1.The first phase of globalization started around 1870 and ended with …..

a. World War I
b. World War II
c. The Establishment of GATT
d. In 1913 when GDP was High
Ans: a
2. IBRD (International Bank for Reconstruction and Development) also known as
a. Exim Bank
b. World Bank
c. International Monetary fund
d. International Bank
Ans: b
3. Ultimately ………………was replaced by the …………….on 1st Jan 1995
a. GATS, WTO
b. WTO, GATT
c. GATT, WTO
d. IMF, GATT
Answer: c
4. Which is the right sequence of stages of Internationalization
a. Domestic, Transnational, Global, International, Multinational
b. Domestic, International, Multinational, Global, Transnational
c. Domestic, Multinational, International, Transnational, Global
d. Domestic, International, Transnational, Multinational, Global
Answer: b
5. Subsidiaries consider the regional environment for policy / Strategy formulation is known
as
a. Polycentric Approach
b. Regiocentric Approach
c. Ethnocentric Approach
d. Geocentric Approach
Answer: b
6. According to this theory, the holdings of a country’s treasure primarily in the form of gold
constituted its wealth.
a. Gold Theory
b. Ricardo Theory
c. Mercantilism
d. Hecksher Theory
Answer:c
7. The Theory of Absolute Cost Advantage is given by
a. David Ricardo
b. Adam Smith
c. F W Taylor
d. Ohlin and Heckscher
Answer:b
8. The Theory of Relative Factor Endowments is given by
a. David Ricardo
b. Adam Smith
c. F W Taussig
d. Ohlin and Hecksher
Answer: d
9. The theory of comparative cost advantage is given by
a. David Ricardo
b. Adam Smith
c. F W Taussig
d. Ohlin and Hecksher
Answer: a
10. ……………is the application of knowledge which redefines the boundaries of global
business
a. Cultural Values
b. Society
c. Technology
d. Economy
Answer:c
11. Capitalistic, communistic and Mixed are the types of
a. Economic System
b. Social System
c. Cultural Attitudes
d. Political System
Answer:a
12. Which is not an Indian Multinational Company?
a. Unilever
b. Asian Paints
c. Piramal
d. Wipro
Answer: a
13. Globalization refers to:
a) Lower incomes worldwide
b) Less foreign trade and investment
c) Global warming and their effects
d) A more integrated and interdependent world
Answer: d
14. Which of the following is not a force in the Porter Five Forces model?
a. Buyers
b. Suppliers
c. Complementary products
d. Industry rivalry
Answer:c
15. Comparative Cost Trade Theory is given by
a. Adam Smith
b. David Ricardo
c. Gottfried Haberler
d. Heckscher Ohlin
Answer: b
16. …….is the payment method most often used in International Trade which offers the exporter
best assurance of being paid for the products sold internationally.
a. Bill of Lading
b. Letter of Credit
c. Open Account
d. Drafts
Answer: b
1:  
By which act government checks restrictive trade?
 A Industrial Policy Act 1991
.
B. MRTP Act
C FEMA act
.
D None of these
.
   Answer  Report  Discuss
  Option: B

Explanation :

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2:  
Which of the following does not fall within the jurisdiction of MRTP commission?

A. Prevention of Monopolistic Trade practices

B. Prevention of Restrictive trade practices
C.Prohibition of Unfair Trade Practices
D.Regulation of Combinations
   Answer  Report  Discuss
  Option: D

Explanation :

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3:  
Liberalization means

A  Reducing number of reserved industries from 17 to 8

.
B. Liberating the industry, trade and economy from unwanted restrictions
C Opening up of economy to the world by attaining international competitiveness
.
D Free determination of interest rates
.
   Answer  Report  Discuss
   Option: B

Explanation :

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4:  
When a company taken over another one and clearly becomes the new owner, the action is called

A Merger
.
B. Acquisition
C Strategic Alliance
.
D None of the above
.
   Answer  Report  Discuss
  Option: B

Explanation :

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5:  
Relaxing the restrictions and controls imposed on Business and industry means

A.Liberalisation
B. Privatisation
C.Globalisation
D.None of the above
   Answer  Report  Discuss
  Option: A

6:  
Company images and brand equity is factor affecting business

A Externally
.
 B. Internally
C Government Policy
.
D None of these
.
   Answer  Report  Discuss
  Option: A

Explanation :

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7:  
Which among the following is not opened for private sector participation

A Power sector
.
B. Telecommunication sector
C Education sector
.
D Railways
.
   Answer  Report  Discuss
  Option: D

Explanation :

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8:  
________  is an economic system based on the principal of free enterprise.

A Capitalism
.
B. Socialism
C Mixed Economy
.
D Marxism
.
   Answer  Report  Discuss
   Option: A

Explanation :

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9:  
What are the decisions taken by government of India pertaining to Industrial Sector in the new
industrial policy of 1991?

A.VRS to shed the excess load of workers

B. Disinvestment of public sector share holding
C.Referring sick units to BIFR
D.All of the above
   Answer  Report  Discuss
  Option: D

Explanation :

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10:  
A monopolistic trade practice is deemed to be prejudicial to public interest except when 

A Authorized by Central Government

.
B. Authorized by State Government
C Authorized by Supreme Court
.
D None of the above
.
   Answer  Report  Discuss
  Option: A

Internationalization stimuli refer to:

Your answer:
a) internal motives for foreign investment.
Correct answer:
d) internal and external factors that influence a firm's decision to initiate, develop, and
sustain international business activities.
 Feedback:
Internationalization stimuli refer to internal and external factors that influence a firm's
decision to initiate, develop, and sustain international business activities.
Page reference: 151
Question 2

First mover advantage suggests that:

Your answer:
c) competing multinational firms enter an important market when a market is growing
very fast.
Correct answer:
a) pioneering businesses are able to obtain higher profits and other benefits as the
consequence of early market entry.
Feedback:
First mover advantage suggests that pioneering businesses are able to obtain higher
profits and other benefits as the consequence of early market entry.
Page reference: 155
Question 3

The difficulties as a result of the different norms and rules that constrain human
behaviour are called:
Your answer:
a) Liability of expansion
Correct answer:
b) Liability of foreignness
Feedback:
The difficulties as a result of the different norms and rules that constrain human
behaviour are called liability of foreignness.
Page reference: 156-157
Question 4

High psychic distance can:

Your answer:
a) encourage the firm's international expansion into a given country.
Correct answer:
d) discourage the firm's international expansion into a given country.
Feedback:
High psychic distance can discourage the firm's use of strategic alliances.
Page reference: 157-158
Question 5

The Uppsala Model can help to understand:

Your answer:
a) a firm's initial choice of international location and its mode of entry into foreign
markets.
Feedback:
The Uppsala Model can help to understand a firm's initial choice of international location
and its mode of entry into foreign markets.
Page reference: 159-161
Question 6

A Born Global firm is a firm that:

Your answer:
c) ignores the challenges of psychic distance and the liability of foreigness when planning
its expansion to foreign locations in multiple countries.
Correct answer:
d) from its birth seeks competitive advantage by using resources from different countries
and by selling its products in multiple countries.
Feedback:
A Born Global firm is a firm that from its birth seeks competitive advantage by using
resources from different countries and by selling its products in multiple countries.
Page reference: 162-163
Question 7

Which of the following is NOT a mode of entry into foreign markets?

Your answer:
b) Internationalization
Feedback:
Internationalization is not a mode of entry into foreign markets.
Page reference: 166
Question 8

Franchising involves:
Your answer:
d) greenfield investment in a completely new facility, or acquisition of or merger with an
already established local firm.
Correct answer:
 c) the transfer of a business concept, with corresponding operational guidelines, to non-
domestic parties for a fee.
Feedback:
Franchising involves the transfer of a business concept, with corresponding operational
guidelines, to non-domestic parties for a fee.
Page reference: 169-170
Question 9

Horizontal and Vertical are types of:

Your answer:
b) Licensing and franchising
Correct answer:
c) Mergers and acquisitions
Feedback:
Horizontal and Vertical are types of mergers and acquisitions.
Page reference: 171
Question 10

De-internationalization can be the result of two different processes:

Your answer:
c) A forced process and a semi-forced process
Correct answer:
b) Company failure and strategic decision-making
Feedback:
Company failure and strategic decision-making can result in de-internationalization.
Page reference: 173-175
Strategic management can be defined as:
You did not answer the question.
Correct answer:
d) a process of setting long-term direction for the organization.
Feedback:
Strategic management can be defined as a process of setting long-term direction for the
organization.
Page reference: 6-7
Question 2

A global - as opposed to international - strategy involves:

You did not answer the question.
Correct answer:
 c) a single strategy for the entire global network of subsidiaries and partners.
Feedback:
A global - as opposed to international - strategy involves a single strategy for the entire
global network of subsidiaries and partners.
Page reference: 10-11
Question 3

Which of the following is NOT an example of a global strategy?

You did not answer the question.
Correct answer:
a) The British subsidiary of global insurance group Aviva develops a new product for the
UK market.
Feedback:
The British subsidiary of global insurance group Aviva developing a new product for the
UK market is NOT an example of global strategy.
Page reference: 11
Question 4

Alan Rugman said that:

You did not answer the question.
Correct answer:
d) Most economic activity is regional - not global.
Feedback:
It was Alan Rugman that reported 'most economic activity is regional - not global'.
Page reference: 12-13
Question 5

Which of the following is NOT a dimension of global strategy?

You did not answer the question.
Correct answer:
a) Localization
Feedback:
Localization is not a dimension of global strategy.
Page reference: 13-14
Question 6

What three broad factors determine global strategy of multinational firms?

You did not answer the question.
Correct answer:
d) Macro globalizing drivers, industry globalizing drivers, internal globalizing drivers
Feedback:
 Macro globalizing drivers, industry globalizing drivers, and internal globalizing drivers
are the three broad factors which determine global strategy of multinational firms.
Page reference: 15-16
Question 7

What are the four industry globalizing drivers?

You did not answer the question.

Correct answer:
b) Market drivers, cost drivers, government drivers, and competitive drivers
Feedback:
The four industry globalizing drivers consist of: market drivers, cost drivers, government
drivers and competitive drivers.
Page reference: 24-27
Question 8

A global consumer culture means that:

You did not answer the question.
Correct answer:
c) there is a world-wide demand for the same global brands.
Feedback:
A global consumer culture means that there is a world-wide demand for the same global
brands.
Page reference: 25
Question 9

Global economies of scale arise when:

You did not answer the question.
Correct answer:
c) a product or a process can be performed more cheaply at greater volume than at lesser
volume.
Feedback:
Global economies of scale arise when a product or a process can be performed more
cheaply at greater volume than at lesser volume.
Page reference: 25
Question 10

Governments can encourage globalization of industries by:

You did not answer the question.
Correct answer:
b) creating common international technical standards
Feedback:
Governments can encourage globalization of industries by creating common international
technical standards.

Globalisation MCQs
Question 1
Amalgamation and rapid unification between countries can be identified as
A) Globalisation
B) Liberalisation
C) Socialisation
D) Privatisation
Answer A
Question 2
Globalisation has improved in the living structure of
A) All the people
B) Workers in developing countries
C) People in developed countries
D) None of the above.
Answer B
Question 3
Which Indian industries have been hit by globalisation?
A) Cement
B) Jute
C) Toy making
D) Information Technology (IT)
Answer C
Question 4
Which organisations lay stress on the liberalisation of foreign investment and foreign trade?
A) International Monetary Fund
B) World Health Organisation
C) World Trade Organisation
D) International Labour Organisation
Answer C
Question 5
Tax on imports can be treated as
A) Collateral
B) Trade Barriers
C) Foreign Trade
D) Terms of Trade
Answer B
Question 6
The main reason behind MNCs investments are
A) To benefit foreign countries
B) To provide financial support to the country’s government
C) For the welfare of underprivileged people.
D) To increase the assets and earn profits.
Answer D
Question 7
Which institute supports investments and foreign trade in India?
A) International Monetary Fund (IMF)
B) World Trade Organisation (WTO)
C) World Bank
D) International Labour Organisation (ILO)
Answer B
Question 8
When did the government remove the barriers for investment in India?
A) 1990
B) 1991
C) 1992
D) 1993
Answer B

1. The basis for designing an effective strategy for exporting begins with _____.
a.identifying how the company can potentially leverage its core competency
into international sales
2. Johnson & Johnson distributes decision-making power among departments
and divisions. 
Decentralized
3. Why might companies sometime narrow the product line that they sell in a
foreign country as compared to the product line they sell
Not all products have sufficient demand in every market
4. Diversity of international markets and currency instability have the greatest
effect on ________.
Pricing
5. What is the most common way of identifying market segments within a
country
Demography
6. When a company identifies a market segment on a global basis, such as a
segment based on income, it will likely ________.
A) encounter a similar percentage of the population in each country within that
segment
B) find that a niche market in one country may be a mass market in another
C) find that the market in each country is so dispersed that distribution is
difficult
D) be aiming at a mass market in each country
Bank deposit refers to
A The amount of money standing to the credit of a customer of a bank
.
B.A term used by the Federal Reserve to refer to the total deposits of
member banks
C.The amount of money standing to the debit as a customer of a bank
D All of the above
.
   Answer  Report  Discuss
  Option: A
Explanation :
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2:  
As per the RBI's clean note policy writing on a currency note is
A.An offense
B.A crime
C.A punishable offence
D.The notes becomes non-legal tender
   Answer  Report  Discuss
  Option: C
 Explanation :
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3:  
Nationalization of banks aimed at all of the following except
A Removal of control by a few
.
B.Provision of control by a few
C.Provision of adequate credit for agriculture, small industry and export
units
D Encouragement of a new class of entrepreneur
.
   Answer  Report  Discuss
 
4:  
Who is the chairman of the working group to review the Benchmark Prime
Lending Rate constituted by RBI?
A M.S. Verma
.
B.R.N. Malhotra
C.J.V. Shetty
D Deepak Mohanty
.
   Answer  Report  Discuss
  Option: D
Explanation :
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5:  
Which of the following is the latest buzzword among bankers
A Social banking
.
B.Financial inclusion
C.Mass banking
D None of the above
.
    Answer  Report  Discuss
  Option: B
6:  
The main objective of International Monetary Fund (IMF) was to
A.Promote International trade
B.Help economically backward countries
C.Maintain stable exchange rates
D.Promote international liquidity
   Answer  Report  Discuss
  Option: B
Explanation :
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7:  
Which of the following is not an International Financial Institution
A.ICICI
B.IMF
C.IDA
D.World Bank
   Answer  Report  Discuss
  Option: A
Explanation :
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8:  
The gains from two nations depend on
A Domestic barter rates
.
B.Different in the domestic barter rates of the two countries
C.Terms of trade
D Degree of absolute advantage.
.
    Answer  Report  Discuss
  Option: C
Explanation :
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9:  
Match List-I with List-II and select the correct answer using the codes given
below the lists:
     List-I   List -II
a. World Bank I.  1944
b. International Financial Corporation II.  1956
c. International DevelopmentAgency III. 1960
d. Asian Development Bank IV. 1966
 
A.a  b   c   d
I   II   III   IV
B.a  b   c   d
I   III   IV   II
C.a  b   c   d
II   I   IV   III
D.a  b   c   d
III  I    II   IV
   Answer  Report  Discuss
  Option: A
Explanation :
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10:  
Interest payments on loans borrowed abroad are recorded in
A.Capital Account
 B.Current Accounts
C.Errors and Omission Section
D.Official Reserve Account
   Answer  Report  Discuss
  Option: B
Explanation :
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11:  
In balance of payment accounts, all goods exported and imported are recorded
in
A.Capital account
B.Visible Accounts
C.Invisible Account
D.Merchandise Accounts
   Answer  Report  Discuss
  Option: B
Explanation :
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12:  
Which of the country's banking have been brought under 'Sanctions by USA,
recently"?
A.Iraq
B.North Korea
C.Pakistan
D.Iran
   Answer  Report  Discuss
  Option: D
 Explanation :
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13:  
Statement :
(i) No gain from trade is shared between countries in accordance with their
relative strength of demand.
(ii) The terms of trade are against the primary producer unless it has a monopoly
or the product has on inelastic demand abroad.
A.Both correct
B.Both incorrect
C.I corret, II incorrect
D.I incorrect II correct
   Answer  Report  Discuss
  Option: D
Explanation :
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14:  
Out of the following, one is not related with WTO
A.TRIPS
B.Ministerial Conference
C.TRIMS
D.TRAI
   Answer  Report  Discuss
  Option: D
Explanation :
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15:  
The balance of payments account is conventionally divided into
A Current Account and Capital Account
.
 B.Visible Account and Invisible Account
C.Long-term capital Account and short term capital account 
D None of the above
.
   Answer  Report  Discuss
  Option: A
Explanation :
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16:  
How many member countries are their in the 'World Customs Organisation'?
A.160
B.162
C.172
D.180
   Answer  Report  Discuss
 
17:  
The world bank is known as
A.IMF
B.IDA
C.IBRD
D.Both (b) & (c)
   Answer  Report  Discuss
 
18:  
Which one is not the form of FDI
A Purchase of existing assets in foreign currency.
.
B.New Investment in Property, planet and equipment.
C.Making investment is the mutual funds
 D Transfer of many type of asset
.
   Answer  Report  Discuss
  Option: A
Explanation :
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19:  
What is Euro-lll?
A.European Currency
B.Group of European Countries
C.European Film Festival
D.Pollution central Scale
   Answer  Report  Discuss
  Option: D
Explanation :
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20:  
Which one is not on objective of IMF?
A To promote international monetary cooperations
.
B.To ensure balanced international trade
C.To finance productive efforts according to peace time requirements
D To ensure exchange rate stability
.
   Answer  Report  Discuss
  Option: C