This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 10 International Business – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 10 International Business Quiz 29 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is one of the characteristics that distinguishes foreign trade from inland trade? A) The separation of buyers and producers from different countries. B) The need for foreign currency. C) The involvement of middlemen. D) The absence of restrictions. Show Answer Correct Answer: A) The separation of buyers and producers from different countries. 2. What is the main advantage of exporting as a mode of entry? A) Gaining control of the target's operations. B) Sharing risks and expertise with another enterprise. C) Avoiding the expense of establishing operations in the new country. D) Gaining access to local expertise. Show Answer Correct Answer: C) Avoiding the expense of establishing operations in the new country. 3. FEMA was enacted in which year? A) 1986. B) 1999. C) 2005. D) 1991. Show Answer Correct Answer: B) 1999. 4. Apa yang dimaksud dengan "Bans" dalam konteks kebijakan perdagangan? A) Pemberian subsidi kepada produsen lokal. B) Pembatasan jumlah barang yang dapat diekspor. C) Pengenaan pajak pada barang impor. D) Larangan total terhadap impor atau ekspor. Show Answer Correct Answer: D) Larangan total terhadap impor atau ekspor. 5. A joint venture is: A) Collaboration between two or more firms for a project. B) A type of tariff. C) 100% foreign-owned firm. D) Selling products online. Show Answer Correct Answer: A) Collaboration between two or more firms for a project. 6. Which of the following is an example of a political union? A) The EU. B) The United States. C) The British Commonwealth. D) The Andean Community. Show Answer Correct Answer: B) The United States. 7. Which of the following is a common motive for a company to enter foreign markets? A) To increase sales and profits. B) To maintain domestic market share. C) To avoid competition. D) To reduce production costs exclusively. Show Answer Correct Answer: A) To increase sales and profits. 8. Which of the following is a major disadvantage of the product life-cycle theory introduced by Vernon? A) The theory's arguments seem ethnocentric and increasingly dated. B) The theory failed to explain the dominance of developed nations. C) The theory applies only when a poor nation invents a new product. D) The theory cannot be used to explain the production of luxury products. Show Answer Correct Answer: A) The theory's arguments seem ethnocentric and increasingly dated. 9. What is the main focus of competitive dynamics? A) The process of fixing prices. B) The actions and responses undertaken by competing firms. C) The creation of new products. D) The reduction of market barriers. Show Answer Correct Answer: B) The actions and responses undertaken by competing firms. 10. International Business is defined as business activities that involve the transfer of resources, goods, services, and skills: A) Within a single state. B) Across national boundaries. C) Between the government and private sector only. D) Strictly through digital platforms. Show Answer Correct Answer: B) Across national boundaries. 11. What does a global supply chain includes? A) Manufacturer, suppliers, logistics, retailers, government. B) Main company, transportation partners, warehouses, retailers, customers. C) Manufacturer, suppliers, transportation partners, warehouses, retailers, government. D) Manufacturer, suppliers, transportation partners, warehouses, retailers, customers. Show Answer Correct Answer: D) Manufacturer, suppliers, transportation partners, warehouses, retailers, customers. 12. UNIT 3:ABOUT WHERE YOU WORK'dialogue'There are ..... good restaurants ..... Start Street. A) Some/in. B) Some/where. C) Some/on. D) Any/in. Show Answer Correct Answer: A) Some/in. 13. Movement of goods and services through different countries and their markets, whether internal or external A) Trade. B) Business. C) Tourism. D) None of the above. Show Answer Correct Answer: A) Trade. 14. What is a key reason for choosing a wholly owned Greenfield or full acquisition in market-oriented FDI? A) Decreasing industry supply. B) Need for speed. C) Avoiding replication of capabilities. D) Reducing local resources. Show Answer Correct Answer: B) Need for speed. 15. Which factor is considered a political barrier in international trade? A) The relative stability of countries. B) The availability of natural resources. C) The efficiency of production processes. D) The exchange rates between different currencies. Show Answer Correct Answer: A) The relative stability of countries. 16. When you a receive a business card in this country, nod your head as a gesture of respect and thank the person. It is then appropriate to put the card away immediately. This country is known for its rise from one of the poorest countries to a developed country, known as Miracle on the Han River. A) South Korea. B) North Korea. C) China. D) None of the above. Show Answer Correct Answer: A) South Korea. 17. The 'Demonstration Effect' in the context of MNCs refers to: A) MNCs protesting against the government. B) Local firms observing and adopting superior technologies/practices from MNCs. C) MNCs showing off their profits to shareholders. D) Customers demonstrating new products in stores. Show Answer Correct Answer: B) Local firms observing and adopting superior technologies/practices from MNCs. 18. Which organizational structure is appropriate for a localization strategy? A) Geographic area structure. B) Global matrix structure. C) Global product division structure. D) Global functional structure. Show Answer Correct Answer: A) Geographic area structure. 19. The value of all monetary transactions between a country's economy and the rest of the world. A) Trade Surplus. B) Balance of Trade. C) Trade Deficit. D) Balance of Payments. Show Answer Correct Answer: D) Balance of Payments. 20. One potential disadvantage for a country of encouraging a multinational business to set up is that: A) Jobs might be lost in existing national businesses. B) Tax revenue to the government will fall. C) These companies never export any products from the countries they operate in. D) Costs of production are likely to be high and this will raise prices. Show Answer Correct Answer: A) Jobs might be lost in existing national businesses. 21. The difference between import tariffs and quotas is: A) Tariffs are a tax on locally produced goods but quotas limit the quantity of imports. B) Tariffs are a tax on imports and quotas are a tax on exports. C) Tariffs are a tax on imports and quotas limit the quantity of imports. D) Tariffs are a tax on all products but quotas just limit the quantity of imports. Show Answer Correct Answer: C) Tariffs are a tax on imports and quotas limit the quantity of imports. 22. What is a driving trend in global business strategies? A) Decreased interest in foreign markets. B) Focus on single-market dominance. C) Digital transformation and sustainability. D) None of the above. Show Answer Correct Answer: C) Digital transformation and sustainability. 23. Globalization refers to the shift toward a more ..... and interdependent world economy A) Lucrative. B) Subjective. C) Integrated. D) Sophisticated. Show Answer Correct Answer: C) Integrated. 24. Which is not an Indian Multinational Company? A) Piramal. B) Asian Paints. C) Unilever. D) Wipro. Show Answer Correct Answer: C) Unilever. 25. ..... involves selecting global investment instruments as part of a geographically diversified portfolio A) International investment. B) Liberalisation. C) International firm. D) Globalisation. Show Answer Correct Answer: A) International investment. 26. Opportunities exapanding for company workforce is an ADVANTAGE of international business A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 27. The NIKKEI Stock Market is located in this country. A) Singapore. B) Japan. C) Vietnam. D) None of the above. Show Answer Correct Answer: B) Japan. 28. In relation to the PESTEL framework, which of the following statements is correct? A) It assists in the assessment of organizational strengths and weaknesses. B) It allows a detailed analysis of the structure of an industry. C) It can be used as a checklist to understand the different environmental influences in the macro environment. D) It can be used as a checklist to understand the different environmental influences in the macro environment. Show Answer Correct Answer: C) It can be used as a checklist to understand the different environmental influences in the macro environment. 29. Continually rising prices are one sign of a healthy economy. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 30. A nation's transportation, communication, and utility systems are part of its ..... A) Natural resources. B) Human resources. C) Scientific resources. D) Infrastructure. Show Answer Correct Answer: D) Infrastructure. 31. In game theory, what is a prisoners' dilemma? A) A situation where only one party benefits. B) A type of game in which the outcome depends on two parties deciding whether to cooperate or defect. C) A game where all parties always cooperate. D) A game with no strategic decisions. Show Answer Correct Answer: B) A type of game in which the outcome depends on two parties deciding whether to cooperate or defect. 32. The Heckscher-Ohlin model is principally focused on what aspect of economics? A) International trade. B) Supply and demand. C) Normative economics. D) Production possibility frontier. Show Answer Correct Answer: A) International trade. 33. In Japan, what Christmas Eve tradition is so popular that people pre-order it weeks in advance? A) Eating sushi platters. B) Going to karaoke. C) Exchanging lucky charms. D) Eating KFC. Show Answer Correct Answer: D) Eating KFC. 34. How might tariffs impact economic growth in the short term? A) They always boost economic growth. B) They can lead to higher prices and reduced consumption. C) They have no impact on economic growth. D) They guarantee increased employment. Show Answer Correct Answer: B) They can lead to higher prices and reduced consumption. 35. Which of the following is not an advantage of exporting? A) Limited presence in foreign markets. B) Less investment requirements. C) Comparatively lower risks. D) Easier way to enter into international business. Show Answer Correct Answer: A) Limited presence in foreign markets. 36. WHO facilitates cooperation among countries around their shared challenges and concerns to achieve public health solutions. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 37. Which of the following is NOT a factor in the international business environment? A) Political and legal. B) Socialogical. C) Cultural and social. D) Geographic. Show Answer Correct Answer: B) Socialogical. 38. Business activities are needed to creating, shipping, and selling goods and services across national borders is ..... A) Imports. B) Domestic Business. C) International Business. D) Exports. Show Answer Correct Answer: C) International Business. 39. A person who buys products or services. A) Currency. B) Consumer. C) Culture. D) Negotiate. Show Answer Correct Answer: B) Consumer. 40. Defined as "the participation of two or more companies jointly in an enterprise in which each party contributes assets, owns the entity to some degree, and shares risk" . A) Wholly-owned subsidiary. B) Joint venture. C) All the above. D) None of the above. Show Answer Correct Answer: B) Joint venture. 41. A telephone operator is an example of a A) Service. B) Good. C) All the above. D) None of the above. Show Answer Correct Answer: A) Service. 42. What does a nation's balance of payments represent? A) The total amount of money a nation has in its treasury. B) The difference between the flow of money into and out of a country. C) The amount of money a nation owes to other countries. D) The total value of a nation's exports. Show Answer Correct Answer: B) The difference between the flow of money into and out of a country. 43. Countries that trade with one another usually have improved political relationships. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 44. It refers to the presence or absence of supplier industries and related industries that are internationally competitive. A) Factor Endowments. B) Demand Conditions. C) Related and Supporting Industries. D) None of the above. Show Answer Correct Answer: C) Related and Supporting Industries. 45. What is a key reason companies may avoid wholly owned subsidiaries in emerging markets? A) Too much profit. B) High operational autonomy. C) High risk and capital investment required. D) No legal permissions needed. Show Answer Correct Answer: C) High risk and capital investment required. 46. Mengapa cenderung sulit untuk menemukan "patient money" pada pasar modal internasional? A) Karena kurangnya informasi negara tujuan investasi. B) Karena negara tujuan investasi tidak menarik. C) Karena lama mendapatkan keuntungan. D) Karena kurang efisien dalam mengelola modal. Show Answer Correct Answer: A) Karena kurangnya informasi negara tujuan investasi. 47. What is important market motive of company internationalization A) ECONOMIES OF SCALE. B) EXPENDITURES ON ENVIRONMENTAL PROTECTION. C) ENSURING CONTINUOUS SUPPLY. D) STAGNATION ON THE DOMESTIC MARKET. Show Answer Correct Answer: D) STAGNATION ON THE DOMESTIC MARKET. 48. In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in A) Labor productivities. B) Tastes. C) Military capabilities. D) Relative availabilities of factors of production. Show Answer Correct Answer: D) Relative availabilities of factors of production. 49. How is the unit model of an international franchise? A) It is the best-known franchise model and percentage of return of its franchises and maintains control over product development. B) Group of franchises in a country, state or region designated to establish market potential. C) All the above. D) None of the above. Show Answer Correct Answer: A) It is the best-known franchise model and percentage of return of its franchises and maintains control over product development. 50. In terms of the International Financial System, what is a key difference related to currency? A) Currency difference affects the translation of financial statements. B) Currency difference does not impact international transactions. C) Language differences and currency differences are the same. D) Currency difference is irrelevant in financial planning. Show Answer Correct Answer: A) Currency difference affects the translation of financial statements. 51. UNIT 1:ABOUT YOUVocabulary:a/anI think it's a ..... number. A) American. B) Local. C) International. D) European. Show Answer Correct Answer: B) Local. 52. If the currency exchange rate is $ 1.25 = 1 Euro, how much will it cost in U.S. dollars to acquire 100 Euros? A) $ 12.50. B) $ 125.00. C) $ 1.25. D) $ 1, 250.00. Show Answer Correct Answer: B) $ 125.00. 53. Absolute advantage is on e of the example of theory under classical country based theory A) CORRECT. B) WRONG. C) All the above. D) None of the above. Show Answer Correct Answer: A) CORRECT. 54. Identify the theory that argues that advanced nations have an incentive to develop a new offering and hence such nations always tend to create a good or service for the first time. A) Heckscher-Ohlin. B) Absolute advantage. C) Ricardo. D) Product life-cycle. Show Answer Correct Answer: D) Product life-cycle. 55. Climate, terrain, seaways and natural resources all describe which element of the international business environment? A) Political & Legal. B) Geographic Conditions. C) Culture. D) Economic Conditions. Show Answer Correct Answer: B) Geographic Conditions. 56. Who prepares Import General Manifest when goods arrive at Importer's country? A) Captain of the ship. B) Dock Officer. C) Importer. D) None of these. Show Answer Correct Answer: B) Dock Officer. 57. Which statement about international business is true? A) It is limited to developed countries. B) It includes trade of knowledge and technology. C) It is a recent phenomenon. D) It only involves large corporations. Show Answer Correct Answer: B) It includes trade of knowledge and technology. 58. Which of the following is a reason why a relatively poor country may be an attractive target for inward investment? A) Currency depreciation. B) Rapid economic growth. C) Political instability. D) High cost of living. Show Answer Correct Answer: B) Rapid economic growth. 59. Why does the government give subsidies to local farmers? A) To stop farmers from selling. B) To increase the price of rice. C) To make imported rice cheaper. D) To help local rice stay competitive in price. Show Answer Correct Answer: D) To help local rice stay competitive in price. 60. Currency appreciation could be caused by A) Supply Increase or Demand Increase. B) Supply Increase or Demand Decrease. C) Supply Decrease or Demand Decrease. D) Supply Decrease or Demand Increase. Show Answer Correct Answer: D) Supply Decrease or Demand Increase. ← 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