Strategic Management MCQ with Answers

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Online MCQ Quiz of Strategic Management

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International Business

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Q: International business does not result in the following

A. innovation is encouraged.

B. international cooperation is encouraged.

C. imports are rendered cheap.

D. consumption is minimized.

2 / 20

Q: Theory of Mercantilism propagates

A. encourage exports and imports

B. encourage exports and discourage imports

C. discourage exports and imports

D. discourage exports and encourage imports

3 / 20

Q: By entering into international business, a firm expects improvement in

A. marketing.

B. all spheres of marketing, operation and finance simultaneously.

C. any or all spheres of marketing, operation and finance.

D. finance only

4 / 20

Q: Business across several countries with some decentralization of management decision making to subsidiaries is

A. global business.

B. multinational business.

C. transnational business.

D. multi-regional business.

5 / 20

Q: The___company produces, markets, invests and operates across the world

A. global

B. international

C. transnational

D. multinational

6 / 20

Q: Select example of Indian Multinational Company

A. hindustan unilever

B. videocon

C. cargill

D. tesco

7 / 20

Q: If a German manufacturer of household appliances wants to take advantage of the cheaper labor available in the Czech Republic, which of the following actions will not serve that purpose?

A. build a manufacturing subsidiary there and employ czech workers.

B. build a plant in the czech republic and send all german workers to operate it.

C. license a czech firm to produce its products under its own label.

D. contract for a czech firm to do some of the processing for it.

8 / 20

Q: Which of the following would be an example of foreign direct investment from the United States to taiwan?

A. a u.s. bank buys bonds issued by a taiwan computer manufacturer.

B. a u.s. car manufacturer enters into a contract with a taiwan firm to make and sell it spark plugs.

C. microsoft hires a taiwanese computer programmer to debug some software for it.

D. the state of california rents space in taipei for one of its Employees to use promoting tourism in

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Q: Locational advantages are based on which combination of the following specific country characteristics

A. a large reserve of natural resources, a large local market and efficiency opportunities

B. a small reserve of natural resources, a large local market and efficiency opportunities

C. a small reserve of natural resources, a small local market and efficiency opportunities

D. a large reserve of natural resources, a small local market and efficiency opportunities

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Q: A multinational is a firm that controls and manages production facilities in

A. both developed and developing countries

B. at least two countries

C. one country but relies on multiple markets for the consumption of goods it produces

D. at least two developed countries and one developing country

11 / 20

Q: The Theory of Relative Factor Endowments is given by

A. david ricardo

B. adam smith

C. c. f w taussig

D. ohlin and hecksher

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Q: The Theory of Absolute Cost Advantage is given by

A. david ricardo

B. adam smith

C. f w taylor

D. ohlin and heckscher

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Q: 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

14 / 20

Q: Key controllable factors in global marketing are:

A. government policy and legislation

B. social and technical changes

C. marketing activities and plans

D. all of the above.

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Q: ___is the payment method most often used in International Trade which offers the exporter bestassurance of being paid for the products sold internationally.

A. bill of lading

B. letter of credit

C. open account

D. drafts

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Q: Comparative Cost Trade Theory is given by

A. adam smith

B. david ricardo

C. gottfried haberle

D. heckscher ohlin

17 / 20

Q: Country A has an absolute advantage in

A. product x

B. product y

C. neither x nor y

D. both x and y

18 / 20

Q: According to Adam Smith, the trade between countries should happen___

A. naturally according to the market forces

B. under government regulation

C. using factors that are available

D. only when a country has an absolute advantage

19 / 20

Q: What was the first economic theory of international trade to be developed?

A. the theory of mercantilism

B. the theory of comparative advantage

C. the theory of absolute advantage

D. the heckscher-ohlin theory

20 / 20

Q: What are the four factor endowments?

A. national resources, labor, physical capital and human capital

B. types of technology

C. material inputs used up in the Process of production

D. international differences in climate

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