This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 10 International Business – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 10 International Business Quiz 9 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the difference between Domestic and International Trade A) International trade is within one country borders while Domestic trade is between two countries. B) International trade is country to country while Domestic trade is within the nations borders. C) They are the same; there is no difference. D) International trade is country to country while Domestic trade is within the nations house. Show Answer Correct Answer: B) International trade is country to country while Domestic trade is within the nations borders. 2. What is one of the factors that makes foreign trade riskier compared to inland trade? A) The separation of buyers and producers. B) The need for foreign currency. C) The long distances and potential ocean crossings involved. D) None of the above. Show Answer Correct Answer: C) The long distances and potential ocean crossings involved. 3. ..... are permitted to offer forward cover only with respect to genuine export and import transactions. A) Industrial Bank. B) Commercial Bank. C) International Bank. D) National Bank. Show Answer Correct Answer: B) Commercial Bank. 4. An import quota is a A) Tax on import quantities above the legal limit. B) Way to increase tariff revenues for the exporting country. C) Legal limit on the amount of a good that can be imported into a country. D) Legal incentive for members of WTO to increase their exports of a good or service. Show Answer Correct Answer: C) Legal limit on the amount of a good that can be imported into a country. 5. What should a firm consider when deciding where to expand internationally? A) The location with the most competitors. B) The location with the lowest taxes. C) The location closest to its headquarters. D) The location that offers the best chance to realize its strategic objectives. Show Answer Correct Answer: D) The location that offers the best chance to realize its strategic objectives. 6. Which of the following is a primary benefit of an MNC to a 'Host Country' (the country where the investment is made)? A) Repatriation of profits to the home country. B) Technology transfer and skill development. C) Elimination of local small businesses. D) Increase in the host country's national debt. Show Answer Correct Answer: B) Technology transfer and skill development. 7. Which one of the following modes of entry permits greatest degree of control over overseas operations? A) Wholly owned subsidiary. B) Contract manufacturing. C) Joint venture. D) Licensing/franchising. Show Answer Correct Answer: A) Wholly owned subsidiary. 8. Taxes on imports that are collected by a designated government agency responsible for regulating imports A) Preferential Duties. B) Custom Duties (Bureau of Customs). C) Generalized System of Preferences (GSP). D) All of the above. Show Answer Correct Answer: B) Custom Duties (Bureau of Customs). 9. Outsourcing refers to moving production activities internally to foreign affiliates. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 10. Is the only country where Mexico has NOT a free trade agreement in Central America. A) Costa Rica. B) Nicaragua. C) Panama. D) Belize. Show Answer Correct Answer: D) Belize. 11. UNIT 3:ABOUT WHERE YOU WORK'dialogue'We must meet ..... lunch. A) Have. B) For. C) In. D) Some. Show Answer Correct Answer: B) For. 12. The transformation of an MNE's products from raw materials to a finished good or service is called the international value chain. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 13. Which strategy is make sense when the firm faces strong pressures for cost reductions and demands for local responsiveness are minimal? A) Global standardization strategy. B) Localization strategy. C) Transnational strategy. D) International strategy. Show Answer Correct Answer: A) Global standardization strategy. 14. It refers to the nature of home demand for the industry's product or service. A) Factor Endowments. B) Demand Conditions. C) Related and Supporting Industries. D) None of the above. Show Answer Correct Answer: B) Demand Conditions. 15. Free international trade' means that: A) Goods can be transported between countries free of charge for ever. B) All countries use the same currency so it does not cost anything to convert currencies. C) There are no tariffs or quotas to limit trade between countries. D) Businesses can produce in any country without any legal controls. Show Answer Correct Answer: C) There are no tariffs or quotas to limit trade between countries. 16. Falling barriers to trade are unanimously viewed as beneficial for job creation in advanced countries. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 17. Name a major global trade agreement and its significance. A) Trans-Pacific Partnership (TPP). B) World Trade Organization (WTO) Agreement. C) European Union Trade Agreement (EUTA). D) North American Free Trade Agreement (NAFTA). Show Answer Correct Answer: D) North American Free Trade Agreement (NAFTA). 18. Type of GSP where one seller has many retailers or downstream locations A) Assembly network. B) Distribution supply chain. C) Serial supply chain. D) None of the above. Show Answer Correct Answer: B) Distribution supply chain. 19. What is a challenge companies face when entering international markets? A) Adapting to local cultures. B) Lack of local business regulations. C) Low competition from domestic businesses. D) None of the above. Show Answer Correct Answer: A) Adapting to local cultures. 20. If a company is entering a new international market, which environmental factor should it prioritize analyzing first? A) Demographic Environment. B) Political Environment. C) Socio-Cultural Environment. D) Technological Environment. Show Answer Correct Answer: B) Political Environment. 21. Which of the following is NOT typically included in a franchising arrangement? A) Brand name. B) Store layout. C) Operation manuals. D) Ownership of the franchisor's company. Show Answer Correct Answer: D) Ownership of the franchisor's company. 22. UNIT 2:ABOUT YOUR JOBDirection:Choose the best answer.'Claude Dumas' A) Company. B) Name. C) City. D) Position. Show Answer Correct Answer: B) Name. 23. The fundamental reason behind international business is that the countries cannot produce ..... or ..... all that they need. A) Goods, services. B) Equally well, cheaply. C) Sufficiently, cheaply. D) Equally well, costly. Show Answer Correct Answer: B) Equally well, cheaply. 24. The customary conduct which is considered polite among a particular group A) Machismo. B) Etiquette. C) Sociability. D) Cleanliness. Show Answer Correct Answer: B) Etiquette. 25. A commodity, article, or service sold abroad. A) Domestic. B) Trade. C) Import. D) Export. Show Answer Correct Answer: D) Export. 26. Which one is a Multinational company? A) An organization that does business in several countries. B) An agreement between two or more companies to share a business project. C) All the above. D) None of the above. Show Answer Correct Answer: A) An organization that does business in several countries. 27. The U.S. purchases oil from any other companies. For the U.S., oil in this case, is an example of an: A) Export. B) Import. C) All the above. D) None of the above. Show Answer Correct Answer: B) Import. 28. Religion of a person affects his/her A) Attitude towards entrepreneurship. B) Gifting practices. C) Use of products. D) All of the above. Show Answer Correct Answer: D) All of the above. 29. The merging of historically distinct andseparate national markets into one hugeglobal marketplace is known as ..... A) Supernational market integration. B) Global market facilitation. C) The globalization of markets. D) Local market. Show Answer Correct Answer: C) The globalization of markets. 30. Country B has an absolute advantage in A) Product X. B) Product Y. C) Neither X nor Y. D) Both X and Y. Show Answer Correct Answer: D) Both X and Y. 31. In some countries business women should only shake hands if A) A business man offers his hand first. B) It is with another business woman. C) She is being introduced to men and women. D) The business meeting is over. Show Answer Correct Answer: A) A business man offers his hand first. 32. Why is navigating regulatory environments critical for international businesses? A) To ensure compliance with trade and legal systems. B) To avoid adapting products to local markets. C) To minimize communication with local governments. D) None of the above. Show Answer Correct Answer: A) To ensure compliance with trade and legal systems. 33. The document containing detailed information regarding price, quality, size, weight, shape, etc. of products which the exporter can supply, is called: A) (a) Performa Invoice. B) (b) Commercial Invoice. C) (c) Both (a) & (b). D) None of these. Show Answer Correct Answer: A) (a) Performa Invoice. 34. Coca Cola uses which type of MNC strategy? A) Export Strategy. B) Global Standardization Strategy. C) Transnational Strategy. D) Localization Strategy. Show Answer Correct Answer: B) Global Standardization Strategy. 35. What are the key factors that influence a country's decision to export or import goods and services? A) Market demand, production capacity, cost of production, exchange rates, government policies, and trade agreements. B) Technological advancements, educational level, and healthcare facilities. C) Local currency value, transportation infrastructure, and political stability. D) Weather conditions, population size, and cultural traditions. Show Answer Correct Answer: A) Market demand, production capacity, cost of production, exchange rates, government policies, and trade agreements. 36. The devices used to reward appropriate managerial behavior is known as ..... A) Culture. B) Processes. C) People. D) Incentives. Show Answer Correct Answer: D) Incentives. 37. What is the role of market research in international marketing? A) To eliminate competition. B) To understand consumer preferences. C) To increase production costs. D) To limit product offerings. Show Answer Correct Answer: B) To understand consumer preferences. 38. What does CAFTA stand for? A) Common Agricultural Free Trade Area. B) Central American Free Trade Agreement. C) Central Alliance for Free Trade. D) Caribbean and Free Trade Agreement. Show Answer Correct Answer: B) Central American Free Trade Agreement. 39. In ..... approach, the firm accepts a regional marketing policy covering a group of countries which have comparable market characteristics such as economic, cultural or political similarities and formulates operational strategies based on region instead of countries. A) Ethnocentric. B) Geocentric. C) Polycentric. D) Regiocentric. Show Answer Correct Answer: D) Regiocentric. 40. How does franchising contribute to global business expansion? A) Standardization of products and services. B) Decreased competition. C) Isolation from global markets. D) Reduction in innovation. Show Answer Correct Answer: A) Standardization of products and services. 41. A subsidy is a government payment made: A) To a foreign exporter. B) To a domestic importer. C) To a foreign producer. D) To a domestic producer. Show Answer Correct Answer: D) To a domestic producer. 42. Companies may face cultural and social challenges in foreign markets, including ..... , different business practices, and consumer preferences. A) Climate change. B) Language barriers. C) Technological advances. D) Tax incentives. Show Answer Correct Answer: B) Language barriers. 43. Benefits of international business is ..... A) More job employment. B) All of these. C) Increase FDI. D) Variety of goods & services available. Show Answer Correct Answer: B) All of these. 44. Apa fungsi logistik dalam rantai pasok global? A) Mengelola persediaan dan distribusi produk. B) Semua jawabanbenar. C) Mengembangkan strategi pemasaran internasional. D) Mengidentifikasi pemasok potensial. Show Answer Correct Answer: A) Mengelola persediaan dan distribusi produk. 45. ..... Trade Policy provides the basic framework of policy and strategy for promoting exports and trade. A) Global. B) Domestic. C) Foreign. D) Liberal. Show Answer Correct Answer: C) Foreign. 46. How do exchange rates impact international business operations? A) Exchange rates only affect domestic businesses. B) Exchange rates impact international business operations by influencing costs, pricing, and competitiveness. C) Exchange rates have no impact on pricing strategies. D) Exchange rates are irrelevant to international trade. Show Answer Correct Answer: B) Exchange rates impact international business operations by influencing costs, pricing, and competitiveness. 47. What is the main characteristic of licensing as a mode of entry? A) The company establishes business operations on foreign soil. B) The licensee acquires the right to use products and goods, while the ownership remains with the licensor. C) The licensor and licensee merge into a new legal entity. D) The licensor permits the franchisee to use its brand name for a fee. Show Answer Correct Answer: B) The licensee acquires the right to use products and goods, while the ownership remains with the licensor. 48. System in which currency values are based on supply and demand. A) Foreign Exchange. B) Floating Exchange Rates. C) Exchange Rate. D) Money. Show Answer Correct Answer: B) Floating Exchange Rates. 49. Which of the following is not part of the arguments about trade protection? A) The potential for corruption. B) A souree of the government revenue. C) The protection of domestic jobs. D) The national security. Show Answer Correct Answer: A) The potential for corruption. 50. A summary of an economy's transaction with the rest of the world for a specified period of time. A) Balance of Payments. B) Balance of Trade. C) Summary. D) Statement. Show Answer Correct Answer: A) Balance of Payments. 51. When two countries agree to eliminate duties and trade barriers on products traded between them, they have A) Free-trade zones. B) Most favored nation status. C) A free trade agreement. D) None of the above. Show Answer Correct Answer: C) A free trade agreement. 52. Which is a mode of entering international business? A) Exporting. B) Local licensing. C) Import substitution. D) Domestic franchising. Show Answer Correct Answer: A) Exporting. 53. To reachTo arrive at or attain a goal. A) Atteignirent. B) Atteindrez. C) Atteindre. D) Arriver. Show Answer Correct Answer: C) Atteindre. 54. Second step in International Market selection A) Final selection. B) In-depth screening. C) Preliminary screening. D) Direct experience. Show Answer Correct Answer: C) Preliminary screening. 55. What is a major constraint faced by SMIEs? A) High financial resources. B) Limited access to capital. C) Strong brand power. D) Global standardization. Show Answer Correct Answer: B) Limited access to capital. 56. What is true about most economies today? A) The majority of economies that we see today are "planned economies" . B) The majority of economies that we see today are "monopolistic competition economies" . C) The majority of economies that we see today are "mixed economies" . D) The majority of economies that we see today are "pure competition economies" . Show Answer Correct Answer: C) The majority of economies that we see today are "mixed economies" . 57. Government systems, political stability, trade barriers, and business regulations refer to which factor of the international business environment? A) Geographic. B) Economic. C) Political and legal. D) Cultural and social. Show Answer Correct Answer: C) Political and legal. 58. The WTO was established to implement the final act of Uruguay Round agreement of ..... A) UNO. B) GATT. C) MFA. D) TRIP's. Show Answer Correct Answer: B) GATT. 59. The factor endowment theory suggests that A) National resource endowments are the foundation for comparative advantages in international trade. B) Resources are the foundation of firm's competitive advantages. C) Many factors contribute to explaining the emergence of comparative advantages. D) Scarce resources are the foundation for comparative trade advantages. Show Answer Correct Answer: A) National resource endowments are the foundation for comparative advantages in international trade. 60. How many branches of international business are there? A) 8. B) 5. C) 6. D) None of the above. Show Answer Correct Answer: C) 6. ← 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