CBSE Class 11 Business Studies International Business MCQs Set B

Question: The receipt is given by commanding officer of the ship to the exporter after the cargo is loaded on the ship is known as
a) Mate’s Receipt
b) Shipment receipt
c) Shipping Bill.
d) Packing receipt.
Answer: a

Question: C&F Agent stands for
a) Clearing and Freight Agent
b) Cargo and Freight Agent.
c) Cargo and Forwarding ,
d) Clearing and Forwarding Agent
Answer: d

Question: Foreign investment includes
a) Foreign direct investment.
b) portfolio investment.
c) Foreign intellectual property investments.
d) Foreign direct investment. and portfolio investment only
Answer: d

Question: At the international level which of the following organisation work for accelerating the pace of development and trade amongst the nations
a) IMF
b) WTO
c) Both of the options
d) None of the options
Answer: c

Question: Uruguay round results in the establishment of
a) WTO
b) GATT
c) IMF.
d) WHO.
Answer: a

Question: TRIPS stands for
a) Trade related agreement of individual property rights
b) Trade related aspects of intellectual property rights
c) Trade related agreement of independent property rights.
d) Trade Related Aspects of Intellectual Property Rights
Answer: d

Question: To provide Development Finance on easy terms to the less developed member countries is an objective of
a) IFC
b) MIG
c) IDA
d) WTO
Answer: c

Question: Having identified the countries and firms that export the product, the importing firm approaches the export firms with the help of?
a) Trade enquiry.
b) Proforma invoice.
c) Mate’s receipt.
d) Sight draft.
Answer: a

Question: IFC stands for
a) international fund corporation
b) Indian financial corporation
c) International Finance Corporation
d) Indian fund Corporation
Answer: c

Question: ………………….is a type of international business where a firm enters into a contract with one or a few local manufacturers in foreign countries to get certain components or goods produced as per its specification
a) contract manufacturing
b) exporting
c) licensing and franchising
d) Joint Ventures
Answer: a

Question: The year of establishment of international financial corporation.
a) 1945
b) 1988
c) 1956
d) 1966
Answer: c

Question: World Trade Organization was founded on ———
a) 11 Nov. 2005
b) 11 Dec. 2005
c) 11 Jan.2015
d) 11 Dec 2015
Answer: b

Question: Persons importing or exporting goods and services are required to have
a) Import Export Code Number
b) Export Import Contact Number
c) Import Export Chat Number
d) the Import Export Clearance Number
Answer: a

Question: The refund of excise duty is known as
a) Duty Withdrawn
b) Duty Drawback
c) Duty Refund
d) Duty Reimbursement
Answer: b

Question: In which of the following modes of entry into international business, a firm is able to exercise full control over its operations in foreign countries
a) licensing
b) franchising
c) contract manufacturing.
d) wholly owned subsidiaries
Answer: d

Question: MIGA was established in
a) April 1989.
b) August 1999.
c) Jan 1989.
d) April 1988
Answer: c

Question: Which type of document contains a gurantee from the importer bank to the exporter bank?
a) Letter of credit
b) Airway bill
c) Import order
d) proforma invoice
Answer: a

Question: A document prepared and signed by the master of the ship acknowledging receipt of goods on board is known
a) Shipment Receipt.
b) Bill of lading
c) Packing Receipt.
d) Mate’s Receipt
Answer: b

Question: Which of the following was formed for looking after the promotion of free and fair trade among nations?
a) International Monetary Fund
b) World Bank
c) World Trade Organisation
d) General Agreement for Tariffs and Trade
Answer: c

Question: The main document on the basis of which custom office grants permission for the export
a) Bill of lading.
b) Shipping bill
c) Shipment receipt.
d) Mate”s Receipt
Answer: b

Question: MFN stands for
a) Most Favoured Nations.
b) Marine favourable Nation.
c) Multinational Favourable Number.
d) Multinational freight Number
Answer: a

Question: …………….. is a document that exporter sends to the importer informing him that the shipment of goods has been made.
a) Shipment Bill.
b) Bill Receipt.
c) Shipment Advice.
d) Shipment Challan
Answer: c

Question: AoA stands for
a) Arrangement on Association.
b) Arrangement on agriculture.
c) Association of agriculture.
d) Agreement on agriculture
Answer: d

Question: Which of the following is not a document related to export transaction?
a) Shipping Bill
b) Airway Bill
c) Mate’s Receipt
d) Bill of Entry
Answer: d

Question: Merchandise exports and imports is also known as
a) trade in services.
b) trade in goods.
c) both of the above.
d) None of the options
Answer: b

Question: One amongst the following in not the main objective of World Trade Organization
a) To improve the standard of living in world economy
b) To create employment in world economy.
c) To increase income and effective demand in world economy.
d) To disintegrate more viable and durable trading system in world economy.
Answer: d

Question: Which of the following is not included in WTO Agreement
a) Agreement forming part of GATT.
b) Agreement on Textile and Clothing.
c) General Agreement on Trade in Services.
d) General Agreement on Textile and Trade
Answer: d

Fill in the blanks:

Question: Goods that are tangible are called ___________ .
Answer: merchandise

Question: Indian institute of Foreign Trade was set up in ___________ year.
Answer: 1963

Question: Manufacturing and trade beyond the boundaries if one’s own country is known as _________ .
Answer: Internationnal business

Question: Giving permission for distribution of services in another country under a specific copyright is known as ___________ .
Answer: Franchising

Question: Business transactions taking place within the geographical boundaries of a nation is known as ___________ .
Answer: Domestic trade

Question: Foreign investment are of ___________ and ___________ types.
Answer: direct and portfolio

Question: The document certifying that the export transaction is over and the payment has been received is ___________ .
Answer: Certificate of payment

True / False:

Question: One of the pre-requistes for an exporter to obtain an export licence is to have an account in any bank authorised by the RBI.
Answer: True

Question: Packing list is a statement containing the name and place of the port at which goods are to be discharged.
Answer: False

Question: Headquarters laboratory of Indian Institute of packaging is situated in delhi.
Answer: False

Question: World Trade Organization has a global status similar to that of International Monetary Fund and World Bank.
Answer: True

Question: The exporter Rahul appointed a C&F agent of XYZ Ltd. to help him in export procedure, as he had no time for the same and the same is permitted in the export procedure.
Answer: True

Question: Registration with the ECGC is necessary to protect overseas payment from political and commercial issues.
Answer: True

Question: Indian trade promotion orgnisation was setup in 1st January 1992.
Answer: True

Match the following:

Question: Match the documents needed in the international trade with its synonyms given below:
          A                                               B
1. Receipt of order                         a) Export Order
2. Export Contract                         b) Endorsement for delivery
3. Delivery Order                           c) Documentary bill of exchange against acceptance.
d) Indent
Answer: 1-d, 2-a, 3-b, 4-c

Question: Match the features with the documents given below.
         A                                                                          B
1. Proforma invoice                                              a) Obtain an import export code number.
2. Procurement of import license.                        b) Contains details as to the quality, grade, design, size, weight and
     price of the export product.
3. Procurement of import license.                        c) Specifies dock dues by the Importer.
4. Dock Challan.                                                  d) Assessment of customs import duty.
Answer: 1-b, 2-a, 3-d, 4-c

Question: Match the documents given below with the type of information they carry.
      A                                                                         B
1. Packing List                                                a) Quality of goods
2. Mate’                                                           b) Registration number of vehicle
3. Cart Chit                                                     c) Nature of goods
4. Certificate of Inspection                              d) Condition of the Cargo
Answer: 1-c, 2-d, 3-b, 4-a

Question: Match the following documents related to International Trade with their issuing authority-
      A                                                                      B
1. Mate’s Receipt                                       a) Issued by Government
2. Export Invoice                                        b) Commander of the ship
3. Certificate of Payment                           c) Seller (Exporter)
4. Certificate of Inspection                         d) Bank
Answer: 1-b, 2-c, 3-d, 4-a

Question: Match the information given below with their relevant documents-
     A                                                                                             B
1. Country in which the goods are produced                         a) Shipment Advice
2. Quality of Goods                                                                b) Certificate of Origin
3. Description of goods and quantity                                     c) Trade Inquiry
4. Written request by the Importer                                         d) Certificate of Inspection
Answer: 1-b, 2-d, 3-a, 4-c

Question: Match the following documents with their issuing authority
     A                                                   B
1. Usance Draft                           a) Custom Office
2. Bill of Entry                              b) Importer
3. Bill of Landing                         c) Drawer
4. Indent                                      d) Master of Ship
Answer: 1-c, 2-a, 3-d, 4-b

Pictorial Questions:

Question: Identify which one is not a global company:

Answer: Muthoot Finance

Question: State the objectives of WTO-

Answer: optimum use of resource,integrated trade and increase in employment

Question: Fill the factors of production

Answer: Land, Labour, Capital and Entrauprenaural skills

Question: Identify the apex bank responsible to give permission to open bank account for international business:

Answer: RBI

Question: Identify the factors of production:

Answer: Land, Labour, CapitaL and Managerial skills