Question Bank

Apr-21
Faculty: Dr. Poorva Ran
Subject: International Business M
Code: BBA 306
Question Option 1
S.No.

International Board for

1 IBRD stands for
Research and Development

The first phase of globalization started

2 World War I
around 1870 and ended with 
3 IBRD is also called Exim Bank

Ultimately ______ was replaced by the

4 GATS, WTO
______ on 1st Jan 1995

Which is the right sequence of stages of Domestic, Transnational,

5 Global, International,
Internationalization?
Multinational
Strategy with home country as main focus
6 Polycentric
is called as
According to ______ the holdings of a
7 country’s treasure primarily in the form Gold Theory
of gold constituted its wealth
The Theory of Absolute Cost Advantage is
8 David Ricardo
given by ______
The Theory of Relative Factor
9 David Ricardo
Endowments is given by ______
The theory of comparative cost advantage
10 David Ricardo
is given by ______
______ is the application of knowledge
11 which redefines the boundaries of global Cultural Values
business

12 Lower incomes worldwide

Globalization refers to ______
Key controllable factors in global Government policy and
13
marketing are ______ legislation
Select an example of Indian Multinational
14 Hindusthan Unilever
Company
________ corporation produces in the
home country or in a single country and
15 Global
focuses on marketing these products
globally or vice a versa.
The ___________ company produces,
16 markets, invests and operates across the Global
world
 This is only a legal agreement and it is not
17 IBRD
an institution
The WTO was established to implement
18 the final act of Uruguay Round agreement IBRD
of _______
World technology
19 WTO stands for ______
association
North African trade
20 NAFTA stands for ______
association
21 IPR stands for ______ Intellectual property rights

The main promoter of trade liberalization

22 GATT
was ______

23 MNC Stands for ______ Multi-National Cooperation

On the basis of the size and composition

24 of external debt, world bank has classified heavily indebted country
India as a 
25 NAFTA is an example of Common Market
The main objective of International
26 Promote International trade
Monetary Fund (IMF) 

27 The gains from two nations depend on Domestic barter rates

28 The world bank is known as IMF

Purchase of existing assets

29 Which one is not the form of FDI
in foreign currency.

To promote international
30 Which one is not on objective of IMF?
monetary cooperations
Which one of the following theories says
that "to export was good and to be
31 Comparative cost theory
encouraged but to import was bad and to
the discouraged."
The theory of Absolute
32 David Recardo Gave the theory of
Advantage
33 Which one is called Bretton-wood Twin's IBRD and IDA

The theory of Absolute

34 Adam Smith Gave the theory of
Advantage
The theory of Absolute
35 Thomas Mun Gave the theory of
Advantage
When custom duty is levied according to
36 Excise duty
weight of goods it is known as
Which of the following is the basic
37 To provide social services
objective of the world bank?
 What one of the following is not the
38 Increase in social activities
advantage of MNCs to the host country
IMF raised the quota and voting share
of India which places India at the __
39 10th
place among 184 members of the
organisation
United nations committee
40 UNCTAD Stands for
on Tariff and Development
Which of the following is not a mode of
41 FII
foreign capital inflow to India?
The investment in productive assets and
42 participation in management as stake FII
holders in business enterprises is
The portfolio investment by foreign
43 FII
institutional investors is called
Which of the following is international
44 Trade between provinces
trade
Which is NOT an advantage of Export of surplus
45
international trade: production

If Japan and Pakistan start free trade,

50 Increase
difference in wages in two countries will:
51 Foreign trade creates among countries: Conflicts
Increases the volume of
52 A tariff:
trade

Buying goods at low prices

53 Dumping refers to: abroad and selling at higher
prices locally

According to Hecksher and Ohlin basic Difference in factor

54
cause of international trade is: endowments
A restriction on the number
55 A tariff is:
of export firms
All are advantages of foreign trade
56 People get foreign exchange
EXCEPT:
Two countries can gain from foreign trade
57 Cost ratios are different
if:
International trade and domestic trade
58 Trade restrictions
differ because of:
Terms of trade of developing countries
59 They export primary goods
are generally unfavourable because:
In a free trade world in which no
Reduced real living
60 restrictions exist, international trade will
standard
lead to:
What would encourage trade between two
61 Different tax system
countries:
 Consumers have to pay
62 It is drawback of protection:
higher prices
Currency of the country is
63 Gold standard means:
made of gold
We can preserve our natural
64 Biggest advantage of foreign trade:
resources
The theory explaining trade between two
65 Comparative advantage
countries is called:
A country that does not trade with other
66 Developed economy
countries is called:
By having business in different countries,
67 Revenue
a firm reduces
Amalgamation and rapid unification
68 Globalisation
between countries can be identified as
Globalisation has improved in the living
69 All the people
structure of
Foreign Exchange and Foreign currencies
70 RBI
in India are governed by
 Question Bank
Apr-21
Faculty: Dr. Poorva Ranjan
Subject: International Business Management
Code: BBA 306
Option 2 Option 3 Option 4

International Bank for International Barrier For

International Bank for
Reconstruction and Reconstruction and
Research Development
Development Development
In 1913 when GDP was
World War II The Establishment of GATT
High
International Monetary
International Bank World Bank
fund

WTO, GATT GATT, WTO IMF, GATT

Domestic, International, Domestic, Multinational, Domestic, International,

Multinational, Global, International, Transnational, Transnational,
Transnational Global Multinational, Global

Regiocentric Ethnocentric Geocentric

Ricardo Theory Mercantilism Theory Hecksher Theory

Adam Smith F W Taylor Ohlin and Heckscher

Adam Smith F W Taylor Ohlin and Heckscher

Adam Smith F W Taylor Ohlin and Heckscher

Society Technology Economy

Less foreign trade and Global warming and their A more integrated and
investment effects interdependent world
social and technical marketing activities and
all of the above.
changes plans

Videocon Cargill Tesco

International Transnational None of the above

International Transnational None of the above

 IMF WTO GATT

IMF UNO GATT

World time organization World trade organization World tourism organization

North American free trade Northern Atlantic trade Northern association for
agreement agreement trade
International property
Internal promotion rights Interior promotional rights
rights

NAFTA CEPTA CISA

Multi-National
Multi-National Corporation Multi-National Company
Collaboration

moderate indebted country Less indebted country Severely indebted country

Customers Union Economic Community Free Trade Area

Help economically Maintain stable exchange Promote international
backward countries rates liquidity
Different in the domestic
Degree of absolute
barter rates of the two Terms of trade
advantage.
countries
IBRD WTO GATT
New Investment in
Making investment is the Transfer of many type of
Property, planet and
mutual funds asset
equipment
To ensure balanced To ensure exchange rate
Peace Keeping
international trade stability

The theory of Absolute

Factor Endowment theory Mercantilist theory
Advantage

Factor Endowment theory Mercantilist theory Comparative cost theory

IMF and IFL IMF and IBRD IDA and IFL

Factor Endowment theory Mercantilist theory Comparative cost theory

Factor Endowment theory Mercantilist theory Comparative cost theory

Ad-valorem duty Revenue duty Specific duty

To provide financial To promote economic

To eradicate poverty
assistance growth
 increase in economic Utilisation of natural
R&D efforts enhanced.
activities resource

11th 12th 13th

United nations conference United nations conference on Union of nations cause for
on trade and deficit trade and development trade and development

FDI NRI Account all of the above.

FDI Balance of Payment SDR

FDI Balance of Payment SDR

Trade between regions Trade between countries (b) and (c) of above

Dependence on foreign Availability of cheap raw

Import of defence material
countries materials

Decrease No effect Double

Cooperation Hatred Both (a) & (b)

Reduces the volume of Has no effect on volume of
(a) and (c) of above
trade trade

Sale of goods abroad at low

Expensive goods selling for
Reducing tariffs a price, below their cost and
low prices
price in home market

Difference in political
Difference in markets Difference in ideology
systems
Limit on the amount of
Tax (b) and (c) of above
imported goods
Optimum utilisation of
Nations compete Cheaper goods
country's resources

Tariff rates are different Price ratios are different (a) and (c) of above

Different government
Immobility of factors All of the above
policies
They import value added
They export few goods (a) and (b) of above
goods

Decreased efficiency Increased efficiency Reduced real GDP

Frontier checks National currencies Reduced tariffs

 Producerrs get higher Quality of goods may be
All of the above
profits affected
Currency of the country is
Paper currency is not used (a) and (c) of above
freely convertible into gold
New technology comes to We can get foreign
People need not go abroad
the country currencies

Comparative bargain Comparative trade Comparative returns

Closed economy Independent economy None of the above

Risk Profit None of the above

Privatisation Socialisation Libralisation

Workers in developing People in developed

None of the above.
countries countries

FEMA FERA SEBI

Difficulty
Level

H
M

H
M

L
L

M
M

L
H