Question 1

Globalization refers to:

Accepted Answer

Globalization refers to the process of increasing interconnection and interdependence among countries, leading to a more integrated and interdependent world. This includes aspects such as trade, investment, information technology, and cultural exchange.

Question 2

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

Accepted Answer

D

Question 3

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

Accepted Answer

Mercantilists advocated for increasing a country's wealth by promoting exports and discouraging imports, aiming to achieve a favorable balance of trade.

Question 4

Investment in Plant & machinery is termed as

Accepted Answer

Investment in plant and machinery is considered a capital investment as it involves spending on physical assets to improve or expand a company's operations.

Question 5

The traditional mode of entering into international business is

Accepted Answer

Exporting is considered the traditional and most common mode of entering into international business. It involves selling goods or services produced in one country to customers in other countries, allowing companies to expand their market reach with relatively low investment and risk compared to other modes such as licensing, joint ventures, or establishing subsidiaries.

Question 6

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

Accepted Answer

Transnational corporations have decentralized decision-making to allow for more flexibility and responsiveness to local markets.

Question 7

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

Accepted Answer

Licensing is the agreement where one party (the licensor) allows another (the licensee) to use its intangible property, such as patents, trademarks, copyrights, brand names, or business techniques, under agreed terms and conditions.

Question 8

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

Accepted Answer

The answer of Only manufacturing and exporting as per the...

Question 9

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

Accepted Answer

Turnkey projects involve creating an asset or a complete facility for the client who only has to "turn the key" to start operating the facility; hence, it is the correct answer for complex projects tailored to client requirements.

Question 10

Rapid integration or interconnection between countries is known as:

Accepted Answer

Globalisation refers to the process of rapid integration or interconnection between countries, involving the movement of goods, services, and capital across borders.

Question 11

Globalisation has improved in the living structure of

Accepted Answer

Globalisation has generally improved living standards more significantly in developed countries due to better access to resources, technology, and markets.

Question 12

The main reason behind MNCs investments are

Accepted Answer

The primary motive behind multinational corporations (MNCs) investing in different countries is to increase their assets and earn profits. This involves expanding their operations, entering new markets, and leveraging resources and labor at lower costs to maximize returns.

Question 13

Which institute supports investments and foreign trade in India?

Accepted Answer

WTO supports investments and foreign trade in India.

Question 14

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

Accepted Answer

Multi-National Companies (MNCs) typically employ labor from various countries, not just from their own country. This is part of their global operation strategy to leverage local talent, reduce costs, and comply with local regulations.

Question 15

An MNC is a company that owns or controls production in

Accepted Answer

An MNC (Multinational Corporation) is defined as a company that owns or controls production in more than one country, allowing it to operate across international borders.

Question 16

Which is the right sequence of stages of Internationalization

Accepted Answer

The correct sequence of stages of internationalization is: Domestic, International, Multinational, Global, Transnational. This progression reflects the increasing degree of international activity and integration of a company, starting from operating in the home country to engaging in multiple countries, and finally, operating as a global entity that transcends national boundaries.

Question 17

Which of the following business environment are known and controllable?

Accepted Answer

The Domestic Business Environment is considered known and controllable because it operates within a single country and is subject to that country's laws, regulations, and market conditions, which are more predictable and manageable for businesses operating within their own borders.

Question 18

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

Accepted Answer

Changes in government often lead to changes in policies, regulations, and leadership, which can significantly impact the business environment. These are considered political forces.

Question 19

Which of the following is not cultural factor?

Accepted Answer

Income is not a cultural factor; it is an economic factor. Cultural factors include elements like language, beliefs, and customs that influence an individual's values and behaviors.

Quiz 1: International Trade and Globalization