DELHI INSTITUTE OF ADVANCED STUDIES

Plot No. 6, Sector-25, Rohini, Delhi-110085

(Approved by AICTE and Affiliated with GGSIP University for B.Com (H), BBA, MBA & MBA (FM) Programmes)
(An ISO 9001:2015 Certified Institution)

MOCK MCQ TEST

SUBJECT:
MANAGEMENT OF
INTERNATIONAL
BUSINESS

PAPER CODE: MS 203

 DELHI INSTITUTE OF ADVANCED STUDIES
Plot No. 6, Sector-25, Rohini, Delhi-110085
(Approved by AICTE and Affiliated with GGSIP University for B.Com (H), BBA, MBA & MBA (FM) Programmes)
(An ISO 9001:2015 Certified Institution)

FOR PRIVATE CIRCULATION

The Questions and answers contained in this document

have been prepared by the faculty of the Institute from
the sources believed to be reliable. Neither the Institute
nor the faculty gives any guarantee with respect to
completeness or accuracy of the contents contained in the
booklet and shall in no event be liable for any errors,
omissions or damages arising out of use of the matter
contained in the document. The Institute and the faculty
specifically disclaim any implied warranty as to
merchantability or fitness of the information for any
particular purpose.
 DELHI INSTITUTE OF ADVANCED STUDIES
Plot No. 6, Sector-25, Rohini, Delhi-110085
(Approved by AICTE and Affiliated with GGSIP University for B.Com (H), BBA, MBA & MBA (FM) Programmes)
(An ISO 9001:2015 Certified Institution)

MBA II
MCQ – Question Bank
Unit I

1. Which of the following theories suggests that firms seek to penetrate new markets over
time?
a) Imperfect Market Theory
b) Product cycle theory
c) Theory of Comparative Advantage
d) None of the above

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

3. Domestic, Transnational,
Global, International,
Multinational
4. b. Domestic, International,
Multinational, Global,
Transnational
5. c. Domestic, Multinational,
International, Transnational,
Global
 DELHI INSTITUTE OF ADVANCED STUDIES
Plot No. 6, Sector-25, Rohini, Delhi-110085
(Approved by AICTE and Affiliated with GGSIP University for B.Com (H), BBA, MBA & MBA (FM) Programmes)
(An ISO 9001:2015 Certified Institution)

6. d. Domestic, International,
Transnational, Multinational,
Global
a) Domestic, Transnational, Global, International, Multinational
b) Domestic, International, Multinational, Global, Transnational
c) Domestic, Multinational, International, Transnational, Global
d) Domestic, International, Transnational, Multinational, Global

3. In the international environment, firms use an international strategy, a multidomestic

strategy, a global strategy, or a ________ strategy.
a) Regional
b) Transnational
c) Locational
d) None of the above

1. According to this theory, the

holdings of a country’s treasure
primarily in the form of gold
2. constituted its wealth
3. According to this theory, the
holdings of a country’s treasure
primarily in the form of gold
4. constituted its wealth.
 DELHI INSTITUTE OF ADVANCED STUDIES
Plot No. 6, Sector-25, Rohini, Delhi-110085
(Approved by AICTE and Affiliated with GGSIP University for B.Com (H), BBA, MBA & MBA (FM) Programmes)
(An ISO 9001:2015 Certified Institution)

4. 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

a. Gold Theory
b. Ricardo Theory
c. Mercantilism
d. Hecksher Theory
5. 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

6. Govt. policy about exports and imports is called:

a) Commercial policy
b) Fiscal policy
c) Monetary policy
d) Finance policy

7. Confiscation refers to the seizure of assets of a firm

a) The government with adequate compensation.
b) The government without compensation.
c) The people of the country
d) Its rivals.

8. Franchising involves:
a) The transfer of patented information and trademarks, information and know-how
as well as information needed to sell a product or service.
b) the use of franchising for licensing new technologies in global markets.
 DELHI INSTITUTE OF ADVANCED STUDIES
Plot No. 6, Sector-25, Rohini, Delhi-110085
(Approved by AICTE and Affiliated with GGSIP University for B.Com (H), BBA, MBA & MBA (FM) Programmes)
(An ISO 9001:2015 Certified Institution)

c) The transfer of a business concept, with corresponding operational guidelines, to

non-domestic parties for a fee.
d) Greenfield investment in a completely new facility, or acquisition of or merger
with an already established local firm.

9. This market entry method takes place where production and manufacture of the product
offering occur in the domestic market and the services of another organization (an
intermediary) is employed to sell the product in the foreign market. This method is
referred to as:______________
a) franchising.
b) indirect exporting.
c) joint ventures.
d) direct exporting.

10. Which of the following is not a feature of a Multi-National Company?

a) It owns/ control production in more than one nation
b) It set up factories where it is close to the market
c) It organizes production in complex ways.
d) It employs labor only from its own country

11. Dumping refers to: 

a) Reducing tariffs
b) Sale of goods abroad at low a price, below their cost and price in home market
c) Buying goods at low prices abroad and selling at higher prices locally
d) Expensive goods selling for low prices

12. Which barrier can be used against recession induced exports into the country?
a) Quotas
b) VER
c) Tariff
d) All of the above

13. In terms of the PESTLE analysis, the liberalizing of international trade and tariff
regimes could go in which section or sections? The market pull view of technology is to :

a) Political
 DELHI INSTITUTE OF ADVANCED STUDIES
Plot No. 6, Sector-25, Rohini, Delhi-110085
(Approved by AICTE and Affiliated with GGSIP University for B.Com (H), BBA, MBA & MBA (FM) Programmes)
(An ISO 9001:2015 Certified Institution)

b) Legal
c) Political and economic and legal
d) Political and environmental

14. Which one of the following modes of entry permits greatest degree of control over
overseas operations?
a) Licensing/franchising
b) Wholly owned subsidiary
c) Contract manufacturing
d) Joint venture

15. A protectionist tariff that a domestic government imposes on foreign imports that it
believes are priced below fair market value
a) Anti-Dumping Duty
b) Ad-Vole ram
c) Embargo
d) None of the above
Answer Key

1 (b) 2 (b) 3 (d) 4 (c) 5 (d) 6 (a)

7 (b) 8 (c) 9 (b) 10 (d) 11 (b) 12 (a)
13 (c) 14 (b) 15 (a)

Unit II
1. What is the most important criterion for selecting an alliance partner?When, what ,why
a) Alliance partner must help the company towards a competitive advantage.
b) Alliance partner must be a multinational firm with a global market presence.
c) Alliance partner must come from the same culture.
d) Alliance partner must have similar assets.

2. A strategic alliance:
a) Project
b) Matrix Structure
c) Divisionalised Structure
d) None of the above
 DELHI INSTITUTE OF ADVANCED STUDIES
Plot No. 6, Sector-25, Rohini, Delhi-110085
(Approved by AICTE and Affiliated with GGSIP University for B.Com (H), BBA, MBA & MBA (FM) Programmes)
(An ISO 9001:2015 Certified Institution)

3. Vertical mergers are those in which the participants are

a) In the same industry.
b) In different industries
c) In different phases of the value chain
d) None of the above.
4. _______ is a peculiar form of international trade that encompasses more than an
exchange of goods services or idea for money.
a) Turnkey contract
b) Licensing
c) Counter Trade
d) Buy back

5. When a company taken over another one and clearly becomes the new owner, the action
is called Entrepreneurship
a) Acquisition
b) Merger
c) Strategic Alliance
d) None of the above

6. The disadvantages of Greenfield FDI as compared to acquisition isEmpirical- Rational

a) Profit will be less.
b) Size of investment will be high
c) Delay in the establishment.
d) Lesser control in management
7. Trade barriers are ______ obstacles imposed on imports of the other countries.
a) Natural
b) Artificial
c) Political
d) Revenue

8. An attribute that doesn’t contribute to Porters Diamond model is

a) Government
b) Organized Trade union
c) Factor Conditions
d) Demand Conditions
e) Firm strategy, structure and rivalry

9. The following factors are key drivers of globalization

 DELHI INSTITUTE OF ADVANCED STUDIES
Plot No. 6, Sector-25, Rohini, Delhi-110085
(Approved by AICTE and Affiliated with GGSIP University for B.Com (H), BBA, MBA & MBA (FM) Programmes)
(An ISO 9001:2015 Certified Institution)

Answer Key

1 (c) 2 (a) 3 (d) 4 (d) 5 (c) 6 (b)

7 (b) 8 (c) 9 (b) 10 (c) 11 (d) 12 (b)
13 (b) 14 (b) 15 (d)