NCERT MCQ ON International Business-I :

Q.1 Which one of the following is not amongst India’s major trading partners?

(a) Germany
(b) New Zealand
(c) the UK
(d) the USA

Answer

(b) New Zealand


Q.2 A receipt issued by the commanding officer of the ship when the cargo is loaded on the ship is known as

(a) Cargo receipt
(b) Mate receipt
(c) Shipping receipt
(d) Charter receipt

Answer

(b) Mate receipt


Q.3 Which one of the following is not a document related to fulfilling the customs formalities

(a) Letter of insurance
(b) Shipping bill
(c) Export license
(d) Proforma invoice

Answer

(d) Proforma invoice


Q.4 Which one of the following is not a part of export documents?

(a) Commercial invoice
(b) Mate’s receipt
(c) Certificate of origin
(d) Bill of entry

Answer

(d) Bill of entry


Q.5 The document containing the guarantee of a bank to honour drafts drawn on it by an exporter is

(a) Letter of hypothecation
(b) Letter of credit
(c) Bill of exchange
(d) Bill of lading

Answer

(b) Letter of credit


Q.6 Which one of the following is not amongst India’s major export items?

(a) Textiles and garments
(b) Gems and jewellery
(c) Oil and petroleum products
(d) Basmati rice

Answer

(c) Oil and petroleum products


Q.7 Which one of the following modes of entry permits greatest degree of control over overseas operations?

(a) Licensing/franchising
(b) Wholly owned subsidiary
(c) Contract manufacturing
(d) Joint venture

Answer

(b) Wholly owned subsidiary


Q.8 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) Limited presence in foreign markets


Q.9 Outsourcing a part of or entire production and concentrating on marketing operations in international business is known as

(a) Licensing
(b) Franchising
(c) Contract manufacturing
(d) Joint venture

Answer

(c) Contract manufacturing


Q.10 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) Organization for Economic Co-operation and Development


Q.11 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) Letter of credit


Q.12 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) Shipping bill


Q.13 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 above

Answer

(c) Global trade rules


Q.14 Import trade procedure starts with

(a) Obtaining quota
(b) Arranging L.C
(c) Trade enquiry
(d) Placing Indent

Answer

(c) Trade enquiry


Q.15 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) Joint Ventures


Q.16 Select example of Indian Multinational Company

(a) Hindusthan Unilever
(b) Videocon
(c) Cargill
(d) Tesco

Answer

(b) Videocon


Q.17 ________is the payment method most often used in International Trade which offers the exporter best assurance of being paid for the products sold internationally.

(a) Bill of Lading
(b) Letter of Credit
(c) Open Account
(d) Drafts

Answer

(b) Letter of Credit


Q.18 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) Complementary products


Q.19 Which is not an Indian Multinational Company?

(a) Unilever
(b) Asian Paints
(c) Piramal
(d) Wipro

Answer

(a) Unilever


Q.20 ___________is the application of knowledge which redefines the boundaries of global business

(a) Cultural Values
(b) Society
(c) Technology
(d) Economy

Answer

(c) Technology


Q.21 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) Ohlin and Heckshery


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