1.

Agreement on Textile and clothing was set out as a transitional

process on 01 Jan 1995 for the ultimate removal of quotas by WTO by
01 Jan 2007.
Answer: False
2.The first ever set of multilateral, legally enforceable rules covering
international trade in services is the General Agreement on Trade in
services (GATS).
Answer: True
3. Trade Related Investment Measures (TRIMS) doesnt apply for
a)
b)
c)
d)

Measures that affect trade in goods.

Measures that lead to restrictions on quantities.
Discouraging measures that limit a companys imports.
Discouraging measures that limit a companys exports.

4. General Agreement on Trade in Services will not be applicable to

a) Services supplied from one country to another cross border supply
b) Transaction of goods across the border Export Import
c) Individuals traveling from own country to supply services in another
presence of natural persons.
d) Consumers/firms making use of a service in another country
consumption abroad.
e) Foreign company setting up subsidiary or branches to provide
services in another country commercial presence.
5.
As a part of WTO guidelines, Agreement on Agriculture (AOA)
doesnt consider
a) Direct payments to farmers are permitted.
b) Indirect assistance and support to farmers including R & D
support by govt. are not permitted.
c) Domestic policies which directly effect on production and trade have
to be cut back.
d) Least developed countries do not need to make any cuts.
6.
WTO is the only international organization dealing with the rules
of trade between organizations.
Answer: True

7. The limit of holdings by Individual Foreign Institutional Investors in a

Company has been raised from 5 to 10 % of the companys shares,
while the aggregate limit has been increased from 24 to 34 %.
Answer: True
8. Quantitative restrictions refer to limit set by countries to curb
a)
b)
c)
d)

Imports
Exports
Imports & exports
None of the above

9. A Most Favored nation status doesnt necessarily refer to

a) Same and equal economic treatment
b) Non-discriminatory treatment
c) Same tariff rates applicable
d) Uniform civil code
10. The world trade organization was formed in the year _________
with GATT as it basis.
a) 1993
b) 1994
c) 1995
d) 1996
11. Geocentric staffing policy ensures best qualified people at suitable
positions irrespective of their national and cultural differences.
Answer: True
12. Basic objective of women to talk is to establish rapport and
relationship while that of men is to maintain status and exhibit skills.
Answer: True
13. Power distance Index (PDI) of 77 compared to a world average of
56.5 for India indicates
a)
b)
c)
d)

High level of inequality of power and wealth within the society

Low level of inequality of power and wealth within the society
High level of Political corruption
Low level of Human development Index

14. 2 Specific cultural dimensions that does not have a significant

impact on cross-national business interactions is
a) Hofstedes five cultural dimensions

b) Monochromatic vs polychromatic tune

c) Communication
d) Geography
15. Professional culture refers to
a) Shared belief of top managers about how they should manage
themselves and their employees
b) Shared code of ethics and other commonalities shared by
members of a given group
c) Both (a) and (c)
d) None of the above
16.
Theory of Comparative advantage demonstrates that mutually
advantageous trade cannot occur when one trading partner has an
absolute advantage.
Answer: False
17. Product life cycle theory states that an exporter country of a
particular product can become an importer country during the product
cycle of a product.
Answer: True
18. An attribute that doesnt contribute to Porters Diamond model is
a) Government
b) Organized Trade union
c) Factor Conditions
d) Demand Conditions
e) Firm strategy, structure and rivalry
19. _______ theory states that, lack of resources often helps countries
to become competitive
a) Competitive theory
b) Porters Diamond Model
c) Theory of Mercantilism
d) Product life cycle theory
e) None of the above
20. 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
21. An international acquisition is a cross-border investment in which a
foreign investor acquires an established local firm and makes the

acquired local firm a subsidiary business within its global portfolio.

Answer: True
22. Backward vertical FDI occurs when an MNE enters a host country to
produce intermediaries that are intended to use as inputs in the host
country.
Answer: False
23. Identify a factor that doesnt play an important role in attracting FDI
a) Laws, rule sand regulations
b) Administrative procedures and efficiency
c) Cost of resources
d) Infrastructure related factors
e) Language
24. B2B sector specific policy of Indian Government is
a) FDI up to 100% subject to condition that they invest 26 % in
favor of Indian Public within 5 yrs
b) FDI up to 100%
c) FDI up to 100% subject to condition that they invest 26 % in favor of
Indian Public within 10 yrs
d) FDI up to 49%
25. The country that attracts the largest FDI inflow is
a)
India
b)
China
c)
USA
d)
Brazil
26. The term economies of scale refer to the reductions in cost
achieved by producing a large volume of the product.
Answer: True
27. Multi-domestic firms extensive customize both their product offering
and marketing strategy to suit domestic home market only.
Answer: False
28. Firm that operates internationally is able to
a) earn a greater return from their skills and core competencies
b) realize location economies where they can be performed most
efficiently
c) realize greater experience curve economies, which reduces the cost
of production
d) All the above
29. General electric follows ___________ as its international

operational strategy
a) Global
b) International
c) Multi-domestic
d) Transnational
30. Factor of Interdependence in Multi-domestic strategy is
a) Low
b) Moderate
c) High
d) Very High
31. Contractual agreements as global market entry involve a transfer of
trademarks or human skills.
Answer: True
32. When one company acquires another, the one acquired becomes a
subsidiary of the acquiring company.
Answer: True
33. In 90s the global management perception was based on
a) Standardization v/s adaptation
b) Globalization v/s localization
c) Global integration v/s Local Responsiveness
d) Local responsiveness
34. Which of the following is an advantage of turnkey projects?
a) Can earn a return on knowledge asset
b) Will not create a competitor
c) Tight control of operations
d) All the above
35. The agreement signed by Ranbaxy Laboratory and Bayer AG of
Germany in the year 1999 is an example of
a) Subsidiary
b) Joint venture
c) Strategic International Alliance
d) License agreement
36. The sales contract is to be prepared only on stamp paper.
Answer: False
37. The risk of direct exporting is relatively lower since the investments
are also lesser.
Answer: False
38. CISF pricing includes the following

a)
b)
c)
d)

Commission is paid to the agent involved in the transaction

Cost of the goods exported
Freight & Insurance charges for the goods exported
All of the above

39. When the transaction is of high value, complex In nature and more
technical __________ method of the export sales contract is used.
a) Performa invoice
b) Purchase order
c) Sales contact
d) None of the above
40. Which one of the following is a method for an exporter to get a
contract
a) Proforma invoice
b) Purchase order
c) Sales contract
d) All the above
41. ARE 1 is the form for removal of excisable goods from the factory
premises for export purposes
Answer: True
42. Transit credit is the credit which can be opened by small countries
whose credits may not be readily acceptable in another country.
Answer: True
43. Credits transferable by original beneficiary in favor of secondary
beneficiary are known as
a) Deferred credits
b) Transit credits
c) Installment credits
d) Transferable credits
44. When the exporter, expects the importer, to make the payment
immediately upon the draft being presented to him is called.
a) Sight Draft.
b) Usance Draft
c) Demand draft
d) Pay Note
45. The basic objective of export Promotion Council is to promote and
develop the Exports of the
a) Particular products of country
b) Only attractive projects of the country
c) Only services industry products of the country.

d) Overall exports of the country.

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Labels: Assignment, International Business, Online Answers
Tuesday, 3 May 2016

AIMA Online Assignments International

Business
AIMA Online Assignments
International Business (IB06)
NOTE: The answers are boldly marked.
Question 1:- The theory of Comparative cost advantage is given
by
a) Porter
b) Adam Smith
c) Varnoon
d) D.Richardo
Question 2:- Trade Related Investment Measures (TRIMS) doesnt
apply for
a) Measures that lead to restrictions in quantities.
b) Discouraging measures that limit a companys
imports
c) Discouraging measures that limit a companys
exports.
d) ALL OF THE ABOVE
Question 3:- As a part of WTO guidelines, Agreement on Agriculture
(AOA) doesnt consider
a) Direct payments to farmers are permitted.
b) Indirect assistance and support to farmers including R & D
support by govt. are not permitted
c) Domestic policies which directly effect on production and trade have
to be cut back.
d) Least developed countries do not need to make any

cuts.
Question 4:- A Most Favored nation status doesnt necessarily refers
to
a) Same and Equal Treatment
b) Non-discriminatory Treatment
c) Same tariff rates applicable
d) Uniform civil code
Question 5:- Power distance Index (PDI) of 77 compared to a world
average of 56.5 for India indicates
a) High level of inequality of power and wealth within the
society
b) Normal Power and Wealth
c) High level of political corruption
d) Low level of Human Development Index
Question 6:- Identify a factor that doesnt play an important role in
attracting FDI
a) Language
b) Laws, rules and regulations
c) Cost of resources
d) Infrastructure related factors
Question 7:- Factor of Interdependence in Multi-domestic strategy is
a) LOW
b) MODERATE
c) HIGH
d) VERY HIGH
Question 8:- The first phase of globalization started around 1870 and
ended with
a) The World War I
b) The World War II
c) The Establishment of GATT
d) In 1913 when GDP was high
Question 9:- An attribute that doesnt contribute to Porters Diamond
model is
a) Government
b) Organized Trade union
c) Factor Conditions
d) Demand Conditions
Question 10:- Which of these is a characteristic of multinational
corporations>

a) At least one -third directors are foreign nationals

b) The company does 40% of its business in foreign
markets
c) The overseas markets are larger than the domestic
market
d) The affiliates are responsive tio a number of important
environmental forces
Question 11:- According to this theory the holdings of a countrys
treasure primarily in the form of gold constituted its wealth.
a) Gold Theory
b) Ricardo Theory
c) Mercantilism
d) H .O. THEORY
Question 12:- The Theory of Absolute Cost Advantage is given
by
a) Adam smith
b) D. Richardo
c) Raymond Varnoon
d) Porter
Question 13:- The Theory of Relative Factor Endowments is given by
a) Ohilin-Hecksher
b) FY Taylor
c) Richardo
d) Porter
Question 14:- is application of knowledge which redefine the
boundaries of global business
a) Cultural Values
b) Society
c) Technology
d) Economy
Question 15:- Capitalistic, communistic and mixed are the types
of
a) Economic system
b) Political system
c) Social System
d) Cultural Attitudes
Question 16:- General Agreement on Trade in Services will not be
applicable to
a) Services supplied from one country to another cross border
supply

b) Transaction of goods across the border Export

Import
c) Individuals traveling from own country to supply services in another
presence of natural persons.
d) Consumers/firms making use of a service in another country
consumption abroad
Question 17:- Quantitative restrictions refer to limit set by countries to
curb
a) Imports
b) Exports
c) Imports and Exports
d) All of the above
Question 18:- India is an
a) Emerging economy
b) Developed economy
c) Less developed economy
d) None of these
Question 19:- The world trade organization was formed in the year
_________ with GATT as it basis.
a) 1992
b) 1993
c) 1995
d) 1994
Question 20:- ________theory states that, lack of resources often helps
countries to become competitive
a) Competitive theory
b) Porters Diamond Model
c) Theory of Mercantilism
d) Product life cycle theory
Question 21:- Theory of Mercantilism propagates
a) Encourage imports and exports
b) Encourage exports and discourage imports
c) Discourage imports
d) None of these
Question 22:- The country that attract the largest FDI inflow is
a) USA
b) INDIA
c) CHINA
d) BRAZIL

Question 23:- General electric follows ___________ as its international

operational strategy
a) GLOBAL
b) TRANSNATIONAL
c) INTERNATIONAL
d) MULTI-DOMESTIC
Question 24:- Typically the last step in the internationalization process
is:
a) Licensing
b) Exporting
c) Wholly owned subsidiaries
d) Foreign Direct Investment
Question 25:- Which of the following is an advantage of turnkey
projects?
a) Can earn a return on knowledge asset
b) Will not create a competitor
c) Tight control of operations
d) All the above
Question 26:- Which of these is/are the characteristic of a licensing
agreement
a) The licensor might provide access to some of its patents or
trademarks
b) The licensor might provide access to technology
c) It might be used to avoid the risks of foreign
involvement
d) All of the above
Question 27:- IBRD (International Bank for Reconstruction and
Development) also known as
a) EXIM Bank
b) World Bank
c) IMF
d) International Financial Bank
Question 28:- Ultimately was replaced by the
.on 1st Jan 1995
a) GATT/WTO
b) GATS/IMF
c) WTO/WORLD BANK
d) WORLD BANK/WIPO
Question 29:- Which is the right sequence of a 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
Question 30:- Subsidiaries consider regional environment for policy /
Strategy formulation is known as
a) Polycentric Approach
b) Regiocentric Approach
c) Ethnocentric Approach
d) Geocentric Approach