Model Question Papers

Global Business Environment MCQs with Answers – Set2

Global Business Environment Multiple Choice Questions with answers for preparation of various competitive and academic exams like NET, UGC, BCOM, MCOM, MBA, BBA and many other regular and distance education exams

Global Business Environment Multiple Choice Questions

Global Business Environment MCQs with answers – set2

101. Geographical indications specifies
A. Place of origin of goods.
B. Special characteristics of the product associated with place of origin.
C. Place and special characters of the product.
D. Place or special characters of the product.
ANSWER: C

102. Computer programs are protected as
A. Copy rights.
B. Trademarks.
C. Patents.
D. Industrial design.
ANSWER: A

103. In India, the patent available for pharmaceuticals is
A. for product only.
B. for process only.
C. both for product and process
D. neither product nor process.
ANSWER: C

104. The degrading effect on the environment by MNCs is through
A. Relocating production from developing to developed countries.
B. Relocating production from developed to developing countries.
C. Flouting environmental laws.
D. Relocation of distribution.
ANSWER: B

105. Which one of the following is true of the Chinese?
A. They pay close attention to long standing relationships.
B. ‘They are very relaxed about time’ and ‘they prefer to work on a one-to-one basis’ only.
C. They are very relaxed about time.
D. They prefer to work on a one-to-one basis.
ANSWER: B

106. In this culture, equality is a desirable value. However the actual behaviour of whom does not show so much equality, as in this culture people should get what they deserve if they have the capabilities to work hard?
A. Romanians.
B. Americans.
C. Russians.
D. The French.
ANSWER: B

107. Which of the following sentences about individualism is not true?
A. Individualistic are universalistic cultures while collectivistic cultures are articularistic.
B. Individualists tend to see brands as unique human personalities.
C. In individualistic cultures private time and work are not strictly separated.
D. Individualism is increasing world-wide because it is associated with wealth.
ANSWER: B

108. Confucianism has adherents mainly in
A. Eastern Europe.
B. The USA.
C. China, Korea and Japan.
D. Africa.
ANSWER: C

109. Which of the following is not true about high- context cultures?
A. lawyers are less important.
B. Negotiations are lengthy.
C. People make a big deal out of private space.
D. Competitive bidding is less important.
ANSWER: C

110. Which of the following is not an element of culture?
A. Tax law.
B. Language.
C. Traditions.
D. Art.
ANSWER: B

111. To assess the potential of international markets, organizations generally compare nations with respect to
A. political regime.
B. demographics, GNP/capita and ‘consumer preferences’.
C. consumer preferences.
D. demographics, GNP/capita.
ANSWER: B

112. Which of the following statement is true?
A. The payment of interest is considered illegal by Islam.
B. The payment of interest is considered legal by Islam.
C. Alcohol consumption is considered legal by Islam.
D. Women entrepreneurs are encouraged.
ANSWER: A

113. The cultural environment of a country is best defined by which characteristics?
A. Degree of nationalism and economic community membership.
B. Production process and standards of measurement.
C. Standard of living and stage of economic development.
D. Values, attitudes, heroes, myths and symbols.
ANSWER: D

114. Hyperbole, persuasiveness, dreams, great expectations, and comparative advertising are reflections of which Hoftede’s dimension?
A. Individualism.
B. Femininity.
C. Masculinity.
D. Collectivism.
ANSWER: C

115. Which of the following sentences is not true?
A. In small power distance cultures, freedom means independence.
B. Characteristic of weak uncertainty avoidance is resistance to change, a desire for stability.
C. The norm, the desirable, in masculine societies is that one wants to show one’s success.
D. In large power distance and collectivistic cultures, children remain dependent on their parents
much more than those in small power distance and individualistic cultures.
ANSWER: B

116. To what extent of the world population is collectivist?
A. 10- 20 per cent.
B. 40-50 per cent.
C. 70-80 per cent.
D. 90-95 per cent
ANSWER: C

117. The roots of individualism are in
A. France.
B. Saudi Arabia.
C. England.
D. The USA.
ANSWER: C

118. Income and population are two variables that can be used
A. demographic segmentation.
B. Behavioural segmentation.
C. Lifestyle segmentation.
D. Psychographic segmentation.
ANSWER: A

119. Strong exchange rates can
A. helps predict change in lifestyle across Europe.
B. predicts the evolution of sales for particular brands.
C. help estimate consumer purchasing power.
D. drives imports to become cheaper.
ANSWER: D

120. When an organization selling electric and electronic household goods evaluates international
markets in view of entering them, a crucial factor taken into account is represented by
A. The demographic characteristics.
B. The economic factors.
C. The cultural factors.
D. The technological factors.
ANSWER: B

121. The least demanding targeting strategy in international marketing is
A. focused.
B. differentiated.
C. concentrated.
D. undifferentiated.
ANSWER: D

122. Which of the following are positive reasons for internationalization?
A. Market diversification.
B. Economies of scale.
C. International competitiveness.
D. All of the above.
ANSWER: D

123. Which economic factors should be analysed by organizations wishing to expand in international markets?
A. Interest rates.
B. Employment.
C. Purchasing power.
D. All the above.
ANSWER: D

124. How can a marketer use the age distribution of the population in a market?
A. the marketer can use it to identify the purchasing power of the population in each country.
B. the marketer can use it to identify the potential number of customers in various age groups.
C. the marketer can use it to identify behavioural patterns within each age group.
D. the marketer can use it to identify lifestyle patterns within various age groups.
ANSWER: B

125. In the PEST framework for environmental analysis what does the letter E stands for
A. Ethical.
B. Ecological.
C. Educational.
D. Economic.
ANSWER: D

126. Analyzing processes of change in the business environment involves conceptualizing it as
A. Complex.
B. Static.
C. Dynamic.
D. Diverse.
ANSWER: D

127. Profit may be defined as
A. the difference between total wage costs and total sales revenue.
B. total revenue from sales.
C. the difference between total production costs and total sales revenue.
D. the amount of money paid to shareholders as dividends.
ANSWER: C

128. The concept of a firm’s ‘license to operate’ refers to
A. a legal requirement for company registration.
B. the need for a firm to retain its legitimacy in the eyes of the public .
C. a qualification needed by company directors .
D. an agreement recognizing trade unions .
ANSWER: B

129. What does the term ‘third sector’ refer to?
A. the high technology industries .
B. the service sector .
C. the voluntary sector .
D. small and medium sized enterprises (SMEs) .
ANSWER: C

130. The idea that consumers are in charge of the economic system because their preferences drive business decisions about what to produce is referred to as
A. consumer activism.
B. consumer sovereignty.
C. consumerism .
D. consumer therapy .
ANSWER: B

131. A multi-national corporation (MNC) is defined by
A. carrying out production in more than one country.
B. having sales in more than one country.
C. having a multi-ethnic workforce .
D. having suppliers in more than one country.
ANSWER: A

132. Which type of organization structure is characterized by departments or units dealing with specialized tasks?
A. Matrix.
B. Divisional .
C. Hierarchical .
D. Functional.
ANSWER: D

133. The political system that stresses the primacy of collective goals over individual goals is
A. individualism.
B. Collectivism.
C. Socialism.
D. Communism.
ANSWER: B

134. The system of government in a nation is called the
A. Political system.
B. Economic environment.
C. Political environment.
D. National policy.
ANSWER: C

135. A philosophy of freedom of an individual in the economic and political pursuits is
A. Collectivism.
B. Individualism.
C. Socialism.
D. Democracy.
ANSWER: D

136. The political power monopolized by a party that governs according to religious principles is
A. Communist totalitarianism.
B. Theocratic totalitarianism.
C. Secular totalitarianism.
D. Tribal totalitarianism.
ANSWER: B

137. The productive activities privately owned as opposed to being owned by the state is
A. Market economy.
B. Secular economy.
C. Command economy.
D. Mixed economy.
ANSWER: A

138. The goods and the services produced, priced and distributed by the government is
A. Market economy.
B. Secular economy.
C. Command economy.
D. Mixed economy.
ANSWER: C

139. The law based on the tradition of a precedent and custom is
A. civil law.
B. criminal law.
C. common law.
D. religious law.
ANSWER: C

140. The protection against the new invention of a product or process for a defined period is
A. patent.
B. trade mark.
C. copy right.
D. Technology.
ANSWER: A

141. The exclusive legal right of authors. Composers, play writes, artists and publishers to publish and disperse their works is
A. Patent.
B. trade mark.
C. copy right.
D. Technology.
ANSWER: C

142. The Paris Convention for the Protection of Industry Property was dated
A. 1783.
B. 1883.
C. 1983.
D. 2003.
ANSWER: A

143. The transfer of the ownership of state property into the hands of the private individuals by the sale of state assets through auction is
A. Privatization.
B. Liberalization.
C. Globalization.
D. Domestication.
ANSWER: A

144. MFN is an acronym of
A. Most Favorable Nations.
B. Most Favored Nations.
C. Most Fortune Nations.
D. Most Fastest Nations.
ANSWER: B

145. The law that prevent the practices in restraint of trade is
A. Antiboycott regulations.
B. Antitrust Laws.
C. Antibribery regulations.
D. Anticorruption regulations.
ANSWER: A

146. The taking over of a private firm by the host country government to be run it as a government unit is
A. expropriation.
B. confiscation.
C. nationalization.
D. domestication.
ANSWER: C

147. The requirement imposed by the host country government that gradually ownership and management of the firm transferred to the locals is
A. expropriation.
B. confiscation.
C. nationalization.
D. domestication.
ANSWER: D

148. The creation of the difficult conditions in the country so as to force the foreign investors opt out of the country
A. creeping expropriation.
B. boycott.
C. violence.
D. exchange control.
ANSWER: A

149. The total accumulated value of foreign- owned assets at a given period of time is
A. flow of FDI.
B. stock of FDI.
C. inflow of FDI.
D. outflow of FDI.
ANSWER: B

150. The focus on increasing profitability and profit growth by reaping the cost reduction that come from economies of scale is
A. global standardization strategy.
B. localization strategy.
C. transnational strategy.
D. international strategy.
ANSWER: A

151. The focus on increasing profitability by customizing the firm`sgoods or services providing good match to taste and preferences in different national markets is
A. global standardization strategy.
B. localization strategy.
C. transnational strategy.
D. international strategy.
ANSWER: B

152. The firms trying to simultaneously achieve low costs through locating economies in the firm`s global network of operations is
A. global standardization strategy.
B. localization strategy.
C. transnational strategy.
D. international strategy.
ANSWER: C

153. The strategy of taking the products first produced for their domestic market and selling them internationally with only minimal local customization is
A. global standardization strategy.
B. localization strategy.
C. transnational strategy.
D. international strategy.
ANSWER: D

154. An agreement whereby a person grants the other the rights to intangible property for a specified period for a return of royalty is
A. franchising.
B. licensing.
C. joint venture.
D. strategic alliances.
ANSWER: B

155. The agreement in which a firm not only sells intangible property to an entity but also insist on the strict rules as to how it does business is
A. franchising.
B. licensing.
C. joint venture.
D. strategic alliances.
ANSWER: A

156. A entitlement establishing a firm that is jointly owned by two or more otherwise independent firms
A. franchising.
B. licensing.
C. joint venture.
D. strategic alliances.
ANSWER: C

157. The cooperative agreement between potential or actual competitors is
A. franchising.
B. licensing.
C. joint venture.
D. strategic alliances.
ANSWER: D

158. The entry mode that allow firms to export their process know- how to countries where FDI is prohibited, thereby enabling the firm earn greater return from this assets is
A. licensing.
B. consultancy exports.
C. project exports.
D. turnkey projects.
ANSWER: D

159. The abstract ideas about what a group of people and that when taken together constitute a design for living is
A. norms.
B. values.
C. Attitude.
D. belief.
ANSWER: B

160. The social guidelines and rules that prescribe appropriate behavior in particular situation is
A. norms.
B. values.
C. Attitude.
D. belief.
ANSWER: A

161. The relation between TRIPS and WIPO conventions is
A. WIPO conventions are more valid.
B. TRIPS agreement excludes subjects covered by WIPO conventions.
C. TRIPS agreement is subordinate to WIPO conventions.
D. TRIPS agreement incorporates substantive provisions of WIPO conventions. Answer: D
ANSWER: D

162. The leading continent in international trade in IT products is
A. Asia.
B. Europe.
C. America.
D. Africa.
ANSWER: A

163. The origin of Common law is in
A. America.
B. England.
C. Russia.
D. India.
ANSWER: B

164. The law system practices in Japan is
A. Common law.
B. Code law.
C. Civil law.
D. Religious law.
ANSWER: B

165. Terrorism in the host country is a
A. ownership risk.
B. operating risk.
C. transfer risk.
D. general risk.
ANSWER: B

166. Case law is the other name for
A. code law.
B. common law.
C. civil law.
D. criminal law.
ANSWER: B

167. The new economic policy has components
A. Liberalization.
B. Privatization.
C. Globalization.
D. LPG.
ANSWER: D

168. A mixed economy is necessarily a
A. controlled.
B. planned.
C. organized.
D. planned, organized and controlled.
ANSWER: B

169. Which law emphasized the importance of continuous development and expansion of export oriented production?
A. Export Policy Resolution, 1970.
B. MRTP.
C. IRDA.
D. The Companies Act.
ANSWER: A

170. What is the growth rate of the industrial output in the last four decades?
A. 4.5 % per annum.
B. 5 % annum.
C. 6 % per annum.
D. 5.5 % per annum.
ANSWER: D

171. Micro environment consist of
A. suppliers.
B. competitors.
C. political.
D. cultural.
ANSWER: A

172. Macro environment consists of
A. suppliers.
B. competitors.
C. marketing.
D. distributors.
ANSWER: B

173. Competitors, Customers and Public are the part of
A. macro environment.
B. micro environment.
C. business necessities.
D. internal environment.
ANSWER: B

174. What are the important external factors that constitute the economic environment of business?
A. economic condition.
B. economic policy.
C. economic system.
D. economic condition, policy and system.
ANSWER: D

175. What are the main objectives of the policy initiatives?
A. Reducing the govt. Deficit.
B. Reduction of the current account deficit in the balance of payments.
C. Raising GDP growth.
D. All of the above.
ANSWER: B

176. When was the first Five year Plan?
A. 1950.
B. 1951.
C. 1952.
D. 1953.
ANSWER: B

177. What are the main objectives of Five year plan?
A. achieve full employment.
B. reduce inequalities of income and wealth.
C. setup a socialist society based on equality.
D. balanced economy.
ANSWER: D

178. What do you mean by DGTD?
A. Director General of Trade and Development.
B. Director General of Total Development.
C. Director General of Technical Development.
D. Director General of Transport Development.
ANSWER: A

179. Environment is synonym with
A. task.
B. relation.
C. people.
D. situational variables.
ANSWER: D

180. The purpose of a SWOT analysis is to analyse
A. business environment in which an organisation operates.
B. The strategic capability of an organisation.
C. The business environment and the strategic capability of an organisation relative to its competitors.
D. External and organisational environments.
ANSWER: C

181. SWOT should be
A. A general list of issues under each heading.
B. Focused on key issues and as specific as possible.
C. Completed when an analysis of the external environment has been conducted.
D. SWOT analysis is the best strategic management framework for analysing the competitive positioning of an organization.
ANSWER: B

182. Ethical issues concerning business and public sector organisations exist at three levels
A. Macro, Corporate, Individual.
B. Corporate, Business, Functional.
C. Corporate, Functional, Individual.
D. Business, Family, Individual.
ANSWER: A

183. An ethical stance is the extent to which
A. An organisation meets the expectations of its stakeholders.
B. An organisation will exceed its minimum obligations to stakeholders and society at large.
C. An organisation meets regulatory requirements.
D. An organisation respects the dominant religious beliefs of the country in which it operates.
ANSWER: B

184. Corporate Social Responsibilty concerns
A. how an organisation meets the expectations of its stakeholders.
B. the behaviour of individual managers.
C. external stakeholder relationships.
D. the ways in which an organisation exceeds its minimum required obligations to stakeholders.
ANSWER: D

185. The cultural frames of reference include
A. National; organisational field; competitors.
B. National; organisational; organisational field and functional/divisional.
C. Unions; organisational; industrial.
D. Organisational; colleagues; organisational field.
ANSWER: B

186. An organisational field is a
A. Definition of the competitive structure of an industry.
B. Set of assumptions held in common within an industry.
C. Set of benchmarks which organisations should achieve in order to be successful
D. Community of organisations with a common meaning system and which interact more frequently with each other than with those outside the field.
ANSWER: D

187. The culture of an organisation can be conceived as consisting of layers
A. Values; beliefs; behaviours; and taken-for-granted assumptions.
B. . Values; beliefs; tasks, objectives.
C. Beliefs; tasks; personalities.
D. Individual; functional; organisational.
ANSWER: A

188. The cultural web is a
A. Representation of the taken-for-granted assumptions, or paradigm, of an organisation and the physical manifestations of the organisation culture.
B. Representation of the taken-for-granted assumptions, or paradigm, of an organization and its competitors.
C. Representation of the power in an organisation.
D. Representation of the politics in an organisation.
ANSWER: A

189. The environmental factor that includes peoples attitude to family, religion etc is
A. Cultural.
B. Economic.
C. Socio- cultural.
D. Political.
ANSWER: C

190. The value chain attempts to identify those activities which add value to
A. The organizations stakeholders.
B. The senior strategic managers in the organization
C. The organizations shareholders.
D. The customer or final user.
ANSWER: D

191. The value chain is composed of primary & support activities. Which answer below provides the correct components for primary activities?
A. Service, human resource management, marketing & sales, operations and outbound logistics.
B. Marketing & Sales, Operations, Outbound Logistics and Service.
C. Procurement, Firm Infrastructure, Human Resource Management, Technology Development and Marketing & Sales.
D. Inbound Logistics, Operations, Outbound Logistics, Marketing & Sales and Service.
ANSWER: C

192. Which types of organizational knowledge is a source of competitive advantage?
A. Explicit knowledge which is classified and formalized in a planned and systematic way.
B. Personal knowledge which is hard to communicate and formalize.
C. Customer databases, market research reports, management reports.
D. Collective and shared experience accumulated through systems, routines and activities of sharing across the organization.
ANSWER: D

193. The global commons refers to
A. The shared parts of the earth.
B. The parts of the Earth not accessible to any one nation.
C. Natural phenomenon that affects all inhabitants of the earth.
D. All parts of nature that contribute to the health of the global environment
ANSWER: C

194. The largest oil- exporting country in the world is
A. Norway.
B. Saudi Arabia.
C. Russia.
D. Great Britain.
ANSWER: B

195. Which of the following is a possible consequence of global warming?
A. A global temperature increase of ten to fifteen Celsius.
B. An increase in ultraviolet radiation reaching the earths surface.
C. A global temperature increase of three to ten degrees Fahrenheit.
D. An increase in the chlorofluorocarbons in the atmosphere.
ANSWER: D

196. The process whereby a commons is spilt into privately held pieces of property in order to manage resources responsibility is
A. Land division.
B. Land reform.
C. Enclosure.
D. Privatisation.
ANSWER: D

197. What 1997 treaty adopted a complex formula for greenhouse emissions to 1990 levels in the global north? Kyoto protocol.
A. UNEP . framework
B. convention on climate change.
C. UNCLOS III
D. Montreal Protocol.
ANSWER: B

198. Which countries has been reluctant to agree to reduction in Greenhouse gas emission?
A. Russia.
B. Great Britain.
C. France.
D. China
ANSWER: B

199. Air and water pollution are typically
A. Regional.
B. Multilateral.
C. Economic.
D. Global.
ANSWER: D

200. Which of the following is characteristic of the final stage of demographic transition?
A. High death rates.
B. Rapid population growth.
C. Birth and death rates that are close to each other.
D. High birth rates.
ANSWER: C

 

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