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CBSE Questions for Class 11 Commerce Business Studies International Business Quiz 7 - MCQExams.com
CBSE
Class 11 Commerce Business Studies
International Business
Quiz 7
IMF acts as a __________ credit institution.
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long-term
0%
short-term
0%
both A & B
0%
neither A & B
The objective of IMF is to assist in the establishment of a multilateral system of payments in respect of current transaction between member countries.
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0%
True
0%
False
Explanation
One of the objective of IMF is to assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the elimination of foreign exchange restrictions which hamper the growth of world trade.
For international development of business enterprise, it should always take care of following points?
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Unnecessary controls on Industrial licensing, reduction in tax, rates, socio--cultural
0%
Reduction in tax, unnecessary controls on industrial licensing, shareholders
0%
Media, sociocultural, shareholders
0%
Unnecessary controls on industrial licensing, reduction in taxes, freedoms in fixing prices
Explanation
International development
or
global development
is a wide concept concerning level of
development
on an
international
scale. It is the basis for
international
classifications such as developed country,
developing
country and least developed country.
WTO is a successor to __________.
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IMF
0%
GATT
0%
ITO
0%
IMC
Explanation
World Trade Organization (WTO) is a successor to General Agreements on Tariffs and Trade (GATT).
Which of the following is not a major objective of the WTO?
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Increase international trade barriers
0%
Reduce international trade barriers
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Promote optimal use of world resources
0%
Create a more integrated trading system
Explanation
The major objectives of WTO is to reduce the trade barriers, promote optimal use of world resources, create a more integrated trading system.
In which meeting was the idea of the WTO first coined?
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Development of poor nations conference
0%
Bretton woods conference
0%
Distribution of wealth meet
0%
None of the above
Explanation
The Bretton Woods conference was the meeting which coined the idea of World Trade Organization (WTO) and International Monetary Funds (IMF).
A nation cannot borrow foreign currency from the IMF.
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0%
True
0%
False
Explanation
A nation can borrow foreign currency from the IMF. IMF is a short term credit institution i.e the money borrowed from the IMF has to be returned in a short period of time.
View that assumes that local managers in host countries know best how to run the operations is known as __________.
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Ethnocentric attitude
0%
Polycentric attitude
0%
Geocentric attitude
0%
International management.
Explanation
A local global
manager
is characterized by the nature of the work he or she does, typically within an organization with global operations, the worldwide functional local
managers
who help leverage knowledge and innovations across the key functional departments throughout the
organization.
The franchisee pays to the franchiser a sum off money called _______ for using his business know-how and trade mark.
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Trade balance
0%
Royalty
0%
Sales dues
0%
Account balance
Explanation
A
royalty
is a payment made by one party, the licensee or franchisee to another that owns a particular asset, the licensor or franchisor for the right to ongoing use of that asset.
Hence, B is the correct option.
It is used to collectively describe all commercial transactions i.e., private and governmental, sales investments, etc. that take place between two or more regions, countries and nations beyond their political boundary.
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International business
0%
Ordinary business
0%
Government business
0%
Political business
Explanation
International business
refers to cross-border
commerce
and other
business
transactions between governments or
companies
. Among other things, engaging in
international business
requires an understanding of the legal requirements and business
and trade regulations of the country in which you are doing
business.
India has signed a loan agreement of how much amount with the World Bank for strengthening the public financial management in Rajasthan project?
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$$\$ 25.0$$ million
0%
$$\$ 31.0$$ million
0%
$$\$ 21.7$$ million
0%
$$\$ 23.8$$ million
Explanation
India has signed a loan agreement with the World Bank (WB) for $21.7 million for strengthening the public financial management in Rajasthan project in New Delhi on May 29, 2018. The objective of the project is to contribute to improved budget execution, enhanced accountability and greater efficiency in revenue administration in Rajasthan.
It involves strengthening of the Public Financial Management Framework; strengthening of expenditure and revenue systems; and project management and capacity building among others. The project size is approximately $31 million, of which $21.7 million will be financed by the World Bank, and remaining amount will be funded out of the state budget. The project duration is 5 years.
Presently Industrial Licensing is not applicable for ___________.
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Ship Building
0%
Hazardous Chemicals
0%
Cigarettes
0%
Electronic Aerospace and Defence Equipment
Explanation
It normally takes place in a specialized facility known as a shipyard. Ship builders, also called shipwrights, follow a specialized occupation that traces its roots to before recorded history.
Under which strategy, a firm tries to redefine the business, enter new businesses, that are related or unrelated or look at its product portfolio more intensely?
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Diversification Strategy
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Expansion Strategy
0%
Divestment Strategy
0%
Market Penetration
Explanation
The
Expansion Strategy
is adopted by an organization when it attempts to achieve a high growth as compared to its past achievements.
Which international agency has Trade Review Mechanism and looks after Multilateral Trade Agreements?
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IBRD
0%
IMF
0%
WTO
0%
All of the above
Explanation
The term multilateral trade negotiations initially applied to negotiations between General Agreement on Tariffs and Trade member nations conducted under the auspices of the GATT and aimed at reducing tariff and non tariff trade barriers. In 1995 the World Trade Organization replaced the GATT as the administrative body.
Reliance on other countries and international organizations for financial support is called ___________.
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0%
foreign loan
0%
international borrowing
0%
external debt trap
0%
external assistance
View that assumes home country's personnel and ways of doing things are best is known as ____________.
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0%
Ethnocentric attitude
0%
Polycentric attitude
0%
Geocentric attitude
0%
International management
Explanation
This
ethnocentric attitude
stems from the belief that the parent-country nationals are best suited to run the business.
The government has progressively moved towards a uniform basic excise rate of _______ but exemptions and surcharges still affect the actual rate.
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4%
0%
16%
0%
10%
0%
20%
The franchiser can expand his distribution system in the least possible time.
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True
0%
False
0%
Partly true
0%
None of the above
Explanation
Franchising is based on a marketing concept that can be adopted by an organization as a strategy for business expansion. Where implemented, a franchiser licenses its know-how, procedures, intellectual property, use of its business model, brand; and rights to sell its branded products and services to a franchisee.
Hence, the above statement is true.
Franchising enables the franchiser to increase his ____________
by expanding his network.
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Goodwill
0%
Reputation
0%
Both (a) and (b)
0%
Neither (a) nor (b)
In the absence of international trade, an increased standard of living would not have been easily possible.
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0%
True
0%
False
Explanation
In general, international trade allows countries to focus on the industries in which they can be most productive and efficient. It ensures more production to meet the demand of the people of different countries. Imports enable people to use those goods which they were not able to use earlier.
_______ is chargeable from companies engaged in production of goods at applicable tariffs.
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Custom duty
0%
Excise duty
0%
Value assed tax
0%
Sales tax
Which among the following is/are the benefit(s) that international trade brings to nation?
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Earning of foreign exchange
0%
More efficient use of resources
0%
Improving growth prospects and employment potentials
0%
All of the above
West Bengal specializes in production of _________.
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texties
0%
jute
0%
oil
0%
pearl
Explanation
Jute
being crop is an important source of income of growers of
West Bengal
. In
jute
cultivation requires a considerable amount of cash investment, an average grown has to face a number of socio-economic and technological problems. A study was conducted on adoption of
jute production
technology in
West Bengal
.
Trade between two countries can be useful if cost ratios of goods are ______.
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Equal
0%
Different
0%
Undetermined
0%
Decreasing
Explanation
Trade between two
or more
countries
is called foreign
trade
or international
trade
. This involves the exchange of goods and services
between
the citizens of
two countries
.
Trading
globally gives consumers and
countries
the opportunity to be exposed to goods and services not available in their own
countries
.
The individual or firm which grants right is called_________.
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Franchisee
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Franchiser
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Consignor
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Consignee
Explanation
A
franchisor
is a person or company that grants the license to a third party for the conducting of a business under the
franchisor's
marks. The
franchisor
owns the overall rights and trademarks of the company and allows its franchisees to use these rights and trademarks to do business.
All major decisions are made by the membership as a whole, either by ministers who usually meet _____ or by their ambassadors or delegates.
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0%
at least twice every two years
0%
each year
0%
at least once every two years
0%
when requied
A _______ is a form available through a consular representative of the country youre shipping to and it certifies the shipment of goods.
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commercial Invoice
0%
certificate of manufacturer
0%
consular invoice
0%
dock receipt
By which of the following methods a Company Secretary can be removed from his post?
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By passing a resolution in Board Meeting
0%
By order of Registrar of Companies
0%
By passing a resolution in Annual General Meeting
0%
None of the above
It can be said that international trade is the result of unequal distribution of natural resources among countries or differences in their productivity levels.
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0%
True
0%
False
Explanation
International trade
is the exchange of capital, goods, and services across
international
borders or territories. In most countries, such
trade
represents a significant share of gross domestic product (GDP).
Hence, the above statement is true.
One of the major objectives of the WTO is _________.
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Holding consultations with IMF and IBRD and its affiliated agencies.
0%
To promote an integrated, more viable and durable trading system.
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Ensuring that all the rules regulations prescribed in the Act are duly followed by the member countries for the settlement of their disputes.
0%
The system encourages good government.
Explanation
The major objectives of the WTO are:
1:To set and execute rules for international trade.
2:To present a panel for negotiating and controlling additional trade liberalization.
3:To solve trade conflicts.
4:To improve the clarity of decision-making methods.
Hence one of the major objectives of the WTO is to promote an integrated, more viable and durable trading system.
So option b is the correct answer.
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