This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 10 International Business – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 10 International Business Quiz 19 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. According to product life cycle, price premium will always be in A) The USA. B) Europe. C) Asia. D) None of the above. Show Answer Correct Answer: A) The USA. 2. Licensor-a person or organization who gives another person or organization official permission to make, do, or own something. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 3. IPR stands for ..... A) International property rights. B) Intellectual property rights. C) Interior promotional rights. D) Internal promotion rights. Show Answer Correct Answer: B) Intellectual property rights. 4. What it the "opportunity cost" ? A) The opportunity cost of an item is the current market price in dollars. B) The opportunity cost of an item is whatever you give up to get that item. C) The opportunity cost of an item is the cost of all resources that were necessary to produce it. D) The opportunity cost of an item is the difference between the current market price and production costs. Show Answer Correct Answer: B) The opportunity cost of an item is whatever you give up to get that item. 5. The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 6. The first recognizable metal coins appeared in ..... A) Mesopotamia. B) Greece. C) Rome. D) China. Show Answer Correct Answer: D) China. 7. War and unlawful activity are two examples of ..... conditions that influence international business. A) Economic. B) Cultural and social. C) Political and legal. D) Geographic. Show Answer Correct Answer: C) Political and legal. 8. You finish a meeting and hear: "Let's touch base later." What usually happens? A) Task is finished. B) Immediate follow-up. C) Clear action. D) Nothing happens. Show Answer Correct Answer: D) Nothing happens. 9. International Company A) Increasing integration of the world economy. B) Is a company that conducts business across national borders. C) Is a company that conducts business in only one country, which is known as the home country. D) None of the above. Show Answer Correct Answer: B) Is a company that conducts business across national borders. 10. BIGGER COUNTRIES ARE MORE GLOBALIZED THAN SMALLER ONES A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 11. ..... enable(s) a manager to walk away from a decision that is profitable. A) Kantian Discipline. B) Human resources. C) Economic self-sufficiency. D) Moral courage. Show Answer Correct Answer: D) Moral courage. 12. The world tourism organization says that international tourism is:traveling and staying in places that are in your usual environment for no more than one consecutive year for leisure, business and other reasons. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 13. Inward FDI refers to money going out from a country to foreign subsidiaries. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 14. If a country has improving educational systems, increasing technology and expanding industries, that country is considered to be: A) Developing. B) Industrialized. C) Less-Developed. D) None of the above. Show Answer Correct Answer: A) Developing. 15. What was the aim of FERA (1973)? A) To create export incentives. B) To attract foreign investments. C) To support free trade. D) To regulate foreign exchange. Show Answer Correct Answer: D) To regulate foreign exchange. 16. What is the main purpose of the Gulf Cooperation Council (GCC)? A) Political and economic integration. B) Currency unification. C) Customs union. D) Military alliance. Show Answer Correct Answer: A) Political and economic integration. 17. Organizational culture change in multinational firms can be achieved quickly through formal policies alone A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 18. Which are the political factor motives of internationalization: A) PREFERENCES FOR DOMESTIC CORPORATIONS. B) POLITICAL INSTABILITY. C) FAVORABLE LEGAL REGULATIONS. D) Answers are correct. Show Answer Correct Answer: C) FAVORABLE LEGAL REGULATIONS. 19. ..... is market segmentation according to age, race, religion, gender, family size, ethnicity, income, and education. A) Social Classes. B) Demographics. C) PEST Analysis. D) SWOT Analysis. Show Answer Correct Answer: D) SWOT Analysis. 20. T or F:Franchising is selling the right to use a trademark or brand name for a fee or royalty A) False. B) True. C) Not mentioned. D) Not applicable. Show Answer Correct Answer: B) True. 21. What does "Outsourcing" mean? A) Outsourcing of non-essential activities or services. B) Retail sales online. C) Distribution of products abroad. D) Internal production of goods. Show Answer Correct Answer: A) Outsourcing of non-essential activities or services. 22. IBRD (International Bank for Reconstruction and Development) also known as A) International Bank. B) International Monetary fund. C) World Bank. D) Exim Bank. Show Answer Correct Answer: C) World Bank. 23. What is one advantage of Regional Trade Agreements (RTAS) listed in the provided information? A) Increased administrative burden for member countries. B) Trade diversion leading to overall economic inefficiencies. C) Boosting economic growth and creating jobs through increased trade. D) Dependency on multiple regional markets. Show Answer Correct Answer: C) Boosting economic growth and creating jobs through increased trade. 24. Which 'Mode of Entry' involves the highest degree of risk and control, often requiring a physical presence in the foreign country? A) Franchising. B) Exporting. C) Foreign Direct Investment (FDI). D) Licensing. Show Answer Correct Answer: C) Foreign Direct Investment (FDI). 25. EOUs can engage in ..... A) Manufacturing. B) Services. C) Development of software. D) All the above. Show Answer Correct Answer: D) All the above. 26. It is important to study international business because you may work for a firm that is owned by a corporation that is headquartered in another country A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 27. A global corporate form based on geographic regions is most suitable when: A) Products require heavy customization for local markets. B) The firm sells only standardized products. C) Centralized decision-making is most important. D) There is no need for regional managers. Show Answer Correct Answer: A) Products require heavy customization for local markets. 28. More value customers place on a firm's products the lower the price the firm can charge for those products. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 29. A is a tax imposed by a government on imports or exports of goods. A) Free Trade Area. B) Tariff. C) Regional Economic Integration. D) MFN. Show Answer Correct Answer: B) Tariff. 30. When a country can create products at a lower cost than other countries, this is a(n) ..... advantage. A) Comparative. B) Absolute. C) All the above. D) None of the above. Show Answer Correct Answer: B) Absolute. 31. The degree of mobility of factors like labour and capital is generally ..... between countries than within a country. A) Equal. B) Sufficient. C) More. D) Less. Show Answer Correct Answer: D) Less. 32. Company A entered the production of office software before its competitors. Because of this, the company's products are more familiar among and favored by customers. This situation exemplifies the ..... A) Economies of scale. B) Diminishing marginal returns. C) Constant marginal returns. D) First mover advantage. Show Answer Correct Answer: D) First mover advantage. 33. Transaction risk occurs during the settlement of international transactions, such as import and export activities. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 34. Any commercial transaction that crosses the borders of two or more nations is known as A) Market segmentation. B) Global manufacturing. C) Domestic marketing. D) International business. Show Answer Correct Answer: D) International business. 35. What message allows immediate action A) "Let's proceed soon". B) "Proceed when everything is ready". C) "Proceed with the shipment on 18th march after the payment is confirmed". D) "Proceed with shipment". Show Answer Correct Answer: C) "Proceed with the shipment on 18th march after the payment is confirmed". 36. How often does completely free trade exist? A) Frequently. B) Always. C) Never. D) Seldom. Show Answer Correct Answer: D) Seldom. 37. What is the effect of subsidies on domestic producers? A) They increase production costs. B) They encourage exports. C) They raise prices for consumers. D) They limit production. Show Answer Correct Answer: B) They encourage exports. 38. Which of the following regions describes the euro zone? A) A region that comprises EU members without a common currency. B) A region that comprises all EU members. C) A region that has passport-free traveling. D) A region that has a common currency. Show Answer Correct Answer: D) A region that has a common currency. 39. A political system in which one political party holds all the power and prohibits members of other parties from participating is a A) Democracy. B) Totalitarian. C) Exclusive system. D) None of these. Show Answer Correct Answer: B) Totalitarian. 40. To internationalize A) Regionalizer. B) Globalizer. C) Localizer. D) Internationaliser. Show Answer Correct Answer: D) Internationaliser. 41. Which is the right sequence of stages of Internationalization A) Domestic, Transnational, Global, International, Multinational. B) Domestic, International, Multinational, Global, Transnational. C) Domestic, Multinational, International, Transnational, Global. D) None of the above. Show Answer Correct Answer: C) Domestic, Multinational, International, Transnational, Global. 42. Corporate Social Responsibility is: A) A business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders. B) The process of maximizing profits without regard for social or environmental impact. C) A government regulation that all companies must follow strictly. D) An advertising strategy to increase product sales only. Show Answer Correct Answer: A) A business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders. 43. Corruption has been a problem in almost every society in history and continues to be one today. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 44. It is necessary to fill ..... copies of Bill of Entry. A) Two. B) Five. C) Four. D) Three. Show Answer Correct Answer: D) Three. 45. Which countries are part of the USMCA (formerly NAFTA) agreement? A) Mexico, China, India. B) USA, Mexico, Canada. C) USA, Brazil, Argentina. D) Canada, UK, Australia. Show Answer Correct Answer: B) USA, Mexico, Canada. 46. Goods and services sold to other countries are called A) Exports. B) Balance of trade. C) Tariffs. D) Imports. Show Answer Correct Answer: A) Exports. 47. Which of the following is the reason why most economists prefer Heckscher-Ohlin theory to Ricardo's theory? A) Heckscher-Ohlin theory makes fewer simplifying assumptions. B) Ricardo's theory considers factor endowments to describe national competitiveness. C) Heckscher-Ohlin stresses on the differences in productivity between nations. D) Ricardo's theory considers the law of marginal returns. Show Answer Correct Answer: A) Heckscher-Ohlin theory makes fewer simplifying assumptions. 48. What is the most common mode of international business for selling goods to other countries? A) Outsourcing. B) Licensing. C) Exporting. D) Franchising. Show Answer Correct Answer: C) Exporting. 49. How do bilateral FTAs affect countries with large markets, according to critics? A) They allow these countries to use their bargaining power more effectively. B) They weaken their economic influence. C) They create a single currency. D) They eliminate trade barriers completely. Show Answer Correct Answer: A) They allow these countries to use their bargaining power more effectively. 50. What is a joint venture? A) A type of investment where one company purchases a controlling interest in another company. B) A type of acquisition where one company takes over another company completely. C) A type of merger where two companies combine to form a new entity. D) A type of business partnership where two or more parties agree to collaborate on a specific project or venture. Show Answer Correct Answer: D) A type of business partnership where two or more parties agree to collaborate on a specific project or venture. 51. Companies seeking finance for foreign investments can secure funds through equity investments, loans, or joint ventures with local partners in the target country. This is called ..... A) Export Financing. B) Trade Credit. C) Foreign Direct Investment (FDI). D) Foreign Portfolio Investment (FPI). Show Answer Correct Answer: C) Foreign Direct Investment (FDI). 52. 63) A foreign direct investment occurs when ..... A) A foreign firm agrees to a licensing agreement with a large conglomerate. B) Foreign ownership is in private rather than government securities. C) A company has a controlling interest in a foreign company. D) A company owns at least 25% of a foreign firm. Show Answer Correct Answer: C) A company has a controlling interest in a foreign company. 53. STEP 4:Analyzing org.'s resources & capacityWhat are these resources & capacities? Financial, Physical, Technology, ..... and Human resource A) Environment. B) Money. C) Economical. D) Reputation. Show Answer Correct Answer: D) Reputation. 54. How can overseas trade contribute to increased profit? A) By raising the prices of products. B) By increasing the volume of products sold. C) By reducing the volume of products sold. D) By decreasing the efficiency of operations. Show Answer Correct Answer: B) By increasing the volume of products sold. 55. When a country has the ability to produce a product at a lower opportunity cost than another country. A) Absolute Advantage. B) Positive Net Export. C) Comparative Advantage. D) Favorable Advantage. Show Answer Correct Answer: C) Comparative Advantage. 56. Creation of international business strategy is ..... : A) LINEAR PROCESS. B) ONLY EXTERNAL FACTORS ORIENTED. C) MULTI-STAGE PROCESS. D) ONLY INTERNAL FACTORS ORIENTED. Show Answer Correct Answer: C) MULTI-STAGE PROCESS. 57. Governments privatize their state-owned companies to A) Provide tax incentives to their exporting companies. B) Make these companies more efficient and profitable. C) Create free-trade agreements. D) Establish foreign-trade zones. Show Answer Correct Answer: B) Make these companies more efficient and profitable. 58. How many primary goals does the European Single Act have? A) 6. B) 7. C) 5. D) 4. Show Answer Correct Answer: A) 6. 59. This looks like a ..... strategy to help us improve the quality of our company A) PRODUCT. B) SELL. C) BUSINESS. D) FIRM. Show Answer Correct Answer: D) FIRM. 60. True or False:A trade barrier is something that blocks or hinders trade from happening? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. ← PreviousNext →Related QuizzesCommerce QuizzesClass 11 QuizzesClass 11 Business Studies Chapter 10 International Business Quiz 1Class 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 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books