This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 10 International Business – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 10 International Business Quiz 39 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What benefit does the export of goods bring in terms of efficiency? A) Smoothing the load for production managers. B) Increasing seasonal peaks and troughs. C) Decreasing overall productivity. D) Reducing excess capacity in businesses. Show Answer Correct Answer: D) Reducing excess capacity in businesses. 2. The main sources of finance for international trade and investment are: A) Commercial banks, export credit agencies, international financial institutions, and capital markets. B) Only personal savings and crowdfunding platforms. C) Government grants and local community funds exclusively. D) Retail stores and small local lenders. Show Answer Correct Answer: A) Commercial banks, export credit agencies, international financial institutions, and capital markets. 3. What is the primary purpose of foreign direct investment (FDI)? A) To acquire temporary access to foreign markets. B) To gain short-term profits from stock trading. C) To establish a lasting interest in a foreign business. D) To provide loans to foreign governments. Show Answer Correct Answer: C) To establish a lasting interest in a foreign business. 4. Which of the following best describes the role of a sales agent? A) Buys the products directly. B) Receives a commission on sales. C) Manufactures the products. D) Provides after-sales service. Show Answer Correct Answer: B) Receives a commission on sales. 5. What is a strategic alliance? A) A partnership formed to create competitive advantage on a worldwide basis. B) A firm that operates on a worldwide scale without ties to any specific nation. C) Taxes on imports and occasionally exports. D) A certain amount must be imported from another country by agreement. Show Answer Correct Answer: A) A partnership formed to create competitive advantage on a worldwide basis. 6. The need to regulate international trade arises from the unfair practices of some multinational companies. Which of the following practices is one of them? A) Price discrimination. B) Sale at a loss. C) All of the above. D) None of the above. Show Answer Correct Answer: C) All of the above. 7. Timeliness is considered important in every country A) False. B) True. C) All the above. D) None of the above. Show Answer Correct Answer: A) False. 8. Which of the following is NOT a benefit of international business? A) Stabilizes seasonal market fluctuations. B) Reduces global market share. C) Increases sales and profits. D) Enhances domestic competitiveness. Show Answer Correct Answer: B) Reduces global market share. 9. Michael Porter has argued that ..... and ..... are two basic strategies for creating value and attaining a competitive advantage in an industry. A) Efficiency; promotion. B) Economies of scale; diversification. C) Differentiation; price competition. D) Low cost; differentiation. Show Answer Correct Answer: D) Low cost; differentiation. 10. The world trade organization was formed in the year ..... with GATT as its basis. A) 1993. B) 1996. C) 1994. D) 1995. Show Answer Correct Answer: D) 1995. 11. ..... is a complex phenomenon that includes knowledge, beliefs, art, morals, law, customs, and other capabilities acquired by people as members of society A) Culture. B) Ethics. C) Morals. D) Norms. Show Answer Correct Answer: A) Culture. 12. How does technology impact global supply chains? A) Technology significantly improves efficiency, transparency, and responsiveness in global supply chains. B) Technology complicates logistics and increases costs. C) Technology has no effect on supply chain management. D) Technology reduces the need for communication in supply chains. Show Answer Correct Answer: A) Technology significantly improves efficiency, transparency, and responsiveness in global supply chains. 13. The difference between he amount of money that comes into a country and the amount of money that goes out of a country is called A) Balance Beam. B) Balance of Trade. C) Balance the scales. D) Balance of Payments. Show Answer Correct Answer: D) Balance of Payments. 14. What does the political environment influence in businesses? A) None of the above. B) Consumer confidence. C) Consumer spending. D) Both A and B. Show Answer Correct Answer: D) Both A and B. 15. What is an example of 'Formal Institutions' in international business? A) Cultural traditions. B) Legal codes and laws. C) Social habits. D) Customary business practices. Show Answer Correct Answer: B) Legal codes and laws. 16. Discuss the role of multinational corporations in foreign investment and international trade. A) Foreign investment and international trade are not affected by multinational corporations. B) Multinational corporations have no impact on foreign investment and international trade. C) Multinational corporations only focus on domestic investment and trade. D) Multinational corporations play a significant role in foreign investment and international trade. Show Answer Correct Answer: D) Multinational corporations play a significant role in foreign investment and international trade. 17. One of the IMF's core functions is: A) Promoting e-commerce. B) Providing financial assistance to member countries. C) Issuing trade licenses. D) Imposing sanctions. Show Answer Correct Answer: B) Providing financial assistance to member countries. 18. Which is NOT a function of WTO? A) Managing domestic policies. B) Resolving disputes. C) Administering trade agreements. D) Negotiating trade policies. Show Answer Correct Answer: A) Managing domestic policies. 19. It refers to the official forms and other paperwork required in export transactions for shipping and customs procedures A) Documentation. B) Incoterms. C) Certificate of Origin. D) None of the above. Show Answer Correct Answer: A) Documentation. 20. Some words that are similar (synonyms) include global, world, worldwide, and foreign. A) Translate. B) Culture. C) International. D) Business. Show Answer Correct Answer: C) International. 21. Why are regional integration agreements important for international trade? A) They facilitate trade between member countries by reducing barriers. B) They increase tariffs between member countries. C) They restrict exports to non-member countries. D) They eliminate all forms of trade. Show Answer Correct Answer: A) They facilitate trade between member countries by reducing barriers. 22. What approach did Uber take to expand in Latin America? A) Forming alliances with local drivers and companies. B) Standardizing its services across all countries. C) Ignoring local regulations to speed up expansion. D) Focusing only on urban areas. Show Answer Correct Answer: A) Forming alliances with local drivers and companies. 23. One major reason companies enter international markets is to: A) Increase domestic competition. B) Decrease global profits. C) Access new markets and customers. D) Avoid foreign trade. Show Answer Correct Answer: C) Access new markets and customers. 24. Which country can you get a moi moi from KFC? A) Japan. B) South Africa. C) Nigeria. D) Malaysia. Show Answer Correct Answer: C) Nigeria. 25. Of the following characteristics, the one that is not typical of a democratic system is that A) Individuals have the freedom to own and operate private businesses. B) Individuals can build a small business into a very large business. C) The economy is usually a command economy. D) Individuals may travel freely to other countries. Show Answer Correct Answer: C) The economy is usually a command economy. 26. The two basic strategies for creating value are ..... A) Value and cost. B) Differentiation and low cost. C) Profitability and profit growth. D) R&D and production. Show Answer Correct Answer: B) Differentiation and low cost. 27. UNIT 2:ABOUT YOUR JOBDirection:Choose the best answer.'Monaco' A) Company. B) Name. C) Position. D) City. Show Answer Correct Answer: D) City. 28. Which Christmas tradition exploded on social media in the 2010s, becoming a multimillion-dollar franchise? A) Elf on the Shelf. B) The Nutcracker Suite. C) The Yule Goat. D) The Snowman Parade. Show Answer Correct Answer: A) Elf on the Shelf. 29. Why is it important to modify existing business principles and practices in international business? A) To understand and adapt to potential differences. B) To adapt to the foreign planet's technology. C) To engage in international business with open eyes. D) To out-compete rivals. Show Answer Correct Answer: A) To understand and adapt to potential differences. 30. ..... means goods that are tangible A) Merchandise. B) Products. C) Import. D) Export. Show Answer Correct Answer: A) Merchandise. 31. Which of the following best defines globalization? A) How businesses or other organizations develop international influence and operate on an international scale. B) The process of removing manufacturing and industrial sites from foreign nations. C) Long periods of recession followed by sharp economic upturn worldwide. D) None of the above. Show Answer Correct Answer: A) How businesses or other organizations develop international influence and operate on an international scale. 32. What is a forward contract? A) Agreement between a firm and a financial institution to trade real estate. B) Agreement between a firm and a financial institution or, between firms to exchange currencies or other assets. C) A contract between a company and a financial institution to buy stocks or bonds. D) An arrangement between a corporation and a financial entity to exchange goods or services. Show Answer Correct Answer: B) Agreement between a firm and a financial institution or, between firms to exchange currencies or other assets. 33. What do you mean by the term of management franchises? A) That it is managed from the regional central offices and will involve the development, management of the network and the coordination of a group of operations for the service or product. B) It is the practice of using the successful business model of another company. C) All the above. D) None of the above. Show Answer Correct Answer: A) That it is managed from the regional central offices and will involve the development, management of the network and the coordination of a group of operations for the service or product. 34. Limits the amount or number of units of products that can be imported to a country. This are worse than import tariffs because when a quota is reached that particular good can no longer be imported or purchased. A) Domestic Content Provision. B) Voluntary Export Restrain. C) Import Quotas. D) Export Quotas. Show Answer Correct Answer: C) Import Quotas. 35. INCOTERMS contain 10 different types of clauses. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 36. A country that lacks ability to logistically transport imports & exports would be concerned with which component of the international business environment? A) Political. B) Economic. C) Social. D) Environmental. Show Answer Correct Answer: B) Economic. 37. What kind of currency is typically used in foreign trade transactions? A) Foreign currency. B) Local currency of the exporting country. C) Cryptocurrency. D) Digital currency. Show Answer Correct Answer: A) Foreign currency. 38. Computers made in China are used by students in the UAE. A) Import. B) Export. C) All the above. D) None of the above. Show Answer Correct Answer: A) Import. 39. What role does cultural diversity play in international business? A) Enhanced creativity and innovation. B) Decreased collaboration. C) Isolation from global markets. D) Reduction in efficiency. Show Answer Correct Answer: A) Enhanced creativity and innovation. 40. This rice cooker is compact, so ..... A) It is very big. B) It is used to make rice. C) You should not buy it. D) It won't take up a lot of space. Show Answer Correct Answer: D) It won't take up a lot of space. 41. Laws designed to prevent companies from fixing prices, sharing markets, and gaining unfair monopoly advantages are called A) Pro-trust laws. B) Monopoly laws. C) Antitrust laws. D) Market-sharing laws. Show Answer Correct Answer: C) Antitrust laws. 42. A trade agreement between Canada, Mexico, and the US A) EU. B) ABC. C) NAFTA. D) WTO. Show Answer Correct Answer: C) NAFTA. 43. When factories moved to Mexico due to the impact of NAFTA, how many jobs in the automobile industry did the USA lose? A) 770 000 jobs. B) 700 000 jobs. C) 800 000 jobs. D) 730 000 jobs. Show Answer Correct Answer: B) 700 000 jobs. 44. How does currency devaluation impact international business? A) It has no impact on international business. B) It leads to a decrease in demand for both domestic and foreign products. C) It makes exports more expensive and imports cheaper. D) It can make exports cheaper and imports more expensive, leading to changes in demand for domestic and foreign products. Show Answer Correct Answer: D) It can make exports cheaper and imports more expensive, leading to changes in demand for domestic and foreign products. 45. Historically, international business A) Is a relatively new concept made possibly by communications technolgy. B) Probably occurred as long as 15, 000 years ago. C) Declined when European countries created colonies on other continents. D) None of these. Show Answer Correct Answer: B) Probably occurred as long as 15, 000 years ago. 46. The most valuable import from Japan to Australia in 2014 was ..... A) Gold. B) Fuel. C) Passenger vehicles. D) Rubber tyres. Show Answer Correct Answer: C) Passenger vehicles. 47. What is the first step when you make Cup Noodle?First, you need to ..... A) Take off the plastic and open the cup. B) Put hot water in the cup. C) Wait three minutes. D) Stir your noodles and enjoy your lunch. Show Answer Correct Answer: A) Take off the plastic and open the cup. 48. List two major purposes of supply chain management. A) Improving efficiency and enhancing customer service. B) Increasing product prices and reducing quality. C) Limiting supplier relationships and increasing inventory costs. D) Focusing only on marketing and ignoring logistics. Show Answer Correct Answer: A) Improving efficiency and enhancing customer service. 49. The currency exchange rate is constantly changing. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 50. If the Indent is incomplete, it shall be called as ..... A) Closed Indent. B) Shipping Order. C) Shipping Bill. D) Open Indent. Show Answer Correct Answer: D) Open Indent. 51. Learning effects: A) Tend to be less significant when a technologically complex task is repeated. B) Will be less significant in an assembly process involving 1, 000 complex steps than in one of only 100 simple steps. C) Typically disappear after a while, in spite of the complexity of the task. D) Are more significant after two or three years of the introduction of a new process. Show Answer Correct Answer: C) Typically disappear after a while, in spite of the complexity of the task. 52. Which Hofstede dimension distinguishes societies based on their preference for achievement, assertiveness, and material success versus nurturing and quality of life? A) Masculinity-Femininity. B) Power Distance. C) Long-term Orientation. D) Individualism-Collectivism. Show Answer Correct Answer: A) Masculinity-Femininity. 53. An exporter demands ..... from an importer for the satisfaction about the payment. A) Foreign Currency. B) Advance Payment. C) Bill of Exchange. D) Letter of Credit. Show Answer Correct Answer: D) Letter of Credit. 54. What is franchising? A) It is the practice of using the successful business model of another company. B) International agreements on foreign direct investment. C) All the above. D) None of the above. Show Answer Correct Answer: A) It is the practice of using the successful business model of another company. 55. In a ..... area, barriers to trade among member countries are removed, and a common external trade policy is adopted A) Common market. B) Economic union. C) Free trade. D) Customs union. Show Answer Correct Answer: D) Customs union. 56. ..... is explained in the Indent. A) Name of goods. B) Quality of goods. C) Price of goods. D) All of the above. Show Answer Correct Answer: D) All of the above. 57. What does the term "International Marketing" refer to? A) Marketing of digital products only. B) Marketing across national borders. C) Marketing within a single country. D) Marketing of local products only. Show Answer Correct Answer: B) Marketing across national borders. 58. Which of the following is a macro political risk? A) Changes in local tax laws. B) Government takeover of property. C) Trade restrictions on specific companies. D) Civil disorder affecting a single firm. Show Answer Correct Answer: B) Government takeover of property. 59. Involves selling a good or service in another country with a limited adaptation, there's no need to invest in factories A) Licensing. B) Joint Venture. C) Foreign Direct Investment. D) Internet. E) Exporting. Show Answer Correct Answer: E) Exporting. 60. What are some of the disadvantages of contract manufacturing? A) Loss of control over the manufacturing process. B) Potential for quality issues. C) Dependence on the contract manufacturer. D) All of the above. Show Answer Correct Answer: D) All of the above. ← 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