International Business MCQ with answers pdf

The most important International Business MCQ are layout in this post.

In this blog post, 22 Multiple Choice Questions on International Business with answers are written. If you find any discrepancies, please comment below.

International Business MCQ with answers

1. _______ holds that there are advantages to trade because different countries can produce different goods more efficiently than others.

 The theory of absolute advantage

 The tradable goods theory

 The product life cycle theory

 A favorable balance of trade

2. The form of government whereby a single person, political party, or organized group controls many if not all facets of life in the nation is called a _____ system.





3. Ultimately ………………was replaced by the …………….on 1st Jan 1995





4. Which of the following best defines international business?

 It includes all economic flows between two or more countries.

 It includes all private economic flows between two or more countries.

 It includes all business transactions involving two or more countries, whether the transactions are conducted by private or governmental organizations.

 It includes all business transactions in countries other than your home country.

5. The first phase of globalization started around 1870 and ended with _______.

  World War I

 World War II

 The Establishment of GATT

In 1913 when GDP was high

6. Which is the right sequence of stages of Internationalization?

 Domestic, Transnational, Global, International, Multinational

 Domestic, International, Multinational, Global, Transnational

 Domestic, Multinational, International, Transnational, Global

 Domestic, International, Transnational, Multinational, Global

7. Ultimately ______ was replaced by the ______ on 1st Jan 1995.





8. ______ is the application of knowledge which redefines the boundaries of global business.

 Cultural Values




9. Globalization refers to ______.

 Lower incomes worldwide

 Less foreign trade and investment

 Global warming and their effects

 A more integrated and interdependent world

10. In which of the following modes of 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


 Contract manufacturing

 Joint venture

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



 Contract manufacturing

 Joint venture

12. 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

 Contract manufacturing


 Joint ventures


13. Which of the following is not an advantage of exporting?

 Easier way to enter international markets.

 Comparatively lower risks

 Limited presence in foreign markets

 Less investment requirements

14. Multinational National Corporations have a world management based on………..





15. Which among these is Monopolistic Trade Practices?

 Manufacturing only one product.

 Selling only one product.

 Limiting technical development.

 Unreasonably limiting competition.

16. The migration of employable workers from low-paying nations to high-paying nations tends to decrease.

 Total wage income in the world.

 Wage disparities.

 Business or Capitalist income in the World.

The productivity of labour.

17. Firm’s undertake multinational operations to………….

 Hire low-income workers.

 Manufacture in nations they have difficult exporting to.

 Obtain necessary factor inputs.

 All the above.

18. _______refers to relaxation of produce government restrictions usually in areas of social and economic policies.





19. Privatization can be achieved by.




 All of these.

20. The Foreign Trade Policy has…………….

 Identified certain thrust areas for growth.

 Started ‘served from India abroad’.

 Started duty free export credit.

 All above.

21. Disinvestment means selling of a public investment to a…………

 Private Enterprise.

 Public Enterprise.

 Capital Market.

 Departmental Enterprise.

22. Liberalization means.

 Free determination of interest rates.

 Liberating the industry, trade, and economy from unwanted restrictions.

 Opening of economy to the world by attaining international competitiveness.

 Reducing number of reserved industries from 17 to 8.

In this post, we pasted 22 MCQs on International Business Environment with answers.

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