norms A. EXIM Policy 2000
1857. When designing a marketing plan, com- B. EXIM Policy 2002
panies should start with which of the fol- C. EXIM Policy 1990-91
lowing?
A. Customers
1862. It is a business orientation where the
B. Profit Goals
culture of the country of origin is superior
C. The Supply Chain to that of other countries:
D. Competitor Analysis
1858. This country is bordered by Bangladesh,

Bhutan, Burma, China, Nepal, and Pak-
istan.
A. India
B. Iraq
A. Polycentrism
C. Saudi Arabia
B. Ethnocentrism
D. none of above
C. Geocentrismo
1859. A business that has direct investments D. None of the above
(in the form of marketing or manufacturing
subsidiaries) abroad in several countries is 1863. Culture is a set of associated with a
called a particular group of people.
A. shell corporation A. Laws and government practices
B. multinational corporation B. Behaviors, values and attitudes

C. Moral standards and guidelines E. The difference in the value of imports

D. Language and symbols and exports of Thailand in a given year.
1864. Define what is the ethical behavior? 1868. Why is it crucial to understand the socio-
cultural factors of a foreign planet when
A. it is a good attitude doing business?
B. it is simply the right thing to do A. To ensure the business is culturally
C. Both of them sensitive and respectful
NARAYAN CHANGDER
D. None above B. To learn the alien language
1865. . All of the following add to the pres- C. To understand the alien technology
sure to be locally responsive except D. To compete in intergalactic sports
events
1869. Mobility is the willingness to relocate

to another location for better employment
opportunities
A. True
B. False
A. national differences in infrastructure 1870. What is the balance of payments?

B. differences in accepted business prac- A. The difference between the amount of
tices money that flows into a country and the
C. consumers with low switching costs amount that goes out
D. host government demands B. The difference between a country’s to-

tal imports and total exports
1866. Ways to cater Emerging economies C. When a country exports more than it
A. Involving in economic developments imports
B. Involving in csr D. When a country imports more than it
C. Involving in conglomerates exports
D. All 1871. Which of the following theories sug-

gests that first mover advantage is signif-
1867. “Trade balance value” in Thailand’s icant in the export of a good?
international trade statistics database
Which option has a meaning? A. Product life-cycle theory
A. Value of Thailand’s international trade B. Ricardo’s theory
in a given period C. New trade theory
B. Value of products Thailand exports in a D. Theory of comparative advantage
given year
C. Value of Thailand’s international trade 1872. This culture is more flexible as regards
in a given year to time.
D. Value of Thai products imported into A. Monochronic Cultures

the country in a given year B. Polychronic Cultures

1873. What are the challenges of globaliza- 1877. What is a type of cross-cultural
tion? business-to-business business context?

A. Social unrest, increased competition,
job displacement, and cultural homoge-
nization.
B. Language barriers, political conflicts,
technological disparities, and resource
depletion. A. Meetings
C. Trade imbalances, loss of national B. Marketing
identity, increased pollution, and eco-
nomic dependency. C. Talks
D. Cultural clashes, economic inequality, D. Alliances

loss of local industries, and environmen- 1878. What is the main characteristic of the
tal degradation. international strategy model?
1874. Climate and terrain are two examples of A. Low cost pressure and low local re-
conditions that influence international sponsiveness
business. B. High cost pressure and high local re-
A. geographic sponsiveness
B. economic C. High cost pressure and low local re-
sponsiveness
C. political and legal
D. Low cost pressure and high local re-
D. cultural and social sponsiveness
1875. Which of the following statement is cor- 1879. What are the two Es in the acronym PES-
rect? TLE?
A. Every member country of the IMF au- A. Enterprise and Environment
tomatically becomes the member of the
World Bank B. Environment and Education
B. The World Bank has 45 founder mem- C. Economic and Enterprise

bers D. Economic and Environmental
C. India is not the founding member of 1880. aims to create the best products at
the World Bank the lowest total cost, which often results
D. IMF is the part of World Bank group in workers being mistreated.
A. The mixture economy
1876. By foreign investment we mean inviting
in our country for industrial develop- B. Socialism
ment. C. Capitalism
A. Foreign people D. Communism
B. Foreign capital
1881. The Oil Producing and Exporting Coun-
C. Foreign Material tries (OPEC) is an example of a
D. All of the above A. foreign direct investment (FDI)

B. cartel 1886. What are the costs of globalization?

C. business office A. Threats to national sovereignty
D. subsidy B. Economic growth and environmental
stress
1882. Packaging credit is also known as:
C. All of these
A. Post-shipment credit
D. Growing income inequality and per-
B. Pre-shipment credit sonal stress
NARAYAN CHANGDER
C. Buyers Credit 1887. Which country is both the top export
D. Non of these market and the top supplier for the United
States?
1883. Infrastructure includes all of the follow-
ing except? A. Canada
A. education B. China
C. Japan
B. roads
D. Germany
C. sea ports
D. sewer system 1888. Identify the problems of International
Business
E. internet
A. Legal Formalities
1884. You promise voters free education and B. Foreign Exchange
free medical. It will cost money which you
can get by C. To spread business risk
D. Utilization of resources
1889. Tourism received by a certain country

A. Receptive tourism
B. Border tourism
1890. What are the key components of inter-

national supply chain management?
A. borrowing from rich overseas coun- A. manufacturing and production, cus-
tries tomer service, quality control, and risk
B. increasing taxes locally management
C. printing money B. marketing and sales, financial man-
agement, human resources, and informa-
D. nationalization of rich companies
tion technology
1885. Under which mode of entry is new en- C. warehousing and distribution, cus-
tity created in the host country? tomer relationship management, market
A. Franchising research, and product development
B. Strategic alliance D. sourcing and procurement, transporta-
tion and logistics, inventory management,
C. Turnkey project demand planning and forecasting, and
D. Joint venture supplier relationship management

1891. This rice cooker is compact, so 1896. The marketing goal of satisfying needs
that have not been met can be achieved in
A. it won’t take up a lot of space
all of the following ways except

B. you should not buy it
A. by selling the product in a country in
C. it is very big which it has never been sold before.
D. it is used to make rice B. by adding a new variation to an exist-
ing product.
1892. When factories moved to Mexico due to
the impact of NAFTA, how many jobs in the C. by changing the price of a product.
automobile industry did the USA lose? D. by promoting a new use for an existing
A. 770 000 jobs product.
B. 700 000 jobs 1897. A global dependency exists when

C. 800 000 jobs A. massive crop failures require buying
food from another country
D. 730 000 jobs
B. a country buys tools from another
1893. Which factors below encourage the com- country because it does not have the tech-
pany to change the strategy? (multiple an- nology to make the tools
swers)
C. doctors travel to another country to
A. Transformations in organizational provide healthcare because there is a
structure shortage of medically-trained profession-
B. Laws and Regulations changes als in that country
C. Political instability D. all of these
D. The CEO experienced the loss of a 1898. Opposite to Franchisor is

loved one
A. franchisee
1894. Which of the following would character- B. VAT
ize a nation with high degree of economic
C. Tax
freedom?
D. expertise
A. low tariffs
Explanation:franchisor:franchisor or
B. strict trade policies brand owner. Franchisee or franchisee
C. government interventions 1899. It is found in those countries that can
D. flourishing black markets produce a good using fewer productive
factors than others, and therefore, with
1895. An example of secondary data is a lower production cost than that which
A. a test market could be obtained using it.
A. Overproduction
B. a focus group
B. Greater demand
C. a survey using a written questionnaire
sent by mail C. Absolute advantage
D. a government database D. }

1900. All of the choices are the concerning re- C. free-trade agreement
garding to the different religion markets D. none of above
except:
A. product design 1905. The four types of pressure for local re-
sponsiveness are:differences in consumer
B. promotion campaign tastes and preferences, differences in tra-
C. words ditional practices and structure, differ-
D. advertising clip story ences in distribution channels and host gov-
NARAYAN CHANGDER
ernment demands.
1901. What are corporates doing to upgrade A. True
their supply chain models?
B. False
A. Promoting protectionist measures
B. Diversifying supply chains into differ- 1906. Russia refuses to import goods from
ent markets Moldova.
C. Reducing geopolitical uncertainties A. tariff
D. Increasing reliance on certain markets B. quota

C. embargo
1902. Which of the following is/are a
driver/s of globalization D. none of above
A. economic liberalization 1907. Is Putin a war criminal?

B. economic integration A. and
C. less protectionism B. nee
D. all of the above 1908. A government action that decreases an
E. none of the above industry’s productions costs, which also
decreases the price of the industry’s goods
1903. When a company decides to examine (e.g. Farm subsidies in NE)
the competition’s financial and market-
ing performance they assign the task to A. Domestic trade
whom? B. Free trade
A. Market Analyst C. Market
B. Engineer D. Subsidy
C. Brand Manager 1909. The first step in preparing for negotia-
D. Marketing Director tions is ( ).
1904. Like the European Economic Commu- A. mining the critical information from dif-
nity, MERCOSUR is an economic and po- ferent resources.
litical bloc comprising Argentina, Brazil, B. knowing a particular executive’s back-
Paraguay, Uruguay, and Venezuela. What ground, hobbies, and family status.
level of economic integration is MERCO- C. designing agenda for negotiation
SUR?
D. sizing up the probable goal and pref-
A. free trade zone erences of your counterpart’s analysis of
B. common market data.

1910. When a person first encounters a new A. self-reliance

culture, they might feel unsure, afraid, or
B. consensus or group agreement
perhaps intrigued; this is referred to as:

C. selfishness
A. cultural bias
B. cultural insecurity D. none of the above
C. cultural norms 1915. How Property rights can be violated?
D. culture shock A. Private action
1911. A TRADING BLOC WHERE COUNTRY B. Public action
MEMBERS UNIFY THEIR POLICIES TO-
WARD TRADE AND FACTOR MIGRATION C. International action
A. FREE TRADE AREA D. Both 1 & 2

B. CUSTOMS UNION 1916. Which is referred to the risks arising
C. COMMON MARKET AREA from economic factors through economic
D. FULL ECONOMIC UNION transactions and other economic activities
A. Translation Exposure
1912. Global poverty rate is projected to in-
crease in 2030 by B. Scientific Exposure
A. 5% C. Economic Exposure
B. 6% D. Exchange Exposure
C. 7%
1917. National Competitive Advantage theory
D. 8%
A. founded by Poter
1913. Which of the following is NOT one of
the basic economic questions listed in the B. is known as diamond
presentation? C. pays attention to domestic market
A. What goods and services do we pro- D. rejects all other theories
duce?
B. How do we produce those goods and 1918. Continued:Why might English be consid-
services? ered a universal language
C. When will we produce those goods and A. There are more native English speak-
services ers than any language in the world
D. Who should benefit from the goods B. English contains the most “business-
and services produced? related” words
1914. Collectivism is characterized by 1919. How many commodity boards are work-
ing at present in India?
A. 5
B. 6
C. 7
D. 8

1920. A country having a GDI less than 0.500 C. 3

indicates D. 4
A. an increase of education E. 6
B. larger gender disparity
1925. A debit Balance of Payment occurs due
C. discrimination to 1. Low imports and high exports2.
D. high rates of crime High imports and low exportsSelect the
correct answer using the codes given be-
NARAYAN CHANGDER
1921. The expansion of the Roman Empire led low:
to trade relations.
A. Only 1
A. TRUE
B. Only 2
B. FALSE
C. Both 1 and 2
1922. Products from country A sold in coun- D. Neither 1 nor 2
try B, and country C selling to country
A:Example of: 1926. All of the following are examples of non-
A. Domestic Business verbal communications except
B. Global Dependency
C. Trade Barriers
D. Consumers
1923. What is a characteristic of developing

economies?
A. wearing black to a funeral in the United
States
B. shaking hands when you meet a new
business associate
C. introducing your spouse to a coworker
at a business dinner
D. wearing a suit to a job interview
1927. Presence of numerous factors prevailing

A. Lower levels of infant mortality in the environment that change overtime.
B. Higher literacy levels A. Environmental Uncertainty
C. Improved productivity B. Environmental complexity
D. Poor public health services C. Environmental firm

D. none of above
1924. There are characteristics of culture
which are important for global companies 1928. Which one of the following is not
to recognize. amongst India’s major exports items?
A. 2 A. Textiles & garments
B. 5 B. Gems & Jewellery

C. Oil & Petroleum products A. Increasing dependence on informa-

D. Basmati Rice tion technology

B. Expanding the need for cooperation
1929. Social responsibility, love, marriage, with local suppliers
justice are all examples of within a cul-
ture. C. Increase operational efficiency and re-
sponsiveness to customer requests
A. folkways and mores
D. Avoid competition with local compa-
B. values
nies
C. subcultures
1935. It is one of the modes of entering into
D. norms
International Business.
1930. *It describes the sequence of steps, and A. Licensing/Franchising
specifies for each step what needs to be
done, often including when the should B. Contract manufacturing
be executed and by whom. C. Joint venture
A. Process D. All the above
B. Procedures
1936. What is the primary concern of the In-
1931. Avoidance of legal barriers and import ternational Monetary Fund?
tarrifs
A. Establishing a secure monetary sys-
A. benefits tem
B. limitations B. Investing in innovative technologies
1932. The attitudes and behavior that are C. Overseeing the central banks system
characteristic of a particular social group D. Providing small loans to developed na-
or organization (this can include religion, tions
language, customs, traditions, food, etc.)
A. Trade 1937. What is the full form of FTZ?
B. Tariff A. Foreign Trade Zone
C. Culture B. Free Trade Zone
D. Export C. Foreign travel Zone
1933. Marta’s company sells stock to in- D. Free Travel Zone

vestors. What type Of capital market loan
is this? 1938. Which of the following is an example of
globalization?
A. Equity
A. A business that has multiple branches
B. Debt
B. A business that has multiple owners
1934. How can global production decisions
C. A business that has its headquarters
and supply chain management affect the
and factories in different countries
growth and profitability of global compa-
nies? D. none of above

1939. How can the beliefs, behaviors, objects, B. Export Procedure for Revenue Growth
and other characteristics common to mem- C. Euro, Polish Zolty, Russian Rouble,
bers of a particular group or society BEST Georgian lari matrix
be described?
D. Ethnocentric, Polycentric, Regiocen-
A. language tric and Geocentric Orientation
B. traditions
1943. Formal trade barriers are culture, tradi-
C. culture tions, and religion of a country.
NARAYAN CHANGDER
D. hobbits A. TRUE
1940. What are the advantages and disad- B. FALSE
vantages of different market entry strate- 1944. Why is efficiency in global production
gies? and supply chain management important
A. Limited growth potential, limited con- for global companies?
trol over operations, potential for in- A. Reduces the need for collaboration
creased competition with local suppliers
B. Advantages:accessing new markets, B. Ensure an uninterrupted supply chain
diversifying revenue streams, gaining
C. Improving the quality of products and
competitive advantage, reducing depen-
services
dence on a single market. Disadvan-
tages:high costs, potential risks and un- D. Reducing dependence on information
certainties, cultural and regulatory barri- technology
ers, extensive research and planning.
1945. What is a benefit of this
C. Limited market knowledge, potential method:prepayment by the importer
for negative customer perception, poten- A. This provides security for both parties
tial for legal and regulatory challenges
B. It means that it will have greater liquid-
D. Difficulty in adapting to local market ity as cash flows into the business before
conditions, potential for cultural misun- the product has actually been sold
derstandings, potential for political insta-
bility C. This transfers the risk from the seller
to the bank
1941. A is a limit of how much of a prod- D. This means that the business will have
uct can be brought into a country during a to fund the export itself, deferring pay-
specific time. ment to a later date
A. quota
1946. The International Finance Corporation
B. tariff performs which of the following func-
C. law tions?
D. none of above A. Provides long-term low-interest so-
cial sector and infrastructure loans to
1942. EPRG represents 4 different formulas in the poorest members utilizing foreign aid
the field of international business such as funds provided by rich nation members
B. Provides political risk coverage for
A. Export-Import Promotion Relationship private investments made in developing
Grid countries

C. Provide loans and take equity position 1951. Collectively, we refer to political, eco-
in private companies of developing coun- nomic, and legal systems as constituting
tries and works toward developing capital the economy of a country.

markets in those economies A. Legislative
D. Works on issues related to foreign in-
B. Governing
vestment disputes
C. Political
E. Supports reconstruction and restruc-
turing of member countries utilizing funds D. Administrative
raised in international capital markets
1952. Which of the following was formed for
1947. Typically done through exporting and looking after the promotion of free and
importing fair trade among nations?
A. Internal Trade A. International Monetary Fund
B. Internationalization B. World Bank
C. International Business C. World Trade Organisation
D. Globalization D. General Agreement for Tariffs and
1948. Sports teams having their logo on mem- Trade
orabilia is considered?
1953. Historically, international business:
A. Licensing
A. Is a new thing
B. Joint venture
B. Started about 15, 000 years ago
C. Franchising
C. Declined with expansion of countries
D. Infrastructure
D. None of these
1949. 71) The ownership of foreign bonds is
an example of a portfolio investment. 1954. Import taxes are a form of trade bar-
rier.
A. True
B. False A. True
B. False
1950. When was the price for gold at its high-
est ever? 1955. Access to global Markets
A. benefits
B. limitations

the extent to which a country is gifted
with such resources as land, labor, and cap-
ital?
A. 1939 A. Current accounts
B. 2008 B. Factor endowments
C. 2011 C. National balance
D. Now D. National accounts

1957. A common law legal system reflects C. differences in traditional practices and
three elements except infrastructure
A. Tradition D. differences in distribution channels
B. Usage 1963. El Packaging
C. Morality
A. It is the activity of placing products in
D. Precedent containers
1958. Zero-sum game is a ‘win-lose’ situation B. Does not take place before packing
NARAYAN CHANGDER
A. True C. It is the process of displaying the prod-
uct in a more attractive way.
B. False
D. none of above
1959. Removing barriers or restrictions set by
the government is known as 1964. Continued:Why might English be consid-
ered a universal language
A. Globalization
A. It often takes fewer words to send a
B. Privatization
message in English
C. Nationalism
B. It often takes more words to send a
D. Liberalization message in English
1960. Items bought from other countries 1965. Globalization involves only commercial,
A. exports legal and work abroad elements
B. imports A. TRUE
C. comparative B. Falso
D. absolute
1966. The European Union added a new tax on
1961. What is the main characteristic of all coffee imported from Colombia.
the ‘multidomestic’ international strategy A. tariff
model?
B. quota
A. Low cost pressure and high local re-
C. embargo
sponsiveness
D. none of above
B. Low cost pressure and low local re-
sponsiveness 1967. Which of the below is not in the 5 forces
C. High cost pressure and low local re- model?
sponsiveness
D. High cost pressure and high local re-
sponsiveness
1962. Pressures for cost reductions are great-
est when
A. major competitors are based in low
cost locations
B. differences in consumer tastes and A. Bargaining power of suppliers
preferences B. Bargaining power of buyers

C. Threat of new innovation C. credit derivative

D. Threat of new entrants D. exchange rate

1968. Globalisation has improved in the living
1973. Which is a global product from Indone-
structure of
sia
A. All the people
B. Workers in developing countries
A.
C. People in developing countries
1969. Is the participation of maritime trans-

port the most used in Colombia both in im- B.
ports and exports?
A. False
B. True C. Both are not products from Indonesia
1970. is a process that establish a working D. Both are global products from Indone-
agreement between two companies. As sia
part of the agreement, one company will
custom produce parts or other materials on 1974. a risk of politically motivated interfer-
behalf of their client. A is refer to ence of a foreign government
A. Franchising A. High Dependency Risk
B. Contract manufacturing B. Political Risk
C. Turnkey Project C. Credit Risk
D. Joint Venture
D. Legal Risk
1971. Trade barriers can limit a firm’s ability
to disperse production globally in these 1975. 68) Kyle an international manager for
term, except Apex Industries, has been given the task
of analyzing the economies of three differ-
A. Trade barriers raise the cost of export-
ent emerging countries for the firm’s po-
ing
tential expansion. Which of the following
B. Firms may have to locate production questions is LEAST relevant to Kyle’s as-
activities signment?
C. Trade barriers raise the firm’s profit A. Al How much freedom will Apex have
D. The threat of future trade barriers can to run its foreign operations?
influence firm strategy
B. B) What are the current economic poli-
1972. What is the value of one country’s cur- cies related to development?
rency expressed in relation to the currency C. C) What is the likelihood that Apex can
of another country? Gill manufacturing positions with locals?
A. countertrade D. D) What factors in the country drive or
B. monetization hinder economic change?

1976. For a host country that receives the 1982. Product life cycle theory was based on
investment, it can provide:organizational the results of
technologies and management skills, and A. WW 1
as such it can provide a strong impetus for
economic development. B. WW 2
A. True 1983. How can an international company pro-
B. False tect itself against currency changes?
A. Hedging (the use of futures, options,
NARAYAN CHANGDER
1977. Licencing and Franchising are same? and/or currency-hedged funds
A. True B. Diversification globally and investing
B. False in countries with conservative currency
management
1978. The extent of globalisation is shaped
C. Transacting in your own currency, e.g.
by which promote or impede economic
demand payment in US$
cross-border interconnections.
D. All of the above
A. political rivalry
B. political decisions 1984. Selling abroad, either directly to target
customers or indirectly by retaining for-
C. political dynamism
eign sales agents or/and distributors.
D. political influence
A. licensing
1979. CSR means B. franchising
A. corporation social regulatory C. exporting
B. corporate social regulatory D. manufacturers
C. corporate social responsibility
1985. Global expansion allows firms to
D. corporate social rehabilitation achieve all of the following, except:
1980. involves cross-border transactions A. standardize their product offering,

of goods and services between two or marketing strategy, and business strat-
more countries egy for all national conditions.
A. International business B. realize location economies by dispers-

ing value creation activities to the optimal
B. Domestic market location.
C. Inter state market C. realize cost economies from experi-
D. None of them are true ence effects generated by serving a larger
market from a central location.
1981. The process of globalization is an/the;
D. expand the market for their domestic
A. amalgamation of the global and the lo- product offerings by selling those prod-
cal ucts in international markets.
B. emphasis on local culture 1986. Limit of certain goods that may be im-
C. emphasis on global culture ported.
D. use of the regional symbols A. Quotas

B. Tariffs C. Develops an aspect of a product that

C. Embargo makes it different to its rivals

D. Balance of Payments D. Produces a range of goods and ser-
vices
1987. What is a balance of trade?
A. when the value of imports exceeds the 1991. The set of beliefs, customs, and atti-
value of exports tudes of a distinct group of people is called
a(n):
B. when the value of imports is equal to
the value of exports A. Corporate culture
C. when the value of exports exceeds the B. subculture
value of imports
C. culture
D. when the value of money exceeds the
amount of goods and services trade D. none of these
1988. Purchasing the right to use a company 1992. What is the primary purpose of these
name or business process in a specific way. policies?
E.g. McDonald’s, Burger King, KFC and A. To hinder international trade
Pizza Hut.
B. To limit competition in the interna-
A. Exporting
tional marketplace
B. Licensing
C. To ensure fair competition and pro-
C. Franchising mote exports
D. Joint venture
D. To promote imports at the expense of
1989. A Company making, buying, and selling exports
goods and services within a country.
1993. What is one potential advantage of do-
ing business internationally over domestic
business?
A. The ability to negotiate the price of a
building
B. The availability of realtors to help find
a building
A. Domestic C. The opportunity to expand market
B. International reach and increase sales
1990. Which of the following statements best D. The assumption that the government
describes the term, unique selling point? will not mind opening another business
When a business:
1994. International business can help to im-
A. Establishes a clear target market for prove political relations among countries.
its products
A. True
B. Develops an aspect of a product that
makes it different to its rivals B. False

1995. Government makes payments to local 1999. The degree to which a society empha-
suppliers to reduce the production costs of sizes individual accomplishments versus
the supplier. collective accomplishments
A. embargo A. Power Distance
B. standard B. Uncertainty Avoidance
C. subsidy C. Individualism-Collectivism
D. none of above D. Masculinity-Feminity
NARAYAN CHANGDER
1996. 3 considerations before taking your E. Time Orientation
business international
2000. What is a characteristic of developed
A. Culture economies?
B. Legal and regulatory barriers
C. Country
D. Government considerations
1997. What are the benefits of international

trade?
A. Decreased economic growth, limited A. Lower levels of infant mortality
access to goods and services, higher
prices for consumers, job loss, and B. They practice multiparty democracy
strained international relations. C. Improved productivity
B. Increased economic growth, access D. Poor public health services
to a wider range of goods and services,
lower prices for consumers, job creation, 2001. Which trade theory suggests that a
and improved international relations. country should specialize in producing and
C. No impact on economic growth, lim- exporting goods that it can produce more
ited access to goods and services, higher efficiently and import goods that it cannot
prices for consumers, job loss, and produce as efficiently?
strained international relations. A. Opportunity Cost
D. Increased economic growth, limited B. Comparative Advantage
access to goods and services, higher
C. Absolute Advantage
prices for consumers, job loss, and
strained international relations. D. Balance of Trade
1998. product life cycle trade theory divides 2002. A nation’s money-can be in coins or ban-
world into knotes.
A. leading innovation USA A. Currency
B. developed Europe B. Embargo
C. developing-the rest of the world C. Franchise
D. undeveloped-the rest of the world D. Trade barrier

2003. The value of one currency in terms of B. the sum total of goods and services
another. traded

A. Exchange Rate C. international transactions paid for in
money rather than barter
B. Term Currency
D. typically a country’s least common in-
C. Currency Term
ternational economic transactions
D. none of above
2008. Value-added and excise taxes are most
2004. Firms that pursue a global standard- likely to be applied to
ization strategy focus on increasing prof- A. cars
itability and profit growth by reaping the
B. corporate income
cost reductions that come from economies
of scale, learning effects and localization C. companies located in host countries
economies, that is their strategic goal is D. real estate
to pursue a low-cost strategy on a global
scale. 2009. Two important features of a culture are
A. True A. Economy
B. False B. Language
C. Religious beliefs
2005. What is an exchange forward rate?
D. Weather
A. A forward exchange occurs 2 parties
agree to exchange currency and execute 2010. With a policy of , a country focuses
the deal at some specific date in the fu- on its own problems and does not get in-
ture volved in other countries’ issues.
B. A simultaneous purchase and sale of a A. isolationism
given amount of foreign exchange for two B. internationalism
different value dates C. foreign policy
C. Is the rate at which foreign exchange D. national interest
dealer converts one currency into another
currency in the particular day 2011. In 2010, Mexico imposed a limit of 250,
000 tons of sugar that could be imported
D. A forward exchange occurs 2 parties
into Mexico. This is a(n)
agree to exchange currency and execute
the deal at some specific date in the A. Tariff
present B. Quota
2006. TRUE or FALSE. Early traders have not C. Embargo
been credited of contributing to the spread D. none of above
of knowledge and ideas.
2012. A strong Australian dollar means
A. TRUE
A. Imports will be cheaper
B. FALSE
B. Imports will be dearer
2007. 60) Visible exports and imports are C. Exports will be cheaper
A. merchandise imports and exports D. Exports will be dearer

2013. Organization architecture include the 2017. Modern trace their intellectual roots
following EXCEPT to Karl Marx.
A. Processes A. Separatists
B. Control & incentives B. Capitalists
C. Market conditions C. Socialists
D. Organization culture D. Federalists
2018. Interest groups include:
NARAYAN CHANGDER
2014. The staffing policy that requires host-
country nationals to be recruited to man- A. Workers
age subsidiaries is called B. Owners
C. Suppliers
D. All of the above
2019. A place where trade occurs.
A. Import
B. Export
A. geocentric C. Resource
B. polycentric D. Market
C. ethnocentric
2020. Of the following characteristics, a less-
D. global developed country is LEAST LIKELY to have
2015. Export businesses A. low economic wealth.
A. sell goods and services to other coun- B. poor housing and health care.
tries C. a highly educated population.
B. buy goods and services from other D. an emphasis on agriculture and min-
countries ing.
C. buy and sell between a range of com- 2021. Climate and terrain are two examples of
panies conditions that influence international
D. help other business buy and sell inter- business.
nationally A. cultural and social
2016. Which of the following is the main prin- B. geographic
ciple of mercantilism? C. economic
A. Protection of domestic industries is D. political and legal
not essential for a nation’s welfare.
2022. Which company is a multidomestic com-
B. Government intervention is not re-
pany
quired in global trade.
A. Coca Cola
C. Countries should encourage absolute
free trade. B. Samsung
D. It is in a country’s best interests to C. Hoa Phat
maintain a trade surplus. D. Mercedes

2023. Goods and services that are purchased C. most firms depend either on foreign
abroad markets and supplies or compete against
companies that do

D. government regulation of interna-
B. Comparative Advantage
tional business has little effect on a com-
C. Exports pany’s profits
D. Imports 2028. is an example of a secondary sector
activity.
2024. Dymtrus purchases semi-precious gem-
stones from a distributor in South Africa, A. Banking
and he contracts to pay for the gemstones B. Farming
before they actually reach him. What type
of payment method does this represent? C. Manufacturing
D. Secondary education
A. Long term financing
B. Letter of credit 2029. WTO was established on:
C. Cash in advance A. 1st July 1995
D. none of above B. 1st Jan 1995

C. 1st April 1995
2025. In international trade, market is more
D. None of these
competitive. What process brings a
cheaper product home to the consumer? 2030. Capitalistic, communistic and Mixed are
A. competitive pricing the types of
B. quality branding A. Social System
C. strategic marketing B. Economic System
D. improved packaging C. Cultural Attitudes

D. Political System
2026. Fill in the blank. Globalisation is the
of economies, industries, markets, 2031. When there is not enough of a certian
cultures, and policy-making around the good this is known as?
world. A. economics
A. Integration B. scarcity
B. Separation C. services
C. Unification D. goods
D. Politicization 2032. What should you do at the end of a busi-
ness meeting in China?
2027. 3) In terms of international business, it
is most accurate to say that A. Leave the meeting room first
A. there is a universal “best way” to con- B. Allow your Chinese partners to leave
duct business the meeting room first
B. global competition affects large com- C. Invite them to drink

panies but not small ones D. Not allow them to go out

2033. is a form of government in which D. Expectations of rising prices of foreign

one person or political party exercises ab- products have caused consumers to seek
solute control over all spheres foreign products before their prices be-
A. Democracy come prohibitive.
B. Democratic Socialists 2037. A visitor is classified as a tourist if his

trip includes an overnight stay (one night
C. Individualism at the destination)
D. Totalitarianism A. True
NARAYAN CHANGDER
2034. Which of the following would be con- B. False
sidered an international business transac- 2038. In some cultures, you should not ask
tion? a business man about his wife and/or
A. purchasing products in one country daughters.
and assembling them in the same country A. False
B. recruiting employees internationally B. true
C. borrowing money from a major bank to 2039. Fields of work that can be undertaken
finance capital improvements in International Business EXCEPT
D. shipping finished products from one A. Human Resource
country to another for retail sale
B. Analyst
2035. A legal system based on a religious doc- C. Chef in International Cuisine
ument and religious teachings is referred D. Administrative and diplomatic officer
to as a law legal system.
2040. A standard is
A. civil
A. a cash grant or loan from the govern-
B. common ment to support the business.
C. representative B. a tax on imports.
D. family C. an official ban on trade.
E. theocratic D. a requirement that promotes safety on
all products.
2036. 18) Which of the following has MOST
influenced consumers to demand access to 2041. To lower labour costs
foreign-made products? A. benefits
A. Declining global affluence has caused B. limitations
consumers to seek out lower-priced prod-
ucts from abroad. 2042. Which of the following is not an advan-
tage of exporting?
B. Consumers have become more effi-
A. Easier way to enter into international
cient in using media and technologies to
market
compare prices worldwide.
B. Comparatively lower risks
C. Fearing that their governments will en-
act restrictive policies on imports, con- C. Limited presence of markets in foreign
sumers are stocking up on foreign prod- markets
ucts before restrictions are put in place. D. Less investment requirements

2043. Which of the following factors is a ben- 2047. THIS MEANS A COUNTRY MUST PRO-
efit of international trade over domestic DUCE AND EXPORT GOODS AND SER-
trade? VICES FOR WHICH IT IS MORE REL-

A. Lower cost of production ATIVELY PRODUCTIVE AND IMPORT
GOODS AND SERVICES TO WHICH OTHER
B. More limited ability to move resources COUNTRIES ARE MORE RELATIVELY PRO-
due to tariffs DUCTIVE.
C. Higher political or military influence on A. THEORY OF ABSOLUTE ADVANTAGE
the market B. THEORY OF COMPARATIVE ADVAN-
D. Less consumer choice TAGE
2044. What Important event happened that 2048. If I am better at all types of production,
led to the entry of foreign companies into I have the In all forms of production.
India? A. comparative advantage
A. Indian cricket team won the world cup B. specialization
in 1991 C. developed nation
B. Amazon was founded and launched by D. Absolute advantage
Jeff Bezos
2049. Cultural homogeneity refers to
C. Manmohan Singh opened the Indian
economy. A. adaptation to local culture
D. The fall of the housing market B. cross-cultural movements

C. cultural uniformity
2045. Asia-Pacific Economic Cooperation D. inter-cultural movements
(APEC)
A. An alliance that promotes open trade 2050. What country is the city of York in?
and economic and technical cooperation A. the United States
among member nations throughout asia B. England
B. a free trade zone encompassing 27 Eu- C. Japan
ropean countries D. Canada
C. strongly held concepts that are
2051. What is contract manufacturing
present in a culture. Values are connected
to powerful emotions A. The company manages its entire value
chain in the foreign market except for con-
D. none of above
tracting logistics
2046. In the 5C analysis, analysis must be B. When a local (foreign) lawyer helps
made of the products, positioning, market- prepare contracts with agents or distrib-
ing share, strengths and weaknesses of utors
what? C. The production is made by a foreign
A. Competition firm; the rest of the value chain is taken
cared of by the company itself
B. Customers
D. When a foreign firm decides to out-
C. Collaborators source its down-stream functions to an ex-
D. Context ternal partner

2052. TRUE or FALSE. Trading globally gives 2058. Which of the following traits are impor-
consumers and countries the opportunity tant in selecting staff for overseas assign-
to be exposed to goods and services not ments?
available or more expensive in their own
countries.
A. TRUE
B. FALSE
NARAYAN CHANGDER
2053. Silk is a product created by what type
of resource?
A. Cultural toughness
A. Land
B. Perceptual ability
B. Labor
C. Others-orientation
C. Capital
D. Willingness to communicate
D. none of above
E. All of the above
2054. Corporate social responsibility occurs
2059. A Strategy is
when business public ethical, legal,
commercial, and expectations
A. reacts
B. meets or exceeds
C. understands
D. hears
2055. The main content of today’s lesson is: A. an action plan to achieve a mission.
A. Guess? B. the goal that is to be achieved.
B. Uhhhh C. the purpose for which an organization
is established.
C. Regional Economic Integration
D. PS4 game.
D. I’m not sure:((((
2060. Which country has this flag?
2056. What can cultural differences cause
when not understood?
A. Unity and order
B. Increased profit and growth
C. Good morale and work ethic
D. Disputes and uncomfortable situations
2057. According to Smith, international trade A. North Korea

is B. South Korea
A. win-win game C. South Africa
B. 0-sum game D. Iran

2061. It is the degree to which a society ac- B. Assuming you will not be asked for
cepts or rejects the unequal distribution of bribes
power among people in organizations and

C. Assuming you can choose the location
the institutions of society of your business
A. Power Distance D. Assuming people will be able to pay
B. Uncertainty Avoidance with cash or credit cards
C. Individualism-Collectivism 2067. 1) Political, legal, economic, monetary,
D. Masculinity-Feminity and institutional forces comprise the of
international business and influence man-
E. Time Orientation agers actions.
2062. Why companies engage in international A. environment
business? B. competition
A. To expand sales C. culture
B. To acquire resources D. threat
C. To diversify or reduce risks
2068. Although it was not always true in the
D. all of these past, today women can participate equally
with men in the workplace in all countries.
2063. BIGGER COUNTRIES ARE MORE GLOB-
ALIZED THAN SMALLER ONES A. True
B. False
A. TRUE
B. FALSE 2069. Foreign direct investment can provide
a foreign company:new markets and mar-
2064. Aspect of globalization are keting channels.
A. Capital & investment A. True
B. Migration B. False
C. Both a & b 2070. A national brand is a brand name that is
D. None of the above well known within one country.
A. True
2065. Finish the sentence:I don’t like Italian
food very much because B. False
A. I can’t stand tomatoes! 2071. What is the term for “masculinity” in

B. I love tomatoes! Latin America?
A. “Machismo”
C. I don’t mind tomatoes
B. “Hug”
D. I am 100% neutral about tomatoes.
C. “Welcome”
2066. What is one assumption that needs to D. “Please”
be questioned when doing business inter-
nationally? 2072. refers to the ability of a firm to ad-
A. Assuming you can use social media to just to a culture different from its own.
advertise A. Absorption

B. Assimilation C. Exports
C. Incorporation D. Imports
D. Acculturation 2078. Most Effective Methods of Collecting
E. Integration Site Feedback?
A. mail in survey
2073. The main criticism of the Strategic the-
ory is caused by lack of detailed informa- B. web forms, site reports, e-mail link re-
tion about costs of production and diffi- questing feedback
NARAYAN CHANGDER
culty to determine what business deserves C. telephone interviews
to be called “strategic” D. none of above
A. yes
2079. Multinational companies avoid operat-
B. no ing in countries where child labor is used
2074. What is the primary purpose of interna- A. TRUE
tional trade policies and agreements? B. Falso
A. To regulate domestic economic poli- 2080. They represent physical and social fac-
cies tors that impact international business op-
B. To control immigration and citizenship erations.
C. To govern the exchange of goods and A. Public policies, culture, geographic in-
services between countries fluences
D. To promote environmental regulations B. Marketing, finance and personnel man-
agement
2075. *Employee development benefits your
C. Sales expansion and resource acquisi-
company-as well as the employees who
tion
are offered training or other unique team-
building experiences. THIS IS ? D. All of the above
A. Health Options 2081. What does the term business-to-
B. Productivity over presence business franchise refer to?
C. Enrichment A. Negotiate the provision of services or
products to other companies and will not
D. none of above be in direct contact with consumers
2076. A tax that can be used as a trade barrier B. It is normally managed from the re-
is the gional central offices and will involve the
A. personal income tax. development, management of the net-
work and the coordination of a group of
B. excise tax. operations for the service or product.
C. value-added tax.
2082. How many workers jobs relay on Inter-
D. import duty tax. national Business?
2077. Goods and services that are sold A. 1 out of 2
abroad. B. 1 out of 3
A. Comparative Advantage C. 1 out of 5
B. Absolute Advantage D. 1 out of 10

2083. The top country that the UK imports 2088. ASEAN came to begin in
from is A. 1967

A. China B. 1966
B. France C. 1958
C. Germany D. 1970
D. USA 2089. A subsidy is a government payment
made:
2084. A(n) risks refers to a political risk
that only affects a certain industry or set A. to a domestic producer
of firms in a given country. B. to a domestic importer
A. individual C. to a foreign exporter
B. micropolitical D. to a foreign producer
C. political 2090. 46) A criticism of globalization is that
D. macropolitical as economic growth increases, too many
nonrenewable resources are used.
E. environmental
A. True
2085. refusing to buy, sell or use certain B. False
groups
2091. If a country has improving educational
A. rebellion systems, increasing technology and ex-
B. boycott panding industries, that country is consid-
ered to be:
C. tax
A. Developing
D. rebellion
B. Industrialized
2086. A country being able to make a product C. Less-Developed
or service at a lower cost than other coun- D. none of above
tries is considered?
A. Absolute advantage 2092. Chose two (2) of the following main rea-
sons why States trade with each other.
B. Concerning advantage
A. Economic Reason
C. Comparative advantage B. Environmental Reason
D. Available advantage C. Political Reason
2087. Pick out a work that was not written by D. Personal Reason
Karl Marx
2093. A customer service representative is a
A. Manifesto of the Communist Party product created by what type of resource?
B. Capitalism (Capital-Criticism of politi- A. Capital
cal economy) B. Land
C. The spirit of the law C. Labor
D. none of above D. none of above

2094. When two or more firms come together 2099. A person who traps lobsters and sells
to create a new business entity that is them to seafood stores and restaurants.
legally separate & distinct from its par-
A. Wholesaling
ents; it is known as:
A. Contract of manufacturing B. Retailing
B. Franchising C. Manufacturing
C. Joint Venture D. Extracting
NARAYAN CHANGDER
D. Licensing
2100. Refers to operations in one country that
2095. The value of all monetary transactions ire controlled by entities in a foreign coun-
between a country’s economy and the rest try.
of the world.
A. franchising
A. Balance of Trade
B. Trade Failure B. foreign direct investment
C. Balance of Payments C. licensing
D. Trade Surplus D. exporting
2096. occurs when two parties agree to
2101. Who typically has control over foreign
exchange currency and execute the deal at
trade in a country?
some specific date in the future.
A. Currency arbitrage A. Government
B. Forward exchange B. Producers
C. Spot currency exchange C. Middlemen
D. Restricted trade
D. Buyers
2097. Which type of strategy have strong
pressures for cost reductions and demands 2102. Which of the following is one of the four
for local responsiveness are minimal? attributes present in Porter’s diamond?
A. Global Standardization Strategy A. Economies of scale
B. Transnational Strategy B. Factor endowments
C. International Strategy
C. Structural innovation
D. Localization Strategy
D. Procedural innovation
2098. Company A entered the production of of-
fice software before its competitors. Be- 2103. When facing ethical dilemmas in interna-
cause of this, the company’s products are tional business, what is one of the ques-
more familiar among and favored by cus- tions that should be asked?
tomers. This situation exemplifies the
A. Wil I get into trouble?
A. first mover advantage
B. Who will know?
B. diminishing marginal returns
C. economies of scale C. Is the action legal?
D. constant marginal returns D. Should I tell someone?

2104. System learned shared unifying and in- 2109. COUNTRIES WITH LOWER INCOME
terrelated beliefs and values POPULATION TEND TO BE MORE GLOB-
ALIZED THAN HIGHER INCOME ONES

BECAUSE THEY CAN AFFORD FOREIGN
PRODUCTS, TRAVEL AND COMMUNICATE
WITH PEOPLE THEY MET ABROAD
A. TRUE
B. FALSE
A. Culture 2110. Which organization provides loans and
B. Subculture financial assistance to developing coun-
tries for infrastructure and development
C. Cultural baggage
projects?
D. Nuclear family
A. World Trade Organization (WTO)
2105. refers to a political system in which B. United Nations (UN)
government is organized by and account-
C. International Monetary Fund (IMF)
able to the people.
D. World Bank
A. Totalitarianism
B. Fascism 2111. In addition to exporting and importing
goods and services, other forms of mon-
C. Socialism
etary exchange take place among nations.
D. Democracy Which of the following is not one of those?
2106. Absolute advantage is on e of the exam- A. investments

ple of theory under classical country based B. tourism
theory
C. financial aid
A. CORRECT D. paying for a new car from a foreign
B. WRONG company
2107. What does GDP stand for? 2112. Organization architecture include the
following EXCEPT
A. Gross Dollar Product
A. control systems and incentives
B. Garden Derived Product
B. organizational culture
C. Gross Domestic Product
C. market conditions
D. Gross Democratic Party
D. processes
2108. Which of the following issues certificate
of Origin? 2113. What is the main purpose of organi-
zational architecture in international busi-
A. Import Export Council
ness?
B. Prime Minister
A. Increase operational efficiency
C. Chamber of Commerce
B. Reducing the company’s global pres-
D. President of India ence

C. Increasing the level of competition in 2118. Identify the theory that supports the
the local market view that in some cases countries export
D. Expanding the company’s geographic for the reason that the world market can
area support only a limited number of firms.
A. Heckscher-Ohlin theory
2114. Video Games, Computer Software, a
B. Smith’s theory
Sweater, and a television are all
A. Shopping Goods
NARAYAN CHANGDER
D. New trade theory
B. Convenience Goods
C. Specialty Goods 2119. International Company
A. increasing integration of the world
D. none of above
economy
2115. Why might a successful watchmaker B. is a company that conducts business
want to start selling watches on a foreign across national borders.
planet?
C. is a company that conducts business in
A. To compete against Rolex at an inter- only one country, which is known as the
galactic level home country.
B. To decrease the overall cost of produc- D. none of above
ing watches
2120. A meal with many public plates for par-
C. To reduce risks by expanding beyond ties to share; common in many East Asian
Earth countries
D. To acquire resources and knowledge A. Emirate
from the foreign planet
B. “Family Style” Meal
2116. Which of the following is the main prin- C. Nonverbal Signal
ciple of mercantilism?
D. Indirect Eye Contact
A. Protection of domestic industries is
not essential for a nation’s welfare. 2121. Most people live and die close to where
they are born and don’t often move to live
B. Government intervention is not re- in new places during their lifetime; this de-
quired in global trade. scribes a region with high mobility.
C. Countries should encourage absolute A. TRUE
free trade.
B. FALSE
D. It is in a country’s best interests to
maintain a trade surplus. 2122. Which emirati company is this?

amongst India’s major trading partners?
A. USA
B. UK
C. Germany
D. New Zealand A. Of

B. ADIB 2127. Gross Product

C. ADCB A. International

D. Etisalat B. Total
C. Common
2123. Select all of the following. The WTO is
D. Domestic
A. World Trade Organisation
2128. Of the following characteristics, a less-
B. An international body whose purpose
developed country is least likely to have
is promote free trade
A. low economic wealth.
C. Enterprises operating in several coun-
tries but with their headquarters in one B. poor housing and health care.
country C. a highly educated population.
D. Economic and partially political union D. an emphasis on agriculture and min-
establish in 1993 ing.
2124. The franchisee must follow ALL rules 2129. An increase in average prices for goods
stated in the franchise agreement. and services in a country.
A. inflation
B. tax burden
C. price hikes
D. none of above
2130. TRUE or FALSEFrom the very start,

there were already First World and Third
World countries.
A. True
A. TRUE
B. False
B. FALSE
2125. A situation in which a nation exports 2131. A three-country trade agreement ne-
more goods and services than it imports. gotiated by the governments of Canada,
A. Balance of Payments Mexico, and the United States that took
effect in 1989.
B. Trade Surplus
A. The UN
C. Trade Failure
B. NAFTA
D. Balance of Trade
C. NATO
2126. Product life cycle theory was introduced D. IMF
by
2132. What is the impact of regional economic
A. Michael Porter integration on foreign direct investment?
B. David Ricardo A. Decrease
C. Adam Smith B. Increased
D. Raymond Vernon C. No effect

D. Depends on the countries involved

E. There is no right answer
2133. Which of the following is not factors

supporting the boom in the demand for
technology?
A. changes in leisure, entertainment and
NARAYAN CHANGDER
consumption preferences
A. Domestic Corporation
B. increase in teleworking or hybrid work-
ing environments B. Multinational Corporation
C. Foreign Corporation
C. US friendly policy on technology
D. State Corporation
D. digitization in sectors such as educa-
tion and health 2138. Learning effects:
2134. Australia’s main export in 2014 to the A. tend to be less significant when a tech-
UK was nologically complex task is repeated.
A. Beef B. will be less significant in an assembly

process involving 1, 000 complex steps
B. Gold than in one of only 100 simple steps.
C. Pearls C. typically disappear after a while, in
spite of the complexity of the task.
D. Silver
D. are more significant after two or three
2135. International business refers to ex- years of the introduction of a new pro-
change of cess.
A. Knowledge 2139. The main justification for an embargo on
B. Skills foreign goods is to
C. Resources A. Punish a nation

B. raise revenue
D. All the above
C. Increase consumption or the good
2136. Which of the following institution is D. none of above
known as soft loan window of IBRD?
A. IDA 2140. What is the environmental impact of
this factory?
B. IFC
A. The factory is emitting harmful pollu-
C. MICHA tants into the air, which can contribute to
D. ICSID air pollution and climate change.
B. The factory is using up natural re-
2137. A large company such as McDonalds sources, such as water and energy, which
that has operations in more than one coun- can contribute to environmental degrada-
try. tion.

C. The factory is producing waste prod- D. Free trade

ucts, which can pollute the environment.
2144. Assertion:Local business may set up

D. None of these joint production process with MNCs and
earn higher profits.Reason:MNCs can pro-
2141. What is globalization and how does it
vide money for additional investments,
impact international business?
like buying new machines for faster pro-
A. Globalization is the process of isolat- duction.
ing countries and reducing international
A. Both (A) and (R) are true
trade, which negatively impacts interna-
tional business. B. Both (A) and (R) are not correct
B. Globalization is the process of stan- C. (A) is true, but (R) is false
dardizing business practices across coun- D. (R) is true, but (A) is false
tries, which simplifies international busi-
ness operations. 2145. It argues for income and capital gains
tax breaks or other financial benefits
C. Globalization is the increasing inter- to large businesses, investors, and en-
connectedness and interdependence of trepreneurs to stimulate economic growth.
countries, impacting international busi-
ness through opportunities and chal- A. trickle-down theory
lenges. B. global economy theory
D. Globalization is the process of increas- C. economic development theory
ing cultural diversity and reducing the D. economic growth theory
need for international business collabora-
tions. 2146. enable(s) a manager to walk away
from a decision that is profitable.
2142. The best strategy for Mcdonalds is A. Human resources
A. international B. Economic self-sufficiency
B. localization C. Moral courage
C. global standardization D. Kantian Discipline
D. transnational
2147. Culture is the accepted behaviors, cus-
2143. The policy of eliminating barriers to in- toms and values of a society.
ternational trade
A. True
B. False
2148. pre shipment finance is known as pack-
A. Global economy ing credit?
B. Balance of trade A. yes
C. Exports B. no

2149. An employment agency. 2153. Which emirati company is this?

A. Wholesaling
B. Providing a Service
C. Retailing
D. Manufacturing
2150. A strategy that focuses on lowering pro-
duction costs is referred to as a:
NARAYAN CHANGDER
A. Welcome
B. Majeed Al Futtaim
A. differentiation strategy. C. Carrefour
B. cost minimization strategy. D. Emirates
C. low cost strategy. E. None
D. efficiency strategy.
2154. Climate, terrain, seaways and natural
2151. What movie are these characters from? resources all describe which element of the
international business environment?
A. Geographic Conditions
B. Political & Legal
C. Economic Conditions
D. Culture
A. Finding Nemo
B. Fish Tales 2155. After receiving someone’s business card
in Asia, what should you do?
C. Shark Tale
A. Put it away immediately
D. Little Mermaid
B. Study it carefully before putting it
2152. In relation to the PESTEL framework, away
which of the following statements is cor-
rect? C. Kiss it before putting it away
A. It assists in the assessment of organi- D. Touch it to your forehead before
zational strengths and weaknesses putting it away
B. It allows a detailed analysis of the 2156. Money given to domestic businesses to
structure of an industry reduce production costs and lower prices is
C. It can be used as a checklist to un- called
derstand the different environmental in- A. Non-Tariff Barrier
fluences in the macro environment
B. Quota
D. It can be used as a checklist to un-
derstand the different environmental in- C. Tariff
fluences in the macro environment D. Subsidy

2157. An exporter demands from an im- B. Doing the meeting on sunny days when
porter for the satisfaction about the pay- it is not raining
ment.

C. Start on time, develop each section of
A. Letter of Credit the program and finishing on time
B. Bill of Exchange D. Start on time, develop each section of
C. Advance Payment the program and finishing time depends
on the moment and could be expanded if
D. Foreign Currency necessaire
2158. a negative currency balance 2163. A company that would like to build
A. a negative currency balance a golf course that could be played year
round would need to consider which com-
B. a negative balance of payments
ponent of the international business envi-
C. a positive balance of trade ronment?
D. a positive balance of payments A. Geography
2159. The quantity of a product or service that B. Culture
consumers are willing and able to buy at a C. Economy
particular price is
D. Infrastructure
A. Supply
2164. More value customers place on a firm’s
B. Demand
products the lower the price the firm can
C. Equilibrium charge for those products.
D. Market price A. True
2160. More expansion of foreign direct invest- B. False
ment can boost
2165. Jim is trying to get members to sign up
A. Money circulation in advance for his new health club. What
B. Unemployment form of promotion would allow Jim to
raise money and increase awareness.
C. Employment
A. Presale
D. Demand
B. Publicity
2161. Globalization has resulted in the emer- C. News Release
gence of global production markets and
broader access to range of foreign product D. Rebate
for consumer and industries. 2166. FDI by an organisation in order to sell
A. True the output of domestic firms or it refers to
B. False the investment which provides inputs to
the domestic organisation is
2162. If you are preparing a meting in Ger- A. Horizontal FTI
many, what do you have to consider re-
garding time? B. Vertical FDI
A. Doing the meeting on afternoons or C. Conglomerate FDI

weekends D. Diagonal FDI

2167. In a culture with strong business and 2171. What is a multinational company
family ties (MNC)?
A. A corporation that operates in multi-
ple countries and has a completely au-
tonomous management system.
B. A company that operates in only one
country and has a decentralized manage-
ment system.
NARAYAN CHANGDER
C. A company that operates in multiple
countries but has no centralized manage-
ment system.
A. several members of a family may work
in the same business. D. A corporation that operates in multiple
countries and has a centralized manage-
B. family members are usually promoted
ment system.
first in a family-owned business
C. protecting a family member is some- 2172. According to Ricardo’s theory of compar-
times more important than a good busi- ative advantage, a country should produce
ness decision. goods
D. all of these A. for which it has access to raw materi-
als
2168. Strategic alliances in international busi-
ness organizational architecture involve: B. that it produces most efficiently
A. Cooperation with local authorities C. that have the highest domestic de-
B. Risk sharing and collaboration with mand
other companies D. for which it has an absolute advantage
C. Implementation of a central organiza-
tional structure in all subsidiaries 2173. The tendency to enjoy companionship
and be pleasant, friendly and agreeable
D. Partnerships with government agen-
cies in global markets A. Neatness
2169. When does the trade originate? B. Sociability

A. In the Neolithic period C. Cleanliness
B. In the 21st century D. Hug
C. In the Middle Ages
2174. A company is worried that about ex-
D. none of above change rate would need to consider which
component of the international business
2170. What is one disadvantage of direct im-
environment?
port?
A. Dependency on global markets A. Political
B. Vulnerability to currency fluctuations B. Environmental

C. Stability in supply C. Economic
D. Global networking D. Social

2175. If I am buying a product internationally 2181. Who will be hurt by a tariff on medicine
am I an Importer or Exporter. coming into the US.

A. Importer A. US medical companies
B. Exporter B. US government revenue
C. Sick people in US
2176. As an UK company, starting a phone
business in India, which of the following D. none of above
cultural barriers might you face? 2182. (a) has the absolute advantage choco-
A. Market entry late. (b) has the absolute advantage in
grapes
B. Transaction complexity
A. a Switzerland
C. Ignorance of emerging markets
B. b Brazil
D. All of these
2183. Stakeholders in a company will respond
2177. Is a prescribed way of undertaking a to ethical decisions in different ways be-
process or part of a process cause they all have the same interests.
A. Process A. TRUE
B. Procedures B. FALSE
2178. What are goods? 2184. Theory of Comparative advantage was

developed by
A. Bad things
A. David Ricardo
B. Physical products
B. Adam Smith
C. Things needed to survive
C. Michael Porter
D. Good people
D. Mr Preston
2179. How many types of common clause pat-
2185. The labor issue is one of the most im-
terns mentioned before?
portant challenges for multinational com-
A. Five panies
B. Three A. TRUE
C. Two B. Falso
D. Four 2186. The difference between imports and ex-
ports is called
2180. the trade of goods, services, technology,
capital and/or knowledge across national A. Balance of Power
borders and at a global or transnational B. Balance of Trade
scale C. Trade Failure
A. business D. Loss
B. goods and services
2187. What do Intellectual Property Rights
C. international business (IPR) protect in international trade?
D. workshop A. Rights of creators and inventors

B. Rights of consumers C. a tax on imported goods

C. Rights of government officials D. none of above
D. Rights of trade organizations 2193. a risk associated with the sale and ac-
2188. Licensor-a person or organization who companying transactions between two for-
gives another person or organization offi- eign markets
cial permission to make, do, or own some- A. Credit/Sale Risk
thing. B. Risk
NARAYAN CHANGDER
A. true C. Economic Risk
B. false D. Legal Risk
Explanation:Licensor is the Licensor; Li-
cense Issuing Person; Franchisor. 2194. What are exports?
2189. Which of the following are benefits of A. Consist of bringing goods into the
globalization? Check all that apply. country
A. Access to new cultures B. Consist of sending goods out of the

country
B. Local job loss
C. None of the above
C. Lower costs for products
D. none of above
D. Foreign worker exploitation
2195. 33) Import restrictions are becoming
2190. The socioeconomic reform process of less important because consumers increas-
eliminating trade, investment, informa- ingly want to buy goods and services pro-
tion technology, and cultural and political duced in their own countries.
barriers access countries, which in turn
can lead to increased economic growth A. True
and geopolitical integration and interde- B. False
pendence among nations of the world.
2196. Standard policy is provided by which in-
A. Globalization stitute for insurance and guarantees of In-
B. Liberalization ternational business processes?
C. International Business A. LIC
D. Trade B. EXIM Bank
C. ECGC
2191. This trade agreement involves Canada,
USA and Mexico. D. IMF
A. NAFTA 2197. In order for Coca-Cola products to be
B. CUSMA bought and sold around the world, a coun-
try must have rights to a
C. MERCOSUR
D. FTAA
2192. An embargo is which of the following?

A. a ban on imported goods
B. a limit on imported goods A. Franchise

B. Business Ownership 2203. Foreign debt is

C. License A. The measure of the output of products

D. Other created within a country
B. The measure of the difference be-
2198. 56) The terms multinational corporation tween what a country sells versus what a
and multinational company are frequently country buys from other countries
used synonyms for strategic alliances.
C. The measure of the amount of money
A. True a country owes to other countries.
2199. political union is economic and political 2204. Which of the following can be best de-
integration whereby countries coordinate scribed as bringing items from other coun-
aspects of their economic and political sys- tries into a country?
tems.
A. Exchange Rate
A. TRUE
B. Exports
B. FALSE
C. Imports
2200. 43) A major criticism of offshoring is
D. Supply and Demand
that it
A. increases production costs 2205. Which country is an example of a less
developed economy?
B. exchanges good jobs for bad jobs
A. England
C. threatens the sovereignty of larger
countries B. Russia
D. allows companies to avoid payment of C. Afghanistan
any taxes
D. Latvia
2201. The theory of comparative advantage
2206. It is one of the objectives of the Interna-
provides strong rationale for supporting
tional Monetary Fund (IMF)
the idea of
A. business nationalism A. Guarantee the stability of the interna-
tional monetary system
B. free trade
B. Facilitate the balanced growth of inter-
C. protectionism national trade.
D. governmental intervention in trade C. Facilitate the international flow of cur-
rency
2202. Who are the founders of Microsoft Cor-
poration? D. All of the above
A. Mark Zuckerberg and Jeff Bezos 2207. Continually rising prices are one sign of
B. Bill Gates and Paul Allen a healthy economy.
C. Steve Jobs and Steve Wozniak A. True
D. Larry Page and Sergey Brin B. False

2208. The Theory of Relative Factor Endow- C. 331%

ments is given by? D. 1, 057%
A. David Ricardo
2213. Religion and language are two exam-
B. Ohlin and Hecksher ples of conditions that influence inter-
C. Adam Smith national business.
D. F W Taussig A. economic
B. political and legal
NARAYAN CHANGDER
2209. Define manager
C. geographic
A. People in charge of financial tools
D. cultural and social
B. People in charge of organizations and
their resources 2214. It is a business orientation that imitates
C. People in charge of computers and the practices of the host country:
technology
D. People in charge of owners businesses

a basic factor that a nation will possess as
proposed by Porter?
A. Communication infrastructure A. Polycentrism
B. Skilled labor B. Ethnocentrism
C. Natural resources C. Geocentrismo
D. Technological knowledge D. None of the above
2211. This measures the output of goods and 2215. This part of a business plan shows the
services produced within its borders knowledge of the industry and includes
A. GNP statistics on marketing data for the com-
B. LDC panies products/services, and evaluates
competition
C. AARP
D. GDP
2212. Vietnam is one of the most open

economies in the world. The percentage
of international trade involving Vietnam
to the country’s GDP is:
A. Executive Summary
B. Company Description
A. 97% C. Strategy
B. 208% D. Market Analysis

2216. The is often an appropriate place to lack of transfer of technology and knowl-
test products and fine-tune performance edge
before tackling the complexities of inter-

2221. Who has the absolute advantage in
national trade.
handicrafts
A. Domestic market
B. Global market
C. Firm
A. Bradyburg
2217. More $ leaves than comes in = Balance B. Linavulu
of Trade Explanation:
A. Surplus
2222. Select all of the following that are fixed
B. Deficit costs.
C. Slurpy A. Wages for labour
D. none of above B. Raw materials
C. A building
2218. A. saf
D. Land
B. shrine
E. Large machinery
C. rhyth
D. none of above 2223. If a country has a highly eductated
population, advanced technology, and fo-
2219. International business would not be rel- cuses on international business and foreign
evant to an organization if it only pro- trade, that country is considered to be:
duced and sold its products in one country. A. Industrialized
A. TRUE B. Less-Developed
B. FALSE C. Developing
2220. What are the advantages of foreign di- D. none of above
rect investment? 2224. What type of currency is used in the EU
A. Decreased economic growth, limited (European Union)?
access to new markets and customers, A. Weight
lack of improved infrastructure B. Lyre
B. Limited access to new markets and C. Euro
customers, lack of transfer of technology
and knowledge, decreased job opportuni- D. Dollar
ties 2225. 88) The view that regionalization,
C. Access to new markets and customers, rather than globalization, will prevail in
increased job opportunities, transfer of the future is largely based on the use of
technology and knowledge, improved in- common languages among countries in a
frastructure, and economic growth. region.
D. Decreased job opportunities, limited A. True
access to new markets and customers, B. False

2226. Which one is not considered as interna- A. Multidomestic strategy

tional business?
B. International strategy
A. Cross-border construction manage-
ment C. global strategy
B. Consulting in another country D. Transnational strategy

C. Tourism 2231. What is a characteristic of emerging
D. Financial service outside the country economies?
NARAYAN CHANGDER
2227. This trade barrier limits the number of
products that can be brought into a coun-
try.
A. Tariff
B. Quota
C. Embargo
D. Subsidy A. a) Higher income
2228. WHAT ARE THE FACTORS WHERE B. b) High standards of living
DOMESTIC MARKETING AND INTERNA-
C. c) a y b
TIONAL MARKETING DIFFER?
D. Incipient industrialization
A. CONSUMER
B. FREE TRADE 2232. What central message did the story
C. CURRENCY convey about international negotiation
styles?
D. PRODUCT AND PACKAGING
A. Authoritarian and competitive styles
2229. Which of the following are International are always the most effective.
Trading Regions?
B. Seductive and eloquent negotiation
A. Africa, Australia and New Zealand styles are the only ones that work in in-
B. Asia, Eastern Europe and the former ternational situations.
USSR
C. Only rational and analytical ap-
C. The Pacific Rim, North & South Amer- proaches succeed in international nego-
ica, Latin America tiations.
D. all of these are international trading D. Each negotiation style has a valuable
regions role in building bridges between nations.
2230. Choose the correct option
2233. Which of the following is not a key EX-
PORT of the UAE?
A. Rice
B. Petroleum
C. Gold
D. Diamonds

2234. Key controllable factors in global mar- A. A) guides the allocation of resources
keting are: and shapes the conduct of business activ-
ities

A. Government policy and legislation
B. social and technical changes B. By directs the movement of specific
products to specific consumers
C. marketing activities and plans
C. C) sets (ho standards of competitive
D. all of the above. success for companies in the economy
2235. When two or more firms come together D. D) stipulates the roles and responsibil-
to create a new business entity that is ities of consumers
legally separate and distinct from its par-
ents it is known as 2240. The shared values, beliefs, & goals a
company has:
A. contract manufacturing
A. culture
B. Franchising
B. corporate culture
C. Joint ventures
C. subculture
D. Licensing
D. none of these
2236. Mumbai and neighbouring areas in Ma-
harashtra are more involved with the pro- 2241. Which of the following statements is
duction of NOT true?
A. jute products A. The way to increase the profitability of
a firm is to create more value.
B. cotton textiles
B. The amount of value a firm creates is
C. silk
measured by the difference between its
D. nylon costs of production and the value that con-
sumers perceive in its products.
2237. The increasing integration of the world
economy is called: C. The more value customers place on a
firm’s products, the higher the price the
A. global dependence firm is able to charge for those products.
B. global business D. The price a firm charges for a good or
C. globalization service is typically more than the value the
D. international hosting customer places on that good or service.
2238. They are the costs or consequences of 2242. Gross Domestic Product (GDP) mea-
globalization sures:
A. Damage to the environment A. the amount of money a country owes

to other countries
B. Loss of national sovereignty
B. the output of products created within
C. Widening wealth-poverty gap a country
D. All of the above C. the difference between what a coun-
2239. 69) An economic system is the set of try sells versus what a country buys from
structures and processes that in a coun- other countries
try. D. none of above

2243. Which of the following regions de- A. Reduced profit margins

scribes the euro zone?
B. Exporting when the local currency is
A. A region that comprises EU members high against other currencies
without a common currency
C. Increased taxation
B. A region that comprises all EU mem-
bers D. Dependence on local resources
C. A region that has passport-free travel- 2249. 11) The identity of a nation is typically
NARAYAN CHANGDER
ing promoted through symbols, monuments,
D. A region that has a common currency and museums.
A. True
2244. Some key problem-solving skills in-
B. False
clude:*Active listening.*Analysis.*Research.*Creativity.*Communication.*Dependability.*Decision
making. *Team-building.
2250. What are not forces that affect strate-
A. true
gic choices of international business?
B. false
A. Demographic
2245. What is one of these choices as practical B. Local responsiveness
actions to embrace more Corporate Social
Responsibility & Sustainability? C. Cost reduction
A. Accruing environmental Assets D. none of above
B. Hiring more experienced sustainability 2251. is the predecessor WTO.
managers
A. The General agreement on Tariff and
C. Build firm’s capabilities to boost com- Trade
munity and environment
B. International monetary fund
D. None of them
C. World bank
2246. Direct exporting occurs when a company
actively seeks to sell goods and services in D. International Trade Organization
other countries.
2252. The railway line from Yiwu in China to
A. True London is one of the longest in the world
B. False at 12, 000 km. How long does it take a
train to travel from one end to the other?
2247. In the economic cycle
A. A recession immediately follows a
boom
B. Three of the four phases are growth
phases
C. GDP rises during a recession
A. 6 days
D. GDP falls during a slowdown
B. 18 days
2248. What economic advantage can be gained
C. 24 days
by taking advantage of currency fluctua-
tions? D. 42 days

2253. When items are too expensive to ship, D. Follow the host
businesses build factories abroad.
2259. What is the attraction of global capital

A. True
market with the Investor?
B. False
A. An Investor can reduce the level of risk
2254. 9) Which of the following undesirable
even further because the movements of
results will most likely occur for a country
stock market prices across countries are
running a favorable balance of trade?
not perfectly correctlated
A. higher unemployment
B. Investor have a much narrow range of
B. higher domestic interest rates investment opportunities than capital mar-
C. fewer funds to invest abroad ket
D. granting credit that may be risky C. Investor can not diversify their portfo-
2255. Foreign trade involves payments in for- lios internationally
eign currency? D. An Investor can not reduce the level of
A. TRUE risk even further because the movements
of stock market prices across countries
B. FALSE
are not perfectly correctlated
2256. A good is to be aware of engaging
in questionable activities, which might be 2260. What is the biggest attraction for busi-
legal but couldn’t have future reputation nesses considering engaging in interna-
repercussion. tional business?
A. Rule of thumb A. The cost of labor.
B. Global economy
B. The lack of domestic resources.
C. Domestic firm
C. The size of the market.
D. All the above
D. The number of burdensome regula-
2257. When the goods have been loaded on
tions.
the ship then the captain of the ship gives
a receipt of receiving the goods which is
called 2261. 82) Critics of the view that regionaliza-
tion will prevail over globalization most
A. Railway Receipt likely base their argument on the belief
B. Shipping Order that
C. Shipping Bill A. regionalization is a transition stage to-
D. Mate’s Receipt ward globalization
2258. Which of the following is a generally B. neighboring countries are more apt to
safe rule to follow regarding dinner eti- disagree politically than distant countries
quette in Europe? C. neighboring countries are too geo-
A. Wait to be served graphically similar to benefit from trade
B. Be the first to act D. business in non-territorial areas is not
C. Ask lots of questions regional

2262. is the payment method most often 2266. In which scenario does it make sense to
used in International Trade which offers have a transnational structure for interna-
the exporter best assurance of being paid tional business?
for the products sold internationally. A. When there is low cost pressure and
A. Bill of Lading high local responsiveness
B. Letter of Credit B. When there is high cost pressure and
low local responsiveness
C. Open Account
NARAYAN CHANGDER
D. Drafts
2263. The price a firm charges for a good or D. When there is low cost pressure and
service is typically less than the value low local responsiveness
placed on that good or service by the cus-
tomer. This is because: 2267. Which is the worlds largest importer of
coffee?
A. the customer’s disposable income is
significantly higher than what the market
demands.
B. the customer captures some of that
value in the form of a consumer surplus.
C. regulatory mechanisms ensure that
the customer is not overcharged for prod- A. Germany
ucts/services. B. Italy
D. marketers implement psychological C. USA
pricing tactics to ensure that customers
D. Russia
perceive the prices to be low.
2268. The lowering of trade and investment
2264. The purpose of the Bretton Woods
barriers allows firms to base production at
agreement, of which the IMF is the chief
the optimal location for that activity.
supervisor, is to try to avoid the repeat
of that chaos through a combination of the A. TRUE
following two properties: B. FALSE
A. Discipline and certainty
2269. If society does not feel comfortable with
B. Discipline and safety the distribution of market income due to
C. Flexibility and discipline globalisation, collection of taxes is the
way to be used in order to achieve a so-
D. Flexibility and safety cially desirable distribution of net income.
2265. Developing nations tend to trade what A. True
type of goods B. False
A. Low skill products
2270. El Packing list es
B. High tech goods
A. Prepared by the seller
C. finished products B. A list that contains part of the products
D. High skill products of the commercial invoice

C. Standardized and no extra information 2275. NAFTA includes certain labor standards
can be added such as the right to unionize

D. A replacement for the commercial in- A. TRUE
voice B. Falso
2271. In the Jamaica Agreement, countries 2276. post shipment credit is given for exports
were subject to the US exchange rate on deferred payments terms for the period
regime. of
A. TRUE A. one year
B. Falso B. two years
2272. If the United States placed a trade em- C. three years
bargo on a foreign country, D. none
A. quotas would be placed on all goods
2277. Essential conditions for entry into for-
entering the United States.
eign market
B. no products could be traded between
A. Liberalization
the United States and the foreign country.
C. all businesses owned by the foreign
government in the United States would be C. Globally Accepted Currency
privatized. D. Preliminary screening
D. the United States would have granted
2278. Who is the First Deputy Managing Direc-
most favored nation status to this foreign
tor of IMF
country.
A. George W. Bush
2273. Why shouldn’t you eat beef during a
B. Geoffrey W.S. Okamoto
business meeting in India?
C. Gregory D’suza
A. Cows are considered sacred
D. Geogre Willson
B. Beef is unhealthy for humans
C. It’s really, really good for the environ- 2279. Under an intellectual property licensing
ment agreement you retain ownership of your
patent, copyright, or trademark, but you
D. Eating beef could make you fat
give another party permission to use some
2274. 19) Which of the following best ex- or all of your intellectual property rights
plains why international business has for a specific amount of time for a fee or
grown rapidly in the past few decades? royalty.
A. the end of the political division A. True

between the Communist and non- B. False
Communist blocs
2280. According to Bartlett and Ghoshal, what
B. greater income equality in most coun- are the two pressures that influence inter-
tries national business strategy?
C. growing concern about climate change A. Market pressure and global competi-
D. increased concerns about terrorism tion

B. Competition pressure and product

pressure
C. Cost pressure and market pressure
D. Cost pressure and local responsive-
ness
2281. is the trend toward greater eco-

nomic, cultural, political, and technologi-
NARAYAN CHANGDER
cal interdependence among national insti-
tutions and economies. A. pressure for cost reduction
A. Globalization B. pressure to be locally responsive
B. Privatization C. pressure for location economies
C. Decentralization D. pressure for experience effects
D. Heterogenization 2285. The Disney Euro experience emphasize

the importance of before entering a
2282. Find global products from Indonesia (an- foreign market
swers can be more than 1)
A.
B.
A. good preparation
B. culture
C. market analysis
C. D. all of the above
2286. Infrastructure is a significant factor that

D. All products are not from Indonesia affects the economic development of a
E. All products from Indonesia country
A. True
2283. Economies that arise from performing a
value creation activity in the optimal place B. False
for that activity are referred to as:
2287. Global Standardization Strategy only fo-
A. factor economies cuses in increasing profitability.
B. production economies A. True
C. location economies B. False
D. value creation economies.
2288. A system in which people, groups or
2284. When a firm needs to minimize its unit things are ranked one above another
costs, the firm is facing A. Sociability

B. Hierarchical System country’s GDP followed a zigzag trend till

C. Good appetite 2013. From then on, it started declining.
This has all the features of a

D. Collectivist Culture
2289. In this culture people tend to do one

thing at a time.
A. Monochronic Cultures
B. Polychronic Cultures
2290. What is meant by free trade area?

A. Free trade area between the countries A. command economy
involved B. market economy
B. Tax-free areas between the countries C. free market economy
involved D. feudal economy
C. Immigration-free areas between the 2294. Which of the following is a major limita-
countries involved tion of the simple Ricardian model of com-
D. A security-free area between the coun- parative advantage?
tries involved A. The model ignores the principle of di-
E. Culturally free areas between the minishing marginal returns.
countries involved B. The model recommends excessive gov-
ernmental intervention in trade.
2291. Economic globalization is characterized
by; C. The outcome of the model suggested
by Ricardo is a zero-sum game.
A. international migration
D. The model is against the idea of engag-
B. international trade and investment ing in free trade with nations.
flows
2295. Which of the following documents is not
C. cross-cultural flows of ideas
a document related to fulfill the customs
D. rise regionalism formalities?
2292. IN THE BCG MATRIX, A PRODUCT LINE A. Shipping bill
WITH A HIGH MARKET SHARE AND A B. Export licence
HIGH MARKET GROWTH IS CALLED ? C. Letter of insurance
A. A CASH COW D. Proforma invoice
B. A DILEMMA 2296. In 2019, Brazil exported $224 billion
C. A STAR in products and imported $177 billion in
D. A DOG products. What is this discrepancy be-
tween exports and imports called?
2293. Many economists believed that the A. trade surplus
policies of state ownership, unregulated
B. the trade fails
spending, subsidies, and domestic price
controls were responsible for the coun- C. unfavorable balance of trade
try’s crisis in 2016. From 1999, the D. favorable balance of trade

2297. When a business in Canada develops 2302. Bison Chip Dip and Chivetta’s BBQ Sauce
a relationship with a business in another are considered
country, that country becomes a trading A. National Brands
partner with Canada.
B. Store Brands
A. Trading Partner
C. Regional Brands
B. Friendship
D. None of these
C. Business Relationship
NARAYAN CHANGDER
2303. If a country allows trade and the domes-
D. Importing Partner tic price of a good is higher than the world
price
2298. Persons and companies engaging in in-
ternational business need to be aware of A. The country will become an exporter of
the threat of child labor practices in other the good.
countries that may be a common practice. B. The country will become an importer of
A. TRUE the good.
B. FALSE C. The country will neither import nor ex-

port
2299. THEY LIMIT WORLD TRADE D. Additional information about demand
A. THEORY OF ABSOLUTE ADVANTAGE is needed to determine whether the coun-
try will export or import the good.
B. THEORY OF COMPARATIVE ADVAN-
TAGE 2304. Which of the following statements is
true of the Leontief Paradox?
C. PROTECTIONISM
A. It shows an anomaly that occurs when
D. BALANCE OF PAYMENT
a nation has high domestic demand for a
E. TRADE BARRIERS product.
B. It explains the relationship between
2300. Globalization refers to the shift toward
domestic demand and comparative advan-
a more and interdependent world econ-
tage.
omy
C. It disproved Ricardo’s theory of com-
A. sophisticated
parative advantage.
B. integrated D. It raised questions about the validity
C. lucrative of the Heckscher-Ohlin theory.
D. subjective 2305. In this practice, companies export below
cost, affecting foreign producers.
2301. Which of the following are examples of
multinational companies? Tick all that ap- A. dumping
ply. B. to value
A. McDonalds C. low cost integration
B. Greggs D. scale economics
C. BMW 2306. what is not a part of diamond model?
D. none of above A. natural resources

B. domestic demand 2312. Which trade theory suggests that

C. domestic competitors economies of scale and network effects
can lead to trade even when countries

D. supporting industries do not differ in terms of resource endow-
E. strategic industries ments or technology?
2307. This theory establishes that a foreign
producer agrees to lower the price of its B. Comparative Advantage
exports when the importing country taxes C. New Trade Theory
its products.
D. Heckscher-Ohlin Theory
A. Optimal tariff
2313. Which among the following factors are
B. Tariff in transit
differences of the two kinds of trade?
C. Shared tariff Choose more than one (1) answer.
D. Arancel benchmark A. Products and Services
2308. Which of the following are cultural di- B. Independent Currency System
mensions identified by Hofstede? Tick all C. Tariffs and Other Trade Restrictions
that apply
D. Movement of Labor and Capital
A. Uncertainty avoidance
2314. How many official languages are there
B. Power Distance Index in India?
C. Individualism
D. Recidivism
2309. Accomplishing many different things at

once is common for these cultures
A. Monochronic Cultures
B. Polychronic CUltures
2310. Countries usually impose restrictions on

free foreign trade to
A. 2
A. Protect Foreign Producers
B. 4
B. Protect Foreign Consumers
C. 5
C. Protect Domestic Producers
D. 22
D. Protect Domestic Consumers
2315. is a ratio or rate of return concept.
2311. The United States currently has this bal-
ance of trade situation
A. Trade surplus
B. Equilibrium
C. Trade fails
D. Trade shortage

A. Profitability 2320. The workers at Disney Paris complained

B. Performance about by Disney management.
C. Cash flow
D. Efficiency
2316. Which was the main economic source of

South Africa in 2017?
NARAYAN CHANGDER
A. Mining
B. Construction
C. Agriculture
D. Tourism A. cultural imperialism
2317. Makes imported goods more expensive B. favoritism
A. Quota C. using American characters like Mickey
B. Tariff Mouse
C. Embargo D. lame roller coasters
D. none of above 2321. They represent a kind of direct assis-

tance to companies to make them more
2318. Company Mochi is performing a value competitive.
creation activity in the optimal location for
that activity, wherever in the world that A. Embargo
might be to achieve B. Dumping
A. Location economies C. Subsidies
B. Economies of scale D. Dues
C. Economies of scope
2322. The main objective of was to help
D. Offshoring economies facilitate external trade and payments in
India.
2319. Of the following language related state-
ments, the only statement that is true is A. FEMA
A. English is the only language ever used B. FERA
for international business purposes C. EPZs
B. International business persons often D. Technology park
prefer to transfer to transact business in
their native language, even if they speak 2323. individualizes goods and services for
English well the country in which it operates
C. Japanese is a language used by one A. Multinational Corporation
unimportant trading country
B. Global Strategy
D. For a career in international business,
C. Multinational Strategy
you need to learn at least ten languages
besides your native language D. Foreign Exchange

2324. How should you indicate you are fin- 2330. It is rude to write on a Japanese busi-
ished eating at a meal in the Middle East? ness card.

A. Leave a small amount of food on your A. True
plate
B. False
B. Turn your plate upside down
C. Put your drinking glass on your plate 2331. This looks like a strategy to help us
improve the quality of our company
D. Lay your arms on the table in front of
your plate A. FIRM
2325. Which one of the following is NOT an B. BUSINESS

external influence C. SELL
A. Minimum wage laws D. PRODUCT
B. The size of the workforce
2332. The first step in our decision making
C. Health and Safety regulations
model is
D. Bank interest rates
A. Identify alternatives
2326. which of the following is NOT the MAIN
B. Define the problem
PLAYER in International business?
C. Reflect
A. NGO
B. distribution channel intermediaries D. Evaluate alternatives
C. facilitator 2333. Normal reaction to all the differences in
D. government culture
2327. a trade pattern is

A. what a country trades and in what di-
rection
B. what a country trades
C. when a country trades
D. what direction a country trades in
A. Culture shock
2328. The exporter will arrange for the buyer
of the product to send payment before it B. Culture
is delivered C. Shock
A. Export credit
D. none of above
B. Payment by the importer
C. Bank loan 2334. A firm has to become a multinational en-
terprise, investing directly in operations in
D. Letters of credit
other countries, to engage in international
2329. Ethical concerns business.
A. benefits A. TRUE
B. limitations B. FALSE

2335. According to Porter’s competitive ad- 2340. Product life cycle theory doesn’t work
vantage of nations, refer to the nature today because
of home-market demand for specific prod- A. the USA is no longer the only leading
ucts and services. innovation nation
A. firm strategy, structure, and rivalry B. movement of product from new to-
B. factor conditions maturing-standardized happens today
fast
C. demand conditions
NARAYAN CHANGDER
C. it is morally wrong to show domination
D. demand liabilities of one nation over another
D. none of above
2336. Porter’s five forces model focused on
threat of a new entrants. 2341. are our newest catalog and circular
A. Potential entrants your consideration.
A. Enclose / in
B. Substitute
B. Enclosing / with
C. Buyers
C. Enclosed / for
D. none of above
D. none of above
2337. Which one is correct? 2342. Globalization is fueled largely by declin-
A. deal about ing trade and investment barriers and new
technologies, such as the Internet.
B. deal at
A. TRUE
C. deal from
B. FALSE
D. deal with
2343. Which is NOT the main way of Currency
2338. According to the law of supply and de- Conversion in foreign exchange markets?
mand, how will the scarcity of a high- A. Currency Speculation
demand product affect the price?
B. Currency Swap
A. The scarcity of a high-demand product
C. Pay a foreign company for its products
increases its market value.
or services in it’s country currency
B. The scarcity of a high-demand product D. Spare cash that they wish to invest in
will increase the demand for that product. short term.
2339. There are essentially two kinds of busi- 2344. What are the main functions of foreign
ness corruption: corruption and exchange market?
corruption. A. Convert the currency of one country
A. internal; external into the currency of another, insurance
against foreign exchange risk.
B. open; closed
B. Reduced the impact of profit margin.
C. private; public
C. Currency swap.
D. individual; group
D. Buying the currency low and sells it
E. conspicuous; inconspicuous high.

2345. Outsourcing a part of or entire produc- 2350. Business activities needed for creating,
tion and concentrating on marketing oper- shipping, and selling goods and across na-
ations in international business is known tional borders.

as A. International business
A. Licensing B. Absolute advantage
B. Contract Manufacturing C. Domestic business
C. Joint venture D. Comparative advantage
D. none of above 2351. 3) When divergent cultures come in con-
tact, occurs.
2346. An effective organizational architecture
must reflect and support: A. power distance
A. Local business environment B. culture shock

C. cultural collision
B. Global market needs
D. group membership
C. International trade policy
D. Company financial focus 2352. implies an agreement between 2 or
more entities to work jointly with one an-
2347. Which is not an Indian Multinational other to increase the performance of both
Company? the parties
A. Unilever A. Joint Venture

B. Strategic Alliance
B. Asian Paints
C. FDI
C. Piramal
D. Wipro
2353. Legal system based on a detailed set of
2348. Who represents India’s leader position written rules and statutes that constitute
in G-20 summit? a legal code is called
A. President A. Common law legal system
B. Prime Minister B. Codified legal system
C. Minister of Finance C. Civil law legal system
D. RBI Governor D. Unwritten legal system
2354. A U.S. firm sells merchandise today to

2349. If the United States grants patents to
a British company for £150, 000. The
three pharmaceutical companies producing
current exchange rate is $1.55/£, the ac-
a vaccination against one disease, what
count is payable in three months, and the
type of market situation will exist?
firm chooses to avoid any hedging tech-
A. oligopoly niques designed to reduce or eliminate the
risk of changes in the exchange rate. If the
B. pure competition
exchange rate changes to $1.58/£, the
C. monopoly U.S. firm will realize a of
D. anarchy A. Loss / £4, 500

B. Gain/ £4, 500 A. Domestic country

C. Loss/ $4, 500 B. Foreign country
D. Gain/ $4, 500 C. Both a & b
2355. pressures for global integration-
highpressures for local responsiveness- 2360. A ban on trade with another country for
high one or all of its goods.
A. international strategy A. Embargo
NARAYAN CHANGDER
B. global strategy B. Free trade
C. multidomestic strategy C. Market
D. transnational strategy D. Tariff
2356. 76) In addition to understanding the 2361. ONE COUNTRY MAY IMPOSE TARIFF
laws affecting business in countries where IF THE OTHER COUNTRY DID THE SAME
their companies operate, it is most impor- THING TO IT.
tant for managers to understand the A. INFANT INDUSTRY
A. methods for appointing local judges B. CONSERVATION OF NATURAL RE-
B. ethical rationale behind the laws SOURCES
C. history of the local legal system C. NATIONAL DEFENSE
D. degree of law enforcement D. DUMPING
E. RETALIATION
2357. A company’s sales depend on these fac-
tors: 2362. A tariff assessed as a percentage of the
value of a product is a tariff:
A. Consumer interest in its products or
services A. Specific
B. All of the above B. To value
C. There are more potential consumers C. Internal
D. Consumer willingness and ability to D. All of the above
buy them 2363. Which of the following theories stress
2358. In Hofstede’s theory, this reflects the the role of luck, entrepreneurship, and in-
extent to which a culture values assertive- novation in the production and export of a
ness, acquisition of money and status and good or service by the firms in a country?
achievement A. Product life-cycle theory
A. long vs short-term orientation B. Ricardo’s theory
B. masculinity vs femininity C. Theory of comparative advantage
C. indulgence v restraint D. New trade theory
D. none of these 2364. A limit on the amount of a good that can
be imported.
2359. Foreign direct investment is when firms
make business investment that it controls A. import quota
in a B. export quota

2365. World Bank’s official goal is D. The social conditions:is youth un-
A. Reduction of poverty employment or underemployment high
(think:Arab Spring, Sudan, Algeria etc.)?

B. Economic Growth Are social tensions erupting into violence?
C. Increase export Riots can also impact trade transactions
or performance of commercial contracts.
D. Facilitating international trade
2369. The system or process of converting one
2366. What was the outcome of The North
national currency into another and trans-
American Free Trade Agreement?
ferring money from one country to another
A. non-tariff barriers to agricultural trade is
between the U.S. and Mexico were elimi-
A. Exchange Control
nated
B. Foreign Exchange
B. disorganization in trade between the
U.S. and Canada C. Exchange Rate
C. tariff trade would be eliminated in 25 D. Currency Exchange
years
2370. In a economy certain sectors of the
D. non-tariff barriers to technological economy are left to private ownership and
trade between the U.S. and Mexico were free market mechanisms.
eliminated
A. Mixed
2367. Economics is B. Market
A. how humans allocate scarce re- C. Planned
sources to produce various commodities D. Common
and how they are distributed for society.
B. the study of production 2371. When your exports are greater than
your imports, this exists?
C. used to measure price changes
A. Trade fails
D. a measure of a country’s production.
B. Trade surplus
2368. These are some of the early signs of po-
litical risk are political, economic and social 2372. Which of the following are six rules for
instability except: finding out what is really going on in a cul-
ture?
A. The political situation in the coun-
try:how is the country behaving with its A. Don’t assume, Be quiet, Look, Listen,
neighbors? You want to be prepared if Feel, Ask questions
there’s an escalation of tensions or a war B. Don’t assume, Be ready, Look, Listen,
B. The country’s policy on foreign in- Feel, Ask questions
vestors in term of taxation, custom duty C. Don’t ask, Be quiet, Look, Listen, Feel,
etc. Be steady
C. The economic conditions:what are the D. Don’t ask, Be quiet, Look, Smile, Feel,
macro-economic imbalances? How stable Be steady
is the economy? What is the ability of the
country to honor its payment obligations 2373. EPZ full form
or debt over the period of your project? A. Experince Processing Zone

B. Expert Processing Zone 2378. Important source of debt financing to

C. Export Processing Zone complement what MNEs can find in their
domestic markets?
D. Economic Processing Zone
A. Capital
2374. 23) Which of the following best ex-
B. Equity
plains recent governmental relaxation of
restrictions on cross-border trade and re- C. Bond
source movements? D. Eurocurrency market
NARAYAN CHANGDER
A. Most countries face shortages of work-
2379. Protecting essential local industries so
ers, so they seek immigrants who can help
that the country is not dependent on for-
them produce more.
eign supplies during a war is:
B. Governments believe that this will de-
A. embargo argument
crease the need to make their own com-
panies more innovative. B. Autarky argument
C. Consumers increasingly want to buy C. Infant industry argument
goods and services produced in their own D. Essential industry argument
countries, making restrictions less neces-
sary. 2380. A positive balance of trade or payments
D. Governments believe that domestic
producers will become more efficient as
a result of foreign competition.
2375. Who coined the term Globalization?
A. Sir Theodore the 3rd
A. quotas
B. Theodore Abraham
B. deficit
C. Dwight Schrute
C. tariffs
D. Theodore Levitt
D. surplus
E. Kanye West
2381. ONE OF THE REASONS WHY THIS WAS
2376. T/F:Tariff-earn revenue by reversing FORMULATED IS BECAUSE OF INDUSTRI-
taxation on foreign goods: ALIZATION
A. True
A. THEORY OF ABSOLUTE ADVANTAGE
B. False
B. THEORY OF COMPARATIVE ADVAN-
2377. The G-7 is devoted to addressing global TAGE
issues such as world hunger, security, C. PROTECTIONISM
medicine, and poverty. Which of the fol-
D. BALANCE OF PAYMENT
lowing is NOT a member of the so-called
G-7? E. TRADE BARRIERS
A. Norway 2382. The Internet has been a major force fa-
B. Canada cilitating international trade in services.
C. Japan A. TRUE
D. France B. FALSE

2383. The African Economic Community (AEC) A. TRUE

is an organization of African Union states B. Falso
establishing a single market, a central

bank and a common currency. What type 2389. 25) Assume an enterprise is considering
of arrangement does this BEST represent? establishment of a foreign production facil-
A. common market ity. Which of the following best supports
this decision?
B. free trade agreement
A. Its foreign competitors have higher
C. most favored nation status production costs than it has.
D. none of above B. Its main competitor successfully
2384. a market is? opened a foreign plant.
A. the likely customers for a product C. Its suppliers follow an agglomeration

strategy.
B. a product for a certain geographic lo-
cation D. None of its competitors have foreign
production facilities.
C. a likely geographic location of a cer-
tain product 2390. When determining comparative advan-
D. the likely customers for a product in a tage one must determine
certain geographic location A. Opportunity Cost
2385. The use of trade barriers to protect a na- B. Absolute Advantage

tion’s industries from foreign competition C. Specialization
A. Balance of trade D. International Trade
B. NAFTA 2391. Collectivism:
C. Quotas A. flatter and decentralized organization
D. Protectionism structures, smaller ratio of supervisors.
Employees are more likely to question
2386. THIS WAS POSTULATED BY DAVID RI- their bosses. Participative management
CARDO may be used.
A. THEORY OF ABSOLUTE ADVANTAGE B. Tendency of people to belong to groups
B. THEORY OF COMPARATIVE ADVAN- or collectives and to look after each other
TAGE in exchange for loyalty
2387. Which of the following organisation C. personal disorientation when experi-

won Nobel Prize for peace? encing an unfamiliar way of life
A. WTO D. none of above
B. IMF 2392. It is one of the most effective pressure

C. European Union groups for the restriction of imports
D. SAARC A. Unions
B. The unemployed
2388. The Triad is a trade agreement signed in
1987 by the US, Brazil, Central Europe and C. Teachers
Japan. D. None of the above

2393. France imposes a limit on Avocado im- 2398. Separating Content and Design
ports from Mexico.
A. Wide Style Sheets
A. tariff
B. Internal Style Sheets
B. quota
C. External Style Sheets
C. embargo
D. none of above
D. none of above
2394. Interest rates in domestic markets are 2399. When people communicate very directly
NARAYAN CHANGDER
than in global markets because the and relay on literal interpretations they
pool of investors in domestic markets is are known to be
than in global markets. A. High context
A. Higher/smaller B. Low context
B. Higher/larger C. Face savings
C. Higher/larger D. Language differences
D. Lower/smaller
2400. the process by which businesses or
2395. What are services? other organizations develop international
A. Physical Products. influence or start operating on an interna-
B. Money. tional scale.
C. Provided by people and can be A. International Alliance
touched. B. Globalization
D. Provided by people and can not be C. Embargo
touched.
D. Import
2396. Which country is the biggest importer
into the UK? 2401. A cultural factor affecting international
A. France business activities would be
B. USA A. the availability of natural resources.

C. Germany B. government policies toward business.
D. China C. stability of the money supply.
2397. Per capita GDP is a better measure of a D. family relationships.

nation’s economic development than total
2402. What type of investment is it if you are
GDP because
investing in a country through its national
A. it shows how wealthy each person in stock market, there is no direct flow from
the country is. investor to country, since the investor is
B. it gives a better comparison between investing in another company?
countries of different population sizes. A. Foreign Direct Investment
C. it shows how the unemployment rate
B. Indirect Foreign Investment
affects GDP.
C. Globalization
D. it includes the capital city of each coun-
try. D. none of above

2403. 84) Some observers feel that interna- 2408. Which of the following is a reason why
tional institutions and the people work- a relatively poor country may be an attrac-
ing in them cannot adequately handle the tive target for inward investment?

complexities of an interconnected world. A. rapid economic growth
Based on this, these observers believe
that B. political instability
A. globalization will slow in the future C. currency depreciation
B. globalization is nevertheless in- D. high cost of living
evitable
2409. Which one is not an international orga-
C. international business will grow pri- nization
marily on a regional basis
A. IMF
D. private companies will replace interna-
B. SAARC
tional organizations in running the world’s
economy C. World bank
D. WTO
2404. Which of the following is not a govern-
mental role in the U.S. economy? 2410. Ford Motor Company is based in Detroit,
A. Provides services Michigan. It also has offices in Germany,
England, and China. Which of the follow-
B. Supports businesses
ing is Ford’s home country?
C. Regulates by making laws
A. Germany
D. Determine prices
B. England
2405. Members do away with duties and C. China
other trade barriers-they allow companies
D. United States
to invest freely in each member’s country
*ex. EU (European Union) 2411. Studying international business is im-
A. Free-trade zones portant because:
B. Free-trade agreements A. Most large companies are interna-
tional
C. non-tariff alliances
B. The way of doing business changes in
D. Common markets
each country
2406. By offering the same basic product C. Global events affect companies of all
worldwide, firms help to create a global sizes
market.
D. All of the above
A. TRUE
B. FALSE 2412. Selling goods and services to another
country is considered?
2407. What is franchising? A. Exporting
A. It is the practice of using the success- B. Importing
ful business model of another company.
B. international agreements on foreign 2413. strategy to get A in PBS3233
direct investment A. flattering with lecturer

B. hardworking 2419. Product or service goes through (4)

C. answer all assessment correctly stages:Which one does NOT belong.
D. doing the best in final exam A. Introduction
B. Growth
2414. In cultures with more power distance,
employees have less rights and managers C. Deficit
may have a hierarchial style of leadership, D. Maturity
meaning they do not ask the employees to
2420. It is also known as global procurement,
NARAYAN CHANGDER
participate in decision making.
or global purchasing, the strategy of buy-
A. True ing products and services from foreign
B. False sources and bringing them into the home
country or a third country.
2415. Define balance of trade.
A. Exporting
A. The difference between the value of a
country’s exports and the value of its im- B. Importing
ports. C. None of the above
B. The total value of a country’s imports D. none of above
C. The difference between the value of a
2421. Which of the following is not part of the
country’s imports and the value of its ex-
arguments about trade protection?
ports
A. The national security
D. The total value of a country’s exports
B. A souree of the government revenue
2416. is the buying of products made in
C. The potential for corruption
other countries for use or resale in one’s
own country. D. The protection of domestic jobs
A. Exporting 2422. It is the degree to which a society val-
B. Importing ues assertiveness and feelings of material
success versus concern for relationships
C. Merchandising
D. Transporting A. Power Distance
2417. A company that prints text books for a
publishing company. C. Individualism-Collectivism
A. Providing a Service D. Masculinity-Feminity
B. Manufacturing E. Time Orientation

C. Retailing 2423. When work conditions in a host nation
D. Wholesaling are inferior to those in an MNC’s home na-
tion, what standards should be applied?
2418. As a result of globalization, we have
been moving toward a world in which
national economies are relatively self-
contained entities.
A. TRUE
B. FALSE

A. Home country’s standards 2428. Strongly held concepts that are present
B. Host country standards in a culture are called:

A. norms
C. Something in-between
B. values
D. none of above
C. folkways and mores
2424. Which set of factors below has an im- D. none of these
pact on future exchange rate movements
in a country’s currency? 2429. 11) In a practical sense, the term politi-
A. The country’s interest rate, market cal system is meant to signify the
psychology, its price deflation A. organization of military power in a
B. The country’s price deflation, its inter- country
est rate, its price inflation B. working government in a country
C. The country’s interest rate, its price in- C. philosophical orientations in a country
flation, market psychology D. cultural values in a country
D. The country’s price inflation, its price
2430. A U.S. company can obtain political risk
deflation, market psychology
insurance on an overseas subsidiary or in-
2425. A promotional strategy where partici- vestment from
pants compete for prizes by accomplishing
something.
A. Rebate
B. Contest
C. Giveaway
D. Incentive Program
A. the U.S. Department of Agriculture
2426. When company A and company B agree B. the U.S. Department of Commerce
to join forces for business cooperation by
forming company C until their business C. Export-Import Bank of the United
goals are achieved States
A. Jointy venture D. free-trade agreements
B. Merger 2431. Choose the correct option

C. Acquisition
D. Strategic Alliance
2427. Another term for a free enterprise sys-

tem is
A. communism
B. capitalism
C. socialism A. global strategy
D. fascism B. transnational strategy

C. multidomestic strategy 2436. according to product life cycle, price pre-

mium will always be in
D. international strategy
A. the USA
2432. The negatives globalization are that
B. Europe
C. Asia
D. none of above
NARAYAN CHANGDER
2437. What is currency risk management?
A. Strategies to increase the impact of
exchange rate fluctuations on financial
transactions or investments.
A. it could lead to a loss of jobs in devel- B. Techniques to completely eliminate the
oped countries impact of exchange rate fluctuations on fi-
B. it could lead to higher prices nancial transactions or investments.
C. businesses could all move to the devel- C. Methods to maximize profits from ex-
oped countries like the USA change rate fluctuations.
D. all the above D. Strategies and techniques to mitigate
the impact of exchange rate fluctuations
2433. Countries who are eligible for both IDA on financial transactions or investments.
assistance due to low per capita income
and credit worthy for some IBRD borrow- 2438. Refer to the nature of home demand for
ing are called the industry’s product or service.
A. Conditional Borrower A. Demand conditions

B. Relating and supporting industries
B. Blended Borrower
C. Firm strategy, structure, and rivalry
C. Participating Borrower
D. none of above
D. All of the above
2439. 68) The production of goods by a French
2434. 87) A company with limited resources is company in Italy for sale in Italy is an ex-
more likely to achieve national distribution ample of an Italian merchandise import.
within a small country than within a large
country. A. True
A. True B. False
B. False 2440. Which of the following is true about

handshakes in some African countries?
2435. The average rate of economic growth
A. They are uncommon and unnecessary
over time is called
B. They are held for longer than is cus-
A. Trend growth
tomary in the U.S.
B. Unsustainable growth
C. They are followed by an embrace
C. Economic growth
D. They are followed by grasping the
D. Competitive growth shake with the opposite hand

2441. What is one advantage of exporting? B. a tax or duty

A. Vulnerability to currency fluctuations C. fee charged by the government on ex

B. Access to new customers D. subsidy given to domestic producers
C. Supply chain disruptions
D. Cultural and language differences 2447. A tax on a good imported into a country.
A. Tarriff
2442. Georgia’s minimum wage is $5.15 per
hour. Florida just increased theirs to B. Translate
$8.65 per hour. Federal minimum wage re-
C. Negotiate
mains unchanged as of now. If you work
in Georgia but live in Florida, you would D. Embargo
make
2448. A sole proprietorship is the easiest type
A. $5.15
of business to start
B. $7.25
A. True
C. $8.65
B. False
D. $15
2443. can be defined as the rate of return 2449. How does International Business effect
that the firm makes on its invested capi- you as a consumer?
tal, which is calculated by dividing the net A. Income of the consumer
profits of the firm by total invested capi-
tal. B. The prices of consumer goods that are
produced and sold in the domestic market
A. Profitability
B. Performance C. The economy of the country.
C. Cash flow D. Purchasing Power of the consumer.

D. Efficiency
2450. Pre-shipment Finance refers to the
2444. Sam speaks Spanish in his house. Which credit given to producer to:
element of culture does this fall up under? A. Pay shipping charges
A. Beliefs
B. Pay shipping duties
B. culture
C. To purchase raw material
C. language
D. All of these
D. literature
2445. Smaller countries tend to be more glob- 2451. Hyper globalization is a process of glob-
alized than larger ones alization which
A. TRUE A. emphasizes the rise of the TNC and the
decline of the nation state
B. Falso
B. emphasizes the rise of nation states
2446. A tariff is a (a) on imported goods or
services. C. emphasizes the decline of TNC
A. form of trade agreement between two D. emphasize the rise of TNC

2452. This is a traditional finance arrange- 2457. The structure and processes that a coun-
ment, where a business borrows directly try uses to allocate its resources and con-
from a financial institution duct its commercial activities.
A. Letter of credit A. Political system
B. Export Credit B. Economic system
C. Bank Loan C. Social system
D. Prepayment by importer D. Cultural system
NARAYAN CHANGDER
2458. The best starting point to improve ethi-
2453. Which of the following is not the objec-
cal decision-making in a multinational firm
tives of import trade?
is to better understand how individuals
A. To meet consumer demand. make decisions that can be considered eth-
B. To improve the standard of living. ical or unethical in an organizational envi-
ronment.
C. To speed up industrialisation.
A. True
D. To earn foreign exchange.
B. False
2454. A ban; government prohibits the import 2459. The demands that some specific fraction
of that item. of a good be produced domestically is one
A. embargo of the government intervention in interna-
tional trade in the term of
B. standard
A. Local content requirements
C. subsidy
B. Subsidies
D. none of above
C. Voluntary export restraints
2455. A tax or duty may be imposed on an in- D. Administrative policies
ternational company if:
2460. Framework or tool used to analyse and
A. they are pricing products too low and monitor the macro-environmental factors
gaining an unfair edge in competition that may have a profound impact on an or-
B. they are charging their employees for ganisation’s performance.
health care A. Five Forces Analysis
C. they are always charged taxes/duties; B. PESTEL
it is part of international business
C. Value Proposition Canvas Model
D. none of these is true
D. Entrepreneurial ecosystem model
2456. Australia’s biggest export to China is 2461. Which one of the following is not
amongst India’s major import items?
A. Iron Ore A. Ayurvedic medicines
B. Barley B. Oil and petroleum products
C. Copper C. Pearls and precious stones
D. Coal D. Machinery

2462. Which of the following would constitute of countries which have comparable mar-
as a technological barrier to trade? ket characteristics such as economic, cul-
tural or political similarities and formu-

A. Product standards
lates operational strategies based on re-
B. A tariff gion instead of countries.
C. An import quota A. Polycentric
D. Licenses B. Ethnocentric
2463. This refers to the reductions in unit cost C. Regiocentric

achieved by producing a large volume of D. Geocentric
product
2467. What Finland is doing when they buy
A. Experience curve fruit shipments from Brazil?
B. Economies of scale A. Dumping
C. Learning effects B. Importing
D. A global web C. Exporting
2464. What is the largest franchise in the D. Embargo

world?
2468. Outsourcing a part of or entire produc-
tion and concentrating on marketing oper-
ations in international business is known
as
A. Licensing
B. Franchising
C. Contract manufacturing
A. KFC D. Joint venture
B. Subway 2469. Which of the following is NOT a corrup-
C. Wendy’s tion issue?
D. McDonald’s A. Expected bribes
B. Sweatshop conditions
2465. Supports the premise that a nation could
only gain from trade if it had a trade sur- C. Deceptive advertising
plus, which is, more exporting than import- D. High pressure sales techniques
ing
2470. Which of the following are reasons why
A. Theory of Absolute Advantage the study of international business is im-
B. Mercantilism Theory portant? You may choose more than one
(1).
C. Theory of Comparative Advantage
A. Modes of operations may differ from
D. Heckscher-Ohlin (H.0.) Theory
those used domestically
2466. In approach, the firm accepts a re- B. The best way of conducting business
gional marketing policy covering a group may differ by country

C. An understanding helps make better B. Exporting and Importing

career decisions C. Contract Manufacturing
D. An understanding helps decide what D. Wholly owned subsidiaries
governmental policies to support.
2477. A market is a relatively small mar-
2471. Service process outsourcing or busi- ket with specialised interests, tastes and
ness software background.
A. Costumer A. mass
NARAYAN CHANGDER
B. E-commerce B. target
C. Business C. niche
D. None of the above D. none of above
2472. an official ban on trade or other commer- 2478. The global system of exchange rates
cial activity with a particular country. and international payments that enables
countries and their citizens to buy goods
A. Embargo and services from each other is known as
B. Import
C. Export A. the International Development Associ-
ation
D. none of above
B. the World Trade Organization
2473. Products sold by companies in the
C. the International Monetary Fund
United States to customers in India are ex-
ports. D. the Multilateral Investment Guarantee
Agency
A. True
E. the World Bank
B. False
2479. Globalization has allowed firms to ex-
2474. LG India is an example of pand into markets that, until recently,
A. Exporting were insulated from the international mar-
ketplace.
B. Joint Venture
A. True
C. Cross Border merger
B. False
D. Wholly Owned Subsidiaries
2480. Cars built in the USA is shipped to the
2475. “Thereby” is a ? UAE.
A. Formal word A. Import
B. Archaic word B. Export
C. Loan word 2481. The term special economic zone can in-
D. Technical Term clude
A. Free trade zone
2476. Which modes of entry permits great-
est degree of control over overseas oper- B. Export processing zones
ations? C. Both the above
A. Joint ventures D. None of them

2482. Companies that own other companies D. what time a company advertises a
in other countries outside the company’s product
home country and have their own business

structures and strategies 2487. bring (goods or services) into a country
from abroad for sale.
A. Regional Company
A. Export
B. International Company
B. Import
C. Multinational Company
C. Embargo
D. National Company D. none of above
2483. Business attire should be 2488. All of the following are basic elements
A. well-fitted and neat. that make up a culture except
B. bright and make a statement A. Literature
C. tight and revealing. B. Animals
D. loose and wrinkled C. Beliefs
D. Art
2484. Statement 1:1) Accommodating capi-
tal flows are planned.Statement 2:Au- 2489. Government systems, political stability,
tonomous capital flows are expost. trade barriers, and business regulations
refer to which factor of the international
A. Statement 1 is correct but statement 2
business environment?
is incorrect
A. geographic
B. Statement 2 is correct but statement 1
is incorrect B. economic
C. Both statements are correct C. political and legal
D. Both statements are incorrect D. cultural and social
2485. Why is it important to modify existing 2490. Letter of credit is a document that con-
business principles and practices in interna- tains guarantee from the exporter’s bank
tional business? to the importer’s bank.
A. True
A. To understand and adapt to potential
differences B. False
B. To adapt to the foreign planet’s tech- 2491. Which of the following are factors of in-
nology ternational business
C. To engage in international business A. Technological
with open eyes B. Economic
D. To out-compete rivals C. Political
2486. target market means D. Psychological
A. who a company advertises to 2492. Globalisation is a phenomenon that can
B. how and where a company advertises mean many things to many people.
C. what day and time a company adver- A. True
tises B. False

2493. What exchange rate regimes are used C. Domestic business is conducted within
in Vietnam today? international borders, while international
A. Fixed peg business is conducted outside of interna-
tional borders
B. Adjustable peg
D. Domestic business is conducted out-
C. Managed float side of international borders, while inter-
D. Free-float national business is conducted within in-
ternational borders
NARAYAN CHANGDER
2494. Climate and terrain are two examples of
conditions that influence international 2498. This toaster is designed to
business. A. make your toast in the morning
A. economic B. burn your bread until it is black
B. cultural and social C. keep you dry in rainy weather
C. geographic D. tell you interesting stories until you fall
asleep
D. political and legal
2499. Inequity is accepted.
2495. 63) A foreign direct investment occurs
when
A. a company owns at least 25% of a for-
eign firm
B. a company has a controlling interest in
a foreign company
C. foreign ownership is in private rather A. Low power distance
than government securities B. High power distance
D. a foreign firm agrees to a licensing C. Masculinity
agreement with a large conglomerate D. Femininity
2496. Which of the following is not a docu- 2500. An embargo is
ment related to export transaction? A. a tax on imports.
A. Shipping Bill B. a cash grant or loan from the govern-
B. Airway Bill ment to support the business.
C. Mate’s Receipt C. an official ban on trade.
D. Bill of Entry D. a specific number of imports allowed.
2501. In order to add value, local grocery
2497. What is the difference between domes-
stores often sell cheese that has already
tic business and international business?
been grated for the customer. This adds
A. Domestic business is conducted within value through:
a country, while international business is
A. Quality
conducted around the world
B. Convenience
B. Domestic business is conducted
around the world, while international busi- C. Branding
ness is conducted within a country D. Customer service

2502. Trade fails 2507. Which of the following is a financial rea-

A. A country exports (sells) more than it son why an entrepreneur might start-up a
new business?

imports (buys).
B. A country imports (buys) than it ex- A. To make a profit
ports (sells). B. To pursue a skill or interest
C. The difference between a country’s to- C. To have more freedom in decision-
tal exports and total imports. making
D. The amount a country owes to other D. To achieve a work-life balance
countries.
2508. Expansion of NAFTA is
2503. A survey a company will conduct in
A. North American Free Trade Area
Poland to determine video viewing habits
is an example of B. North Atlantic Free Trade Area
A. Primary Data C. North Atlantic Freedom Trade Agree-
ment
B. Secondary Data
D. North American Free Trade Agreement
2504. In 2019, Costa Rica sold over 120 mil-
lion boxes of bananas to different mar- 2509. Which of the following is used in con-
kets, such as the European Union and the nection with production and marketing of
United States. How would these bananas goods?
be characterized in Costa Rica? A. Licencing
A. imports B. Franchising
B. exports C. Both Licencing and franchising
C. trade barrier D. Neither licencing nor franchising
D. none of above
2510. 35) Governments primarily cooperate
2505. Technology can make new products through treaties to create a global division
available to meet consumer needs and of labor.
wants.
A. True
A. True
B. False
B. False
2511. The most serious form of political risk
2506. A polycentric staffing policy is seen as for a multinational company is
the best way to maintain a unified corpo-
rate culture.
A. privatization
B. expropriation
A. True C. import quotas
B. False D. double taxation

2512. The last federal minimum wage increase D. It is easy for an investor to get access
was approved in different quantity and quality of informa-
A. 1995 tion about foreign investment opportuni-
ties
B. 2007
C. 2012 2517. An economy in which an individual may
D. 2019 own and run a private business to make a
profit, with little government involvement
2513. International business implies the con- with business is a
NARAYAN CHANGDER
duct of business activities beyond the
A. communist economy.
A. National boundaries.
B. command economy.
B. International boundaries.
C. mixed economy.
C. Domestic Level
D. None of the above D. none of the options
2514. Employee productivity measures the to- 2518. What are the potential risks of doing
tal goods and services produced in a coun- business on a foreign planet?
try. A. Difficulty in understanding alien tech-
A. True nology
B. False B. Challenges in adapting to the alien
planet’s economy and laws
2515. “The goods were not loaded on the
ship as they did not get the custom clear- C. Problems in intergalactic transporta-
ance due to lack of one of the main doc- tion
ument.”Identify the document which was
D. Learning alien languages
required among the following:-
A. Bill of clearance 2519. is a contractual arrangement in
B. Custom bill which a firm in one country allows the use
of its intellectual property by a firm in a
C. Shipping bill second country in return for a royalty pay-
D. Bill of exchange ment.
2516. Why analysts are concerned about The A. Leasing
Global Capital Market? B. Franchising
A. Deregulation and reduce control on
C. Licensing
cross-border capital flows, individual na-
tions are becoming more vulnerable to D. Merchandising
speculative capital flows
2520. Services are provided to you by other
B. It is easy for an investor to get access
same quantity and quality of information
about foreign investment opportunities A. people
C. Deregulation control on cross-border B. employees
capital flows, individual nations are be-
C. companies
coming more vulnerable to speculative
capital flows D. countries

2521. If one company takes over another com- 2526. Which of the following refers to a situa-
pany (the purchase of one company by an- tion where a government does not attempt
other) and establishes itself as the new to influence through quotas or duties what

owner (no new company is formed) what its citizens can buy from another country?
is type of the corporate’s strategy?
A. Economic patriotism
A. joint venture
B. Protectionism
B. merger
C. Free trade
C. acquisition
D. Offshoring
D. new opening
2527. The mean of dividing the members of a
2522. is the application of knowledge
cultural group into various levels
which redefines the boundaries of global
business A. Class system
A. Cultural Values B. Extended Family
B. Technology C. School
C. Economy D. none of above
D. Society
2528. Which of the following theories sug-
2523. Opportunity cost refers to the gests that first mover advantage is signif-
icant in the export of a good?
A. wages paid to workers in factories and
offices. A. Product life-cycle theory
B. rising prices in an economy. B. Ricardo’s theory
C. things given up when a choice is made. C. New trade theory
D. products bought by one country from D. Theory of comparative advantage
another country.
2529. Timeliness is considered important in ev-
2524. Multinational corporations must adhere ery country
to the laws of which country (check all that
apply) A. False
A. Home country (country in which the B. true
business is incorporated
2530. In the context of international business,
B. Host country (country in which the
what does the acronym BRICS stand for?
business is conducted)
A. Best Regulatory Initiatives for Com-
C. Switzerland-where the world trade or-
merce and Services
ganization sets rules
D. None of the above B. Business Relations in International
Commerce and Services
2525. Attitude toward leadership, power, and C. Brazil, Russia, India, China, South
authority can help to regulate a society Africa
A. True D. Bilateral Relationships in International
B. False Commerce and Services

2531. One alternative to measure welfare and literature is responsible for the dilu-
A. HDI tion of their rich culture. Which of the
following statements, if true, strengthens
B. SING their argument?
C. GDI A. The Education Board of France has
D. PPP made it mandatory for schools to teach
students English as a second language.
2532. GATT (General Agreement on )
B. The sales of English novels have risen
NARAYAN CHANGDER
A. Traps and Trade sharply, while those of French novels have
B. Tariffs and Trade declined to a corresponding extent.
C. Tariffs and Tans C. Stores now advertise their presence
with two placards; one in English and one
D. Tariffs and Taxes in French.
2533. marketing strategy means D. French fashions are no longer popular
A. how and where a company advertises in English speaking countries.
their product
2537. According to Adam Smith, a country
B. what day a company advertises their should specialize in the production of a
product good when it has
C. who a company advertises their prod- A. an absolute advantage in the produc-
uct to tion of the good
D. what time a company advertises their B. a strong domestic demand for the
product good
2534. Globalisation refers to: C. the ability to help country increase its
national output
A. Lower incomes worldwide
D. the necessary raw materials for pro-
B. Less foreign trade and investment
duction
C. Global warming and their effects
D. A more integrated and interdependent 2538. Trade partners are countries that trade
world products with one another.
A. False
2535. PCN means
B. True
A. Post counter nationalism
B. Parent counter nationalism 2539. Which of the following is a theory that
can be used to justify limited government
C. Parent country nationalism
intervention to support the development
D. Parent country national of certain export-oriented industries?
2536. Scenario:The French GovernmentThe A. Comparative advantage theory

French Government has placed many re- B. Ricardo’s theory
strictions upon the use of the English lan-
C. New trade theory
guage within their borders. They argue
that the inflow of English movies, music, D. Heckscher-Ohlin theory

2540. What is NOT true about “Profitabil- 2543. refers to groups that are important
ity”? to individuals.

A. Profitability = Revenue-Expenses A. Aesthetics
B. It is a relative measure B. Material culture
C. It indicates how profitable a business C. Reference groups
is D. Stratification
D. It can be measured by Rate on Invest- E. Social institution
ment
2544. 70) The Economic Freedom Index indi-
2541. The factor endowment theory suggests cates that economic freedom is positively
that correlated with all of the following EXCEPT
A. A) life expectancy
B. By literacy
C. O) environmental sustainability
D. D) Diversity
A. Resources are the foundation of a 2545. The Theory of Relative Factor Endow-
firm’s competitive advantages ments is given by
B. National resource endowments are A. David Ricardo
the foundation for comparative advan-
B. Adam Smith
tages in international trade
C. F W Taussig
C. Many factors contribute to explain-
ing the emergence of comparative advan- D. Ohlin and Hecksher
tages
2546. provides complete independence to
D. Scarce resources are the foundation a person living in India that he/she can
for comparative trade advantages buy property outside India.
2542. NATO is committed to the principle A. FERA
that an attack against one or several of B. FEMA
its members is considered as an attack C. EPZs
against all. This principle means
D. SEZs
A. to guarantee the freedom and security
of its members through political and mili- 2547. culture shock
tary means A. Tendency of people to belong to groups
B. collective defense, which is enshrined or collectives and to look after each other
in Article 5 of the Washington Treaty in exchange for loyalty
C. provides a unique link between these B. personal disorientation when experi-
two continents encing an unfamiliar way of life
D. defines NATO’s cores tasks C. flatter and decentralized organization
as:collective defence, crisis management structures, smaller ratio of supervisors.
and cooperative security Employees are more likely to question

their bosses. Participative management 2552. Office is an office suite of which soft-
may be used. ware?
D. none of above A. WhatsApp, Facebook, Instagram, and
Twitter
2548. is mostly home-based organiza-
tion, located in the manufacturer’s country, B. Chrome, Firefox, Safari, and Edge
which is involved in the export of products C. Photoshop, Illustrator, InDesign, and
that the manufacturer has produced Premiere Pro
NARAYAN CHANGDER
A. Export house D. Word, Excel, PowerPoint, and Outlook
B. Import house
2553. The countries often share a common cur-
C. Firm rency. These country probably are the
D. Global members of
A. EUROPEAN UNION
2549. People generally prefer little consulta-
tion between superiors and subordinates B. MERCOSUR
in cultures where is high. C. Andean Community
A. power distance D. ASEAN
B. fatalism
2554. Taxes on imports; also known as custom
C. individualism duties
D. self actualisation A. Tariff
2550. When preparing for an international B. Specific Tariff
business meeting, what should be your C. Tariff value
number one priority?
2555. A set of ideas about how a company

should conduct business in relation to legal,
social and environmental issues is called:
A. business values
B. business morals
C. business ethics
A. Researching Culture Customs
D. business solutions
B. Researching Properties
C. Weather 2556. GDP allows a more direct comparison of
living standards in different countries than
D. Food other measures.
2551. Benefits of international business is A. True
A. more job employment B. False
B. all of these 2557. 65) A multinational enterprise (MNE) is
C. increase FDI best defined as a firm
D. variety of goods & services available A. that is a member of the Fortune 500

B. with foreign business partners B. Promotion to economic growth

C. involved in global franchising C. Currency exchange risks

D. with foreign direct investments D. Diversification of markets
2558. Scenario:The French GovernmentThe 2561. This is a bank guarantee that the seller
French Government has placed many re- of a product will receive the agreed pay-
strictions upon the use of the English lan- ment from the buyer
guage within their borders. They argue A. Letter of credit
that the inflow of English movies, music, B. Prepayment by importer
and literature is responsible for the dilu-
C. Bank loan
tion of their rich culture. Their argument
is vulnerable to criticism because D. Export credit
A. most restaurants still display their 2562. are purchases of foreign financial as-
menu cards in French sets for a purpose other than control.
B. they fail to take other social and cul- A. Foreign direct investments
tural factors into account B. Global business investments
C. they do not distinguish between C. Foreign portfolio investments
movies made by studios in England and
D. Indirect investments
movies made in Hollywood
D. no other country screens French 2563. Who introduced the theory of absolute
movies or star French actors advantage?
A. Adam Smith
2559. What is transaction risk in Exchange
B. David Ricardo
market?
C. Bertil Ohlin
A. This is the risk that a company faces
when it’s buying a product from a com- D. Michael Porter
pany located in another country. The price 2564. A country that lacks ability to logisti-
of the product will be denominated in the cally transport imports & exports would
selling company’s currency be concerned with which component of the
B. A parent company owning a subsidiary international business environment?
in another country could face losses A. Geography
when the subsidiary’s financial state-
B. Culture
ments, which will be denominated in that
country’s currency, have to be translated C. Economy
back to the parent company’s currency D. Infrastructure
C. When a company’s market value is con- 2565. When members of a society believe that
tinuously impacted by an unavoidable ex- the group is more important than the indi-
posure to currency fluctuations vidual
D. We don’t have any transaction risk in A. Body language
exchange market.
B. Collectivisim
2560. What is one disadvantage of exporting? C. Ethnocentrism
A. Increased sales and revenue D. Values

2566. Does political unrest affect international

trading?
A. yes
B. no
2567. Which of the following is not an advan-

tage of exporting? A. Free trade agreements, and technolog-
A. Easier way to enter into international ical advancements.
NARAYAN CHANGDER
markets B. The United Nations
B. Limited presence in foreign markets C. Space Travel
C. Comparatively lower risks D. Magic
D. Less investment requirements 2572. Distinctive assets or competencies of a
2568. This is the study of how people choose firm-derived from cost, size, or innovation
to use limited resources to satisfy their un- strengths that are difficult for competitors
limited needs and wants to replicate or imitate
A. Comparative advantage
A. Economics
B. Scarcity
C. Competitive advantage
C. GDP
D. none of above
D. Consumer price index
2573. A person who buys products or services.
2569. Define participative managers
A. Consumer
A. Managers who keep all power to them-
selves B. Currency
C. Culture
B. Mangers who decentralize power and
share it with employees D. Negotiate
C. Mangers who never inform employees 2574. It is the birth certificate of the goods
of changes taken place being shipped and indicates the country of
D. Managers who never encourage em- origin.
ployees to share their ideas A. Commercial invoice
2570. It is meeting the needs of the present B. Bill of Lading

without compromising those of future gen- C. Certificate of Origin
erations. D. none of above
A. Ecology
2575. Which of these languages are not spo-
B. Kyoto Protocol ken in South Africa? Select 2 options.
C. Sustainability A. Portuguese
D. Sustainability B. English
2571. Why do goods and services move C. Afrikaans

around the world faster than ever? D. Spanish

2576. All of them are the implantation of cul- A. False

ture cluster theory across countries ex- B. true
cept:

A. employee management 2581. This country is the largest source of im-
migration to the United States.
B. marketing promotion
A. Canada
C. area product design
B. Columbia
D. market expansion
C. Mexico
2577. In 2017, the Tanzanian government
banned the export of certain raw mate- D. none of above
rials, including gold and copper concen-
2582. A quota is
trates. International gold mining company
Acacia Mining, which operates three of the A. an official ban on trade.
largest mines in Tanzania reported that it B. a limit on or a specific number of im-
had been prevented from exporting for ap- ports allowed.
proximately 20 months. What type of
trade barrier is this? C. a law that promotes safety.
A. exapropration D. a tax on imports.

B. trade embargo 2583. Words and actions do NOT have much
C. trade sanction impact on international business relations.
D. none of above A. True
B. false
2578. refers to the meaning conveyed by fa-
cial expressions upper and lower body 2584. 59) the term “ culture” describes a
movments country in which the norm is money-and-
A. Nonverbal communication things orientation and a belief that it is
B. Body Language better to “live to work” than to “work
to live”.
2579. What is the Degree’s name of IPMI In- A. high masculinity
ternational Business School for Bachelor
Study Program? B. physiological
A. Bachelor of Business Administration C. none-fatalistic.
B. Bachelor of Accounting D. high femininity.
C. Bachelor of International Business 2585. A global standardization strategy
D. Bachelor of Administration makes most sense when cost pressures
Explanation:IPMI’s Students would get are intense and demands for local respon-
the degree of “Bachelor of Business Ad- siveness limited, conversely a localization
ministration” (B.BA) after taking 4 years strategy makes most sense when demand
study. tagsGeneral KnowledgeBachelor for local responsiveness are high but cost
Degree pressures are moderate or low.
2580. Collectivism is the need to be connected A. True

to society only through education. B. False

2586. The author of the book The World is A. Egypt

Flat. B. South Africa
A. Thomas Fridman C. Tanzania
B. Thomas Friedman D. Ethiopia
C. Thomas Edison E. Nigeria
D. Thomas Edmund
2591. What organizational architecture
NARAYAN CHANGDER
2587. The document containing the guarantee choices can be made in international busi-
of a bank to honour bills drawn on it by an ness?
exporter is known as: A. Centralized, decentralized, and strate-
A. Letter of insurance gic alliances
B. Bill of lading B. Hierarchical, functional, and matrix
C. Letter of credit C. Autonomous, collaborative and virtual
D. Bill of exchange D. Traditional, modern and experimental
2588. In 2018, Bermuda exported $199 mil- 2592. Complete the sentence:The carry trade
lion of goods and services and imported involves borrowing in currency where
goods and services worth $1.45 bil- interest rates are and then using the
lion. What is the discrepancy between proceeds to invest in another currency
Bermuda’s exports and imports called? where interest rates are
A. balance of trade A. Two low high
B. GDP B. One high higher
C. GNP C. One low high
D. imports/exports D. Two high higher
2589. Which of the following country is a 2593. 15) The shifting of national borders has
founder member of European Union? most likely created which of the following
situations for international business?
A. Luxembourg
A. It has left rural residents more iso-
B. England
lated from technology.
C. Denmark
B. It has complicated the understanding
D. None of the above of behavioral factors affecting business.
2590. The Pound is the official currency of C. It has increased physical barriers to
which country listed below? exporting.
D. It has slowed communications be-
tween a company’s headquarters and for-
eign operations.
2594. When a country has the ability to pro-

duce a product at a lower opportunity cost
than another country.
A. Comparative Advantage

B. Favorable Advantage 2599. What is the function of logistics in a

global supply chain?
C. Absolute Advantage

A. Manage product inventory and distri-
D. Positive Net Export
bution
2595. Company A entered the production of of- B. Identify potential suppliers
fice software before its competitors. Be- C. Develop international marketing
cause of this, the company’s products are strategies
more familiar among and favored by cus-
D. All answers are correct
tomers. This situation exemplifies the
A. First mover advantage 2600. . If a country has a highly educated
population, advanced technology, and fo-
B. Diminishing marginal returns cuses on international business and foreign
C. Economies of scale trade, that country is considered to be:
D. Constant marginal returns A. Less-developed
B. Developing
2596. Which type of risk is associated with
C. Industrialized
fluctuations in exchange rates that can im-
pact the profitability of international busi- D. none of above
ness transactions?
2601. This activity limits or encourages your
A. Exchange rate risk company’s ability to export or import nec-
B. Credit risk essary raw materials.
A. Value chain integration
C. Political risk
B. Embargo imposed on a country
D. Market risk
C. Protectionism exercised by the govern-
2597. When two or more countries agree on ment
terms that helps them trade with each D. All of the above
other.
2602. In the process of negotiation, climate
A. Tariff
refers to
B. Embargo
C. Trade Agreement
D. Trade Alliance
2598. A company that is worried about the

norms and customs of a country would
need to consider which component of the
international business environment? A. the room temperature
A. Environmental B. the initial atmosphere amongst nego-

tiators
B. Social
C. the phase whereby negotiators ex-
C. Economic change facts
D. Technological D. The Framing phase

2603. Which is NOT one of the 4 Levels of In- C. The Transatlantic Trade and Interna-
ternational Business? tional Pacific Ocean
A. National D. The Transatlantic Trade and Invest-
B. State or Provincial ment Partnership
C. Local 2608. Which strategy is the most suitable for

D. All of these are levels of international the firm that face both high cost pressures
business and high pressures for local responsive-
NARAYAN CHANGDER
ness
2604. Which of the following has NOT been a A. Global standardization
major force increasing globalization in re-
cent decades? B. Localization
A. liberalization of cross-border trade C. Transnational

B. increase in and expansion of technol- D. International
ogy
2609. The law of one price states that in com-
C. growing pressure from consumers petitive markets free of transportation
D. decreasing prices of natural resources and barriers to trade, identical product
sold in different countries must sell for the
2605. It is the raw material or unprocessed ba- price when theirs prices is expressed
sic product that enters the marketing pro- in terms of the same currency
cess. A. Cost different
A. To value
B. Price different
B. Commoditie
C. Cost same
C. Production factor
D. Price same
D. All of the above
2606. What is positive about your currency political risk?
suddenly weakening?
A. Conflicts and unrest
A. Your exports become cheaper
B. Changes in a country’s policies, busi-
B. Demand for your commodities may ness laws
rise
C. Fraud
C. It may help government correct bal-
D. Changes in regime or government
ance of paymentimbalances
D. All of the above 2611. Which of the following terms refers to
the extent to which a country is gifted
2607. TTIP stands for which agreement be- with such resources as land, labor, and cap-
tween the European Union and the United ital?
States?
A. Current accounts
A. The Transatlantic Trade and Invest-
ment Pacific Ocean B. Factor endowments
B. The Transatlantic Trade and Interna- C. National balance

tional Partnership D. National accounts

2612. If a company has production or service B. Pro-trust laws

facilities in a foreign country, what that
C. Monopoly laws
country is called?

D. Market-sharing laws
A. Trading bloc
B. Home country 2618. Which international entry mode in-
C. Host country volves a company granting the right to an-
other company to use its intellectual prop-
D. NGOs
erty in exchange for royalties or fees?
2613. Emerging Markets represents this type A. Exporting
of development
B. Licensing
A. Less-Developed Country
C. Joint venture
B. Developing Country
D. Franchising
C. Industrialized Country
D. none of above 2619. An observational research study to be
conducted to measure buying behaviors of
2614. What NOT The case for fixed exchange
parents shopping with children is an exam-
rates rests on arguments?
ple of
A. Monetary discipline
A. Primary Data
B. Certainty
B. Secondary Data
C. Speculation
D. Uncertainty 2620. the main types of trade protection have
been
2615. Passports are an internationally recog-
nized form of identification. A. voluntary export restraints, voluntary
cash flow remittances and retrocapital
A. True flows
B. False
B. financial barriers that make imports of
2616. WHAT IS THE BCG MATRIX FOR? lower quality
A. ANALYSING YOUR BRANDS PORTFO- C. financial barriers that increase the
LIO PERFORMANCE cost of imports and lower production
costs of domestic rivals
B. ANALYSING YOUR COMPETITORS’
PERFORMANCE D. embargoes quota and quarantine
C. BENCHMARKING YOUR PRICING POL-
2621. 67) The owner of a U.S. football team
ICY
and the owner of a Canadian hockey team
D. ANALYSING YOUR CLIENTS’ FEED- purchase a British soccer team. This is an
BACKS example of a
2617. Laws designed to prevent companies A. royalty
from fixing prices, sharing markets, and
B. portfolio investment
gaining unfair monopoly advantages are
called C. turnkey operation
A. Antitrust laws D. joint venture

2622. A form of business activity in which a B. European Union

company agrees to run its business accord- C. EXIM Union
ing to another company’s business model
D. Export Unit
A. Licencing
B. Franchising 2628. Which of the following statements
about international business is the most
C. Licensor accurate?
D. Franchisee A. International business can be riskier
NARAYAN CHANGDER
than domestic businessbut the size of the
2623. North American Free Trade Agreement
market makes it a very attractive option.
(NAFTA) promotes the movement of goods
between participating countries without B. Individuals and small business are at
restrictive: less risk than largecorporations in selling
overseas.
A. A imports or exports.
C. International banking regulations are
B. B imports and trade.
the same in mostcountries.
C. C tariffs or quotas.
D. Most products on the market today are
D. D domestic and offshore. produced domestically.
2624. Africa has regional monetary unions and 2629. What is the part of silent language inter-
regional trade associations national business companies must concern
A. TRUE for designing product?
B. Falso A. color
B. sign
try brings the firm closer to international C. body distance
markets? D. punctuality
A. Licensing
2630. There are essentially kinds of busi-
B. Franchising ness corruption.
C. Contract manufacturing A. 2
D. Joint venture B. 3
2626. This agreement was generated when C. 4
the US abandoned the Bretton Woods sys- D. 5
tem in 1971, then a new exchange rate
E. 6
system was established.
A. Smithsonian Agreement 2631. parent or parents and unmarried chil-
dren’s live together
B. Bilateral Agreement
A. Nuclear Family
C. Free floating agreement
B. Extended family
D. All of the above
2632. Packaged frozen foods that include veg-
2627. EU stands for etables, desserts, entrees, and complete
A. Export Union meals are an example of a product line.

A. True 2637. When a country can produce a good at a

B. False lower cost and more efficiently than other
countries

2633. Military orders during WW2 helped this A. Comparative advantage
company survive
B. Trade surplus
A. Airbus
C. Absolute advantage
B. Boeing
D. Trade fails
2634. Which of these is an advantage of
ground transportation? 2638. Which of the following factors, accord-
A. Other means of transport such as the ing to Porter’s national Diamond, is most
plane, factors inherent to the climate may likely to give a country competitive advan-
influence, in the case of maritime it is not tage over another country?
usually the case. This is because boats A. Natural resources
are usually very sturdy.
B. Climate
B. It is the cheapest means of transport,
in part because road transport vehicles do C. Skilled labor
not require as high an outlay as in other
D. Demographics
means
C. Its speed over long distances is 2639. Which company issues the Bill of Lad-
greater than any other mode of transport, ing?
except airways. Therefore, it is the best
A. Shipping Company
option for long distance traffic.
D. Ability to penetrate continental desti- B. Airline Company
nations without direct access by sea. Pos- C. Both a and b
sibility of air transfers that facilitate direct
reach without having to resort to other D. None of the above
means of transport.
2640. Define joint venture.
2635. It is the law governing international A. A business arrangement in which two
business transactions. or more parties agree to compete against
A. International Commercial Law each other for a specific goal or project.
B. International Marketing Law B. A business arrangement in which two
C. International Business Law or more parties agree to merge their com-
panies and form a new entity.
D. International Transaction Law
C. A business arrangement in which two
2636. Group that consist of parent children’s or more parties agree to share their prof-
and other relatives living together its and losses without pooling their re-
A. Extended family sources.
B. Nuclear family D. A business arrangement in which two

or more parties agree to pool their re-
C. plasma family sources and expertise to achieve a spe-
D. Family cific goal or complete a specific project.

2641. What is a situation in which a company 2645. The Foreign Exchange Regulation Act
in Germany buys products from a company (FERA) was legislation passed in India dur-
in the United Kingdom using an intermedi- ing
ary?
A. 1993
A. Free trade agreement
B. 1983
B. Countertrade C. 1973
C. indirect import D. 2003
NARAYAN CHANGDER
D. direct import
2646. Culture refers to the type of govern-
2642. A major function of the IMF is ment of a country.
A. To be an international liquidator A. True
B. To provide technical assistance B. False
C. To liberalise international trade 2647. When the value of export is greater

D. Helps in expansion of production than the value of import, it is called
?
2643. investment has become a key ele- A. Trade surplus
ment of trade between different countries.
B. Trade fails
A. Foreign direct
C. Protectionism
B. Domestic
D. none of above
C. National
D. None of them are true 2648. What is a benefit of contract manufac-
turing?
2644. What is international business? A. Easier-to-scale production
B. Not having full control over product
quality
C. Access to people with specific skill
sets
D. Reduced costs
A. The purchase and sale of merchandise 2649. Which international trade agreement
in the same country created a single market among European
Union (EU) member countries with free
B. is the production of merchandise, movement of goods, services, people, and
which is used to distribute to wholesalers capital?
C. Are all commercial transactions, in- A. NAFTA
cluding trade, investment and transport,
B. ASEAN
private or governmental, involving two or
more countries. C. EU Single Market
D. none of above D. MERCOSUR

2650. Foreign direct investment (FDI) occurs D. When the demand for money in one
when a firm invests resources in business country with low interest rate is higher,
activities outside its home country. it would result in decreasing the interest

A. TRUE rate there and the supply of foreign money
in other country is lower resulting in in-
B. FALSE creasing the real interest rate there
2651. Is the following an advantage or a dis-
2655. are the two macro factors that seem
to underlie the trend toward greater glob-
tions? “*Lower labour costs”
alization.
A. Advantage
A. Economic Stability and Technological
B. Disadvantage Change
2652. In international business, miscommuni- B. Economic Stability and Capitalism
cation can cause loss of trust, damaged re-
C. Free flow of goods and Global Produc-
lationships, and loss of business.
tion
A. False
D. Free flow of goods and Technological
B. true Change
2653. According to the objectives of the GATT,
2656. Which of the following is NOT a mode
this concept allows trade without discrim-
of entry into foreign country?
ination with any country.
A. national treatment A. Export
B. MFN B. Licensing
C. Appellation of origin C. Franchising
D. All of the above D. Internationalization
2654. How do real interest rates equalize be- 2657. In 2006 this Spanish speaking coun-
tween countries? try achieved the highest nominal GDP per
A. When investors look for countries with capita in Latin America.
less interest rates to borrow money and A. Brazil
invest in other countries with the same
rate of interest B. Mexico
B. When the demand for money in one C. Chili
country with low real interest rate is
D. none of above
higher, it would result in increasing the in-
terest rate there and the supply of foreign
2658. In business meetings, South Africans
money in other country is lower resulting
like to talk about Select 2 options
in decreasing the real interest rate there
A. Soccer
C. When investors bring their money
away to invest in another country and wait B. Racism
for the domestic inflation period to be
C. Food
over and get their money back into invest-
ment D. Beautiful ladies

2659. It refers to the nation’s position in fac- C. Operational decisions

tors of production, such as skilled labor or D. Sales decisions
the infrastructure necessary to compete in
a given industry. 2665. Taxes charged on imports
A. Factor Endowments
C. Related and Supporting Industries
NARAYAN CHANGDER
D. none of above
2660. What is the problem still unsolved in

South Africa? A. deficit
A. Dictatorship B. quotas
B. Civil War C. surplus
C. Racism D. tariffs
D. Infant death 2666. Is there an international transfer of
technology?
2661. A way to restrict free trade:
A. Yes
A. Import Tax
B. No
B. Trade Barrier
C. Import Quotas 2667. The General Agreement on Tariffs and
Trade (GATT) expanded considerably into
D. All of these a multilateral trading system called
2662. The Euro is currently used in A. EU
A. all EU member countries B. NAFTA
B. all European countries C. AND
C. 19 EU countries D. WTO
D. Schengen countries only 2668. Which of the following is NOT a mode
of entry into international business?
2663. The only country in South America that
speaks Portuguese. A. Exporting
A. Chili B. Licensing
B. Venezuela C. Joint venture
C. Brazil D. Merger
Explanation:Merger
D. none of above
2669. The structures, processes, and activities
2664. What type of decisions would be made by which a nation governs itself is called
centrally in an international strategy with
less cost pressure and local responsive- A. Political ideology
ness? B. Political view
A. Marketing decisions C. Political economy
B. Product development decisions D. Political system

2670. How can companies mitigate regulatory 2675. The country in which a multinational
risk in international business? company is a guest is called the

A. Implementing a regulatory risk man-
agement system
B. Hiring a consultant for financial risk as-
sessment
C. Using AI for supply chain management
D. Focusing on cross-cultural communica- A. home country
tion
B. headquarters
2671. Foregin trade act passes during C. host country
A. 1991 D. visitor’s nation
B. 1992
2676. Who prepares Import General Manifest
C. 1993 when goods arrive at Importer’s country?
D. 1994 A. Captain of the ship
2672. David Ricardo’s theory of comparative B. Dock Officer
advantage explains international trade in C. Importer
terms of international differences in politi-
cal environments. D. None of these
A. True 2677. The following is the component of sup-

port activities EXCEPT
B. False
A. Information system
2673. Which of the following export docu-
B. Logistics
ments is known as document of title?
C. Human resources
A. Mate’s Receipt
D. R & D
B. Proforma Invoice
C. Bill of Exchange 2678. An exchange of goods or services with
people and businesses in your own coun-
D. Bill of lading
try.
2674. 10) The recent global financial crisis has A. Bilateral agreement
led to which of the following?
B. Resource
A. governments seeking to impose more
C. Domestic trade
constraints on capitalism
D. International trade
B. governments seeking to eliminate con-
straints on capitalism 2679. The attractiveness of a country as a po-
C. governments seeking to increase tential market for an international busi-
the interdependence of developing ness depends on balancing the benefits,
economies costs, and risks associated with doing busi-
ness in that country.
D. governments seeking to eliminate
the interdependence of developing A. TRUE
economies B. FALSE

2680. To discuss a deal or problem in the hope 2686. What factor has largely driven global-
of reaching an agreement. ization?
A. Consumer A. Cultural isolation.
B. Trade barrier B. Economic decentralization.
C. Negotiate C. Advances in communication and trans-
D. Market portation technology.
D. Trade protectionism.
NARAYAN CHANGDER
2681. INCOTERMS contain 10 different types
of clauses. 2687. Controls the transmission of physical
materials through the value chain, from
A. True
procurement through production and into
B. False distribution.
2682. When items consumers need and want A. Production
are created in other countries it creates B. Human Resources
C. Information System
A. Global Dependency
D. Research and Development
B. Non-Trade Barriers
E. Logistics
C. Demand
2688. Most people are members of more than
D. Domestic Business
one subculture.
2683. are units undertaking to export A. True
their entire production of goods.
B. False
A. Foreign Trade Policy
B. Export oriented units
regional economic integration?
C. Both a & b
A. The European Union
B. The British Commonwealth
2684. Identify the theory that predicts that C. The Cingular and AT&T merger
countries will export those goods that D. The Commonwealth of Independent
make intensive use of factors that are lo- States
cally abundant.
A. Theory of comparative advantage 2690. Owners of a corporation are commonly
called stockholders.
B. Ricardo theory
A. True
C. New trade theory
B. False
2691. High inflation erodes a
2685. True or False:A trade barrier is some-
thing that blocks or hinders trade from A. currency’s purchasing power
happening? B. import
A. True C. Export
B. False D. None of them

2692. What is the primary goal of any private 2697. The theory of comparative advantage
business? provides strong rationale for supporting
the idea of

A. contribute to society
A. business nationalism
B. strengthen the organization
B. free trade
C. train employees
C. protectionism
D. make profits
D. governmental intervention in trade
2693. each country should produce and export
products that intensively use relatively 2698. To focus on producing one thing to im-
abundant factors of production, and improve productivity is known as
port goods that intensively use relatively A. International Trade
scarce factors of production B. Specialization
A. Mercantilism C. Absolute Advantage
B. Factors of Production Theory D. Supply and Demand
C. Factor Proportions Theory
2699. Which one is correct?
D. International Product Cycle Theory A. be in charge to
2694. As the demand for a product increases, B. be in charge of
prices tend to C. be in charge from
A. rise. D. none of above
B. fall.
2700. The WTO’s focus concerned with the
C. remain constant. high level of tariffs and subsidies in the
D. first rise, then fall. agricultural sector of many economies is
WTO’s currently focusing on
2695. Countries promote industrialization be- A. Anti-dumping policies
cause:
B. Market access
A. Brings faster agriculture-based
C. Protecting in agriculture
growth
D. Protecting intellectual property
B. Attracts investment funds
C. Diversify the economy 2701. Based on Comparative Advantage the-
ory, Vietnam should produce , while Sri
D. All of the above Lanka should produce
2696. Attempts to deal with questions of
what to do in situations where Ethical stan-
dards come into Conflict as a results of the
differing culture practices.
A. Business Ethics A. coffee, tea
B. Ethical Dilemma B. coffee, coffee
C. Multinational corporation C. tea, coffee
D. International Business Ethics D. tea, tea

2702. The shows all of the different po- D. The difference between the value of a
sitions a firm can adopt with regard to country’s imports and the value of its ex-
adding value to the product and low cost ports
assuming the firm’s internal operations
are configured efficiently to support a par- 2707. Whichorganizational structure does
ticular position. Unilever follow?
A. internationaldivision
A. strategic choice curve
B. global areastructure
B. strategy convex
NARAYAN CHANGDER
C. global productstructure
C. efficiency frontier
D. matrix structure
D. experience curve
2708. What is the difference between Domes-
2703. Integration mechanism where people tic and International Trade
designated for this role carry out a specific
A. International trade is country to coun-
responsibility:
try while Domestic trade is within the na-
A. Link roles tions borders.
B. Direct contact B. International trade is country to coun-
C. Integrating departments try while Domestic trade is within the na-
tions house.
D. Full-time integration roles
C. International trade is within one coun-
2704. Culture in which only one group of peo- try borders while Domestic trade is be-
ple is dominant: tween two countries.
A. subculture D. They are the same; there is no differ-
B. corporate culture ence
C. heterogeneous culture 2709. A company’s location should be flexible

enough to
D. homogeneous culture
A. implement concentration strategies in-
2705. The policy of imposing duties or quotas stead of diversification strategies
on imports in order to protect home indus- B. respond to new opportunities and with-
tries from overseas competition. draw from less profitable ones
A. free trade C. import from anywhere in the world to
B. protectionism a single production location
C. balance of trade D. export anywhere in the world from a
single production location
D. none of above
2710. What are the main differences between
2706. What does the term ‘balance of trade’
domestic and international business?
refer to?
A. Geographical scope, market demand,
A. The difference between the value of a cultural differences, legal and regula-
country’s exports and the value of its im- tory frameworks, and currency exchange
ports. rates.
B. The total value of a country’s exports B. Geographical scope, market size, cul-
C. The total value of a country’s imports tural differences, legal and regulatory

frameworks, and currency exchange 2715. The team leader should generate enthu-
rates. siasm in his team, maintain the morale un-
der all conditions and obtain the maximum

C. Geographical location, market size,
cultural similarities, legal and regula- contribution from each member by his own
tory frameworks, and currency exchange example. True or false?
rates. A. true
D. Geographical location, market de- B. false
mand, cultural similarities, legal and reg-
ulatory frameworks, and currency ex- 2716. Which one of the following modes of en-
change rates. try permits greatest degree of control over
overseas operations?
2711. Polycentricity is a marketing approach A. Licensing/franchising
where
B. Wholly owned subsidiary
A. the promotion is tailored to promote
C. Contract manufacturing
the culture of the home location
D. Joint venture
B. the promotion is the same in all loca-
tions 2717. Which of the following arguments sup-
C. the promotion is tailored to meet the ports the Paul Samuelson’s critique?
needs of each location A. A rich country cannot produce net
D. none of above gains by engaging in free trade with a
poor country.
2712. International business is also known as B. Governmental intervention will reduce
A. Globalisation the likeliness of countries’ economic suc-
cess.
B. Privatization
C. Countries should attempt to specialize
C. Domestic
in the production of goods and services.
D. Multinational
D. Trade is a positive-sum game in which
2713. Location, climate, terrain, waterways, all countries that participate realize eco-
and natural resources refer to which fac- nomic gains.
tor of the international business environ- 2718. A country’s need to purchase food from
ment? other countries is an example of
A. geographic A. exporting
B. economic B. domestic business
C. political and legal C. global dependency
D. cultural and social D. a trade barrier
2714. 31) Globalization of business has been 2719. It entered into force on January 1, 1994
stimulated by institutional developments and is the largest trade agreement in the
that aid foreign trade and investment. world, geographically.
A. True A. NAFTA
B. False B. Mercosur

C. BRICS A. yes
D. European Union B. no
2720. In the context of attitudes and beliefs 2725. The inverse relationship between inter-
that drive various management styles, est rates and bond prices is due to the fol-
which of the following is true of the “mas- lowing fact?
ter of destiny” philosophy?
A. Market makers require a bid-ask
A. It refers to the idea that accurate in- spread to offer their services at all.
NARAYAN CHANGDER
formation and its timeliness are important
B. That maturity premiums increase with
aspects of decision making.
the term of a bond
B. It refers to the notion that a country’s
C. A bond price represents the present
culture affects its attitudes toward work.
discounted value of the payments agreed
C. It refers to the belief that over- upon at the time when the bond was is-
management of details is a key factor in sued.
global management success.
D. Capital markets are not efficient for
D. It refers to the belief that failing to pay long-maturity loans.
attention to host countries’ cultures can
damage a company’s performance in over- 2726. Unlimited liability means that
seas markets. A. if the business fails, the owner may
E. It refers to the idea that workers and have to use personal assets to pay the
companies can influence the future. debts.
B. each partner in a partnership may in-
2721. A value-added tax (VAT) is added only
dependently make decisions affecting the
when the product is sold to the end con-
partnership.
sumer.
C. you are only responsible for the
A. True
amount that you invested into the busi-
B. False ness.
2722. Starbucks is a D. you can buy stock in a business.
A. Multidomestic company 2727. What is a written promise from a bank
B. Global company to make a payment after verifying that
someone has met certain stated condi-
C. Domestic company
tions?
D. None of these
A. a bond
2723. GDP is one of the measures used by the B. letter of credit
Human Development Index (HDI) to mea-
C. long-term financing
sure the quality of human life in different
nations. D. short-term financing
A. True 2728. When the value of import is greater
B. False than the value of export, it is called
2724. modern days mercantilism is reflected in A. Trade fails

protectionism B. Trade surplus

2729. Who issue Mate Receipt? 2733. Based on absolute advantage theory,
each country can increase its wealth by
A. Shipping Company
specializing in the production of good that

B. Customs Authority it is less efficient at.
C. Port Supervisor A. TRUE
D. Captain of the ship B. FALSE
2730. 78) The same automobile company pro- 2734. Which of the following is a common ac-
duces Fiats and Ferraris. The company tivity of MNCs?
builds an engine plant in China with low A. training of international managers
production costs for Fiats but not Ferraris.
B. buying resources in various countries
The probable reason is that
C. inventing goods in a variety of coun-
A. Fiat competes mainly on a focus strat-
tries
egy, whereas Ferrari competes mainly on
a mass-market strategy D. establishing foreign exchange rates
B. Fiat competes mainly on a mass- 2735. Franchising is
market strategy, whereas Ferrari com-
A. Setting up a company’s branch in an-
petes mainly on a focus strategy
other country
C. Ferrari faces global competitors in B. Authorizing someone else to use the
China, whereas Fiat competes in China company’s brand and name in another
mainly against Chinese competitors place
D. although Ferrari did not build an en- C. Allowing another company to sell your
gine plant, it will use the same Fiat en- products abroad
gines in its models
D. Investing in another country
2731. Our biggest trade partner is
2736. Tariffs, quotas, and boycotts are exam-
A. Mexico ples of
B. China
C. Canada
D. Russia
2732. A multinational enterprise is not acting

with social responsibility if it
A. installs anti-pollution controls
A. civil unrest
B. hires host-country citizens and pro-
B. political unrest
vides training
C. trade barriers
C. introduces new products that support
dominant religious beliefs of the host D. none of these
country
2737. Trade Policy provides the basic
D. transfers all of the employees from the framework of policy and strategy for pro-
home country moting exports and trade.

A. Domestic B. Literacy Level

B. Global C. Unemployment Rate
C. Liberal D. Technology
D. Foreign
2743. Which product is the least exported to
2738. Which is not an Indian Multinational Germany?
Company? A. Gold
NARAYAN CHANGDER
A. Unilever B. Fruit and Nuts
B. Asian Paints C. Coal
C. Piramal D. Medical Instruments
D. Wipro
2744. Shows all of the different positions that
2739. They are established between two indi- a firm can adopt?
vidual countries or involve a nation with a A. Support Activities
group of countries
B. Location Economies
A. Multinational companies
C. Global Web
B. Bilateral agreements
D. Efficiency Frontier
C. Customs barriers
E. Experience curve
D. Currency exchange
2745. What is NOT an opportunity?
2740. Where is the headquarter of the WTO?
A. It is the discovery of a concern
A. New York
B. It is the description of a product
B. Geneva
C. It is the ability to innovate
C. Barcelona
D. Paris D. It is creating new alternative solutions
2741. Diminishing returns to specialization oc- 2746. Balance of capital is a concept

curs when A. stock concept
A. each additional unit is produced with B. Flow concept
lesser number of laborers
C. change in stock concept
B. a nation’s gross domestic product de-
clines for a few years
C. production possibility frontier appears 2747. What type of business arrangement is a
as a rectangle joint venture?
D. more units of resources are required A. A type of international trade
to produce each additional unit B. A contract manufacturing agreement
2742. The key factors that affect a country’s C. A legal agreement between a licensor
level of economic development include all and a licensee
of these EXCEPT: D. A business arrangement in which two
A. Agricultural Dependency or more parties pool their resources

2748. any implementation of fees, rules, or 2753. Interest rates and inflation have re-
regulations designed with the intention to lationships
limit international tradeTHIS IS?

A. Negative
A. A customs barrier
B. Positive
B. International economic aid
C. No
C. Value Added Tax
D. None of them
D. transporting commodities
Explanation:A customs barrier = TARIFF 2754. What is the correct spelling of Globali-
BARRIERS sation?
2749. In Entrepot Trade, what is the purpose A. Globalisation
of importing goods? B. Globalization
A. For consumption within the importing
C. Globalization
country.
D. Globalisation
B. For sale in the importing country.
C. For re-exporting to a third country. 2755. In what way are project storyboards
D. For storage in the importing country. used in creating a website?
A. For client pre-approval before develop-
2750. MNC Stands for ment and to show placement
A. Multi-National Cooperation B. To create usability test before develop-
B. Multi-National Corporation ment
C. Multi-National Company C. To show detailed content of web pages
D. Multi-National Collaboration
D. none of above
2751. Tienphong Bank is a/an
A. Multidomestic company 2756. The basic strategy paradigm suggests
that to maximize its profitability, a firm
B. Global company should do all of the following, except:
C. Domestic company
A. choose, according to strategy, any po-
D. Foreign business sition on the efficiency frontier as all posi-
tions are viable.
2752. Country A exports electronic goods
from Country B although there are no un- B. pick a position on the efficiency fron-
derlying differences in factor endowments tier that is viable in the sense that there
between the two countries. Which of the is enough demand to support that choice.
following theories explains this anomaly? C. configure its internal operations so
A. Comparative advantage theory that they support the position on the ef-
ficiency frontier.
B. New trade theory
D. make sure that the right organization
structure is in place to execute the strat-
D. Smith’s theory egy.

2757. provides the basic framework of 2763. TRANSLATE “POUVOIR D’ACHAT”

policy and strategy for promoting exports INTO ENGLISH
and trade. A. PURCHASING POWER
A. Domestic trade policy
B. SALES TURNOVER
B. Global trade policy
C. PURCHASING EMPOWER
C. Foreign Trade policy
D. BUYING PROFIT
NARAYAN CHANGDER
2764. Globalization
2758. In Mercantilism theory, trade surplus
condition is a situation where: A. any activity that seeks to provide
goods and services to others while oper-
A. Export = Import
ating at a profit
B. Export > Import
B. Any activity involvingbusiness opera-
C. Import < Export tions across national borders.
D. Holding of gold/silver C. increasing integration of the world
2759. Tourism not related to international economy
business D. none of above
A. False
2765. Pros or the benefits of regional integra-
B. True tion which is not included
2760. Why might English be considered a uni- A. Creating a larger pool of consumers
versal language
A. Everybody loves English B. Encouraging economies of scale in pro-
B. English is understood in almost every duction
country worldwide C. losing sovereignty, national indepen-
dence and identity
2761. According to the law of supply and de-
mand, how will overproduction of a prod- D. Freeing the flow of capital, labor and
uct, resulting in a surplus, affect the price? technology
A. Overproduction reduces the selling 2766. What is a letter of credit?
price of the product.
A. A receipt for the purchase of the goods
B. Overproduction creates material
wealth, savings, improves personal life B. A letter from the buyer promising that
and in the long run has the potential to they will pay for the goods
improve the economic situation. C. An amount of money received from the
bank
2762. Dutch sociologist Geert Hofstede con-
ducted a study to determine how national D. A bank guarantee that the seller of a
culture influences which of the following? product will receive an agreed payment
from the buyer
A. folkways & mores in society
B. norms of society 2767. What is one advantage of importing?
C. people’s dislikes A. Dependency on global markets
D. values in the workplace B. Stability in supply

C. Vulnerability to currency fluctuations 2772. is the application of knowledge

D. Global networking which redefines the boundaries of global
business

2768. T/F:EVERY country has its own laws A. Cultural Values
and rules, its own currency, and its own
business traditions B. Society
A. True C. Technology
B. False D. Economy
2769. Of the following language-related state- 2773. What is the name of IPMI’s Platform
ments, the only statement that is true is for student that helps to develop Business
Ideation related to Start Up Incubator?
A. English is the only language ever used
for international business purposes. A. Investment Gallery
B. Japanese is a language used by one B. Innolab
unimportant trading country. C. Duke of Edinburgh Program
C. international businesspersons often D. Joint Degree Program
prefer to transact business in their na- Explanation:”Innolab” means for
tive languages, even if they speak English “Innovation-Labs” in order to create and
well. develop the business incubation. tags-
D. for a career in international business, Business & Education
you need to learn at least ten languages
besides your native language. 2774. In recent years, business executives and
scholars have used to refer to the ad-
2770. Capital supplied by residents of one vantages possessed by nations and indi-
country to residents of another is known vidual firms in international trade and in-
as vestment
A. international investments A. comparative advantage
B. host-country financing B. country-specific advantage
C. international franchising C. competitive advantage
D. domestic inversion financing D. cost advantage
2771. What is meant by customs union? 2775. Companies that are successful at global
A. Trade and customs-free areas be- expansion are successful at transferring
tween the countries involved their
B. Tax and customs free areas between

the countries involved
C. Immigration and customs free areas
between the countries involved
A. competitive advantage
D. Security and customs free areas be-
tween the countries involved B. comparative advantage
E. Cultural and customs free areas be- C. core competencies

tween the countries involved D. core advantage

2776. Which markets allows firms to attract 2781. 49) The process of shifting production
international investors, list securities on from a domestic to a foreign location is
multiple exchanges, and issue securities best known as
around the world?
A. offshoring
A. Global capital
B. outsourcing
B. Global Equity
C. licensing
C. Global bond
D. joint venturing
NARAYAN CHANGDER
D. Foreign exchange
2777. Company Mochi needs tight control over 2782. The term used to begin a meal by the
operations in different countries that is host in France
necessary for engaging in global strategic
A. Emirate
coordination. To achieve that, which mode
of entry should the firm use? B. Enjoy your food
A. Joint-venture C. Shura
B. Export D. Nonverbal Signal
C. Franchise
2783. When custom duty is levied according o
D. Wholly-owned subsidiary
the weight of goods, it is known as
2778. One way to raise money to operate a A. Revenue Duty
corporation is to sell portions of ownership
to the public B. Specific Duty
A. True C. Advalorem Duty
B. False D. Excise Duty
2779. Where is the location of the talk held?
2784. Which of the following is NOT a geo-
A. graphical condition?
A. Climate
B. Nearest body of water
B.
C. Livestock
D. Trade Laws
C.
2785. There are a limited number of car man-
ufacturers in the United States due to the
capital requirements involved in producing
D. automobiles. What type of competitive
situation would this be characterized as?
2780. An example of domestic business is A. oligopoly
when a person living in Canada buys a
product made in Germany. B. pure competition
A. True C. monopoly
B. False D. monarchy

2786. In business buyers and sellers can 2792. Domestic and international businesses
be from different countries differ in respect of the nationalities of the
other stakeholders

A. Domestic
B. International A. true
B. false
2787. Which of the following provides subsi-
dies & benefits to exporter?
2793. If consumers want more of a good than
A. IEC No. the amount supplied
B. RCMC A. prices will decrease.
C. Certificate of Origin B. prices will increase.
D. None of these
C. supply will decrease.
2788. Which of the following should you reg- D. price and supply will remain the same
ister with before traveling abroad?
A. International Tourist Association 2794. Carlos is planning a trip to Japan. He
needs to convert U.S. dollars to Japanese
B. U.S. Department of State
yen. When he looks up the exchange rate,
C. U.S. Bureau of International Affairs he seesthat it costs 122.45 yen to buy one
D. Center for Disease Control U.S. dollar. How much does it cost to buy
a Japanese yen with U.S. money?
2789. Items we buy from other countries
A. 1
A. Imports
B. 0.0082
B. Exports
C. 1.2245
C. Foreign Exchange Market
D. 82
D. Exchange Rate
2790. The was a multilateral agreement 2795. Which of the following is one of the four
whose objective was to liberalize trade by attributes present in Porter’s diamond?
eliminating tariffs, subsidies, import quo- A. Economies of scale
tas and the like
B. Factor endowments
A. GATT
C. Structural innovation
B. WTO
C. International tariff treaty D. Procedural innovation
D. Protetionist agreement 2796. This country’s economy is dependent on

oil and their economy is the largest in the
2791. Which of the following is not a SAARC
Arab world.
observer
A. Australia A. Qatar
B. European Union B. Saudi Arabia

C. Malaysia C. Indonesia
D. USA D. none of above

2797. Which of the following refers to a situa- 2802. If the Indent is incomplete, it shall be
tion where a government does not attempt called as
to influence through quotas or duties what A. Open Indent
its citizens can buy from another country?
B. Closed Indent
A. Economic patriotism
C. Shipping Order
B. Protectionism
D. Shipping Bill
C. Free trade
NARAYAN CHANGDER
2803. “When in Rome, do as the Romans do”
D. Offshoring
is typical of the ethical approach
2798. India is not associated with
A. SAARC
B. NAFTA
C. BRICS
D. None of these
2799. Business that takes place between two

or more countries is what?
A. Country Business
A. cultural relativism
B. utilitarian
C. Green Business
C. Kantian
D. Nation Business
D. Friedman
2800. Inflation refers to
2804. Which countries does BRICS represent?
A. increases of import
A. Brazil, Russia, India, China, South Ko-
B. Increases exchange rate rea
C. increases cost of living B. Brazil, Russia, India, China, South
D. increases in the prices of goods and Africa
services C. Barbados, Russia, India, China, South
Africa
2801. What is one of the factors that makes
D. Brazil, Russia, India, Canada, South
foreign trade riskier compared to inland
Korea
trade?
A. The separation of buyers and produc- 2805. Which of the following is NOT a benefit
ers of international business?
B. The need for foreign currency A. expanded business opportunities
C. The long distances and potential ocean B. increased sources of raw materials
crossings involved C. decreased competition
D. none of above D. improved political relationships

2806. The free trade agreement in Southeast A. Yeah, they’re very strict on that and
Asia (ASEAN) is they find it disrespectful to be late

A. NAFTA B. No, Punctuality is not a priority for Ital-
B. DR-CAFTA ians
C. capable 2810. According to this theory, the holdings of
D. EPA a country’s treasure primarily in the form
of gold constituted its wealth.
2807. What is NOT a global product from In-
A. Gold Theory
donesia is (you can choose more than one)
B. Ricardo Theory
A. C. Mercantilism
D. Hecksher Theory
2811. 4) Which of the following ideas holds

B. that a government should NOT interfere in
business affairs?
A. A) collectivism
B. B)laisser-faire
C. C. C the rule of man
D. D) pluralism
2812. A good or service brought in from an-

D. other country for sale.
A. import
B. export
E.
C. tariff
2808. What does the term ‘tariff’ mean in in- D. none of above
ternational trade?
2813. Technology threatens the way of life for
A. A subsidy provided by the government some cultural groups.
to promote international trade.
B. A form of currency used for interna-
tional transactions.
C. A legal document required for import-
ing and exporting goods.
D. A tax or duty imposed on goods and
services traded between countries.
2809. You recently got a job in Italy and in two

A. True
days it’s your first day. Do you consider
punctuality is important in their culture? B. False

2814. If nations limit trade in of clothing who 2819. Euro is introduced in which year?
will benefit? A. 1991
A. Domestic Consumers of clothing B. 1993
B. Domestic producers of clothing C. 1999
C. Foreign Producers of clothing D. 2000
D. department stores who sell clothing 2820. Business activities are needed to creat-
ing, shipping, and selling goods and ser-
NARAYAN CHANGDER
2815. How a country manages its resources is vices across national borders is
an example of its condition, which in-
A. International Business
fluences international business.
B. Domestic Business
A. cultural and social
C. Imports
B. economic
D. Exports
C. geographic
2821. refers to nation’s transpiration,
D. political and legal communication, and utility systems.
2816. According to Ricardo’s theory of compar- A. Intrastate commerce
ative advantage, a country should produce B. Infrastructure
goods
C. Global mobility
A. for which it has access to raw materi- D. Trade barriers
als
2822. T or F:Products sold by companies in the
B. that it produces most efficiently
U.S. to customers in India are imports?
C. that have the highest domestic de- A. True
mand
B. False
D. for which it has an absolute advantage
2823. What are notes on drafting sentences in
2817. A product a seller is selling in a different IBC?
country is considered:
A. Import
B. Export
C. Trade Barrier
D. None of these
2818. Totalitarian governments tend to share A. Prepare information before starting to

certain features. Identify two of it fea- write the contract. The language must be
tures in the options below clear and unambiguous.
A. Constitutional guarantees B. Be careful while using conjunctions
and modifiers.
B. Restricted participation
C. Use a standard sentence structure,
C. Imposed authority edit typos
D. Respect for human rights D. Use any word that you want

2824. The ability to produce a product most ef- A. Protecting jobs and industries
ficiently given all the other products that B. Strategic trade policies
could be produced.

C. National security
D. Furthering foreign policy objectives
C. Positive Advantage 2829. which of the following is the reason a
company go for international?
D. Negative Advantage
A. Gain access to lower-cost or better-
2825. A good or service sold to another coun- value factors of production
try. B. earning low margin of profit
A. Import C. customer is not satisfied
B. Export D. company cost of manufacturing is in-
C. Ethics creasing
D. Translate 2830. Which of the following is not the items
2826. Which of the following observations is of current account?
consistent with Michael Porter’s theory of A. Amortisation
national competitive advantage? B. Trade Balance
A. Factors such as domestic demand and C. private Transfers
domestic rivalry determine nations’ domi-
nance on production. D. Investment incomes
B. Countries should produce only those 2831. A doctrine that says that a nation is
goods for which they have a comparative sovereign within its own borders and its
advantage. domestic actions may not be questioned in
C. Interplay between the factors of pro- the courts of another nation.
duction cause international marketing de- A. ‘Jurisdictional Immunity’ Doctrine
cisions.
B. ‘Absolute Immunity’ Doctrine
D. International differences in labor pro-
C. ‘Act of State’ Doctrine
ductivity determine nations’ supremacy in
production. D. ‘Sabbatino’ Doctrine
2827. Knickerbocker’s theory suggests that 2832. You are the Minister of Finance of Miza-
much FDI is explained by imitative behav- nia. You need jobs and economic develop-
ior by rival firms in an industry ment. You recommend
A. monopolistic
B. oligopolistic
C. plastic
D. perfectly competitive
2828. The bellow are kind of political argu-

ment for government intervention in trade, A. Use tax money to create jobs
except:Protecting jobs and industries B. Borrow overseas and create jobs

C. Print money and create jobs 2838. This type of regional trade agreement
D. Lower taxes and make it easy to invest lacks internal tariffs and has common tar-
from anywhere iffs towards third countries.
A. Free trade Area
2833. Which of the following NOT example of
international company? B. NAFTA
A. Alex Minishop C. Customs union
B. IBM D. No duty barriers
NARAYAN CHANGDER
C. Google
2839. A receipt issued by the commanding of-
D. Nestle ficer of the ship when the cargo is loaded
on the ship is known as
2834. Process of exchanging one currency for
another A. Shipping receipt
A. Importing B. Mate’s receipt
B. Exporting C. Cargo receipt
C. Foreign Exchange Market D. Charter receipt
D. Exchange Rate
2840. Identify the theory that predicts that
2835. To find other markets when the form’s countries will export those goods that
products experiences a decline in sales is make intensive use of factors that are lo-
an reason. cally abundant.
A. Internal A. Theory of comparative advantage
B. External B. Ricardo theory
C. Not in the choices C. New trade theory
D. none of above D. Heckscher-Ohlin theory
2836. What is the process by which a business 2841. Define Negligence
or individual purchases goods and products
directly from a foreign supplier or manufac- A. The failure of a responsible party to fol-
turer and imports? low standards of due care
A. Direct import B. Everything that can be owned.
B. Indirect export C. Those laws that have been enacted by
a body of law makers
C. Direct export
D. A dispute resolution method that
D. Indirect import
makes use of a neutral third party.
2837. High requests of technological Japanese
society guaranteed 2842. Who advocated Laisezz Faire?
A. domestic demand A. Karl Marx
B. domestic competition B. Adam Smith
C. human resources C. Alfred Marshall
D. none of above D. JS Mill

2843. In 1962, the United States prohibited C. procedures

all imports and exports to and from Cuba. D. pension fund
This is a(n)

A. Tariff 2848. Producers in Mexico lost their jobs after
participating NAFTA
B. Quota
A. False
C. Embargo
B. True
D. none of above
2849. Business subcultures around the world
2844. Including all the business activities nec- have similar values, beliefs, and assump-
essary for creating, shipping, and selling tions.
goods and services across national borders
C. Interstate Commerce
D. Intrastate Commerce
2845. A set of behaviors, values and attitudes A. True

associated with a particular group of peo-
B. False
ple
A. Indirect Eye Contact 2850. Bill of Entry for keeping for keeping
goods in warehouse is of
B. Etiquette
A. White colour
C. Sociability
B. Green Colour
D. Culture
C. Yellow colour
2846. Work-at-home options are a big part of
D. Red Colour
many company benefit lists these days, or
they may be an attractive part of the ac- 2851. The term used to begin a meal by the
tual job description. You can experiment host in Romania
with the idea without jumping in company-
A. Good appetite
wide, and possibly save money on office
space and associated expenses. You’ll still B. Enjoy your food
expect high productivity, of course. THIS C. Hug
IS ?
D. Machismo
A. Health Options
B. Productivity over presence 2852. It is a structure that only works well
when there are almost equal demands
C. Enrichment from the environment for local adaptation
D. none of above and for product standardization:
2847. Which is not covered in the international A. export department

monetary system B. International Division
A. institutional framework C. World Geographic Structure
B. rules D. Matrix structure

2853. Remember the best work-culture makes B. Custom Duties (Bureau of Customs)
employees feel welcomed, included, and C. Generalized System of Preferences
valued in an organization. That’s the kind (GSP)
of an environment where employees like
to work in. Which of the following did not D. All of the above
matches the company’s work culture? 2857. Choose three (3) out of the possible
A. Nike-to provide enough opportunities six (6) sentences that are best to be con-
for employees to grow and develop- tained in the“recitals” section of a con-
NARAYAN CHANGDER
physically and professionally. tract (write just the numbers on your an-
B. Southwest Airlines-Create a culture swer sheet):R E C I T A L Sa. Whereas the
where employees feel valued, respected, Manufacturer is engaged in the business
and appreciated. of producing high-quality leather shoes;b.
Whereas the Distributor is engaged in the
C. ProofHub-encourage team members business of selling shoes throughretail out-
to work both hard and smart. lets around the region;c. Whereas the par-
D. Google-we take care of you as long as ties agree that the purchase price for the
you innovate shoes will be $50;d. Whereas the par-
ties agree that the Agreement will be gov-
2854. What is a quota? erned under the lawsof Singapore and that
A. A quota is a penalty imposed on indi- any conflict arising from or relating to this
viduals who fail to meet a certain target. agreementwill be settled by arbitration in
B. A quota is a measure of how much a Singapore;e. Whereas the word “Confi-
person or group is allowed to produce or dential” shall include but not be limited
consume. to customerlists and business processes of
both parties;f. Whereas the parties en-
C. A quota is a predetermined or fixed deavour to enter into a mutually benefi-
amount or number that is set as a limit or cial arrangementfor the import and distri-
target. bution of leather fashion shoes;
D. A quota is a term used to describe the A. a, b, and f
maximum amount of a product that can be
imported or exported. B. c, d, and e
C. a, e, and f
2855. is currently the largest nation in the
world with a communist economic ideol- D. b, c, and d
ogy. 2858. A country with strong business activity
A. Iraq that is usually the result of advanced tech-
B. Cuba nology and a highly educated population.
C. China A. developing country
D. Japan B. industrialized country
E. Iran C. infrastructure
D. less-developed country (LDC)
2856. taxes on imports that are collected by
a designated government agency respon- 2859. Which of the following is a tax on im-
sible for regulating imports ported goods or products?
A. Preferential Duties A. subsidy

B. quota 2864. The reason the United States became

less competitive when Mexico join in
C. embargo
NAFTA is:

D. tariff
A. Fewer competitors
2860. Which of the following would be found B. Face tariffs
in the Secondary Sector? C. Consumers disbelieve
A. Farm D. Fired from Government
B. Sporting Goods Shop
2865. What is the result when the gross do-
C. Accountant mestic product (GDP) of a nation is divided
D. Barber by its population?
A. per capita GDP
2861. is a complex phenomenon that in-
B. per capita income
cludes knowledge, beliefs, art, morals,
law, customs, and other capabilities ac- C. proportionate GDP
quired by people as members of society D. GNP
A. Culture 2866. 10) The lack of cultural guidebooks
B. Ethics and research specifically for international
managers poses a significant problem for
C. Morals
global firms.
D. Norms
A. True
2862. Ethical approaches are influenced by B. False
2867. strategy is using the same strategy

and goals across the globe
A. Quota
B. Multi-national
C. Franchising
D. Global
A. religion
2868. The study of how a country manages its
B. culture affairs by using its political, economic, and
C. values legal systems.
A. Political Analysis
D. all the above
B. Political Economy
2863. Business activities that occur within one C. Political Dilemma
country are called
D. Political Management
A. foreign trade
2869. What is the benefit of working with a
B. domestic business
bank when wanting to trade internation-
C. international business ally?
D. free trade A. Banks charge interest on loans

B. Banks ensure that loans are paid back B. boycott

and keep companies regulated C. tax
C. Banks have vast experience of interna- D. rebellion
tional business and can be a great source
of financial and non-financial support for 2875. What strategy is making sense when
businesses looking to trade globally the firm faces strong pressures for cost re-
ductions and demands for local responsive-
D. There is little benefit from banks as
ness are minimal?
there are better methods of support nowa-
NARAYAN CHANGDER
days A. Global standardization strategy
B. Localization strategy
2870. What was the regime of floating ex-
change rates after the collapse of the for- C. Transnational strategy
malized exchange rate system in January? D. International strategy
A. 1974 2876. A control on the amount of a product
B. 1975 that can be imported into a country.
C. 1976 A. Quota
D. 1977 B. International
C. Negotiate
2871. What is a disadvantage of franchising?
D. Free trade
A. Training and financial planning pro-
vided 2877. From the case study, which of the
following describes IKEA as the world’s
B. Ready-made business formula
largest home furnishing?
C. Market-tested products and services A. The key part of IKEA’s success is cred-
D. Large start-up costs ited to its communication and relationship
management with materials suppliers and
2872. What is a classical trade theory? manufacturers to get good prices on what
A. resource endournment it procures
B. product life cycle B. The Times of London stated IKEA have
more than 50% of the products are made
C. diamond theory
from sustainable or recycle products.
D. strategic theory
C. IKEA the world’s largest home furnish-
E. absolute advantage ing has 298 store in 37 countries
2873. An exchange of a good or service. D. IKEA has certainly come a long way
in its 60 years of business since its 1943
A. Trade founding in Sweden
B. Trade barrier
2878. Stopping the export and import of a
C. Ethics product is known as?
D. Import A. Tariff
2874. refusing to buy, sell or use certain prod- B. Embargo
ucts or companies C. Quota
A. rebellion D. Deal

2879. The largest exporting country is 2884. 75) Although the U.S. film industry de-
A. China pends heavily on revenue in foreign coun-
tries, revenue from international markets

B. The United States is usually low for a sports-themed film.
C. Japan This is most likely due to factors.
D. Germany A. political
B. geographic
2880. What is the relationship between eco-
nomic growth and productivity? C. behavioral (cultural)
A. Economic growth is the only factor that D. legal
affects productivity.
2885. When custom duty is levied according to
B. Productivity is the only factor that af- the value of the goods, it is known as
fects economic growth. A. Excise Duty
C. Economic growth and productivity are B. Specific Duty
positively related.
C. Sliding Scale Duty
D. Economic growth and productivity are
not related. D. Advalorem Duty
2881. These types of effects improve the ef- 2886. When one country taxes the imports of
ficiency of resource allocation and affect another country that is called a(n)?
both production and consumption. A. quota
A. dynamic effects B. tariff
B. International effects C. embargoe
C. Collateral damage D. none of above
D. Matrix effects 2887. Economies of scale arise from all of the
following sources EXCEPT
2882. Which ONE does not the task of Central
Bank
A. Regulate money supply
B. Manage exchange rates
C. Control national reserves
A. locating production in the optimal loca-
D. Borrow money to private sectors tion
2883. When a firm has a strategic goal of pur- B. spreading fixed costs over a large vol-
suing a low cost strategy on a worldwide ume
scale, the firm should follow a(n) strat- C. serving global markets
egy.
D. bargaining with suppliers to bring
A. global standardization down the cost of key inputs
B. localization 2888. At which level of international business
C. international would one find a commerce department?
D. customization A. local

B. state/provincial
C. national
D. international
2889. Investment made by multinational cor-

porations (MNCs) is called
A. Globalization A. factor economies
NARAYAN CHANGDER
B. Privatization B. production economies
C. Domestic market C. location economies
D. Foreign market D. value creation economies
2890. How does franchising differ from licens- 2893. In the United States crossing your fin-
ing? gers is a sign of wishing for good luck.
In this country, the gesture is considered
A. Franchising involves a more compre- lewd. This country is also home to the Ho
hensive relationship between the fran- Chi Minh City Stock Exchange.
chisor and the franchisee, while licensing
A. Philippines
is a more limited arrangement where the
licensor grants the licensee the right to B. China
use their intellectual property. C. Vietnam
B. Licensing provides more support and D. none of above
training than franchising.
2894. What are the potential negative/s of
C. Franchising is a more expensive option currency devaluation for businesses?
than licensing.
A. Weakening purchasing power
D. Franchising and licensing are the
B. All of the above
same thing.
C. Less profits (if you are owned by an
2891. Firms prefer to acquire existing assets overseas company)
because D. Rising cost of imported materials
A. mergers and acquisitions are quicker
2895. A person living in Canada buys a product
to execute than greenfield investments
made in Germany. Example of:
B. it is easier and perhaps less risky for
a firm to acquire desired assets than build
them from the ground up B. International Business
C. firms believe that they can increase C. Home Country
the efficiency of an acquired unit by trans- D. Host Country
ferring capital, technology, or manage-
2896. A government restriction on the num-
ment skills
ber of cameras that can be imported from
D. All of these China each year is an example of an import
quota.
2892. Economies that arise from performing a
value creation activity in the optimal loca- A. True
tion for that activity are referred to as B. False

2897. Among the content of business negoti- D. A bank agreeing to accept and pay on
ation summary, which of the following is due date
not concerned?

2902. Globalization defined as
A. preparation work
A. is the widening set of interdependent
B. negotiating efficiency and results relationships among people from differ-
C. the writer of contract ent parts of a world divided into nations.
D. opponent’s working style B. service industries are very common to
find on the most profitable small business
2898. involves selecting global investment
list.
instruments as part of a geographically di-
versified portfolio C. segmentation in market research to
understand consumer behavior.
A. International investment
D. the sum total of all external and inter-
B. International firm
nal factors that influence a business.
C. Globalisation
2903. Entry of MNCs in a domestic market
D. Liberalisation
may prove harmful for
2899. Which strategy is make sense when the A. all large scale producers
firm faces strong pressures for cost reduc-
tions and demands for local responsive- B. all domestic producers
ness are minimal? C. all substandard domestic producers
A. Global standardization strategy D. all small-scale producers
B. Localization strategy 2904. Which of the following modes of entry,
C. Transnational strategy does the domestic manufacturer give the
D. International strategy right to use intellectual property such as
patent & trademark to a manufacturer in
2900. Individuals should most likely study in- a foreign country for a fee?
ternational business to
A. Licensing
A. remain current on the latest business
B. Contract of Manufacturing
methods
C. Joint venture
B. comply with graduate school certifica-
tion requirements D. None of these
C. ensure that an employer has a global 2905. Ethical issues can arise when environ-
online presence mental regulations in host nations are in-
D. obtain bilingual business experience ferior to those in the home nation.
A. True
2901. A letter of credit means
A. A letter sent by exporter to importer B. False
sanctioning credit deal 2906. Make cities and human settlements in-
B. A letter sent by importer to exporter clusive, safe, resilient and sustainable is
sanctioning deal one of the SDGs of UN. This SDG is num-
C. A letter containing conditions of credit ber
purchase or sale A. 2

B. 11 2911. 77) Some key factors in a com-

pany’s international business external en-
C. 9
vironment are its product strategy and ac-
D. 5 cess to resources.
2907. The degree to which society is uncom- A. geographic

fortable with risk, change, and situational
uncertainty. B. political
NARAYAN CHANGDER
A. Power Distance C. competitive
D. behavioral
C. Individualism-Collectivism
D. Masculinity-Feminity 2912. In 2017, Canada enforced an asset
E. Time Orientation freeze and dealings ban on Venezuela.
Canada also prohibits citizens and Cana-
2908. All of the following are a part of Culture dian residents from providing any goods
of the country except? to Venezuela. What type of trade barrier
does this BEST represent?
A. language
B. religion A. trade embargo
C. customs B. trade sanction

D. traditions C. boycott
E. technology
D. expropriation
2909. Which is the right sequence of stages of
Internationalization 2913. Germany sends a shipment of cars to
A. Domestic, Transnational, Global, Inter- the United States. This is an example of
national, Multinational what type of business?
B. Domestic, International, Multinational,
Global, Transnational
C. Domestic, Multinational, International,
Transnational, Global
D. Domestic, International, Transna-
tional, Multinational, Global A. Domestic
2910. The economic and strategic advantages B. International

that accrue to early entrants into an indus-
C. Multinational
try.
A. Second-mover advantages D. Franchising
B. Absolute advantages
2914. IBM’s workforce management initiative
C. First-Mover Advantages
(WMI) goal was to enable the company to
D. none of above deploy

D. none of above
2918. In some Asian countries, which of the

following is seen as unprofessional?
A. Business done during mealtimes
B. Business done after 6pm
C. Failure to exchange business cards
D. Failure to correspond at least weekly
2919. Approximately how many multinational

companies are there in the world?
A. experts from the host country A. 70, 000
B. people who could best do the task at B. 60, 000
hand C. 50, 000
C. develop a core of experts D. 45, 000
D. develop managers for IBM
2920. If you only employ workers from the
2915. Remember this:-)-PIRL I. ENQUILINO, host country you use a approach
DBA
A. Proceed
B. Proceed
A. Geocentric
B. Polycentric
C. Ethnocentric
D. Neocentric
2916. This country is the U.S.’s 2nd largest 2921. The most valuable import from Japan to
trade partner thanks to NAFTA. Australia in 2014 was
A. Mexico A. Rubber tyres
B. Canada B. Gold
C. Chili C. Fuel
D. none of above D. Passenger vehicles
2917. Asia is the world’s continent. 2922. Which economic system allows private
individuals or corporations to own and op-
A. Largest erate businesses with limited government
B. Most populous interference?
C. Largest and most populous A. Capitalism

B. Socialism A. Korea
C. Communism B. Germany
D. Mercantilism C. New Zealand
D. China
2923. 4 Understanding trade theories helps
companies know if they will need to com- 2928. What is an LC?
pete against goods and services produced
A. Letter of Commitment
abroad.
NARAYAN CHANGDER
B. Letter of Consent
A. True
C. Letter of Credit
B. False
D. Letter of Conversation
2924. Gabriella is a fashion designer who lives
2929. General Knowledge:A group of friends
in France. She is known worldwide for
or ‘mafia’ running a country can be called
making elegant evening gowns for women
a government
all around the world. She sources fabric,
lace, beads and other materials from a va-
riety of countries. If Gabriella sells one of
her gowns to a client in Paris, this would
be , whereas the fabric, lace, etc. are
A. an import, a domestic business

B. an import, exports A. Democratic
C. exports, imports B. Socialist
D. a domestic business, imports C. Oligarch

D. Capitalist
2925. Taiwan Semiconductor Manufacturing
is said to be the most important semi- 2930. What is the meaning of the term ‘ex-
conductor industry in Taiwan. change rate’?
A. Co. A. The rate at which goods and services
are exchanged between countries.
B. Co. Ltd.
B. The rate at which interest is ex-
C. stock changed between banks.
D. none of above C. The value of one currency in relation to
2926. We are grateful have got your in- another currency.
quiry our product. D. The rate at which stocks and bonds are
traded on the stock exchange.
A. to/for
B. for/to 2931. What challenges might a business face
when expanding to a foreign planet?
C. to/of
A. Understanding the alien culture and
D. none of above
business practices
2927. Flowers should be given in uneven num- B. Finding a suitable location for the busi-
bers and unwrapped in ness

C. Getting approval from the Earth gov- C. Euro

ernment D. Weight

D. Transporting goods and services to the
foreign planet 2935. In terms of value, what is Vietnam’s
biggest export product to China?
2932. N-11
A. the least most powerful countries in
the world.
B. The next up and coming countries in
the world
C. The most powerful 11 countries in the
world
D. none of above
A. Machinery
2933. 42) Which of the following statements B. Footwear
would most likely NOT be supported by an
advocate of offshoring? C. Fish and seafood
A. Offshoring increases the number of D. Rubber
high-value jobs in the home countries of
2936. Business activities that occur between
offshoring companies.
two or more countries is business.
B. Offshoring is fundamentally better for
A. Interpersonal
workers than the introduction of labor-
saving technologies. B. Intermunicipal
C. Workers displaced due to offshoring C. Intercostal
are able to find new jobs as easily as D. International
those displaced by technology.
D. There are upper limits to offshoring be- 2937. Glocalisation is
cause of the lack of skilled workers willing A. The adaptation of a global marketing
to work permanently for low wages. strategy to meet local market needs
2934. Identify the second most traded cur- B. The process of trends and values being
rency around the world, also used in Italy: shared globally
C. The process of businesses being differ-
ent in different locations
D. none of above
2938. The degree of mobility of factors like

labour and capital is generally be-
tween countries than within a country.
A. less
B. more
A. Yen C. equal
B. American Dollar D. Sufficient

2939. Domestic Company is C. Localization strategy

A. is a company that conducts business D. Transnational strategy
across national borders.
2944. A firm that is positioned in the upper left
B. is a company that conducts business in hand corner of the cost reductions/local re-
only one country, which is known as the sponsiveness grid is facing
home country.
C. a permanent global institution to pro-
NARAYAN CHANGDER
D. none of above
2940. involves producing goods at home

and then shipping them to the receiving
country for sale.
A. Importing
B. licensing A. high pressure for local responsiveness
and high pressure for cost reductions
C. Exporting
B. low pressure for local responsiveness
D. FDI
and high pressure for cost reductions
2941. must be concerned when doing busi- C. high pressure for local responsive-
ness with high context culture. ness and low pressure for cost reductions
A. business meeting seat position D. low pressure for local responsiveness
B. meeting agenda and low pressure for cost reductions
C. culture diversity 2945. International Trade Organizations help
D. business contract details companies with global trade activities and
to promote economic cooperation.
2942. When free mobility of production fac- A. True
tors is allowed in a Customs Union, it then
becomes: B. False
A. Free trade Area 2946. investments include everyday bank
B. Customs union accounts, high interest savings accounts
and term deposits
C. Common Market
A. Domestic
B. Global
2943. Company Mochi wishes to increase prof- C. Cash
itability and profit growth by reaping the
cost reductions from economies of scale, D. All the above
learning effects, and location economies. 2947. HOW TO TRANSLATE “COMPORTE-
They may consider applying MENT DU CONSOMMATEUR” INTO EN-
A. International strategy GLISH?
B. Global standardization strategy A. CONSUMER BEHAVIOUR

B. CUSTOMER BEHAVIOUR A. multinational corporation

C. CUSTOMER BEHAVIOR B. multinational enterprise

D. CLIENT BEHAVIOUR C. international business
2948. When divergent cultures come in con- D. franchise

tact, occurs. 2952. Which of the following are top trading
A. power distance partners of the UAE?
B. culture shock A. China, Germany
C. culture collision B. India, KSA
D. group membership C. USA, Iraq
D. Japan, Oman
2949. The trade theory that premises a coun-
try’s wealth is measured by its holdings of 2953. In Poland, casual clothing can be consid-
treasure, usually in gold, is known as ered inappropriate in public. For example,
A. Bullionism one would rarely be seen barefoot in pub-
lic. People tend to dress neatly.
B. Mercantilism
A. True
C. the Porter Diamond
B. False
D. Monetarism
2954. If Japan establishes a quota on the
2950. What is the goal for the Paris Agree- amount of American beef that can be im-
ment? ported, it makes it easier for beef produc-
A. To limit the global warming below-1, 5 ers in the United States to export beef to
degrees Celsius Japan.
B. To increase collaboration between A. True
countries B. False
C. To encourage more people to visit
Paris 2955. “The purchase of a good or service from
another country” is a definition of
D. To help businesses to grow in Paris
A. Imports
2951. Any organization that engages in cross- B. Exports
border commercial transactions with indi-
viduals, private firms, and/or public sec- C. Services
tor organizations is a(n) D. none of above

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JAI SHREE RAM

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It is my deepest gratitude and warmest

To my mother JOYTSNA CHANGDER

who has been a constant source of Knowledge and in-

The aim of this publication is to sup-

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C. understanding of IB helps you make C. Economic integration between coun-

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A. jobs might be lost in existing national C. Competitive advantage

7. A 8. A 9. A 10. B 11. D 12. B 13. A 14. A 15. B

A. True 28. Usually, the more taxes there are on a

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24. A 25. C 26. B 27. B 28. A 29. B 30. C 31. D 32. B

32. International trade is a relatively new de- C. ANALYZING

34. Which of the following is a driver of glob-

B. internationalization of firm’s value C. political instability

33. B 34. C 35. A 36. B 37. D 38. D 39. B 40. B 41. A

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B. Spanish D. none of above

C. French 49. A(n) is a citizen of one country who is

B. Culture 59. What are the different market entry

D. Marketing A. exporting, licensing, franchising, joint

D. none of above D. strategic alliances, divestitures,

B. Banking B. create new ideas

C. Deregulation C. strengthen the business’ reputation

D. Finance D. ensure the sourcing of raw materials

A. 5 A. operation costs, customer demand,

C. organizational market, consumer mar- B. FDI refers to when a company or in-

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62. C 63. C 64. A 65. D 66. A 67. B 68. B 69. B 70. E

B. Exporting D. is not a cause for international busi-

D. Outsourcing 75. Is the following an advantage or a dis-

74. Uneven distribution of natural resources

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91. Which of the following is a way that D. Common market

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103. A(n) is an association of producers

D. Double-taxing a corporation Double- C. cartel

B. Access to water D. None of them

C. Political situation 106. Where does the US import most of our

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B. weak agreement C. has the largest domestic demand for

109. Why is it necessary to understand the

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C. RBI 120. What are INCOTERMS?

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B. low-context C. Services are visible, whilst goods are

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150. Which of the following would be a stan-

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