This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 10 International Business – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 10 International Business Quiz 21 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Endowments used to produce goods and services:land (quantity, quality, and mineral resources beneath it), labor (quantity and skills), capital (cost), and technology (quality). A) Trade surplus. B) Microeconomics. C) Macroeconomics. D) Factors of production. Show Answer Correct Answer: D) Factors of production. 2. What are the types of international franchises? A) Territory model and property model. B) Unit model and master franchisee. C) All the above. D) None of the above. Show Answer Correct Answer: B) Unit model and master franchisee. 3. One possible disadvantage to businesses of globalisation is that: A) All products will become more expensive. B) There will be more international competition. C) There will be less choice and variety for their consumers. D) They will tend to produce on a small scale and this will raise costs. Show Answer Correct Answer: B) There will be more international competition. 4. Which of the following is a disadvantage of product-based structure? A) Lack of specialization. B) Higher cost due to duplication of resources. C) Weak local responsiveness. D) Lack of global brand consistency. Show Answer Correct Answer: B) Higher cost due to duplication of resources. 5. Based on the table, which industry characteristic increases the possibility of collusion? A) Homogenous products. B) Low market commonality. C) No industry price leader. D) Many firms with low concentration. Show Answer Correct Answer: A) Homogenous products. 6. What is the hub and spoke system in international trade? A) A system that strengthens countries at the hubs. B) A system that creates a single global market. C) A system that eliminates all trade barriers. D) A system that unifies currency across countries. Show Answer Correct Answer: A) A system that strengthens countries at the hubs. 7. Which model describes internationalizing firms gradually gaining experiential knowledge and incrementally committing more resources to foreign markets? A) Stages models. B) Network internationalization model. C) Transaction cost model. D) Uppsala model. Show Answer Correct Answer: D) Uppsala model. 8. To determine whether it is more advantageous to buy locally or to import, what do traders need to know? A) The exchange rate. B) The international product life cycle. C) The world economic situation. D) The needs of customers. Show Answer Correct Answer: A) The exchange rate. 9. What are the benefits of entering a foreign market? A) Higher operational costs and risks. B) Increased competition and market saturation. C) Limited access to local resources and talent. D) Access to new customers and revenue diversification. Show Answer Correct Answer: D) Access to new customers and revenue diversification. 10. Loans upto 10 crore are sanctioned by A) Exim bank. B) Private bank. C) Public bank. D) Commercial bank. Show Answer Correct Answer: A) Exim bank. 11. What is a potential financial benefit for companies that integrate CSR into their business strategies? A) Companies may experience improved financial performance, as CSR initiatives often lead to operational efficiencies and cost savings. B) Companies are exempt from all government regulations if they implement CSR. C) CSR guarantees that a company will never face any financial losses. D) Companies can avoid paying employee salaries by implementing CSR. Show Answer Correct Answer: A) Companies may experience improved financial performance, as CSR initiatives often lead to operational efficiencies and cost savings. 12. Presently, which of the following countries is BEST characterized as a pure example of a command economy? A) Vietnam. B) China. C) North Korea. D) Russia. Show Answer Correct Answer: C) North Korea. 13. It is a protectionism measure that consists of limiting imports to a certain quantity. A) Fee. B) Tariff. C) Legal norm. D) Subsidy. Show Answer Correct Answer: A) Fee. 14. In which of the following modes of entry does the domestic manufacturer give the right to use intellectual property such as patent and trademark to a manufacturer in a foreign country for a fee? A) Licensing. B) Contract manufacturing. C) Joint venture. D) None of the above. Show Answer Correct Answer: A) Licensing. 15. What is the purpose of international trade agreements? A) To limit the exchange of goods and services between countries. B) To restrict economic growth and increase barriers to trade. C) To establish rules and regulations, promote economic growth, and reduce barriers to trade. D) To create chaos and confusion in the global market. Show Answer Correct Answer: C) To establish rules and regulations, promote economic growth, and reduce barriers to trade. 16. Which of the following is NOT typically a consideration when deciding between wholly owned Greenfield and full acquisition? A) Need for complementary local resources. B) Availability of acquisition targets. C) Governmental restrictions on FAs and incentives for WOGs. D) Reducing the speed of market entry. Show Answer Correct Answer: D) Reducing the speed of market entry. 17. This country has the largest population in the world. A) USA. B) Russia. C) China. D) None of the above. Show Answer Correct Answer: C) China. 18. Commodities involves those economic transactions that take place inside the geographical boundaries of a country A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 19. Where would you be if you ordered Century Egg Chicken Porridge in McDonalds? A) Japan. B) China. C) Brazil. D) Vietnam. Show Answer Correct Answer: B) China. 20. Currency differences in international business require firms to: A) Use only their home country's currency. B) Adapt to fluctuating exchange rates. C) Avoid trading internationally. D) Standardize legal systems. Show Answer Correct Answer: B) Adapt to fluctuating exchange rates. 21. When there is not enough of a certian good this is known as? A) Services. B) Economics. C) Scarcity. D) Goods. Show Answer Correct Answer: C) Scarcity. 22. Capital supplied by residents of one country to residents of another is known as ..... A) International investments. B) International franchising. C) Host-country financing. D) Domestic inversion financing. Show Answer Correct Answer: A) International investments. 23. A low-priced item designed to attract customers to a store, hoping consumers will buy other items as well. A) Skim Pricing. B) Loss Leader. C) Competitive Pricing. D) Penetration Pricing. Show Answer Correct Answer: B) Loss Leader. 24. Which theory stated that to increase wealth, government policy should promote exports and discourage imports A) Mercantilism. B) International product life cycle. C) Comparative advantage. D) Absolute advantage. Show Answer Correct Answer: A) Mercantilism. 25. Privacy and personal space are highly valued. Physical space is considered privately owned. A) High Context. B) Low Context. C) All the above. D) None of the above. Show Answer Correct Answer: B) Low Context. 26. Which trade theory suggests that a country should specialize in producing and exporting goods that intensively use factors of production that are abundant in that country? A) Heckscher-Ohlin theory. B) Mercantilism theory. C) Absolute advantage theory. D) Comparative advantage theory. Show Answer Correct Answer: A) Heckscher-Ohlin theory. 27. Attempts to deal with questions of what to do in situations where Ethical standards come into Conflict as a results of the differing culture practices. A) Multinational corporation. B) Business Ethics. C) Ethical Dilemma. D) International Business Ethics. Show Answer Correct Answer: D) International Business Ethics. 28. A government action that decreases an industry's productions costs, which also decreases the price of the industry's goods (e.g. Farm subsidies in NE) A) Subsidy. B) Free trade. C) Domestic trade. D) Market. Show Answer Correct Answer: A) Subsidy. 29. To increase wealth, government policies should promote imports and discourage exports A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 30. An exchange of goods or services with people and businesses in your own country. A) Domestic trade. B) Resource. C) International trade. D) Bilateral agreement. Show Answer Correct Answer: A) Domestic trade. 31. What is the focus of knowledge management in an organization? A) Increasing physical assets. B) Managing the organization's financial investments. C) Finding, unlocking, sharing, and capitalizing on expertise, skills, wisdom, and relationships. D) Supervising production and manufacturing processes. Show Answer Correct Answer: C) Finding, unlocking, sharing, and capitalizing on expertise, skills, wisdom, and relationships. 32. What does trade liberalization potentially deprive developing country governments of? A) Labor force. B) Tariff revenue. C) Natural resources. D) Foreign aid. Show Answer Correct Answer: B) Tariff revenue. 33. Which of the following is a theory that can be used to justify limited government intervention to support the development of certain export-oriented industries? A) New trade theory. B) Ricardo's theory. C) Heckscher-Ohlin theory. D) Comparative advantage theory. Show Answer Correct Answer: A) New trade theory. 34. Which of the following is NOT a form of International Business Environment? A) Local partnerships. B) Foreign Direct Investment (FDI). C) Franchising. D) Licensing. Show Answer Correct Answer: A) Local partnerships. 35. It involves selling locally made products in foreign countries, A) Importing. B) Barter. C) Exporting. D) None of the above. Show Answer Correct Answer: C) Exporting. 36. Which international corporate form organizes its operations based on the type of product or service it offers, irrespective of the geographical location? A) Global corporate form-Product. B) Global corporate form-Function. C) Matrix organizations. D) Global corporate form-Geographic regions. Show Answer Correct Answer: A) Global corporate form-Product. 37. Why are so many auto factories moving back to Mexico after NAFTA? A) The natural conditions in Mexico are suitable for building factories. B) Low production and labor cost. C) The demand for cars in Mexico increases sharply. D) All of the above. Show Answer Correct Answer: B) Low production and labor cost. 38. Which of the following is a political real life example of a factor affecting international business A) The U.S. outsourcing technology work to India. B) Donald Trump testing positive for COVID-19. C) Locating headquarters to Switzerland for tax related purposes. D) Honda marketing motorcycles in China instead of cars. Show Answer Correct Answer: B) Donald Trump testing positive for COVID-19. 39. All position on efficiency frontier are viable. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 40. Why do companies want to become multinationals? A) To generate well-being in its clients. B) To earn the respect of other companies. C) To share the culture of their country of origin. D) To secure supplies of raw materials or markets. Show Answer Correct Answer: D) To secure supplies of raw materials or markets. 41. A code of conduct that helps determine what is good, right and proper. A) Ethics. B) Curency. C) Depreciate. D) Consumer. Show Answer Correct Answer: A) Ethics. 42. Which entry mode generally involves the lowest initial capital outlay and is well suited for rapid market testing? A) Greenfield investment. B) Establishing a wholly owned manufacturing subsidiary. C) Exporting. D) Acquisition of a local firm. Show Answer Correct Answer: C) Exporting. 43. Firms that pursue a global standardization strategy focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects and localization economies, that is their strategic goal is to pursue a low-cost strategy on a global scale. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 44. What is the primary goal of the Continental Free Trade Area (CAFTA)? A) To establish a political union. B) To promote cultural exchange. C) To enhance military cooperation. D) To eliminate 90% of tariffs and create a common market. Show Answer Correct Answer: D) To eliminate 90% of tariffs and create a common market. 45. What is the main focus of the United Nations (UN)? A) The main focus of the United Nations (UN) is to maintain international peace and security, promote human rights, and foster economic and social development. B) To regulate international sports competitions and events. C) To control global trade and set tariffs for all countries. D) To manage the world's natural resources and distribute them equally among nations. Show Answer Correct Answer: A) The main focus of the United Nations (UN) is to maintain international peace and security, promote human rights, and foster economic and social development. 46. The Department for International Trade is responsible for which of the following? A) Managing domestic trade policies. B) Overseeing international trade agreements. C) Regulating local businesses. D) Handling national security. Show Answer Correct Answer: B) Overseeing international trade agreements. 47. Opposite to Franchisor is A) Expertise. B) Tax. C) Franchisee. D) VAT. Show Answer Correct Answer: C) Franchisee. 48. IEC Number is issued by: A) Chamber of Commerce. B) Foreign Minister. C) Minister of Commerce & Industry. D) Import Export Licensing authority. Show Answer Correct Answer: D) Import Export Licensing authority. 49. T/F:When products mature and decline, it is profitable for businesses to take the product overseas where the product/service is in the introduction stage. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 50. In which country is a giant straw goat displayed during Christmas, often targeted by pranksters? A) Latvia. B) Sweden. C) Scotland. D) Austria. Show Answer Correct Answer: B) Sweden. 51. Are the shared expectations and rules that guide the behavior of people within social groups. They are learned and reinforced from parents, friends, teachers, and others while growing up in society. A) Culture. B) Customs. C) Cultural Norms. D) Beliefs. Show Answer Correct Answer: C) Cultural Norms. 52. UNIT 2:ABOUT YOUR JOB'OBJECT PRONOUNS'You know your Chairman, but does he know ..... ? A) Him. B) Me. C) You. D) They. Show Answer Correct Answer: C) You. 53. What are the factors that have contributed to the growth of International Business? A) Resource Limitation, Technological stagnation, Social changes. B) Government restrictions, Market contraction, Technological advancements. C) Resource wastage, Social isolation, Market saturation. D) Market Expansion, Resource Acquisition, Technological changes. Show Answer Correct Answer: A) Resource Limitation, Technological stagnation, Social changes. 54. What is one potential difference between international business and domestic business? A) The need to modify existing business principles and practices. B) The assumption that the government will not mind opening another business. C) The availability of realtors to help find a building. D) The ability to negotiate the price of a building. Show Answer Correct Answer: A) The need to modify existing business principles and practices. 55. Which of the following is a political and regulatory risk associated with investing in foreign countries? A) Language barriers. B) Changes in government policies. C) Multidisciplinary approach. D) Exchange rate fluctuations. Show Answer Correct Answer: B) Changes in government policies. 56. A company that organizes its international operations based on its product lines is using which structure? A) Functional structure. B) Geographic structure. C) Product structure. D) Matrix structure. Show Answer Correct Answer: C) Product structure. 57. Which of the following is included in a nation's balance of payments? A) The number of businesses operating within the country. B) The country's population size. C) Foreign investments, foreign aid, loans, tourists dollars, and military expenditures. D) The country's gross domestic product (GDP). Show Answer Correct Answer: C) Foreign investments, foreign aid, loans, tourists dollars, and military expenditures. 58. ..... provides complete independence to a person living in India that he/she can buy property outside India. A) FEMA. B) EPZs. C) SEZs. D) FERA. Show Answer Correct Answer: A) FEMA. 59. The main types of trade protection have been A) Voluntary export restraints, voluntary cash flow remittances and retrocapital flows. B) Financial barriers that make imports of lower quality. C) Financial barriers that increase the cost of imports and lower production costs of domestic rivals. D) Embargoes quota and quarantine. Show Answer Correct Answer: C) Financial barriers that increase the cost of imports and lower production costs of domestic rivals. 60. Which of the following is a method through which exporters can access financing to support their international trade activities? A) Export Financing. B) Multilateral Development Banks. C) International Capital Markets. D) Foreign Direct Investment. Show Answer Correct Answer: A) Export Financing. ← 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