This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 10 International Business – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 10 International Business Quiz 30 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a common disadvantage faced by first movers entering a foreign market? A) Automatic acceptance of local regulatory approvals. B) Lower costs due to later firms' process improvements. C) High pioneering costs and risks of market uncertainty. D) Guaranteed long-term monopoly profits without competition. Show Answer Correct Answer: C) High pioneering costs and risks of market uncertainty. 2. A multinational company (MNC) is a business organization which has its headquarters in two country but has operations in four different countries. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 3. Which European country hides a Christmas pickle ornament in the tree? A) Germany. B) Norway. C) Italy. D) Czech Republic. Show Answer Correct Answer: A) Germany. 4. When and by whom was Tesco founded? A) 1930-Sam Walton. B) 1919-Jack Cohen. C) 1929-Jack Walker. D) 1995-David Cohen. Show Answer Correct Answer: B) 1919-Jack Cohen. 5. What is available for UK businesses wanting to start operating overseas? A) Government grants and support programs. B) Local business partnerships. C) Free international travel packages. D) Guaranteed foreign market success. Show Answer Correct Answer: A) Government grants and support programs. 6. Globalisation has improved in the living structure of ..... A) All the people. B) Workers in developing countries. C) People in developing countries. D) None of the above. Show Answer Correct Answer: B) Workers in developing countries. 7. Which type of control system is most effective at aligning subsidiary managers with corporate strategic objectives that extend beyond local financial results? A) Short-term sales commissions plans tied only to quarterly revenue. B) Arbitrary central oversight without measurable targets. C) A balanced scorecard that includes strategic, nonfinancial, and financial measures. D) Locally set profit targets determined solely by the subsidiary. Show Answer Correct Answer: C) A balanced scorecard that includes strategic, nonfinancial, and financial measures. 8. What are the main theories of international trade? A) Monopolistic Competition Theory. B) Trade Barriers Theory. C) Absolute Advantage, Comparative Advantage, Heckscher-Ohlin Theory, New Trade Theory, Gravity Model. D) Supply Chain Management Theory. Show Answer Correct Answer: C) Absolute Advantage, Comparative Advantage, Heckscher-Ohlin Theory, New Trade Theory, Gravity Model. 9. Which of the following is an example of cultural influence on consumption? A) Technological advancements. B) Cultural heritage. C) Government regulations. D) Disposable income. Show Answer Correct Answer: B) Cultural heritage. 10. Which of the following is NOT one of the three primary activities of the IMF? A) Lending to countries in financial difficulties. B) Monitoring the global economy. C) Providing technical assistance to developing countries. D) Regulating greenhouse gas emissions. Show Answer Correct Answer: D) Regulating greenhouse gas emissions. 11. When is FDI a suitable entry mode for a business? A) The manager want to have a high degree control over the overseas business. B) The MNC want to limit its investment in the host country. C) The parents company want to share the risk with another entity. D) The host country government makes it difficult for Foreign business owners. Show Answer Correct Answer: A) The manager want to have a high degree control over the overseas business. 12. A PEST Analysis can be used to gauge external factors that could impact the profitability of a company. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 13. The ..... is often an appropriate place to test products and fine-tune performance before tackling the complexities of international trade. A) Domestic market. B) Global market. C) Firm. D) None of the above. Show Answer Correct Answer: A) Domestic market. 14. What are imports? A) Consist of sending goods out of the country. B) Consist of bringing goods into the country. C) None of the above. D) None of the above. Show Answer Correct Answer: B) Consist of bringing goods into the country. 15. ..... is an example of a secondary sector activity. A) Banking. B) Manufacturing. C) Farming. D) Secondary education. Show Answer Correct Answer: B) Manufacturing. 16. Which mode of entry involves a company partnering with another company in the foreign market? A) Wholly-owned subsidiary. B) Licensing. C) Exporting. D) Joint venture. Show Answer Correct Answer: D) Joint venture. 17. How does the Department for International Trade support international businesses? A) By providing financial aid. B) By offering export advice and support. C) By imposing trade restrictions. D) By increasing import tariffs. Show Answer Correct Answer: B) By offering export advice and support. 18. Which Classical Trade Theory challenged Mercantilism by arguing that trade is a 'Positive-Sum Game' where all countries can benefit? A) Protectionism. B) Product Life Cycle Theory. C) Porter's Diamond Model. D) Absolute Advantage (Adam Smith). Show Answer Correct Answer: D) Absolute Advantage (Adam Smith). 19. ..... are the two macro factors that seem to underlie the trend toward greater globalization. A) Economic Stability and Technological Change. B) Economic Stability and Capitalism. C) Free flow of goods and Global Production. D) Free flow of goods and Technological Change. Show Answer Correct Answer: D) Free flow of goods and Technological Change. 20. It is also known as global procurement, or global purchasing, the strategy of buying products and services from foreign sources and bringing them into the home country or a third country. A) Exporting. B) Importing. C) None of the above. D) None of the above. Show Answer Correct Answer: B) Importing. 21. FEMA came into force on A) 1 January 2005. B) 1 January 2000. C) 1 January 1990. D) 1 January 2008. Show Answer Correct Answer: B) 1 January 2000. 22. ..... is the making, buying and selling of products within a country. A) International business. B) Global economy. C) Domestic business. D) None of the above. Show Answer Correct Answer: C) Domestic business. 23. Why might a company choose a late-mover strategy when expanding internationally? A) To establish entry barriers for late entrants. B) To resolve technological and market uncertainty. C) To pre-empt scarce resources. D) To build relationships with key stakeholders. Show Answer Correct Answer: B) To resolve technological and market uncertainty. 24. How did Netflix adapt its content strategy in India? A) By producing only English-language content. B) By curating content based on Indian tastes and including regional language options. C) By using the same content strategy as in the US. D) By focusing solely on international films. Show Answer Correct Answer: B) By curating content based on Indian tastes and including regional language options. 25. What factors influence currency exchange rates? A) Historical events. B) Interest rates, inflation rates, political stability, economic performance, market speculation, and supply and demand. C) Cultural traditions. D) Weather patterns. Show Answer Correct Answer: B) Interest rates, inflation rates, political stability, economic performance, market speculation, and supply and demand. 26. Which stage of going global focuses on market expansion? A) Creation of new markets. B) Value chain re-engineering. C) Market entry. D) Value chain disaggregation. Show Answer Correct Answer: A) Creation of new markets. 27. In a geographic structure, managers in each region can make decisions suited to their markets. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 28. What is Investment Promotion? A) Promoting policies that attract foreign direct investment (FDI) and encourage cross-border investments to stimulate economic growth. B) Discouraging foreign investments to protect local industries. C) Focusing only on domestic investments without considering international opportunities. D) Restricting the flow of capital between countries to maintain economic stability. Show Answer Correct Answer: A) Promoting policies that attract foreign direct investment (FDI) and encourage cross-border investments to stimulate economic growth. 29. Underdeveloped nations tend to trade what type of goods? A) High tech goods. B) Low skill products. C) Finished products. D) High skill products. Show Answer Correct Answer: B) Low skill products. 30. UNIT 1:ABOUT YOUVocabulary:a/anI work for an ..... company. A) Domestic. B) Japanese. C) International. D) German. Show Answer Correct Answer: C) International. 31. GATT primarily sets rules for which domain? A) Exchange rate coordination. B) Protection of intellectual property. C) Trade in services like tourism. D) International trade in goods. Show Answer Correct Answer: D) International trade in goods. 32. Which of the following was created in an effort to promote free trade? A) World Trade Organization. B) The Sarbanes-Oxley Act. C) Multilateral development banks. D) The Organization for Economic Cooperation and Development. Show Answer Correct Answer: A) World Trade Organization. 33. What does FDI stand for in the context of international business finance? A) Foreign Debt Investment. B) Financial Development Initiative. C) Foreign Direct Investment. D) Foreign Dividend Income. Show Answer Correct Answer: C) Foreign Direct Investment. 34. Which of the following is not a key EXPORT of the UAE? A) Gold. B) Diamonds. C) Petroleum. D) Rice. Show Answer Correct Answer: D) Rice. 35. What does the term "Benchmarking" refer to? A) Comparing processes and practices with other organizations to improve. B) Creating new products to diversify the offer. C) Measuring customer satisfaction. D) Reducing costs by buying in bulk. Show Answer Correct Answer: A) Comparing processes and practices with other organizations to improve. 36. What is the full form of EPRG in the context of international marketing? A) Ethical, Practical, Regional, Global. B) Economic, Political, Regulatory, Global. C) Environmental, Political, Regional, Global. D) Ethnocentric, Polycentric, Regiocentric, Geocentric. Show Answer Correct Answer: D) Ethnocentric, Polycentric, Regiocentric, Geocentric. 37. FDI stands for ..... A) Foreign Direct Investment. B) Foreign Direct Intervention. C) All the above. D) None of the above. Show Answer Correct Answer: A) Foreign Direct Investment. 38. What are the advantages of licensing for a company? A) Increased competition in the market. B) Higher operational costs. C) Limited product innovation. D) The advantages of licensing for a company include market expansion, additional revenue, leveraging expertise, and risk reduction. Show Answer Correct Answer: D) The advantages of licensing for a company include market expansion, additional revenue, leveraging expertise, and risk reduction. 39. T/F:EVERY country has its own laws and rules, its own currency, and its own business traditions A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 40. What consequences might arise from the implementation of tariffs on all imports into the nation? A) Increased domestic production. B) Higher prices for consumers. C) Trade wars with other countries. D) All of the above. Show Answer Correct Answer: D) All of the above. 41. ..... help define the character of a culture, but they usually do not provide a specific course of action. A) Etiquette. B) Values. C) Communication Barriers. D) Cross-cultural Awareness. Show Answer Correct Answer: B) Values. 42. Franchising grants the right to: A) Use the franchisor's brand name and business model. B) Manufacture and distribute the franchisor's products. C) Operate independently with no restrictions. D) Modify the franchisor's system as desired. Show Answer Correct Answer: A) Use the franchisor's brand name and business model. 43. Ethnocentricity can be defined as the ..... A) Scientific description of individual human societies. B) Systematic study of an ethnic group's religious core. C) Merging of all ethnic practices into one homogeneous culture. D) Belief that one's own ethnic group or culture is superior to that of others. Show Answer Correct Answer: D) Belief that one's own ethnic group or culture is superior to that of others. 44. Anything that a firm does especially well compared to rival firms is referred to as: A) Competitive advantage. B) An external opportunity. C) Opportunity cost. D) Comparative advantage. Show Answer Correct Answer: A) Competitive advantage. 45. Data provided to media to convey a company message. A) Rebate. B) Publicity. C) News Release. D) Advertising. Show Answer Correct Answer: C) News Release. 46. A country concerned about lack of skilled workers to complete jobs in emerging careers would have potential business partners concerned with which component? A) Economy. B) Culture. C) Infrastructure. D) Geography. Show Answer Correct Answer: A) Economy. 47. Which of the following arguments supports the Paul Samuelson's critique? A) A rich country cannot produce net gains by engaging in free trade with a poor country. B) Governmental intervention will reduce the likeliness of countries' economic success. C) Countries should attempt to specialize in the production of goods and services. D) Trade is a positive-sum game in which all countries that participate realize economic gains. Show Answer Correct Answer: A) A rich country cannot produce net gains by engaging in free trade with a poor country. 48. In Iceland, which Christmas figure rewards children who finish their chores? A) The Yule Lads. B) Laufey. C) The Yule Cat. D) Gryla. Show Answer Correct Answer: A) The Yule Lads. 49. Define trading bloc. A) Refers to the value of exports minus imports. B) Groups of countries that agree to reduce or eliminate trade barriers between themselves. C) Union that adopts a common currency. D) Measure of the the price of a country's exports relative to its imports. Show Answer Correct Answer: B) Groups of countries that agree to reduce or eliminate trade barriers between themselves. 50. What is the focus of global supply chain management? A) Managing local suppliers and logistics. B) Coordinating the flow of goods, services, and information across international borders. C) Implementing marketing strategies domestically. D) Reducing production costs solely within one country. Show Answer Correct Answer: B) Coordinating the flow of goods, services, and information across international borders. 51. Total exports-Total imports = Net Balance of Trade A) Net Carbs. B) Net Deficit. C) Net Surplus. D) Net Balance. Show Answer Correct Answer: D) Net Balance. 52. The four types of pressure for local responsiveness are:differences in consumer tastes and preferences, differences in traditional practices and structure, differences in distribution channels and host government demands. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 53. Members do away with duties and other trade barriers-they allow companies to invest freely in each member's country *ex. EU (European Union) A) Free-trade zones. B) Free-trade agreements. C) Non-tariff alliances. D) Common markets. Show Answer Correct Answer: D) Common markets. 54. How can excessive exports negatively impact a country's natural resources? A) It has no impact on natural resources. B) It accelerates the exhaustion of natural resources. C) It increases the availability of natural resources. D) It leads to a more sustainable use of resources. Show Answer Correct Answer: B) It accelerates the exhaustion of natural resources. 55. Political union is economic and political integration whereby countries coordinate aspects of their economic and political systems. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 56. What is the purpose of PESTEL analysis in International Business? A) To analyze the internal factors of a firm. B) To focus on technological advancements only. C) To evaluate the political environment only. D) To understand the external factors that influence a firm's decisions. Show Answer Correct Answer: D) To understand the external factors that influence a firm's decisions. 57. What is the importance of establishing relationships with local partners? A) To increase competition in the market. B) To provide insights into market dynamics and navigate local regulations. C) To standardize operations across all markets. D) To reduce costs by eliminating local suppliers. Show Answer Correct Answer: B) To provide insights into market dynamics and navigate local regulations. 58. This is a type of business formation where two or more parties manage and operate a business and share its' profits. A) Partnership. B) Corporation. C) LLC. D) Sole proprietorship. Show Answer Correct Answer: A) Partnership. 59. What is international business primarily concerned with? A) Only the import of goods. B) Trade of goods and services across national borders. C) Local business operations. D) Only the export of goods. Show Answer Correct Answer: B) Trade of goods and services across national borders. 60. Which of the following is NOT true about MNEs? A) They engage in international business activities. B) They have subsidiaries in multiple countries. C) They only invest domestically. D) Their home country acts as a command center for global operations. Show Answer Correct Answer: C) They only invest domestically. ← 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