International Business, WTO, Financial Institutions, and IT in Management
SECTION A – INTERNATIONAL BUSINESS AND GLOBALIZATION
1. International Business refers to:
A. Business transactions that occur within one country
B. Business transactions that cross national borders
C. Government trade only
D. None
Answer: B
Explanation: International business includes trade, investment, and other commercial activities across countries.*
2. The major driver of globalization is:
A. Technological innovation
B. Tariff barriers
C. Bureaucracy
D. Protectionism
Answer: A
3. Which of the following is not a characteristic of globalization?
A. Free flow of goods and services
B. Integration of markets
C. Protectionism and isolation
D. Flow of information
Answer: C
4. A firm’s internationalization begins with:
A. Domestic sales
B. Exporting
C. Mergers
D. Outsourcing
Answer: B
5. The globalization of production means:
A. Sourcing goods and services from worldwide locations
B. Exporting only
C. Manufacturing domestically
D. Selling globally only
Answer: A
6. Globalization leads to:
A. Increased interdependence among nations
B. Less competition
C. Reduced trade
D. None
Answer: A
7. Which of the following is an example of a global firm?
A. Coca-Cola
B. State Bank of India
C. Local co-operative
D. None
Answer: A
8. Outsourcing is:
A. Subcontracting business functions to external providers
B. Hiring permanent staff
C. In-house production
D. None
Answer: A
9. The term “Glocalization” means:
A. Think globally, act locally
B. Act globally, think domestically
C. Ignore local needs
D. None
Answer: A
10. Which of the following is a challenge of globalization?
A. Cultural diversity and competition
B. Access to new markets
C. Free flow of technology
D. Economic growth
Answer: A
🔹 SECTION B – THEORIES OF INTERNATIONAL TRADE
11. The theory of Absolute Advantage was given by:
A. David Ricardo
B. Adam Smith
C. Eli Heckscher
D. Michael Porter
Answer: B
12. Comparative Advantage theory is based on:
A. Opportunity cost
B. Equal efficiency
C. Exchange rate
D. Labour theory only
Answer: A
13. Heckscher–Ohlin theory explains trade on the basis of:
A. Factor endowment
B. Absolute cost
C. Product differentiation
D. Exchange rate
Answer: A
14. The Leontief paradox contradicted:
A. Heckscher–Ohlin theory
B. Mercantilism
C. Comparative advantage
D. Product life cycle theory
Answer: A
15. Product Life Cycle Theory was given by:
A. Raymond Vernon
B. Michael Porter
C. Paul Krugman
D. David Ricardo
Answer: A
16. According to Product Life Cycle Theory, production moves to developing countries in:
A. Standardization stage
B. Introduction stage
C. Growth stage
D. Decline stage
Answer: A
17. Porter’s Diamond model includes all except:
A. Demand conditions
B. Factor conditions
C. Cultural barriers
D. Firm strategy and rivalry
Answer: C
18. Mercantilists believed that:
A. Exports should exceed imports
B. Imports should exceed exports
C. Trade balance doesn’t matter
D. None
Answer: A
19. Comparative advantage suggests:
A. Mutual benefits from specialization
B. Protectionism
C. Equal output across nations
D. None
Answer: A
20. The modern trade theories emphasize:
A. Innovation and economies of scale
B. Gold reserves
C. Colonial control
D. None
Answer: A
🔹 SECTION C – BALANCE OF PAYMENTS (BoP)
21. Balance of Payments is a record of:
A. All economic transactions between a country and the rest of the world
B. Only visible trade
C. Only imports and exports
D. None
Answer: A
22. The Current Account includes:
A. Trade in goods and services
B. Loans and investments
C. Reserve changes
D. None
Answer: A
23. The Capital Account records:
A. Foreign investments and loans
B. Merchandise exports
C. Transfer payments
D. None
Answer: A
24. BoP surplus means:
A. Inflows exceed outflows
B. Outflows exceed inflows
C. No balance
D. None
Answer: A
25. Persistent BoP deficit leads to:
A. Depletion of foreign exchange reserves
B. Increase in exports
C. Currency appreciation
D. None
Answer: A
26. Devaluation of currency helps in:
A. Making exports cheaper
B. Making imports cheaper
C. Reducing exports
D. None
Answer: A
27. Official reserve account records:
A. Transactions of central bank in foreign exchange
B. Private capital flows
C. Transfers
D. None
Answer: A
28. Invisible items in BoP refer to:
A. Services and transfers
B. Physical goods
C. Machinery only
D. None
Answer: A
29. Capital flight means:
A. Sudden withdrawal of foreign capital
B. Import boom
C. Export subsidy
D. None
Answer: A
30. A surplus in current account with deficit in capital account indicates:
A. Net balance depends on magnitude of both
B. Overall surplus always
C. Always deficit
D. None
Answer: A
🔹 SECTION D – FOREIGN DIRECT INVESTMENT (FDI)
31. FDI involves:
A. Long-term investment with control in foreign business
B. Portfolio investment only
C. Buying bonds
D. None
Answer: A
32. Greenfield FDI means:
A. Setting up new facilities from scratch
B. Acquiring existing foreign companies
C. Portfolio purchase
D. None
Answer: A
33. Horizontal FDI refers to:
A. Same industry abroad as home country
B. Different industry
C. Raw material industry
D. None
Answer: A
34. Vertical FDI refers to:
A. Investment in supply chain industries abroad
B. Same product
C. Service industry
D. None
Answer: A
35. FDI benefits the host country by:
A. Bringing capital, technology, employment
B. Reducing competition
C. Restricting exports
D. None
Answer: A
36. A potential cost of FDI is:
A. Repatriation of profits
B. Technology transfer
C. Employment generation
D. None
Answer: A
37. Determinant of FDI inflow:
A. Market size, infrastructure, political stability
B. Isolation and tariff barriers
C. None
Answer: A
38. Joint ventures involve:
A. Shared ownership between foreign and local partners
B. 100% ownership
C. Licensing
D. None
Answer: A
39. Portfolio investment differs from FDI as:
A. It lacks control and is short-term
B. It ensures management control
C. It is only in bonds
D. None
Answer: A
40. FDI in India is regulated under:
A. FEMA, 1999
B. MRTP Act
C. Companies Act
D. None
Answer: A
🔹 SECTION E – WTO AND MULTILATERAL TRADE
41. WTO was established in:
A. 1995
B. 1947
C. 1991
D. 1985
Answer: A
42. GATT was replaced by:
A. WTO
B. IMF
C. UNCTAD
D. None
Answer: A
43. Headquarters of WTO:
A. Geneva
B. Washington D.C.
C. New York
D. Paris
Answer: A
44. WTO covers:
A. Trade in goods, services, and intellectual property
B. Agriculture only
C. Tariff only
D. None
Answer: A
45. The dispute settlement mechanism in WTO is:
A. Binding on members
B. Voluntary
C. Ignored
D. None
Answer: A
46. TRIPS Agreement deals with:
A. Intellectual property rights
B. Investment policy
C. Services trade
D. None
Answer: A
47. GATS stands for:
A. General Agreement on Trade in Services
B. General Agreement on Tariff Systems
C. Global Agricultural Trade System
D. None
Answer: A
48. TRIMS deals with:
A. Investment-related measures
B. Monetary control
C. Environmental policy
D. None
Answer: A
49. WTO’s main objective is to:
A. Promote free and fair international trade
B. Restrict trade
C. Encourage protectionism
D. None
Answer: A
50. AoA under WTO refers to:
A. Agreement on Agriculture
B. Arrangement on Aid
C. Association of Allies
D. None
Answer: A
SECTION F – INTERNATIONAL TRADE PROCEDURES & EXIM POLICY
51. EXIM Policy stands for:
A. Export-Import Policy
B. Export Industry Model
C. Exchange Management Plan
D. None
Answer: A
Explanation: India’s EXIM Policy governs foreign trade — export promotion, import regulation, and trade facilitation.*
52. The EXIM Policy in India is formulated by:
A. Directorate General of Foreign Trade (DGFT)
B. Ministry of Finance
C. NITI Aayog
D. RBI
Answer: A
53. The current EXIM Policy period in India generally covers:
A. 5 years
B. 1 year
C. 10 years
D. 3 years
Answer: A
54. The primary objective of India’s EXIM Policy is:
A. Promote exports and reduce trade deficit
B. Restrict imports
C. Regulate domestic production
D. None
Answer: A
55. EPCG Scheme under EXIM Policy allows:
A. Duty-free import of capital goods for export production
B. Import of consumer goods freely
C. Tax exemption for software
D. None
Answer: A
56. “Letter of Credit (L/C)” in export trade ensures:
A. Payment security for exporter
B. Free shipping
C. Insurance coverage
D. None
Answer: A
Explanation: A Letter of Credit is a bank’s guarantee ensuring payment once shipping conditions are fulfilled.*
57. Bill of Lading serves as:
A. Evidence of contract and title of goods
B. Tax invoice
C. Insurance policy
D. None
Answer: A
58. Certificate of Origin certifies:
A. The country where goods were manufactured
B. Quality standards
C. Port of shipment
D. None
Answer: A
59. The term “EPC” stands for:
A. Export Promotion Council
B. Export Policy Code
C. Exchange Price Certificate
D. None
Answer: A
60. The Foreign Trade (Development & Regulation) Act was enacted in:
A. 1992
B. 1985
C. 2000
D. 1999
Answer: A
🔹 SECTION G – INTERNATIONAL FINANCIAL INSTITUTIONS
61. IMF was established in:
A. 1945
B. 1947
C. 1950
D. 1965
Answer: A
62. Headquarters of IMF is located in:
A. Washington D.C.
B. Geneva
C. London
D. New York
Answer: A
63. IMF’s main objective is to:
A. Promote exchange rate stability and global monetary cooperation
B. Control global trade
C. Provide development grants
D. None
Answer: A
64. IMF provides:
A. Short-term balance of payment assistance
B. Long-term development loans
C. Export finance
D. None
Answer: A
65. The currency unit of IMF is:
A. SDR (Special Drawing Rights)
B. US Dollar
C. Euro
D. Pound
Answer: A
66. The World Bank primarily provides:
A. Long-term development loans
B. Short-term credit
C. Trade insurance
D. None
Answer: A
67. IBRD and IDA are part of:
A. World Bank Group
B. IMF
C. WTO
D. None
Answer: A
68. IFC stands for:
A. International Finance Corporation
B. Indian Finance Commission
C. International Fund Council
D. None
Answer: A
69. MIGA provides:
A. Investment guarantees against political risk
B. Export insurance
C. Credit rating
D. None
Answer: A
70. The Asian Development Bank (ADB) was established in:
A. 1966
B. 1945
C. 1950
D. 1990
Answer: A
🔹 SECTION H – INFORMATION TECHNOLOGY & MANAGEMENT SYSTEMS
71. MIS stands for:
A. Management Information System
B. Managerial Investment Scheme
C. Marketing Information Source
D. None
Answer: A
72. MIS provides:
A. Timely, relevant information for managerial decision-making
B. Only accounting data
C. Marketing research
D. None
Answer: A
73. Key components of MIS are:
A. Input, Processing, Output, Feedback
B. Hardware only
C. Software only
D. None
Answer: A
74. The main goal of MIS is:
A. Improve decision-making and control
B. Replace management
C. Increase manual work
D. None
Answer: A
75. DSS stands for:
A. Decision Support System
B. Data Storage Software
C. Design Simulation System
D. None
Answer: A
76. A Decision Support System (DSS) is used for:
A. Semi-structured and unstructured problems
B. Routine transactions
C. Accounting entries
D. None
Answer: A
77. Expert systems are part of:
A. Artificial Intelligence applications
B. Data warehousing
C. Database management
D. None
Answer: A
78. TPS (Transaction Processing System) is used for:
A. Routine, repetitive operations
B. Strategic decisions
C. Long-term forecasting
D. None
Answer: A
79. MIS differs from DSS because:
A. MIS provides regular reports; DSS supports analysis and simulation
B. DSS is used only by top management
C. Both are same
D. None
Answer: A
80. ERP integrates:
A. All functional areas of an organization using a common database
B. Only HR activities
C. Sales and Marketing only
D. None
Answer: A
🔹 SECTION I – ARTIFICIAL INTELLIGENCE, BIG DATA & TECHNOLOGY
81. Artificial Intelligence (AI) refers to:
A. Simulation of human intelligence in machines
B. Natural learning only
C. Hardware systems
D. None
Answer: A
82. A major area of AI application in management is:
A. Predictive analytics
B. Manual filing
C. Typewriting
D. None
Answer: A
83. Machine Learning is a subset of:
A. Artificial Intelligence
B. Big Data
C. Blockchain
D. None
Answer: A
84. Big Data refers to:
A. Data sets with high Volume, Velocity, Variety, Veracity, and Value
B. Only large files
C. Historical archives
D. None
Answer: A
85. One of the challenges of Big Data is:
A. Data privacy and security
B. Low storage
C. Lack of information
D. None
Answer: A
86. Big Data analytics is primarily used for:
A. Understanding customer behavior and market trends
B. Payroll processing
C. Data deletion
D. None
Answer: A
87. Cloud computing enables:
A. On-demand network access to shared computing resources
B. Offline data storage only
C. Manual record keeping
D. None
Answer: A
88. Internet of Things (IoT) refers to:
A. Network of connected devices that communicate automatically
B. Traditional telephones
C. Only websites
D. None
Answer: A
89. Blockchain technology ensures:
A. Secure, transparent, and decentralized data transactions
B. Manual accounting
C. File encryption only
D. None
Answer: A
90. In management, AI enhances decision-making through:
A. Predictive models and pattern recognition
B. Manual data entry
C. Random guessing
D. None
Answer: A
🔹 SECTION J – DATA WAREHOUSING, DATA MINING & KNOWLEDGE MANAGEMENT
91. Data Warehouse is:
A. Central repository integrating data from multiple sources
B. Set of physical warehouses
C. Archive files
D. None
Answer: A
92. Data in a warehouse is:
A. Subject-oriented, integrated, time-variant, and non-volatile
B. Temporary
C. Random
D. None
Answer: A
93. Data Mining means:
A. Extracting useful patterns and knowledge from large datasets
B. Deleting old records
C. Manual sorting
D. None
Answer: A
94. “Market Basket Analysis” is an example of:
A. Association Rule in Data Mining
B. Regression
C. Clustering
D. None
Answer: A
95. OLAP stands for:
A. Online Analytical Processing
B. Offline Application Program
C. Open Learning Access Program
D. None
Answer: A
96. Knowledge Management (KM) is the process of:
A. Capturing, storing, and sharing organizational knowledge
B. Outsourcing IT
C. Collecting only customer data
D. None
Answer: A
97. Tacit knowledge is:
A. Personal, experience-based, and hard to codify
B. Documented and explicit
C. Easily transferable
D. None
Answer: A
98. Explicit knowledge refers to:
A. Knowledge that can be easily documented and shared
B. Personal intuition
C. Informal communication
D. None
Answer: A
99. The key objective of Knowledge Management is:
A. Enhance innovation, efficiency, and organizational learning
B. Restrict information
C. Increase paperwork
D. None
Answer: A
100. Managing technological change effectively requires:
A. Forecasting, training, and employee involvement
B. Ignoring new technology
C. Rapid layoffs
D. None
Answer: A