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AIMA Online Exam 2020
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IB06 INTERNATIONAL Business
Subject Code: IB06
Subject Name: INTERNATIONAL BUSINESS
Component name: TERM END Assignment Start Date: 01/07/2020
Assignment End Date: 10/07/2020

Question 1:- The ability of a nation to produce the goods more efficiently and cost effectively than any other country is known as Absolute Advantage.
a) TRUE
b) FALSE

Question 2:- Which of the following factors lead to demand of foreign exchange?
a) Import of goods and services
b) Investment in foreign countries
c) Payments involved in international transactions
d) All of the above

Question 3:- Which of the following are advantages of flexible exchange rate system?
a) Adjustment of exchange rate is continuous process
b) Permits existence of free trade and convertible currencies on continuous basis
c) Both A and B
d) None of these

Question 4:- Which of the following statement does not hold true about trade policy of India?
a) EXIM policies are drafted to streamline the trade procedures
b) EXIM policies are drafted to liberalized import regime
c) EXIM policies have thrust on export orientation
d) EXIM policies are drafted by Ministry of Finance

Question 5:- ……………………... is an international, multilateral organization, which sets the rules for the global trading system & resolves disputes between its member states.
a) ITO
b) WTO
c) GATT
d) NEFTA

Question 6:- All those business activities that involve cross-border transactions of goods, services, resources between two or more nations is categorized a
a) Inter state trade
b) Domestic trade
c) International business
d) Internal trade

Question 7:- Reasons for growth of international business in recent years is-
a) Technological Development
b) Integration of economies
c) Both A and B
d) None of these

Question 8:- ………………………act helps to facilitate external trade and payment.
a) FEMA
b) IDRA
c) Consumer Protection Act
d) None of these

Question 9:- Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.
a) TRUE
b) FALSE

Question 10:- Policy that restricts international trade is known as ___________.
a) Export enhancement
b) Export promotion
c) Import Barrier
d) None of these

Question 11:- What are the major forces of Macro environment?
a) Demographic environment
b) Political-legal environment
c) Economic environment
d) All of the above

Question 12:- ___________ refers to the explicit limit to the amount of product that can be exported or imported during specified time period.
a) Quota restriction
b) Tariff barrier
c) Non-tariff barrier
d) None of these

Question 13:- ___________ agreement provides protection to the holder of intellectual property right which can be claimed by an individual, company or even people of geographical region.
a) TBT
b) TRIPS
c) TRIMS
d) AOA

Question 14:- ___________ is FDI in the same industry abroad as a firm operates at home.
a) Horizontal FDI
b) Vertical FDI
c) Partial FDI
d) Impartial FDI

Question 15:- Which of the following document is a document of title of goods?
a) Bill of lading
b) Shipping Bill
c) Bill of exchange
d) Commercial invoice

Question 16:- An acronym for International Commercial Terms is Incoterms.
a) TRUE
b) FALSE

Question 17:- Which of the following statement is not correct?
a) FDI leads to high standard of quality
b) FDI gives global recognition
c) FDI increased employment and economic growth
d) FDI leads to competitive pricing

Question 18:- The product and business strategies of a foreign firms should be developed in reference to ______________________conditions of the host country.
a) Microeconomic
b) Domestic
c) Macroeconomic
d) None of these

Question 19:- Which of the following features act as a strength of an organization while dealing in international business?
a) Poor marketing skills
b) Cost advantage
c) Internal operating problems
d) Obsolete facilities

Question 20:- Which of the following are the three pillars under Agreement on Agriculture (AOA) ?
a) Market access
b) Export subsidy
c) Domestic support
d) All of the above

Case Study
It is now also clear that many economies are going to shrink — developed countries as well as many in the Asia Pacific region that are highly dependent on tourism and commodities trading will also shrink. Commodity prices are at their lowest in the last 10 years. The process of globalisation was already in retreat and last year, the term ‘slowbalisation’ was being used. World trade had never really recovered since the global financial crisis — from a 10% growth, it had been hovering around 1%-2%. Add to that the trade wars and the WTO talks process coming to a grinding halt. Now, with this pandemic, there is another recognition of the vulnerability that global economic interdependence creates. So some countries are facing difficulties in getting medical supplies, some find their manufacturing can’t run as value chains are linked with China. Countries will reconfigure their economies to look at import substitution with a greater clarity now, as the perils and pitfalls of overdependence on foreign supplies become clear. Import substitution, that had become a bad word, may be back in currency.

Question 21:- What do you mean by globalization? Select the appropriate answer.
a) Making the country self-independent
b) Integration of the world economies
c) Relying on import substitution
d) None of these

Question 22:- How would COVID 19 effect the globalization?
a) Redrawing of geographical boundaries.
b) Global integration of trade and finance would suffer.
c) Many economies are going to shrink.
d) All of the above

Question 23:- Developed countries as well as many in the Asia Pacific region that are highly dependent on tourism and commodities trading will face drastic hit due to COVID 19.
a) TRUE
b) FALSE

Question 24:- How can countries come out of this crisis due to COVID 19?
a) By import substitution
b) By reworking on their value chain or supply chain
c) Both a and b
d) None of these

Question 25:- Why was term ‘slowbalisation’ used for Globalization last year?
a) Since the definition of globalization had changed
b) There was slowdown in the international trade
c) It was an error which was later reported by WTO
d) None of these