This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 10 International Business – Quiz 94 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 10 International Business Quiz 94 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is an International Market Entry Mode? A) A strategy or method through which companies enter foreign markets, such as exporting, licensing, franchising, joint ventures, and foreign direct investment (FDI). B) A network of entities involved in the production and distribution of goods and services. C) Communication between people from different cultures. D) An investment made by a company in one country in commercial interests located in another country. Show Answer Correct Answer: A) A strategy or method through which companies enter foreign markets, such as exporting, licensing, franchising, joint ventures, and foreign direct investment (FDI). 2. 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. 3. 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. 4. What is the primary purpose of foreign direct investment (FDI)? A) To acquire temporary access to foreign markets. B) To provide loans to foreign governments. C) To establish a lasting interest in a foreign business. D) To gain short-term profits from stock trading. Show Answer Correct Answer: C) To establish a lasting interest in a foreign business. 5. Which of the following best describes the role of a sales agent? A) Receives a commission on sales. B) Buys the products directly. C) Manufactures the products. D) Provides after-sales service. Show Answer Correct Answer: A) Receives a commission on sales. 6. 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. 7. 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. 8. 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. 9. 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. 10. Michael Porter has argued that ..... and ..... are two basic strategies for creating value and attaining a competitive advantage in an industry. A) Differentiation; price competition. B) Economies of scale; diversification. C) Low cost; differentiation. D) Efficiency; promotion. Show Answer Correct Answer: C) Low cost; differentiation. 11. ..... are purchases of foreign financial instruments for a purpose other than control. A) Foreign direct investments. B) Global business investments. C) Foreign portfolio investments. D) Indirect investments. Show Answer Correct Answer: C) Foreign portfolio investments. 12. The world trade organization was formed in the year ..... with GATT as its basis. A) 1993. B) 1994. C) 1995. D) 1996. Show Answer Correct Answer: C) 1995. 13. ..... 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. 14. 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. 15. Which of the following best describes a multinational company? A) A company that only operates in one country. B) A company with branches in several countries. C) A company that imports products. D) A company that sells luxury goods. Show Answer Correct Answer: B) A company with branches in several countries. 16. 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 of Trade. B) Balance of Payments. C) Balance Beam. D) Balance the scales. Show Answer Correct Answer: B) Balance of Payments. 17. 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. 18. 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. 19. 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. 20. One of the IMF's core functions is: A) Issuing trade licenses. B) Promoting e-commerce. C) Providing financial assistance to member countries. D) Imposing sanctions. Show Answer Correct Answer: C) Providing financial assistance to member countries. 21. Which is NOT a function of WTO? A) Administering trade agreements. B) Negotiating trade policies. C) Managing domestic policies. D) Resolving disputes. Show Answer Correct Answer: C) Managing domestic policies. 22. 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. 23. Some words that are similar (synonyms) include global, world, worldwide, and foreign. A) Culture. B) Translate. C) International. D) Business. Show Answer Correct Answer: C) International. 24. 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. 25. 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. ← PreviousNext →Related 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 8Class 11 Business Studies Chapter 10 International Business Quiz 9Class 11 Business Studies Chapter 10 International Business Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books