This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 10 International Business – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 10 International Business Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Organization architecture include the following EXCEPT A) Market conditions. B) Organization culture. C) Processes. D) Control & incentives. Show Answer Correct Answer: A) Market conditions. 2. A multinational firm typically: A) Centralizes decisions globally. B) Has subsidiaries in multiple countries. C) Operates only in its home country. D) Avoids international expansion. Show Answer Correct Answer: B) Has subsidiaries in multiple countries. 3. ..... is the first step in the internationalization process. A) License. B) Foreign Investment. C) Sales. D) Export. Show Answer Correct Answer: A) License. 4. Generally accepted principles of right and wrong governing individual conduct are known as what? A) Personal ethics. B) Ethical imperialism. C) Ethical dilemmas. D) Corruption. Show Answer Correct Answer: A) Personal ethics. 5. Institutions like the World Bank and the Asian Development Bank that offer financial support and resources for development projects and investments in emerging economies are known as ..... A) Microfinance Institutions. B) Multilateral Development Banks. C) Commercial Banks. D) Private Equity Firms. Show Answer Correct Answer: B) Multilateral Development Banks. 6. To localizeWhat is the term for adapting something to meet the needs of a specific local market? A) Localiser. B) Globalizer. C) Standardizer. D) Customizer. Show Answer Correct Answer: A) Localiser. 7. It is defined as a company in a country that makes a physical investment to build a factory, warehouse, distribution center or other in another country. A) Foreign Direct Investment. B) Indirect Foreign Investment. C) Globalization. D) None of the above. Show Answer Correct Answer: A) Foreign Direct Investment. 8. Which of the following is NOT listed as an economic barrier to international trade? A) Trade agreements. B) Exchange rates. C) Infrastructure. D) Economic development. Show Answer Correct Answer: A) Trade agreements. 9. It refer to the payment methods in Import and Export when the exporter uses an open account, the buyer pays the exporter at some future time following receipt of the goods. A) LETTER OF CREDIT. B) OPEN ACCOUNT. C) Countertrade. D) None of the above. Show Answer Correct Answer: B) OPEN ACCOUNT. 10. What are Non-Tariff Barriers (NTBs) in international trade? A) Restrictions and obstacles to trade that do not involve direct taxation. B) Taxes imposed by governments on imported goods. C) Financial assistance provided to domestic industries. D) Regulations related to food safety and animal/plant health. Show Answer Correct Answer: A) Restrictions and obstacles to trade that do not involve direct taxation. 11. Which of the following options is an advantage for the franchisor? A) Failure will damage your brand. B) A motivated and motivated workforce. C) Less operational control on the ground. D) None of the above. Show Answer Correct Answer: B) A motivated and motivated workforce. 12. Which of these is an example of the globalization of production? A) A small shop sells local fruit. B) A phone is made only in one country. C) A phone has parts from many countries. D) People buy fruit from a local market. Show Answer Correct Answer: C) A phone has parts from many countries. 13. Mengapa keputusan produksi global dan pengelolaan rantai pasokan sangat penting bagi banyak perusahaan global? A) Memperluas pasar potensial dan peluang pertumbuhan. B) Memungkinkan perusahaan untuk mengurangi biaya produksi. C) Meningkatkan efisiensi operasional dan responsibilitas terhadap permintaan pelanggan. D) Membatasi akses ke teknologi dan inovasi terbaru. Show Answer Correct Answer: C) Meningkatkan efisiensi operasional dan responsibilitas terhadap permintaan pelanggan. 14. According to the OLI paradigm, what is the main focus when considering foreign expansion? A) Only the use of franchising for expansion. B) The sequence of inter-related expansion decisions over time. C) Individual foreign expansion decisions, such as whether to use FDI or a contractual mode. D) The transfer of technology assets. Show Answer Correct Answer: C) Individual foreign expansion decisions, such as whether to use FDI or a contractual mode. 15. Globalization is fueled largely by declining trade and investment barriers and new technologies, such as the Internet. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 16. Product life cycle theory was based on the results of A) Civil War. B) WW 2. C) All the above. D) None of the above. Show Answer Correct Answer: B) WW 2. 17. In Poland, offer to remove your shoes before entering someone else's home is similar to most Muslim countries. It is not always necessary to do so, but it is a polite gesture to ask. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 18. What is the technical definition of international 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 involve transportation. D) All commercial transactions that involve investments. Show Answer Correct Answer: B) All commercial transactions that take place between two or more countries. 19. Globalisation is best defined as A) Increased international trade as a result of free movement of goods and capital between countries. B) A situation where all of the world uses the same common currency. C) The growing trend for companies to stop making products within their own country. D) The increase in the world tourist industry leading to more global travel. Show Answer Correct Answer: A) Increased international trade as a result of free movement of goods and capital between countries. 20. If a country trades with other countries because it has more than it needs of a certain product, the trade reason is: A) Surplus. B) Increased competition. C) Political/Historical. D) Specialization. Show Answer Correct Answer: A) Surplus. 21. Which of the following is NOT a top trading partner with the UAE? A) Saudi Arabia. B) China. C) France. D) India. Show Answer Correct Answer: C) France. 22. 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. Show Answer Correct Answer: B) Encourage exports and discourage imports. 23. Why do big companies like Coca-Cola change their ads in different countries? A) To make ads shorter. B) To match local culture. C) To confuse customers. D) To hide the real product. Show Answer Correct Answer: B) To match local culture. 24. Based on absolute advantage theory, each country can increase its wealth by specializing in the production of good that it is less efficient at. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 25. A government provides financial support to domestic producers to make their products cheaper. What instrument is being used? A) VERs agreed by exporters. B) Administrative policy hurdles. C) Import quotas on shipments. D) Production subsidies from government. Show Answer Correct Answer: D) Production subsidies from government. 26. Which one of the following modes of entry brings the firm closer to international markets? A) Licensing. B) Contract manufacturing. C) Franchising. D) Joint venture. Show Answer Correct Answer: D) Joint venture. 27. What is one way CSR practices can help attract talent to a company? A) CSR practices can attract and retain top talent as employees seek to work for socially responsible organizations that align with their values. B) CSR practices guarantee higher salaries for all employees. C) CSR practices eliminate the need for employee training programs. D) CSR practices ensure automatic promotions for all staff. Show Answer Correct Answer: A) CSR practices can attract and retain top talent as employees seek to work for socially responsible organizations that align with their values. 28. The theory of Comparative Advantage (David Ricardo) suggests that a country should specialize in producing goods where it has: A) The most advanced technology. B) The largest supply of gold. C) The absolute lowest cost of production. D) The lowest opportunity cost compared to other nations. Show Answer Correct Answer: D) The lowest opportunity cost compared to other nations. 29. Which mode of entry involves partnering with specialized manufacturers to produce goods on behalf of a hiring company? A) Joint Venture. B) Outsourcing. C) Acquisitions. D) Licensing. Show Answer Correct Answer: B) Outsourcing. 30. What is the difference between push and pull strategies in international promotions? A) Push strategy is used for pricing, while pull strategy is used for distribution. B) Push strategy targets intermediaries, while pull strategy targets end consumers. C) Push strategy is used for product design, while pull strategy is used for adaptation. D) Push strategy focuses on direct advertising, while pull strategy focuses on indirect advertising. Show Answer Correct Answer: B) Push strategy targets intermediaries, while pull strategy targets end consumers. 31. Verbal messages are explicit and direct. Words are valued above their context. A) High Context. B) Low Context. C) All the above. D) None of the above. Show Answer Correct Answer: B) Low Context. 32. "Thereby" is a ..... ? A) Formal word. B) Archaic word. C) Loan word. D) Technical Term. Show Answer Correct Answer: B) Archaic word. 33. ..... Service process outsourcing or business software A) Costumer. B) E-commerce. C) Business. D) None of the above. Show Answer Correct Answer: C) Business. 34. Which of the following is NOT a component of Porter's Diamond Model? A) Factor conditions. B) Demand conditions. C) Competitive rivalry. D) Climatic conditions. Show Answer Correct Answer: D) Climatic conditions. 35. Which of the following is a major limitation of the simple Ricardian model of comparative advantage? A) The model ignores the principle of diminishing marginal returns. B) The model is against the idea of engaging in free trade with nations. C) The outcome of the model suggested by Ricardo is a zero-sum game. D) The model recommends excessive governmental intervention in trade. Show Answer Correct Answer: A) The model ignores the principle of diminishing marginal returns. 36. What strategy did IKEA use to cater to the Chinese market? A) Standardizing product sizes for all markets. B) Adjusting product sizing and store layouts to fit local shopping behaviors. C) Using the same store layout as in Europe. D) Focusing only on online sales. Show Answer Correct Answer: B) Adjusting product sizing and store layouts to fit local shopping behaviors. 37. In a functional structure, decision-making is usually: A) Centralized at headquarters. B) Decentralized to each country manager. C) Divided equally between HQ and subsidiaries. D) Done by product managers. Show Answer Correct Answer: A) Centralized at headquarters. 38. What is direct investment in the context of international finance? A) Purchasing foreign real estate. B) Short-term and long-term loans to foreign or multinational companies. C) Buying products directly from foreign manufacturers. D) Directly hiring foreign workers. Show Answer Correct Answer: B) Short-term and long-term loans to foreign or multinational companies. 39. An agent has to go to the ..... before receiving goods from the ship. A) The Reserve Bank of India. B) Customs Office. C) Insurance Office. D) Import-export Controller. Show Answer Correct Answer: B) Customs Office. 40. Stopping the export and import of a product is known as? A) Deal. B) Quota. C) Embargo. D) Tariff. Show Answer Correct Answer: C) Embargo. 41. The scope of international business includes all EXCEPT: A) International trade. B) International licensing and franchising. C) Domestic-only retail operations. D) Foreign investment. Show Answer Correct Answer: C) Domestic-only retail operations. 42. What is a Trade Agreement? A) An investment made by a company in one country in business interests located in another country. B) A network of entities involved in the production and distribution of goods and services. C) The communication between people from different cultures. D) A pact between two or more nations to facilitate and regulate trade and commerce. Show Answer Correct Answer: D) A pact between two or more nations to facilitate and regulate trade and commerce. 43. Which feature distinguishes the WTO from GATT in terms of scope? A) It bans all export subsidies globally. B) It regulates domestic tax policy. C) It focuses only on agricultural goods. D) It covers services and intellectual property. Show Answer Correct Answer: D) It covers services and intellectual property. 44. Boeing, an American firm, sells commercial aircraft to Lufthansa in Germany. This is an example of ..... A) Franchising. B) Importing. C) Exporting. D) Licensing. Show Answer Correct Answer: C) Exporting. 45. What is the main role of the Association of Southeast Asian Nations (ASEAN)? A) Underpinning regional economic integration in Southeast Asia. B) Providing financial aid to developing countries. C) Negotiating climate change agreements. D) Regulating global trade. Show Answer Correct Answer: A) Underpinning regional economic integration in Southeast Asia. 46. What is the full form of FTZ? A) Foreign Trade Zone. B) Free Travel Zone. C) Free Trade Zone. D) Foreign travel Zone. Show Answer Correct Answer: C) Free Trade Zone. 47. The main promoter of trade liberalization was A) GATT. B) NAFTA. C) CEPTA. D) CISA. Show Answer Correct Answer: A) GATT. 48. How does global supply chain management enhance efficiency? A) It enhances efficiency by extending delivery times. B) It enhances efficiency by optimizing resource allocation and reducing lead times. C) It enhances efficiency by increasing production costs. D) It enhances efficiency by limiting supplier choices. Show Answer Correct Answer: B) It enhances efficiency by optimizing resource allocation and reducing lead times. 49. Which of the following is an external environment force in international business? A) Personnel management. B) Economic environment. C) Capital investment. D) Production process. Show Answer Correct Answer: B) Economic environment. 50. Full form of WTO is: A) World Trade Organisation. B) Wonder Trade Organisation. C) World Transfer Organisation. D) Work Trade Organisation. Show Answer Correct Answer: A) World Trade Organisation. 51. What is the basic motive of company internationalization: A) Development. B) Profit maximization. C) Survival. D) All answers are correct. Show Answer Correct Answer: D) All answers are correct. 52. Is international finance a branch of international business? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 53. What was the main goal of the Kyoto Protocol signed in 1997? A) To monitor the global economy. B) To regulate international monetary cooperation. C) To provide technical assistance to developing countries. D) To cut CO2 emissions of developed countries by 6% of 1990 levels by 2012. Show Answer Correct Answer: D) To cut CO2 emissions of developed countries by 6% of 1990 levels by 2012. 54. If a company is headquartered in Taiwan, then Taiwan is the company's ..... A) Host country. B) Home country. C) Competitive country. D) Dominant country. Show Answer Correct Answer: B) Home country. 55. ..... refers to the legal rights given to the inventor or creator to protect his invention or creation. A) Logo. B) Takeover. C) Franchisee. D) Intellectual property rights. Show Answer Correct Answer: D) Intellectual property rights. 56. UNIT 1:ABOUT YOUVocabulary:a/anIs it an ..... name? A) German. B) Korean. C) English. D) Thai. Show Answer Correct Answer: C) English. 57. (a) is a political system in which government leaders are elected directly by the wide participation of the people or by their representatives. A) A. Democracy. B) Dictatorship. C) Monarchy. D) None of the above. Show Answer Correct Answer: A) A. Democracy. 58. How do cultural values affect consumer behavior in different countries? A) Cultural values have no impact on consumer behavior. B) Cultural values are the same across all countries. C) Cultural values significantly influence consumer behavior by shaping preferences, purchasing habits, and brand perceptions in different countries. D) Consumer behavior is solely determined by economic factors. Show Answer Correct Answer: C) Cultural values significantly influence consumer behavior by shaping preferences, purchasing habits, and brand perceptions in different countries. 59. Which of the following is NOT a strategic objective of Foreign Direct Investment (FDI)? A) Enhancing the firm's efficiency. B) Gaining access to natural resources. C) Tapping into new markets. D) Reducing employee turnover. Show Answer Correct Answer: D) Reducing employee turnover. 60. A situation in which a nation exports more goods and services than it imports. A) Trade Deficit. B) Balance of Payments. C) Balance of Trade. D) Trade Surplus. Show Answer Correct Answer: D) Trade Surplus. Next →Related QuizzesCommerce QuizzesClass 11 QuizzesClass 11 Business Studies Chapter 10 International Business Quiz 2Class 11 Business Studies Chapter 10 International Business Quiz 3Class 11 Business Studies Chapter 10 International Business Quiz 4Class 11 Business Studies Chapter 10 International Business Quiz 5Class 11 Business Studies Chapter 10 International Business Quiz 6Class 11 Business Studies Chapter 10 International Business Quiz 7Class 11 Business Studies Chapter 10 International Business Quiz 8Class 11 Business Studies Chapter 10 International Business Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books