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:-
21. For a country with a relatively lower level of cost of living PPP per capita GNI will be
A. lower than per capita GNI.
B. higher than per capita GNI.
C. same as per capita GNI.
D. may be lower or higher than per capita GNI.
ANSWER: B
22. In a business cycle, the phase preceding prosperity is
A. recession.
B. depression.
C. recovery.
D. recession or depression.
ANSWER: C
23. Monetary policy relates to controlling
A. money supply.
B. money supply and interest rate.
C. money supply, interest rate and exchange rate.
D. credit creation by banks.
ANSWER: C
24. Analysing the business environment best assists in
A. Identifying key competitive forces; identifying competitive position; identifying key opportunities, threats, strengths and weaknesses.
B. Auditing macro-environmental influences; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.
C. Auditing external and organisational factors; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.
D. Assessing historical trends; auditing environmental dangers; identifying strategic capabilities; identifying competitive position.
ANSWER: B
25. In relation to the PESTEL framework, which of the following statements is correct?
A. It assists in the assessment of organisational strengths and weaknesses.
B. It allows a detailed analysis of the structure of an industry.
C. It can be used as a checklist to understand the different environmental influences in the macro-environment.
D. Takes a historical perspective on the main political, economic, sociocultural, technological, environmental and legal factors.
ANSWER: C
26. The following factors are key drivers of Internationalisation
A. Government action, exchange rates, competition and sociodemographic factors.
B. Market convergence, competition, exchange rates and cost advantages.
C. Cost advantages, government action, economic cycles and competition.
D. Market, cost, competition and government policies.
ANSWER: D
27. Scenarios are used to
A. Develop a long term view of strategy.
B. Build plausible views of different possible futures and develop a long term view of strategy.
C. Identify key drivers of change Retaliation.
D. Low switching costs for buyers.
ANSWER: A
28. The threat of substitutes may be high if
A. Switching costs are of concern to the customer.
B. The substitute product provides a higher perceived value or benefit.
C. The substitute product does not provide enhanced functionality, reduced cost and better quality.
D. Customers have strong existing brand loyalty.
ANSWER: B
29. Buyers can exercise high bargaining power over their suppliers if
A. The volume they buy accounts for a large percentage of their suppliers’ sales.
B. There are few buyers in the market.
C. They have many suppliers to choose from.
D. There is a high concentration of suppliers.
ANSWER: A
30. Assessment of competitive rivalry does NOT include an understanding of
A. The extent to which competitors are in balance.
B. Market growth rates.
C. Fixed costs, exit barriers and operational efficiency.
D. The management structure of an organisation.
ANSWER: D
