1. Business is becoming more global because –
a) transportation is quicker,
b) communication enable control from a far,
c) transportation and communications costs are more conductive for international operations,
d) all of these.
Ans : d
2. IBRD (International Bank for Reconstruction and Development) also known as –
a) Exim Bank,
b) World Bank,
c) International Monetary Fund,
d) International Bank
Ans : b
3. Ultimately _______________ was replaced by the ______________ on 1st Jan 1995
a) GATS, WTO;
b) WTO, GATT;
c) GATT, WTO;
d) IMF, GATT
Ans : c
4. The WTO was established to implement the final act of Uruguay Round agreement of –
a) MFA,
b) GATT,
c) TRIP’s
d) UNO.
Ans : b
5. WTO stands for –
a) World Technology Association,
b) World Time Organization,
c) World Trade Organization,
d) World Tourism Organization.
Ans : c
6. NAFTA stands for –
a) North African Trade Association,
b) North American Free Trade Agreement,
c) Northern Atlantic Trade Agreement,
d) Northern Association for Trade.
Ans : b
7. World Trade Organization provides –
a) rule based multilateral trading system,
b) equity and social justice to the people,
c) rule based regional trading system,
d) all of the above.
Ans : a
8. Which section is not of balance of payment?
a) current account,
b) capital account,
c) official reserve account,
d) loss account.
Ans : d
9.Which conference gives the birth to the ‘International Monetary Fund’?
a) Bretton-woods
b) Congress,
c) LIBOR,
d) TIDA.
Ans: a
10.First Export Promotion Zone (EPZ) in private sector was established at –
a) Kandla,
b) Vishakhapatnam,
c) Noida,
d) Surat.
Ans : d
11. The Bretton wood twins consist s of IMF and ---------
a) World Bank
(b) ADB
(c) IDBI
(d) ICICI
Ans : a
12.IMF commenced its operation in the year
a) 1948
(b) 1950
(c) 1947
(d) 1952
Ans : c
13. Which is the right sequence of a stages of Internationalization
a) Domestic, Transnational, Global, International, Multinational
b) Domestic, International, Multinational, Global, Transnational
c) Domestic, Multinational, International, Transnational, Global
d) Domestic, International, Transnational, Multinational, Global
Ans. b
14.The country that attract the largest FDI inflow is
a) USA
b) INDIA
c) CHINA
d) BRAZIL
Ans.c
15. The world trade organization was formed in the year _________ with GATT as it basis.
a) 1992
b) 1993
c) 1995
d) 1994
Ans:c
16.The Theory of Absolute Cost Advantage is given by
a) Adam smith
b) D. Richardo
c) Raymond Varnoon
d) Porter
Ans:a
17.As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn’t consider
a) Direct payments to farmers are permitted.
b) Indirect assistance and support to farmers including R & D support by govt. are not permitted
c) Domestic policies which directly effect on production and trade have to be cut back.
d) Least developed countries do not need to make any cuts.
Ans:b
18. When the exporter, expects the importer, to make the payment immediately upon the draft being presented to him is called.
a) Sight Draft.
b) Usance Draft
c) Demand draft
d) Pay Note
Ans :a
19. B2B sector specific policy of Indian Government is
a) FDI up to 100% subject to condition that they invest 26 % in favor of Indian Public within 5 yrs
b) FDI up to 100%
c) FDI up to 100% subject to condition that they invest 26 % in favor of Indian Public within 10 yrs
d) FDI up to 49%
Ans :a
20 The country that attracts the largest FDI inflow is
a) India
b) China
c) USA
d) Brazil
Ans:b
21.. Theory of Mercantilism propagates
a) Encourage exports and imports
b) Encourage exports and discourage imports
c) Discourage exports and imports
d) Discourage exports and encourage imports
Ans:b
22.General Agreement on Trade in Services will not be applicable to
a) Services supplied from one country to another – cross border supply
b) Transaction of goods across the border – Export Import
c) Individuals traveling from own country to supply services in another – presence of natural persons. d) Consumers/firms making use of a service in another country – consumption abroad.
e) Foreign company setting up subsidiary or branches to provide services in another country – commercial presence.
Ans:b
23. NAFTA stands for a. North African trade association
b. North American free trade agreement
c. Northern Atlantic trade agreement
d. Northern association for trade
Ans: b
24. IPR stands for
a. Intellectual property rights
b. International property rights
c. Internal promotion rights d. Interior promotional rights
Ans: a
25. The main promoter of trade liberalization was
a. GATT
b. NAFTA
c. CEPTA
d. CISA
Ans. a.
26. MNC Stands for
a. Multi National Coopertion
b. Multi National Corporation
c. Multi Nation Company
d. Multi National Collaboration
Ans: b
27. _______ is the 1st step in the internationalization process.
a. License
b. Foreign Investment
c. Sales
d. Export
Answer: a
28. SMEs stands for:
a. Small and Medium Entrepreuners
b. Small Management of Enterprises
c. Small and Medium-sized Enterprises.
d. Societies for Managing Exports
Answer: c
29. The OECD stands for:
a. Organization for Economic Co-operation and Development
b. Organization for Economic Coordination and Development
c. Organization for Environmental Cooperation and Development.
d. Organization for Environmental Control and Development
Answer: a
30. Trade Related Investment Measures (TRIMS) doesn’t apply for
a) Measures that affect trade in goods.
b) Measures that lead to restrictions on quantities.
c) Discouraging measures that limit a company’s imports.
d) Discouraging measures that limit a company’s exports.
Ans:b
31. As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn’t consider
a) Direct payments to farmers are permitted.
b) Indirect assistance and support to farmers including R & D support by govt. are not permitted.
c) Domestic policies which directly effect on production and trade have to be cut back.
d) Least developed countries do not need to make any cuts.
Ans:b
32. _______ theory states that, lack of resources often helps countries to become competitive
a) Competitive theory
b) Porters Diamond Model
c) Theory of Mercantilism
d) Product life cycle theory
e) None of the above
Ans:d
33.. Which of the following is an advantage of turnkey projects?
a) Can earn a return on knowledge asset
b) Will not create a competitor
c) Tight control of operations
d) All the above
Ans:a
34.According to this theory the holdings of a country’s treasure primarily in the form of gold constituted its wealth.
a) Gold Theory
b) Ricardo Theory
c) Mercantilism
d) H .O. THEORY
Ans:c
35.1. Agreement on Textile and clothing was set out as a transitional process on 01 Jan 1995 for the ultimate removal of quotas by WTO by 01 Jan 2007.
Answer: False
36.The first ever set of multilateral, legally enforceable rules covering international trade in services is the General Agreement on Trade in services (GATS).
Answer: True
37. Factor of Interdependence in Multi-domestic strategy is
a) Low
b) Moderate
c) High
d) Very High
Ans:a
38. Contractual agreements as global market entry involve a transfer of trademarks or human skills.
Answer: True
39. The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year 1999 is an example of
a) Subsidiary
b) Joint venture
c) Strategic International Alliance
d) License agreement
Ans:c
40.Power distance Index (PDI) of 77 compared to a world average of 56.5 for India indicates
a) High level of inequality of power and wealth within the society
b) Normal Power and Wealth
c) High level of political corruption
d) Low level of Human Development Index
Ans:a
41.. _____________ 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) Bill of Lading,
b) Letter of Credit,
c) Open Account,
d) Drafts.
Ans : b
42.The WTO was established to implement the final act of Uruguay Round agreement of –
a) MFA,
b) GATT
, c) TRIP’s,
d) UNO.
Ans : b
43 Official reserves are composed of gold, SDRs, and ……………..exchange.
a) convertible foreign,
b) non-convertible foreign,
c) semi-convertible foreign,
d) all of these.
Ans : a 2
44 Which of the following is not the items of capital account?
a) external assistance,
b) disbursements,
c) NRI deposits,
d) official transfers.
Ans : d
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