International Business Environment MCQ with Answers
International Business Environment MCQ Multiple Choice Questions with answers, these notes are useful for the preparation of various competitive and academic exams like UGC, NET, BCOM, MCOM, MBA, BBA and many other regular and distance education exams. International Business Environment MCQ Multiple Choice Questions. International Business Environment MCQ Multiple Choice Questions with answers are available here:- Join Our Telegram Channel
- Geographical indications specify
A. Place of origin of goods.
B. Special characteristics of the product associated with the place of origin.
C. Place and special characters of the product.
D. Place or special characters of the product.
ANSWER: C
2. Business across several countries with some decentralization of management decision making to subsidiaries is
A. International business.
B. Multinational business
3. By entering into international business, a firm expects an improvement in
A. Marketing.
B. All spheres of marketing, operation and finance simultaneously.
C. Any or all spheres of marketing, operation and finance.
D. Finance only.
ANSWER: C
4. By having business in different countries, a firm reduces
A. credit risk.
B. political risk.
C. financial risk.
D. business risk.
ANSWER: B
5. Wholly owned subsidiary can be set up
A. as a Greenfield venture.
B. to acquire an existing firm.
C. to have products marketed overseas.
D. to have management is overseas.
ANSWER: A
6. The essential feature of FDI is
A. Investment of very high value.
B. Investment in shares.
C. Investor’s influence on the management of the enterprise.
D. Investment of low value.
ANSWER: C
7. No new investment in the host country is created in the case of
A. Greenfield FDI.
B. Acquisition.
C. Horizontal FDI.
D. Vertical FDI.
ANSWER: B
8. A firm investing in a foreign country to distribute the products therein creation of
A. Asset seeking FDI.
B. Backward vertical FDI.
C. Forward vertical FDI.
D. Distribution FDI.
ANSWER: C
9. The disadvantages of Greenfield FDI as compared to acquisition is
A. Profit will be less.
B. Size of investment will be high.
C. Lesser control in management.
D. Delay in the establishment.
ANSWER: D
10. Conglomerate FDI refers to
A. FDI made by a group of firms.
B. FDI made in subsidiaries.
C. FDI made in similar products.
D. FDI made in unrelated products.
ANSWER: D
