International Business MCQ with Answers pdf download

Multiple choice questions of Subject Commerce Solved International Business MCQ with Answers pdf download ( International Business MCQ with Answers pdf download Quiz ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.

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International Business Questions and Answers pdf | International Business MCQ with Answers pdf download

1. When was the first phase of globalisation ended?

(a) The World War I

(b) The World War II

(c) The establishment of GATT

(d) In 1913 when GDP was high

Ans. a

2. Rapid integration or inter-connection between countries is known as

(a) privatisation

(c) globalisation

(b) liberalisation

(d) socialisation

Ans. c

3. On Ist Jan, 1995,


(c) GATT, WTO was replaced by the



Ans. c

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

(a) Buyers

(b) Suppliers

(c) Complementary products

(d) Industry rivalry

Ans. c

5. Select example of Indian multinational company.

(a) Hindusthan Unilever

(b) Videocon

(d) Tesco

(c) Cargill

Ans. b

6. . . is application of knowledge which redefines the boundaries of global business.

(a) Cultural value

(b) Society

(d) Economy

(c) Technology

Ans. c

7. ……. company produces, markets, invests and operates across the world.

(a) Global

(b) International

(d) Multinational

(c) Transnational

Ans. c

8. International business transactions include

(a) sales

(c) transportation

(b) investments

(d) All of these

Ans. c

9. Globalisation refers to

(a) lower income worldwide

(b) less foreign trade investments

(c) global warming and their effects

(d) a more integrated and interdependent world

Ans. a

10. Which of the following is an example of an issue for which an agreement has not been made between two or more countries?

(a) Restricting harmful emissions

(b) Deep-sea mining in non-coastal areas of the oceans

(c) Preserving endangered species

(d) Banning the use of certain pesticides

Ans. b

11. The WTO was established to implement the final act of Uruguay Round agreement of

(b) GATT

(d) UNO

(a) MFA

(c) TRIP’s

Ans. b

12. MNC stands for

(a) Multinational Coopertion

(b) Multinational Corporation

(c) Multinational Company

(d) Multinational Collaboration

Ans. a

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13. SMES stand for

(a) Small and Medium Entrepreneurs

(b) Small Management of Enterprises

(c) Small and Medium-sized Enterprises

(d) Societies for Managing Exports

Ans. c

14. An MNE may be synonymous with all of the following except

(a) a company that has a worldwide approach to markets and promotions

(b) an FDI

(c) an MNC

(d) a TNC

Ans. b

15. Exports and imports apply mostly to which of the following?

(a) Services

(c) Intellectual property

(b) Merchandise

(d) Licensing

Ans. b

16. Globalisation can create problems for business because

(a) it reduced vulnerability to political risk and uncertainty when operating abroad

(b) it can result in more competition

(c) it means that they can increase prices

(d) it will help in bringing new things in the market

Ans. a

17. Which of the following is not a characteristic of bartering internationally?

(a) Bartering can be time consuming

(b) Bartering can be expensive

(c) Bartering is a type of service export and import

(d) Bartering can be risky

Ans. c

18. Technology has a tremendous impact on international business in all of the following ways except

(a) the demand for new products and services has increased

(b) the number of international business transactions has increased

(c) the managers’ ability to control foreign operations has been improved

(d) it has raised the cost of doing business abroad

Ans. d

19. The aim of the MNC is to boost accounting profitability by shifting funds around the

(a) country

(b) region

(c) world

(d) market

Ans. c

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

Ans. c

International Business Exam Questions and Answers pdf

21. In order to have controlling interest in a foreign company

(a) an investor must have at least 100 % interest in the foreign company

(b) an investor must have at least 50% interest in the foreign company

(c) an investor may hold a minority stake if the remaining ownership is widely dispersed

(d) an investor must make all decisions at headquarters about the foreign company

Ans. c

22. Advantages of having diverse brands consist of each of the following except

(a) quickly respond to retailers

(b) effectively compete in market

(c) save the actual brand image

(d) fill all the gaps in market

Ans. d

23. A company commonly uses ….. to handle foreign operations during the early stages of international expansion because it minimises commitment.

(a) its own sales force

(b) intermediaries

(c) barter transactions

(d) wholly owned subsidiaries

Ans. b

24. Which is not an Indian multinational company?

(a) Unilever

(b) Asian Paints

(d) Wipro

(c) Piramal

Ans. a

25. International business conducted by governments differs from that conducted by private companies as the former

(a) is involved only in foreign aid transactions

(b) makes foreign sales but is not involved in investments and transportation

(C) may not necessarily undertake business for the sake of profit

(d) will handle transactions on credit

Ans. c

26. Historically, foreign direct investment has followed foreign trade because

(a) foreign trade is less costly and less risky

(b) management can expand the business in large increments

(c) the firm has already established its own sales company to import in its own name

(d) All of the above

Ans. a

27. The theory of comparative cost advantage is given by

(a) David Ricardo

(b) Adam Smith

(d) Ohlin and Heckscher

(c) FW Taussig

Ans. a

28. At an early stage of international involvement, require(s) the least formal commitment and pose the least risk to the company’s resources,

(a) foreign direct investment

(b) joint ventures

(c) importing and exporting

(d) wholly owned subsidiaries

Ans. c

29. Frequently, a firm will go abroad to

(a) protect its home market

(b) earn greater profits

(c) test market a product

(d) All of these

Ans. d

30. According to the US Department of Commerce approximately of US exports of goods are by US owned multinational corporations.

(a) 33.33%

(c) 67%

(b) 50%

(d) 75%

Ans. c

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31. Which of the following statements is true regarding the growth of international business?

(a) International business has grown in more recent years at a slower pace than global production

(b) International business has grown in more recent years at a faster pace than global production

(C) During the global economic downturn of 2001 international business grew at a faster pace than global production

(d) Growth through trade has increased but growth through foreign direct investment has not

Ans. b

32. Which of the following is a major benefit of joint production between a local company and a multinational company?

(a) MNC can buy the local company

(b) MNC can control the increase in the price

(c) MNC can bring latest technology in the production

(d) None of the above

Ans. c

33. Which of the following has played a big role in organizing production across the countries?

(b) Domestic companies

(d) Consumers

(a) WTO

(c) Information technology

Ans. c

34. All of the following are reasons to study international business except

(a) to bring non-territorial areas under the control of national governments

(b) international business comprises a large and growing portion of the world’s total business

(c) global events and competition affect almost all companies

(d) company operating internationally will engage in modes of business that differ from those it is accustomed to domestically

Ans. a

35. What is the first step to be international for a company?

(a) Franchise

(c) FDI

(b) Exporting

(d) None of these

Ans. b

36. The IMF is firm of

(a) 190 members countries

(b) 182 members countries

(c) 186 member countries

(d) 183 member countries

Ans. d

37. Which of the following has benefited least because of globalisation in India?

(a) Industrial sector

(c) Agriculture sector

(b) Service sector

(d) None of these

Ans. c

38. Strategy involves which of the following?

(a) Understanding the goals of the organisation

(b) Allocating resources to take advantage of opportunities arising from the organisation’s external envirorment

(c) Determining the long-term direction of the organisation

(d) All of the above

Ans. d

39. Which of the following countries sends a larger portion of its exports to developing nations than to developed economies as a whole?

(a) New Zealand

(b) Germany

(c) China

(d) The UK

Ans. a

40. Which one of the following is not true regarding the world trade organisation?

(a) It allows free trade to all countries without any trade barriers

(b) Its aim is to liberalise international trade

(c) It establishes rules regarding international trade

(d) WTO rules have forced the developing countries to remove trade barriers

Ans. a

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41. An impact analysis helps firms to

(a) assess the impact of external forces on the business

(b) priorities responses to the forces of the external environment

(c) identify the most probable opportunities and threats

(d) None of the above

Ans. b

42. What was the meaning of globalisation till 1950?

(a) Only foreign investment

(b) Only foreign trade

(c) Both of the above

(d) None of these

Ans. b

43. Exploring the strategic implications of global warming is best described as

(a) an external environmental analysis

(b) future forecasting

(c) scenario planning

(d) None of the above

Ans. c

44. An analysis of the external environment enables a firm to identify

(a) strengths and opportunities

(b) strengths and weaknesses

(c) weaknesses and threats

(d) opportunities and threats

Ans. d

45. In which year the world trade organisation was formed?

(b) 1995

(a) 1991

(c) 1990

(d) 1993

Ans. b

46. In 1999, foreign direct investment soared to unprecedented levels because of large American firms responding to such factors as

(a) domestic competition

(b) higher oil prices

(c) stable interest rates worldwide

(d) liberalisation by host governments in regard to foreign investment

Ans. d

47. Which or of the following is a pull factor in emigration?

(a) Poitics

(b) Job opportunities

(c) Infrastructure

(d) None of the above

Ans. b

48. Which of the following do not facilitate globalisation?

(a) Barriers to trade and investment

(b) Improvements in communications

(c) Immigration controls

(d) Removal of controls on movement of capital across borders

Ans. a

49. Which of the following constitutes foreign direct investment?

(a) A tourist purchasing foreign currency to spend on holiday abroad

(b) A speculators trying to make a profit by buying company’s shares on a foreign stock exchange

(c) A UK energy company buying territory abroad where it expects to find oil reserves

(d) None of the above

Ans. c

50. Globalisation is beneficial for firms because

(a) it cushions them from the effects of events in other countries

(b) it opens up new market opportunities

(c) it decreases the risk and uncertainty of operating in a globalized worid economy

(d) None of the above

Ans. b

For More Commerce MCQs Topic Wise Click Here

1. Bookkeeping and Accounting 2. Not-for-Profit Organisations
3. Partnership4. Accounting for Specific Business and Transactions
5. Corporate Accounting6. Cost Accounting
7. Management Accounting8. Business Communication
9. Business Organisation and Management10. Business Environment
11. Marketing Management12. Financial Management
13. Human Resource Management14. Office Management
15. Consumer’s Theory and Demand16 Production, Cost, Revenue
17. Supply18. Forms of Market
19. National Income20. Government Budget
21. Theory of Income & Employment and Inflation22. Money and Banking
23. International Trade24. India’s Foreign Trade and international Organisations
25. Industrial Policy26. Statistics
27. Business Law28. Company Law
29. Auditing30. Entrepreneurship Development
31. Income Tax32. Insurance
33. International Business34. Company Secretary and Secretarial Methods
35. Stock Exchange

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