CBSE Class 11 Business Studies International Business MCQs Set 03

Question. A receipt issued by the commanding officer of the ship when the cargo is loaded on the ship is known as
(a) Shipping receipt
(b) Mate receipt
(c) Cargo receipt
(d) Charter receipt

Answer: B

Question. Which of the following documents are not required for obtaining an export license?
(a) IEC number
(b) Registration cum membership certificate
(c) Letter of credit
(d) Bank account number

Answer: C

Question. _______ is the first step in the internationalization process.
(a) License
(b) Foreign Investment
(c) Sales
(d) Export

Answer: A

Question. MNC Stands for
(a) Multi-National Cooperation
(b) Multi-National Corporation
(c) Multi-National Company
(d) Multi-National Collaboration

Answer: B

Question. 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

Question. Which one of the following modes of entry requires a higher level of risks?
(a) Licensing
(b) Contract manufacturing
(c) Franchising
(d) Joint venture

Answer: D

Question. When two or more firms come together to create a new business entity that is legally separate and distinct from its parents it is known as
(a) Franchising
(b) Contract manufacturing
(c) Joint Ventures
(d) Licensing

Answer: C

Question. Merchandise means:
(a) Goods that are intangible
(b) Goods that are tangible
(c) Patents
(d) None of the options

Answer: B

Question. 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

Question. Foreign investments can be:
(a) Direct investment
(b) Portfolio investment
(c) Both of the above
(d) None of the options

Answer: C

Question. Which of the following documents is not required in connection with an import transaction?
(a) Bill of lading
(b) Shipping bill
(c) Certificate of origin
(d) Shipment advice

Answer: C

Question. Capitalistic, communistic and Mixed are the types of
(a) Economic System
(b) Social System
(c) Cultural Attitudes
(d) Political System

Answer: A

Question. Which of the following documents are not required for obtaining an export license?
(a) IEC number
(b) Letter of credit
(c) Registration cum membership certificate
(d) Bank account number

Answer: B

Question. W.T.O is the only organization dealing with the:
(a) Home trade rules
(b) Entrepot trade rules
(c) Global trade rules
(d) None of the options

Answer: C

Question. IBRD (International Bank for Reconstruction and Development) also known as
(a) Exim Bank
(b) World Bank
(c) International Monetary fund
(d) International Bank

Answer: B

Question. Which is not a part of custom documentation process:
(a) Shipping bill
(b) Export license
(c) Insurance letter
(d) Proforma invoice.

Answer: D

Question. TRIP is one of the WTO agreements that deals with:
(a) Agricultural trade
(b) Service trade
(c) Trade related investment measures
(d) None of the options.

Answer: D

Question. WTO stands for
(a) World technology association
(b) World time organization
(c) World trade organization
(d) World tourism organization

Answer: C

Question. Which of the following does not belong to the World Bank group?
(a) IBRD
(b) IDA
(c) MIGA
(d) IMF

Answer: D

Question. Import trade procedure starts with
(a) Obtaining quota
(b) Arranging L.C
(c) Trade enquiry
(d) Placing Indent

Answer: B

Question. Interest payments on loans borrowed abroad are recorded in
(a) Capital Account
(b) Current Accounts
(c) Errors and Omission Section
(d) Official Reserve Account

Answer: B

Question. “It gives birth to a foreign territory within the home country for trading and for imposing duties”. What is referred to in this statement
(a) EPZ
(b) SEZ
(c) Superstar trading houses
(d) Deemed exports

Answer: B

Question. ___________ corporation produces in the home country or in a single country and focuses on marketing these products globally or vice a versa.
(a) Global
(b) International
(c) Transnational
(d) None of the options

Answer: A

Question. Foreign investment can be of two types
(a) Domestic and International investment
(b) Direct and Portfolio
(c) Licencing and Franchising
(d) Direct and Franchising

Answer: B

Question. In which of the following modes of entry, does the domestic manufacturer give the right to use intellectual property such as patent and trademark to a manufacturer in a foreign country for a fee
(a) Licensing
(b) Contract manufacturing
(c) Joint venture
(d) None of the options

Answer: A

Question. India became member of World Bank in the year:
(a) 1950
(b) 1948
(c) 1945
(d) 1949.

Answer: C

Question. Comparative Cost Trade Theory is given by
(a) Adam Smith
(b) David Ricardo
(c) Gottfried Haberler
(d) Heckscher Ohlin

Answer: B

Question. Which of the following documents is not required in connection with an import transaction?
(a) Certificate of origin
(b) Bill of lading
(c) Shipping bill
(d) Shipment advice

Answer: C

Question. The OECD stands for:
(a) Organization for Economic Co-operation and Development
(b) Organization for Economic Coordination and Development
(c) Organization for Environmental Cooperation and Development
(d) Organization for Environmental Control and Development

Answer: A

Question. Ultimately ………………was replaced by the …………….on 1st Jan 1995
(a) GATS, WTO
(b) WTO, GATT
(c) GATT, WTO
(d) IMF, GATT

Answer: C

Question. Policy formulation comes under which role?
(a) Top-level managers
(b) Middle-level managers
(c) Operational management
(d) All of the options

Answer: A

Question. Which one of the following is not a part of export documents?
(a) Commercial invoice
(b) Certificate of origin
(c) Bill of entry
(d) Mate’s receipt

Answer: C

Question. Which of the following is not an advantage of exporting?
(a) Easier way to enter into international markets
(b) Comparatively lower risks
(c) Limited presence in foreign markets
(d) Less investment requirements

Answer: C

One Marks Questions

Question. Expand FTZ.
Answer: Free Trade Zones

Question. Expand BOL.
Answer: Bill of Lading

Question. What is D.P bill?
Answer: DP inpayment term of imports and exports means Documents against Payments.

Question. Expand UNCTAD.
Answer: United Nations Conference on Trade and Development.

Question. Expand IIFT.
Answer: Indian Institute of Foreign Trade

Question. Expand EOU.
Answer: Export Oriented Units

Question. Expand WTO
Answer: World Trade Organisation

Question. ABC company acquires XYZ company located in Delhi by investing 100% of its equity. What will the XYZ company call?
Answer : The XYZ company will be known as a solely owned subsidiary of ABC company.

Question. Mention the common points between licensing and franchising.
Answer : The common points between licensing and franchising is that both can use brand names, patent, and copyrights.

Question. Define shipping bill.
Answer : Shipping bill refers to the documents required for the export of goods. Under the basis of this document, the customs officer gives permission to export the goods.

Question. Explain C&F agent.
Answer : C&F agent is defined as a clearing and forwarding agent who is involved in implementing services directly or indirectly, connected with the clearing and forwarding.

Question. Name the entry mode in which domestic manufacturer gives the right to access to the trademark, technology, and trade secret to a manufacturer is a foreign land.
Answer : Licensing is the entry mode or a contractual arrangement when a domestic manufacturer gives the right to access to its trademark, technology, and trade secret to a manufacturer is a foreign land.

Question. Explain the objectives of WTO?
Answer : The objectives of WTO are.
- To make sure that the taxes and trade restrictions forced by other countries are less.
- To make sure they raise the standard of living, increase employment and income, and facilitate high trade and production.
- To promote the beneficial use of resources for sustainable development.
- To improve and promote mixed, more feasible, long-lasting trading system

Question. Define Bill of Entry.
Answer : Bill of entry is the statement made by the importer or the exporter of nature of the consignment, its quantity, and the value of the goods that have been reached or being shipped. This statement is made by the customs clerk or the broker and is checked by the customs authority for its precision and tariff and regulation update.