MCQ on international business

Multiple Choice Questions on International Business Pdf  : 

We are providing here the chapter-wise important MCQ on International Business. Students can practice these questions and answers to revise the key concepts. Since the International business paper in Term 1 Exam will comprise of MCQs only, students should do a lot of practice to score well on these questions. Get Chapter Wise MCQ Questions on International Business with Answers PDF Free Download of all subjects are prepared here according to the latest syllabus and curriculum. Students can practice international Business Multiple Choice Questions with Answers to score good marks in the examination.

Mcqs on international bussiness

MCQ on International Business  with Answers Pdf :

1. 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 

Answer: B

2. Subsidiaries consider the regional environment for policy / Strategy formulation is known as__________

A) Polycentric Approach 

B) Regiocentric Approach 

C) Ethnocentric Approach 

D) Geocentric Approach 

Answer: B

3. The Theory of Absolute Cost Advantage is given by__________

A) David Ricardo 

B) Adam Smith 

C) F W Taylor 

D) Ohlin and Heckscher 

Answer: B

4. The Theory of Relative Factor Endowments is given by____________ 

A) David Ricardo 

B) Adam Smith 

C) F W Taussig 

D) Ohlin and Hecksher 

Answer: D


5. The theory of comparative cost advantage is given by_____________

A) David Ricardo 

B) Adam Smith 

C) F W Taussig 

D) Ohlin and Hecksher 

Answer: A

6. 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: D

7. Which of the following is not a force in the Porter Five Forces model? 

A) Buyers 

B) Suppliers 

C) Complementary products 

D) Industry rivalry 

Answer: C

8. Which is not an Indian Multinational Company? 

A) Unilever 

B) Asian Paints 

C) Piramal 

D) Wipro 

Answer: A

9.The first phase of globalization started around 1870 and ended with____________

A) World War I 

B) World War II 

C) The Establishment of GATT 

D) In 1913 when GDP was High 

Answer: A

10. The Heckscher- Ohlin model is principally focused on what aspect of economics?

A) international trade

B) supply and demand

C) normative economics

D) production possibility frontier

Answer: A

11. Transportation cost of trade affects:

A) pattern of trade

B) boundaries between tradable and non-tradable goods

C) global supply chains

D) all of the above

Answer: D

12. What was the first economic theory of international trade to be developed?

A) the theory of mercantilism

B) the theory of comparative advantage

C) the theory of absolute advantage

D) the heckscher-ohlin theory

Answer: A

13. International trade forces domestic firms to become more competitive in terms of____________

A) the introduction of new products

B) product design and quality

C) product price

D) all of the above

Answer: D

14.Country A has an absolute advantage in_____________

A) product x

B) product y

C) neither x nor y

D) both x and y

Answer: B

15. Comparative Cost Trade Theory is given by_____________

A) adam smith

B) david ricardo

C) gottfried haberle

D) heckscher ohlin

Answer: B

16. According to this theory, the holdings of a country’s treasure primarily in the form of gold constituted its wealth.

A) gold theory

B) Ricardo’s theory

C) mercantilism

D) hechsher theory

Answer: C

17. The Theory of Relative Factor Endowments is given by____________

A) David Ricardo

B) adam smith

C) c. f w Taussig

D) ohlin and hecksher

Answer: D

18. Locational advantages are based on which combination of the following specific country characteristics.

A) a large reserve of natural resources, a large local market, and efficiency opportunities

B) a small reserve of natural resources, a large local market, and efficiency opportunities

C) a small reserve of natural resources, a small local market, and efficiency opportunities

D) a large reserve of natural resources, a small local market, and efficiency opportunities

Answer: A

19. Which of the following would be an example of foreign direct investment from the United States to Taiwan?

A) a u.s. bank buys bonds issued by a Taiwan computer manufacturer.

B) a u.s. car manufacturer enters into a contract with a Taiwanese firm to make and sell its spark plugs.

C) Microsoft hires a Taiwanese computer programmer to debug some software for it.

D) the state of California rents space in Taipei for one of its employees to use to promote tourism in

Answer: B

20. Key controllable factors in global marketing are___________

A) government policy and legislation

B) social and technical changes

C) marketing activities and plans

D) all of the above.

Answer: C

21. Which of the following was created to promote free trade?

A) world trade organization

B) the Sarbanes-Oxley act

C) multilateral development banks

D) the organization for economic cooperation and development

Answer: A

22.Subsidiaries consider the regional environment for policy / Strategy formulation is known as______________

A) polycentric approach

B) region-centric approach

C) ethnocentric approach

D) geocentric approach

Answer: B

23. Which of the following is an example of an Indian Multinational Company?

A) hindustan unilever

B) videocon

C) Cargill

D) Tesco

Answer: B

24. Business across several countries with some decentralization of management decision-making to subsidiaries is________

A) global business.

B) multinational business

C) transnational business

D) multi-regional business.

Answer: B

25. Dumping refers to___________

A) Reducing tariffs

B) Sale of goods abroad at a lower price, below their cost and price in their home market

C) Buying goods at low prices abroad and selling at higher prices locally

D) Expensive goods selling for low prices

Answer: B

26. The following statement with respect to currency option is wrong________

A) Foreign currency- The rupee option is available in India

B) An American option can be executed on any day during its currency

C) Put option gives the buyer the right to sell the foreign currency

D) Call option will be used by exporters

Answer: D

27. Which of the following is international trade?

A) Trade between countries

B) Trade between regions

C) Trade between provinces

D) Both (b) and (c)

Answer: A

28. Market in which currencies buy and sell and their prices settle is called the_________

A) International bond market

B) International capital market

C) Foreign exchange market

D) Eurocurrency market

Answer: C

29. Which of the following is not an advantage of exporting?

A) Easier way to enter international markets

B) Comparatively lower risks

C) Limited presence in foreign markets

D) Fewer investment requirements

Answer: C

30. Which one of the following modes of entry permits the greatest degree of control over overseas operations?

A) Licensing

B) franchising

C) Wholly owned subsidiary

D) Contract manufacturing 

Answer: C

31. International Trade is most likely to generate short-term unemployment in________

A. industries in which there are neither imports nor exports

B. industries that sell to domestic and foreign buyers.

C.  industries that sell to only foreign buyers

D. Import-competing industries

Answer: D

32. MNC Stands for ______.

A. Multi-National Corporation

B. Multi-National Company

C. Multi-National Collaboration

D. Multi-National Cooperation

Answer: A

33. The OECD stands for _______.

A. Organization for Environmental Control and Development

B. Organization for Environmental Cooperation and Development.

C. Organization for Economic Coordination and Development

D. Organization for Economic Co-operation and Development

Answer: D

34. NAFTA stands for ______

A. North African trade association

B. North American Free Trade Agreement

C. Northern Atlantic trade agreement

D. Northern association for trade

Answer: B

35. IBRD stands for __________.

A. International Bank for Research Development

B.  International Bank for Reconstruction and Development

C.  International Board for Research and Development

D. International Barrier For Reconstruction and Development

Answer: B

36. The fundamental reason why an enterprise should conduct international operations is to solve the problem of

A. to find new customers

B. Build core competitiveness

C. Find low-cost resources

D. Develop overseas markets

Answer: B

37. Which of the following is the market environment of an international company?

A. International financial market

B. Regional economic integration

C. International Economic Organization

D. All of the above are true

Answer: D

38. _________plays the most important role in investment globalization.

A. International indirect investment

B. International direct investment

C. Investment in securities

D. Precious metal investment

Answer: B

39. ______is the material basis for the development of globalization.

A. The deepening and innovation of the international financial market

B. the operating results of multinational companies

C. The results provided by the new technology revolution

D. Global deregulation and marketization policies

Answer: C

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