International Business Test

Result

International Business Test - 12

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Weekly Quiz Competition

Question 1
1 / -0

Export Marketing Fund is set up by ____________.

A
The IMF

B
The IBRD

C
The ADB

D
The EXIM Bank

Solution

Export marketing fund was set up by the EXIM(Export-Import Bank of India) in the year 1986.
Hence, option (D) is the correct answer.
Question 2
1 / -0

The authorised capial of EXIM Bank is ______________.

A
Rs.50 crores

B
Rs.100 crores

C
Rs.150 crores

D
Rs.200 crores
Question 3
1 / -0

India abolished the quantitative restrictions on imports of 1429 items in the years 2000 and 2001 as per the commitment to which of the following?

A
South Asian Free Trade Area (SAFTA) Agreement

B
General Agreement on Tariffs and Trade (GATT)

C
World Trade Organisation (WTO)

D
Non Aligned Movement
Solution
- India abolished the quantitative restrictions on imports of 1429 items in 2000 and 2001 as per the commitment to WTO.
- Following the announcements in the Export Import (EXIM) policies, various changes were effected such as the removal of quantitative restrictions, strengthening the export production base, removal of procedural bottlenecks, technological upgradation and improvement of product quality.
- As per India’s commitment to the World Trade Organisation (WTO), India agreed to the phased removal of all balance-of-payments (BoP) related quantitative restrictions by end-March 2001.
Question 4
1 / -0

Which one is not the source of external finance?

A
WTO Funds

B
World Bank Group

C
Export Credit

D
Foreign Direct Investment

Solution

The sources for external finances that are available are export credit, world bank group, foreign direct investment. The WTO funds are not a source of external finances.
Question 5
1 / -0

A debit balance of payments occurs due to which of the following?
i) Low imports and high exports
ii) High imports and low exports

A
Both (i) and (ii) are correct

B
Both (i) and (ii) are incorrect

C
Only (i) is correct

D
Only (ii) is correct

Solution

A debit balance of payment occurs due to low imports and high exports and when there are high imports and low exports. It also depends on the value f the exports and imports.
Question 6
1 / -0

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
Contract Manufacturing

B
Franchising

C
Joint Ventures

D
Licensing

Solution

Joint venture is a business entity formed by two or more entities that agree to share ownership, profits, losses, risk and governance or control.
Joint ventures are usually taken up for capturing the new emerging markets, to share the risks where a huge amount of investment is involved and to achieve scale efficiency by uniting the assets and the operations.
Joint venture has a separate legal identity distinct from the identity of the entities that have formed it.
Question 7
1 / -0

Which one is not an objective of IMF?

A
To promote international monetary cooperation

B
To ensure balanced international trade

C
To finance productive efforts according to peace-time requirement

D
To ensure exchange rate stability

Solution

The objectives of Intentional Monetary Funds are to ensure the balanced international trade, to finance productive efforts according to peace-time requirement, to ensure stability of foreign exchange. To promote international monetary cooperation is not an objective of IMF.
Question 8
1 / -0

In which of the following modes of the 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?

A
Licensing

B
Contract manufacturing

C
Joint venture

D
None of the above

Solution

Licensing agreement is a legal contract entered by two parties where the owner of the intellectual, real or personal property gives the other party the right to use it for a consideration. The owner is known as the Licensor, the person using it as the Licensee and the consideration as the License Fee.
Question 9
1 / -0

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

A
Licensing

B
Franchising

C
Contract Manufacturing

D
Joint Venture
Question 10
1 / -0

Which of the following is not an advantage of exporting?

A
Easier way enter into international markets

B
Comparatively lower risks

C
Limited presence in foreign markets

D
Less investment requirements

Solution

Exporting typically means sending goods to foreign market for selling purpose. Export firms operate from their home country and hence have limited presence in the foreign country which makes it a disadvantage for them.

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Re-Attempt Weekly Quiz Competition

International Business Test - 12

Result

International Business Test - 12

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Rank

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SHARING IS CARING

Question 1

The IMF

The IBRD

The ADB

The EXIM Bank

Solution

Question 2

Rs.50 crores

Rs.100 crores

Rs.150 crores

Rs.200 crores

Question 3

South Asian Free Trade Area (SAFTA) Agreement

General Agreement on Tariffs and Trade (GATT)

World Trade Organisation (WTO)

Non Aligned Movement

Solution

Question 4

WTO Funds

World Bank Group

Export Credit

Foreign Direct Investment

Solution

Question 5

Both (i) and (ii) are correct

Both (i) and (ii) are incorrect

Only (i) is correct

Only (ii) is correct

Solution

Question 6

Contract Manufacturing

Franchising

Joint Ventures

Licensing

Solution

Question 7

To promote international monetary cooperation

To ensure balanced international trade

To finance productive efforts according to peace-time requirement

To ensure exchange rate stability

Solution

Question 8

Licensing

Contract manufacturing

Joint venture

None of the above

Solution

Question 9

Licensing

Franchising

Contract Manufacturing

Joint Venture

Question 10

Easier way enter into international markets

Comparatively lower risks

Limited presence in foreign markets

Less investment requirements

Solution

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