. McDonald’s is an example of a) Ethnocentric b) Polycentric c) Regio-centric d) Geocentric policy 2. Economic progress is an effect of a) innovation b) Right political system c) entrepreneurship d) all of the above 3. A mix of techniques to transfer liquid funds from a foreign subsidiary to the parent company without piquing the host country is called a) unbundling b) transferring c) translation d)remittance 4. single European act committed members to: a) to work for self-benefit b) to work for establishment of multiple market c) to work for establishment of single market d) none of the above 5. the body that lays down the framework for multilateral trading is a) IMF b) WTO c) GATT d) IBRD 6. The cost of a basket of goods in one country is comparable to that of a basket of goods in another. This is the law of a) purchasing power b) differentiation c) inflation theory d) one price 7. Karl Marx practiced the following way of leadership: a) individualism b) collectivism c) capitalism d) socialism 8. the reasons for economic integration: a) have greater co-operation b) maintain national sovereignty c) economic enhancement d) reduce conflict 9. the culture of personal achievements can be attributed to: a) religion b) education c) political philosophy d) economic philosophy 10. free trade means: a) only non-tariffs are implemented b) member countries allow movement of factors c) member countries will have no tariff among themselves d) reduced tariff 11. India’s economic progress is due to: a) mixed economy b) shift towards market economy c) capitalism d) none of the above 12. theory of absolute advantage was given by: a) David Hume b) David Ricardo c) Adam smith d) Heckscher 13. Indian software exports are explained by: a) mercantilism b) theory of absolute advantage c) factor-properties theory d) theory of comparative cost advantage 14. global brands are produced in: a) one country b) one region c) different countries d) none of the above 15. globalization is driving the world towards greater prosperity and growth. a) neither agree nor disagree b) completely disagree c) completely agree d) agree to some extent 16. globaloisation is: a) shift away from local economy b) shift of trade towards integrated independent economy c) global trading d) world business activity 17. increased international trade & investment will result in lower prices for consumers a) will result in globalisation b) agree to some extend c) completely agree d) disagree 18. presence of domestic rivalry improves competitiveness for a company so that they increase their global shape a) agree to little extend b) enemy country takes our place because of our domestic rivalry c) do not agree completely d) completely agree 19. tribal totalitarianism can be found dominantly in: a) Asian countries b) African countries c) east European countries d) middle east countries 20. a direct restriction imposed by importing nation on the quantity imported is called a) import restriction b) import quota c) state intervention d) administrative policy 21. the FDI of one country became dominant after 1980’s: a) Japan b) USA c) Germany d) UK 22. the local demand conditions, according to porter, leads to competitive advantage because of: a) economy of scale b) higher output c) safe markets d) continues improvement of quality 23. regional economic integration refers to: a) trade restrained to only one geographical region b) one region exporting to another by pooling its resources c) one region pooling in finance to import from another region d) one region coming together for reduction and removal of tariffs and free flow 24. transnational MNC’s decisions are: a) centralized b) shared c) decentralized d) localized 25. factor proportion theory emphasizes the basis of trade as: a) emphasis on factor endowment b) emphasis on cost of production c) availability of capital structure d) none of the above 26. investment in a foreign land in a similar business or industry is called a) foreign portfolio investment b) foreign exchange c) horizontal FDI d) vertical FDI 27. communist, theocratic, tribal and right wing are examples of a) totalitarianism b) democracy c) socialism d) capitalism 28. intellectual property rights are a) protecting only scientific innovation b) only protecting patent act c) protecting only intelligence of people d) patent act, copy right and trade mark act 29. in strategic alliance, a company a) merges with others b) buys out new ventures c) join hands to reduce competition d) acquires another company 30. a letter of credit is a) a bill exchange “the value of payments to be made” b) a document of title of goods with the amount of payment to be made to exporter” c) a bank guaranty assuring payment d) a letter asking for credit from exporter 31. the future economy hub will be Asian countries a) agree completely b) somewhat agree c) agree to great extent d) disagree 32. a combination of local responsiveness with global efficiency is called a) globalization b) multinational c) transnational d) multi domestic strategy 33. in the new trade theory, world demand will support only few competitors a) agree to some extent b) world demand will support only quality products c) completely agree d) do not agree completely 34. The country known for solid engineering a) Germany b) Sweden c) Finland d) Japan 35. Individual societies have economically progressed because a) Political system committed to free market b) Political system c) Political freedom d) None of the above 36. International MNCs operations are a) Region centric b) Geo centric c) Ethno centric d) Poly centric 37. Channel Length refers to the length or number of a) Retailers b) Dealers c) Intermediaries d) Wholesalers between producer and consumer 38. According to David Ricardos Theory, we should import those goods in which a) We enjoy cost advantage b) We have scarcity in the country c) We have price advantage d) We do not enjoy cost advantage comparatively 39. In the theory of product life cycle as the products mature (maturity stage) in the market, the production base is shifted. a) do not agree completely b) completely agree c) agree to some extent d) in the decline stage and not maturity stage 40. in the new trade theory, world demand will support only few competitors. a) agree to some extent b) world demand will support only quality product c) completely agree d do not agree completely 41. the central bank for issuing euro currency is a) ECB b) London Bank c) Paris Bank d ABN-AMRO Bank 42. Japans domination in automobile industry is mainly because of a) price advantages b) focus on continuous improvements c) focus on technology d) all of the above 43 joint venture outside the country is a concept of a) FDI b) strategic alliance c) fil d none of the above 42. the local demand conditions, according to porter, leads to competitive advantage because of a) economy of scale b) higher output c) safe markets d) continues improvement of quality 43. an alternative means of structuring an international sale when conventional means of payment are difficult, costly or nonexistent is called a) trade restructuring b) modern trade strategy c) counter trade d) alternative trade 44. Dollar deposited in European banks is called a) US currency b) US dollar c) Euro dollar d) Euro currency 45. the porter’s diamond model, the advanced factors are competitive advantage a) completely disagree b) agree to little extent c) advanced factors lead to industry rivalry d) completely agrees 46. global MNC’s mentality is a) unified global market b) independent decision centres c) extension of operatives d none of the above 47. Can between a parent and subsidiary is channeled through a financial intermediary (bank). This process is called a) internal transfer b) ad valorem c) fronting loan d remittance 48. the Andean community was formed by Bolivia, Chilie, Columbia, Peru and a) France b) Argentina c) Ecuador d Brazil 49. Globalization is taking place predominantly in a) industrial markets b) technology markets c) service markets d) consumer markets 50. a document issued to the exporter that the bank will pay a certain sum to him on presentation of the same, is called: a) exporting license b) letter of credit c) bill of lading d) draft 51. which is not a form of counter trade a) counter purchase b) buybacks c) barter d) none of the above 52. world over, the quality standards followed are a) European quality standards b) Indian quality standards c) American quality standards d) Japanese quality standards 53. economic union required a) use of common currency and common money b) only a common external trade policy c) co-ordination of political apparatus with form states d) all of the above 54. a multinational national enterprise (MNE) is: a) company having productive activities in two countries b) country having business in all the countries c) company having activities in a foreign country d) none of the above 55. collectivism has failed because of: a) state directed economic system b) common basic system c) fixed economic system d) none of the above 56. Chinas economy is driven by manufacturing sector. The theory which explains their growth is: a) theory of absolute advantage b) comparative cost advantage c) factor-proportion theory d) product lifecycle
