Global Business Environment MCQs with Answers – Set2

Global Business Environment MCQs with answers: these notes are useful for the preparation of various competitive and academic exams like NET, UGC, BCOM, MCOM, MBA, BBA, and many other regular and distance education exams.

What is the global business environment?

The global business environment refers to the complex and dynamic set of factors that influence international trade and commerce. It encompasses a wide range of economic, political, social, and cultural variables that affect businesses operating in different countries around the world.

In today’s interconnected global economy, understanding the nature and dynamics of the global business environment is essential for any company looking to succeed on an international scale.

Global Business Environment MCQ Multiple Choice Questions

Global Business Environment MCQs with Answers : Set 2

101. Geographical indications specify
A. Place of origin of goods
B. Special characteristics of the product are associated with the place of origin.
C. Place and special characteristics of the product
D. Place or special characteristics of the product
Answer: (C)

102. Computer programs are protected as
A. Copyrights.
B. Trademarks.
C. Patents.
D. Industrial design
Answer: (A)

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

104. The degrading effect of MNCs on the environment is through
A. Relocating production from developing countries to developed countries
B. Relocating production from developed countries 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. cultures are universalistic, while collectivistic cultures are particularistic.
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 worldwide 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 statements 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 Hofstede’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 a change in lifestyle across Europe.
B. predicts the evolution of sales for particular brands.
C. help estimates 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 analyzed 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 behavioral 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)