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International Business Test - 4

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International Business Test - 4
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Weekly Quiz Competition
  • Question 1
    1 / -0

    Trade between people of many countries is called as ______.

    Solution

    International trade is the exchange of capital, goods, and services across international borders or territories. It is the exchange of goods and services among nations of the world.

  • Question 2
    1 / -0

    Import trade procedure starts with______________.

    Solution

    Trade enquiry is a written request by an importer to the exporter for supply of required information. Import trade procedure starts with Trade enquiry.

  • Question 3
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    To avoid disputes exchanges rates are fixed in advance preferably at time of:

    Solution

    The import order should be carefully drafted so as to avoid any ambiguity and consequent conflict between the importer and exporter.

  • Question 4
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    The method of obtaining payment from the importer is:

    Solution

    The method of obtaining payment from the importer will depend on the contract entered into between the exporter and the importer. Payment can be obtained through various methods like:

    1. By getting Letter of Credit

    2. By Foreign Draft

    3. By getting bill of exchange and discounting the bills

    4. Bank Draft etc..

  • Question 5
    1 / -0

    W.T.O is the only organization dealing with the:

    Solution

    The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.

  • Question 6
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    The main reason behind international business is that the ___________.

    Solution

    The prime reason behind this radical change is the development of communication, technology, infrastructure etc. Emergence of newer modes of communication and development of faster and more efficient means of transportation have brought nations closer to one another.

  • Question 7
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    The degree of mobility of factors of production like labour and capital is relatively more within in _________.

    Solution

    The degree of mobility of factors of production like labour and capital is relatively more within a country. Domestic markets are relatively more homo- geneous in nature. Business systems and practices are relatively more homogeneous within a country.

  • Question 8
    1 / -0

    Foreign investment can be of two types:

    Solution

    Foreign investment can be of two types: The two types are: (1) Foreign Portfolio Investment, and (2) Foreign Direct Investment.

  • Question 9
    1 / -0

    Permitting another party in a foreign country to produce and sell goods under your trademarks, patents or copy rights in lieu of some fee is another way of entering into international business. This is through _________

    Solution

    Under a franchise, the owner (franchisor) retains control of the brand and licenses (that is, grants permissions to) the franchisee to use its successful business model and brand. In exchange, the franchisee puts up the initial capital for the business, helps to promote the brand and pays a licencefee.

  • Question 10
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    ___________ is an investment that a company makes into another company by the way of acquiring shares or providing loans to the latter, and earns income by way of dividends of interest on loans.

    Solution

    A portfolio investment is an investment made by an investor who is not involved in the management of a company. This is in contrast to direct investment, which allows an investor to exercise a certain degree of managerial control over a company.

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