Deck 1: International Trade and Globalization

Question 1

Globalization refers to:

A)Lower incomes worldwide
B)Less foreign trade and investment
C)Global warming and their effects
D)A more integrated and interdependent world

Answer 1

A more integrated and interdependent world

Question 2

According to Adam Smith, the trade between countries should happen _____.

A)Naturally according to the market forces
B)Under government regulation
C)Using factors that are available
D)Only when a country has an absolute advantage

Answer 2

Only when a country has an absolute advantage

Question 3

Mercantilists believed that a country could increase the amount of wealth it had by _____.

A)Promoting exports and discouraging imports
B)Discouraging exports and promoting imports
C)Controlling imports and exports
D)Increasing both imports and exports

Answer 3

Promoting exports and discouraging imports

Question 4

Investment in Plant & machinery is termed as

A)FDI
B)FII
C)Portfolio Investment
D)Capital Investment

Question 5

The traditional mode of entering into international business is

A)Licensing
B)Exporting
C)Joint venture
D)Subsidiary

Question 6

Which type of following stage of internationalization has Decentralized decision making?

A)Subsidiary
B)Multinational Corporation
C)Transnational corporation
D)Domestic Company

Question 7

Agreement between two parties where in one gives rights to use their intangible property to another entity is called as

A)Direct Exporting
B)Turnkey project
C)Strategic alliance
D)Licensing

Question 8

Only manufacturing and exporting as per the requirement of importer is called

A)Direct Export
B)Sales
C)Import
D)Indirect Export

Question 9

Complex projects involving creation of an asset as per the requirement of the client is called _________.

A)Joint venture
B)Strategic alliance
C)Turnkey Project
D)Subsidiary

Question 10

Rapid integration or interconnection between countries is known as:

A)Globalisation
B)Liberalisation
C)Socialisation
D)Privatisation

Question 11

Globalisation has improved in the living structure of

A)All the people
B)Workers in Developing Countries
C)People in developed Countries
D)None of the above

Question 12

The main reason behind MNCs investments are

A)To benefit foreign countries
B)To provide financial support to the country's Government
C)For the welfare of underprivileged people
D)To increase assets & earn profits

Question 13

Which institute supports investments and foreign trade in India?

A)IMF
B)WTO
C)World Bank
D)International labour Organisation ( ILO)

Question 14

Which of the following is not a feature of a Multi-National Company?

A)It owns/ control production in more than one nation
B)It set up factories where it is close to the market
C)It organises production in complex ways.
D)It employs labour only from its own country

Question 15

An MNC is a company that owns or controls production in

A)One country
B)More than one country
C)Only developing countries
D)Only developed countries

Question 16

Which is the right sequence of stages of Internationalization

A)Domestic, Transnational, Global, International, Multinational
B)Domestic, International, Multinational, Global, Transnational
C)Domestic, Multinational, International, Transnational, Global
D)Domestic, International, Transnational, Multinational, Global

Question 17

Which of the following business environment are known and controllable?

A)Domestic business Environment
B)Foreign business Environment
C)International business Environment
D)None

Question 18

Forces that impacts business environment due to change in government is type of

A)Legal
B)Cultural
C)Social
D)Political

Question 19

Which of the following is not cultural factor?

A)Language
B)Income
C)Beliefs
D)Customs