International Business - I(11th Grade > Business Studies ) Questions and Answers

Question 1.


Customers are not homogeneous in the international market due to the different religion, caste, languages and so on. 


  1.     True
  2.     False
Explanation:-
Answer: Option A. -> True
:
A

True. Customers across the world are from different religions and cultural backgrounds. Moreover, their tastes and preferences also vary. 


Question 2.


There is involvement of more than one currency in which of the following trade:


  1.     Domestic trade
  2.     International trade
  3.     Internal trade
  4.     None of the above
Explanation:-
Answer: Option B. -> International trade
:
B

International trade involves buying and selling of different goods and services across the world, which in turn involves purchase and sale of different international currencies.


Question 3.


In liberalised economies, international trade is not subject to policies and regulations and can be carried out freely. 


  1.     True
  2.     False
Explanation:-
Answer: Option B. -> False
:
B

False. International trade is always subject to various government regulations, policies, and tax regimes all over the world. 


Question 4.


International trade takes place because of unequal distribution of resources.


  1.     True
  2.     False
Explanation:-
Answer: Option A. -> True
:
A

True. There are certain things that each country can produce efficiently. A country can produce a surplus of those products or services and export them to other countries. Similarly, it can import the goods or services which it is deficient in. This pattern of expertise based on uneuqal distribution of resources provides a strong incentive for international trade.


Question 5.


The cost of production in the developed economy is ___ than the cost of production in developing countries.


Explanation:-
Answer: Option A. -> True
:
Question 6.


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:


  1.     Licensing 
  2.     Contract manufacturing 
  3.     Joint venture
  4.     None of these
Explanation:-
Answer: Option A. -> Licensing 
:
A

In licensing, the domestic manufacturer gives the right to use intellectual property such as patent and trademark to a manufacturer in a foreign country for a fee.


Question 7.


Which one of the following modes of entry requires higher level of risks?


  1.     Licensing 
  2.     Franchising 
  3.     Contract manufacturing 
  4.     Joint venture 
Explanation:-
Answer: Option D. -> Joint venture 
:
D

Joint venture requires higher level of risks. 


Question 8.


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


  1.     Licensing 
  2.     Franchising 
  3.     Contract manufacturing 
  4.     Joint Venture
Explanation:-
Answer: Option C. -> Contract manufacturing 
:
C

Contract manufacturing refers to outsourcing a part of or entire production and concentrating on marketing operations in international business. 


Question 9.


Which of the following is not an advantage of exporting?


  1.     Easier way to enter into international markets 
  2.     Comparatively lower risks 
  3.     Limited presence in foreign markets 
  4.     Less investment requirements 
Explanation:-
Answer: Option C. -> Limited presence in foreign markets 
:
C

Limited presence in foreign markets is not an advantage of exporting.


Question 10.


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___ . 


  1.     Contract manufacturing 
  2.     Franchising 
  3.     Joint Ventures 
  4.     Licensing 
Explanation:-
Answer: Option C. -> Joint Ventures 
:
C

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 joint venture.


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