International Business Mcq

International Business Management Multiple Choice Questions

Multiple Choice Questions.
1. By entering into international business, a firm expects improvement in
A. marketing.
B. all spheres of marketing, operations and finance, simultaneously
C. any or all spheres of marketing, operations and finance.
D. finance only.
ANSWER: C
2. By having business in different countries, a firm reduces
A. credit risk.
B. political risk.
C. financial risk.
D. business risk.
ANSWER: B
3. The following is not an export intermediary
A. Export house
B. Trading house.
C. Manufacturer exporter
D. Merchant exporter
ANSWER: C
4. The mode of entering international business with least risk to the firm is
A. indirect exports.
B. direct exports
C. management contract.
D. turnkey projects.
ANSWER: A
5. Export management companies
A. act only as distributors of manufacturers
B. are responsible for executing the export order
C. may act as commission agents or distributors.
D. are domiciled in foreign country.
ANSWER: C
6. The following mode of business entry requires equity investment by the firm in a foreign venture
A. licensing.
B. franchising
C. turnkey projects.
D. joint venture.
ANSWER: D
7. Licensing arrangements is best suited for firms
A. having small capital base.
B. having exclusive intangible property right.
C. with huge liquid resources.
D. with financial difficulties.
ANSWER: D
8. Under franchising, production is done by
A. The franchisor.
B. The franchisee, according to his own standards.
C. The franchisee, with ingredients supplied by the franchisor.
D. The franchisee, in conformity with the standards set by the franchisor.
ANSWER: B
9. A joint venture cannot be established with
A. more than three participating firms.
B. participating firms from different countries.
C. government as a partner.
D. none of the above.
ANSWER: D
10. Wholly owned subsidiary can be set up
A. as a Greenfield venture.
B. to acquire an existing firm.
C. as a new venture or with an existing firm.
D. only when joint venture is not permitted.
ANSWER: D
11. Direct democracy is characterised by
A. citizens directly participating in the government of the state.
B. periodical elections for representatives.
C. police force in the private hands.
D. policy influenced by an individual.
ANSWER: A
12. The citizen right to freedom of expression and option is preserved in
A. representative democracy only.
B. all democracies.
C. direct democracy only.
D. democracy as well as totalitarianism.
ANSWER: B
13. Totalitarianism does not permit
A. practice of religion.
B. state worship of land.
C. freedom of expression to citizens.
D. recognition of citizenship to residents.
ANSWER: C
14. Theocratic totalitarianism refers to rule by
A. tribals.
B. foreign missionaries.
C. the military.
D. religious leaders.
ANSWER: D
15. Sanctions and embargoes differ in the following respect
A. Sanctions are against the individuals, embargoes are against nations.
B. Sanctions are specific trade restrictions; embargoes prohibit all business deals with another country.
C. Sanctions are general, embargoes are specific.
D. Sanctions are against a single country, embargoes are against all foreign countries.
ANSWER: B
16. Export control refers to restrictions on
A. Domestic firms from engaging in exports.
B. Items that can be exported from the country.
C. Foreign countries exporting to the country.
D. Domestic firms engaging in trade with nation
ANSWER: B
17. Indirect regulations affecting international business does not include
A. Export licensing.
B. Anti boycott regulations.
C. Anti trust laws.
D. Anti corruption laws.
ANSWER: A
18. Antiboycott regulations provide that
A. Domestic companies should not boycott any export order
B. Foreign companies should not boycott exports from the country.
C. Domestic companies should not comply with boycott regulations imposed by the importing country.
D. Trade should be liberal as provided under WTO charter.
ANSWER: C
19. Transfer of assets of a foreign firm to a domestic firm effected by the government with payment of
compensation is
A. Expropriation
B. Appropriation
C. Confiscation.
D. Domestication.
ANSWER: A
20. The compensation is paid on expropriation
A. At market rate.
B. At corresponding value in the home country of the firm.
C. Lower than market value.
D. On non-repatriable basis.
ANSWER: C
21. Confiscation refers to seizure of assets of a firm by
A. the government with adequate compensation.
B. the government without compensation
C. its rivals.
D. the people of the country.
ANSWER: C
22. Under domestication requirement
A. only the ownership of the firm is transferred to rivals.
B. the management of the firm is transferred to locals.
C. both ownership and management of the firm are transferred to locals immediately
D. both ownership and management of the firm are transferred to locals gradually.
ANSWER: D
23. The operating risk in the host country does not include the risk of
A. Change in government policies.
B. Exchange control.
C. Price controls.
D. Sanctions.
ANSWER: D
24. The political risk faced by a firm cannot be managed by
A. following ethical business practices
B. partnership with local firms.
C. insurance.
D. none of the above.
ANSWER: D
25. The legal system in India is based on
A. Common law.
B. Civil law.
C. Theocratic law.
D. Hindu law.
ANSWER: D
26. Judgments are based on detailed codes, rather than precedents under
A. Common law.
B. Civil law.
C. Theocratic law.
D. English law.
ANSWER: B
27. Theocratic law refers to
A. Islamic law.
B. Military law.
C. Law based on religious precepts.
D. Tribal law.
ANSWER: C
28. The following statement relating to civil law is true
A. The role of judges to interpret the law.
B. The role of judges to apply the law.
C. It is based on established practiced.
D. It is not applicable to criminal cases.
ANSWER: B
29. In international business cheaper alternatives to litigation is/ are
A. Conciliation.
B. Arbitration.
C. Negotiations.
D. Conciliation and arbitration.
ANSWER: B
30. A contract drafted under civil law differs from that drafted under common law in the following respect
A. it will be detailed.
B. it will be shorter and less specific.
C. it will provide less severe damages.
D. it will be in detail.
ANSWER: B
31. Ownership of intellectual property is recognized in law by granting
A. Licenses.
B. Patents.
C. Copyrights.
D. Patent, copyright or trademark as appropriate.
ANSWER: D
32. Product liability law relate to
A. holding the manufacturer responsible for the damages caused to the genuine user of the product.
B. liability of the customer for illegitimate use of the product.
C. liability of the seller for selling spurious goods.
D. holding the manufacturer for advertising the false information.
ANSWER: A
33. Voluntary export restraint is
A. tariff barrier.
B. non- tariff barrier.
C. both tariff and non- tariff barrier.
D. not a trade barrier.
ANSWER: B
34. The objectives of import duty is/are
A. to raise income for the government.
B. to restrict imports.
C. to encourage exports.
D. to raise income and restrict imports.
ANSWER: D
35. Import tariff benefits
A. the consumers
B. domestic producers.
C. overseas suppliers.
D. the overseas producers.
ANSWER: B
36. Non- tariff trade barriers do not include
A. administrative regulations.
B. export subsidiaries
C. fiscal barriers.
D. quota.
ANSWER: B
37. The following is not a feature of globalisation
A. similar strategies are adopted by a firm in all markets.
B. only multinational firms engage in international business.
C. convergence of ideas and culture.
D. obliteration of national boundaries.
ANSWER: A
38. Globalisation of markets has brought about economies of
A. scale in production.
B. distribution and marketing.
C. management.
D. all business operations.
ANSWER: D
39. Outsourcing of components is an example of globalisation of
A. production.
B. marketing.
C. purchase
D. production and marketing.
ANSWER: A
40. The following benefit is not expected from globalisation
A. reaping the benefits of free trade.
B. better quality of life through choice of product.
C. better knowledge through compulsory education.
D. dissemination of information through new information technology.
ANSWER: C
41. Anti- globalisation has been voiced by
A. all developing countries.
B. only few developing countries.
C. supporters from both developing and developed countries
D. only developed countries
ANSWER: C
42. Computer programs are protected as
A. Copy rights
B. Trademarks.
C. Patents.
D. Industrial design
ANSWER: A
43. 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
44. 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
45. 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
46. Which one of the following is true of the Chinese?
A. They pay to long standing close attention 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: C
47. TRIMs stands for
A. Trade Related Investment Measures.
B. Trade Review Information Modules.
C. Tripartite Review of Investment Means.
D. Trade Related Intellectual Measures.
ANSWER: A
48. The relation between the General Council and Dispute Settlement Body is
A. dispute Settlement body reports to General Council.
B. both report to Ministerial Conference.
C. both are same, functioning differently.
D. both have Trade Policy Review Body as the appellate body.
ANSWER: C
49. The final report of the Panel becomes the ruling in a dispute
A. if both the disputing countries agree.
B. if the report is accepted by majority of members.
C. if the report is accepted by all the members.
D. unless the report is rejected by consensus.
ANSWER: D
50. UNCTAD stands for
A. United Nations Council for Technical Development.
B. United Nations Conference on Trade and Development.
C. United National Census on Trade and Development.
D. United Nations Center for Technology and Development.
ANSWER: B
51. The Board of Trade is
A. a wing of the Board of Directors in companies engaged in foreign trade
B. the authority that appraises foreign investment in India.
C. a consultative and advisory body for the government of India on foreign trade policy.
D. an organization of exporters from India.
ANSWER: C
52. Commodity Boards do not differ from Export Promotion council in respect of the following
A. Commodity Boards deal with problems relating to production also.
B. Commodity Board is a statutory body.
C. Commodity Board covers a specific product.
D. Commodity Board offers consultative service.
ANSWER: C
53. The following organization does not specialize in training activity
A. Indian Institute of Foreign Trade.
B. Indian Trade Promotion Organisation.
C. Indian Institute of Packaging.
D. Federation of Indian Exports Organisation.
ANSWER: B
54. The Institution specializing in organizing fairs and exhibitions is
A. Indian Institute of Foreign Trade.
B. Federation of Indian Exports Organisation.
C. Indian Trade Promotion Organisations.
D. Trade Development Authority.
ANSWER: C
55. Funds allocated under ASIDE should be used for
A. developing infrastructure such as roads.
B. creation of free trade zone.
C. advertisement abroad.
D. conducting trade tours.
ANSWER: A
56. Market Development Assistance is available to
A. exporters with annual turnover upto Rs. 5 crore.
B. exporters with annual turnover upto Rs. 10 crore.
C. exporters with annual turnover above Rs. 10 crore.
D. all exporters.
ANSWER: A
57. Market Access Initiatives is not available for
A. conducting market studies
B. participation in international trade fairs.
C. testing charges for engineering products.
D. none of the above.
ANSWER: D
58. Unit in a technology park is not eligible for
A. exemption from import duty.
B. exemption from quantitative restrictions.
C. tax exemptions.
D. exemptions from registration requirements.
ANSWER: D
59. Special Economic Zones are
A. situated outside India, but subject to RBI control.
B. treated as foreign territory and not Indian laws.
C. governed by international and not Indian laws.
D. prohibited from buying from Domestic Tariff Area.
ANSWER: B
60. A SEZ cannot be established for
A. manufacture of goods.
B. rendering of services.
C. functioning as Free Trade and Warehousing Zone.
D. none of the above.
ANSWER: D
61. For establishing SEZ, approval of Board of Approval is not required if established by
A. Central Government.
B. Central and State government jointly.
C. State government.
D. Either Central or State Governement.
ANSWER: A
62. A co-developer of SEZ is
A. A joint developer.
B. A person or State Government approved to provide infrastructure facilities in SEZ.
C. Private party who joins with State government to establish the SEZ.
D. A person who joins with the Central Government.
ANSWER: B
63. Duty Drawback is available for
A. Import duty on imported components.
B. Central excise on indigenous components.
C. Import duty and central excise on indigenous components.
D. Import duty, central excise and VAT.
ANSWER: C
64. Excise duty exemption on exports is available for duty paid on
A. finished products only.
B. components only.
C. finished products and components.
D. imported items.
ANSWER: C
65. Advance authorization is not available for
A. physical exports.
B. service exports.
C. intermediate supplies.
D. deemed exports.
ANSWER: B
66. Import under the following scheme is subject to actual user condition even after fulfillment of export
obligation
A. Advance Authorisation.
B. Duty Free Import Authorisation.
C. Duty Entitlement Pass Book.
D. Duty Remission Scheme.
ANSWER: A
67. Export Promotion Capital Goods Scheme allows import of capital goods
A. Free of import duty.
B. With concessional duty of 5 per cent with no export obligation.
C. With concessional duty of 5 per cent with export obligation 8 times the duty saved.
D. With concessional duty of 5 per cent with export obligation 8 times the import made.
ANSWER: C
68. Service from India scheme provides duty credit for exports under the category of
A. Hotel.
B. Health care.
C. Education.
D. All service providers with a foreign exchange earnings of at least Rs. 10 lakhs.
ANSWER: D
69. Regulatory documents for international trade includes
A. Shipping bill.
B. Bill of lading.
C. Marine insurance policy.
D. Proforma invoice.
ANSWER: A
70. A Bill of Lading is
A. a document of ownership to goods.
B. a non- negotiable instrument.
C. issued for goods carried by ship.
D. regulatory document.
ANSWER: C
71. For goods collected at the exporter premise and carried in containers, the transport document issued is
A. bill of lading.
B. container bill of lading.
C. multi modal transport document.
D. seaway bill.
ANSWER: C
72. A bill of lading is prepared in more than one copy. Goods are delivered against
A. the first copy, if it is lost the next copy.
B. any copy, whichever is present first.
C. all copies, presented together.
D. proportionately against each copy.
ANSWER: B
73. GSP stands for
A. Goods Shipment Procedure
B. Generalized System of Payments.
C. Generalized System of Preferences.
D. Generalized Scheme for Payment.
ANSWER: C
74. Application for removal of excisable goods should be made in
A. Form A1.
B. ARE form.
C. GR form.
D. Excise form.
ANSWER: B
75. The following document is covered by Master Document I under standardized pre-shipment documents
A. Bill of Exchange.
B. GR form.
C. Certificate of origin.
D. Shipping bill.
ANSWER: C
76. Price under the following incoterm will be the least
A. EXW.
B. FOB.
C. CIF.
D. DDP.
ANSWER: A
77. The exporter need not obtain the marine insurance under the following incoterm
A. CIF.
B. CIP.
C. DDP.
D. DDU.
ANSWER: C
78. Shipping order refers to
A. permission by the customs to load the goods into the vessel.
B. Exporter order to the captain of the vessel to take the goods.
C. the sequence in which the goods are to be loaded into the vessel.
D. an acknowledgement by the shipping company for having booked the shipping space.
ANSWER: D
79. The application to the Customs to clear the goods for export is made in
A. Shipping bill.
B. Shipping request.
C. ARE form.
D. Bill of exit.
ANSWER: A
80. The importability or otherwise of a specified commodity into India is determined by
A. Foreign trade (Regulation ) Rules Act.
B. Foreign Trade (Regulation and Development) Act.
C. Imports and Exports (Control) Act.
D. Foreign Trade (Exemption) Rules Act.
ANSWER: B
81. An airway bill is prepared in
A. two copies.
B. three copies.
C. four copies.
D. five copies.
ANSWER: B
82. An application for customs clearance of import cargo is
A. Bill of lading.
B. Bill of exchange.
C. Shipping bill.
D. Bill of Entry.
ANSWER: D
83. ECGC policies provide exporters cover against
A. general risk.
B. commercial risk.
C. political risk.
D. commercial and political risk.
ANSWER: D
84. The minimum land requirement for a SEZ for multi- product is
A. 500 hectares.
B. 1000 hectares.
C. 1500 hectares.
D. 2000 hectares.
ANSWER: A
85. Terrorism in the host country is a
A. ownership risk.
B. operating risk.
C. transfer risk.
D. general risk.
ANSWER: B
86. Case law is the other name for
A. code law.
B. common law.
C. civil law.
D. criminal law.
ANSWER: B
87. Tariffs levied as a percentage of the value of the product is a
A. specific duty.
B. ad valorem duty.
C. anti dumping duty.
D. countervailing duty.
ANSWER: B
88. The duty levied to counteract foreign suppliers
A. specific duty.
B. ad valorem duty.
C. anti dumping duty.
D. countervailing duty.
ANSWER: C
89. The duty levied to nullify the effect of export subsidies is
A. specific duty.
B. ad valorem duty.
C. anti dumping duty.
D. countervailing duty.
ANSWER: D
90. Computer programs are protected as
A. Copy rights.
B. Trademarks.
C. Patents.
D. Industrial design.
ANSWER: A
91. 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
92. 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
93. 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
94. The Paris Convention for the Protection of Industry Property was dated
A. 1783.
B. 1883.
C. 1983.
D. a. 2003.
ANSWER: A
95. 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
96. MFN is an acronym of
A. Most Favorable Nations.
B. Most Favored Nations.
C. Most Fortune Nations.
D. Most Fastest Nations.
ANSWER: B
97. 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
98. The leading continent in international trade in IT products is
A. Asia.
B. Europe.
C. America.
D. Africa.
ANSWER: A
99. The origin of Common law is in
A. America.
B. England.
C. Russia.
D. India.
ANSWER: B
100. The law system practices in Japan is
A. Common law.
B. Code law.
C. Civil law.
D. Religious law.
ANSWER: A
101. Import of capital goods under EPCG scheme is subject to
A. Terms and conditions of agreement.
B. Conditions of law of exporting country.
C. Actual user condition.
D. Conditions of law of importing country.
ANSWER: C
102. The export proceeds shall be realized in
A. Any foreign currency.
B. Non- convertible currency.
C. Convertible currency.
D. Home currency only.
ANSWER: C
103. The export promotion scheme that enables the post export replenishment of duty on inputs used in the
export product is
A. Replenishment licence.
B. Duty remission scheme.
C. Duty exemption scheme.
D. Duty free replenishment certificate.
ANSWER: B
104. The import of inputs used in the manufacture of export product is permitted without payment of the basic
customs duty under
A. Replenishment licence.
B. Duty remission scheme.
C. Duty exemption scheme.
D. Duty free replenishment certificate.
ANSWER: D
105. In the basic formula for the calculation of Value Addition, A stands for
A. FOB value of the export realized/ FOR value of supply received.
B. CIF value of imported inputs covered by the licence.
C. CIF value of the export realized/ FOR value of supply received.
D. FOB value of imported inputs covered by the licence.
ANSWER: A
106. In the basic formula for the calculation of Value Addition, B stands for
A. FOB value of the export realized/ FOR value of supply received.
B. CIF value of imported inputs covered by the licence.
C. CIF value of the export realized/ FOR value of supply received.
D. FOB value of imported inputs covered by the licence.
ANSWER: B
107. The export promotion scheme with the objective to neutralize the incidence of Customs duty on the
import content of the export product is
A. Export Promotion Capital Goods.
B. Export Credit Guarantee.
C. Duty Free Replenishment.
D. Duty Entitlement Passbook.
ANSWER: D
108. The licence that is transferable is
A. Export licence.
B. Advance licence.
C. DEPB licence.
D. REP licence.
ANSWER: C
109. The exporters of gems and jewellery are eligible to import their inputs by oblaining
A. Export licence.
B. Advance licence.
C. DEPB licence.
D. REP licence.
ANSWER: D
110. The commonly used type of Letter of Credit is
A. Revocable.
B. Irrevocable.
C. Confirmed.
D. Unconfirmed
ANSWER: B
111. The terms of payment where the documents is released to the importer on payment only is
A. Documents against acceptance.
B. Documents against payment.
C. Bill of exchange.
D. Sight bill.
ANSWER: B
112. RCMC is the acknowledgement for the registration with
A. Export Promotion Council.
B. Commodity Board.
C. State Trading.
D. Chamber of Commerce.
ANSWER: A
113. The authorized person for the decision regarding the penalty for the violation of foreign trade rules is
A. Competent authority.
B. Adjudicating authority.
C. Appellate authority.
D. Director General of Foreign Trade.
ANSWER: B
114. The person authorized to whom the appeal against the order is made is
A. Competent authority.
B. Adjudicating authority.
C. Appellate authority.
D. Director General of Foreign Trade.
ANSWER: C
115. The Central Government frames the foreign trade rules along with the assistance of
A. Competent authority.
B. Adjudicating authority.
C. Appellate authority.
D. Director General of Foreign Trade.
ANSWER: D
116. The Imports and Exports (Control) Act came into enforcement from
A. 1947.
B. 1948.
C. 1951.
D. 1955.
ANSWER: A
117. The act which came into force in the year 1955 was
A. The imports and Exports (Control) Act.
B. The Export Policy Resolution.
C. The Exports (Control) Act.
D. The imports (Control) Act.
ANSWER: D
118. The IEC number is issued by the
A. Central Government.
B. State Government.
C. Director General of Foreign trade.
D. Ministry of commerce.
ANSWER: C
119. The IEC number is a number with
A. 7 digits.
B. 8 digits.
C. 9 digits.
D. 10 digits.
ANSWER: D
120. The Director General of Foreign trade is appointed by
A. Central Government.
B. State Government.
C. Ministry of commerce.
D. Chief justice of the Supreme Court.
ANSWER: A
121. The Code of Criminal Procedure was passed in the year
A. 1953.
B. 1963
C. 1973
D. 1983
ANSWER: C
122. The unpaid penalty under the Foreign Trade act will be collected as
A. arrear in land revenue.
B. arrear in tax.
C. arrear in duty.
D. arrear in wealth tax.
ANSWER: A
123. The penalty under the foreign trade act shall not exceed
A. Rs. 1000.
B. Rs. 2000.
C. Rs.3000.
D. Rs. 5000.
ANSWER: A
124. The appeal against the order or decision is to be made to the concerned authority within
A. 30 days from the order being passed.
B. 45 days from the order being passed.
C. 60 days from the order being passed.
D. 180 days from the order being passed.
ANSWER: B
125. The Code of Civil Procedure was enforced in the year
A. 1908.
B. 1918.
C. 1928.
D. 1938.
ANSWER: A
126. The revision of the decision made under the Foreign trade act is possible with in
A. one year.
B. 2 years.
C. 3 years.
D. 5 years.
ANSWER: B
127. Monetary policy relates to controlling
A. money supply.
B. money supply and interest rate.
C. money supply, interest rate and exchange rate.
D. credit creation by banks.
ANSWER: C
128. 128. To arrest and reverse the declining trend of exports and to provide additional support especially to
those sectors which have been hit badly by recession in the developed world is the short objective of
A. 1992- 2002 policy.
B. 2002-2007 policy.
C. 2004- 2009 policy.
D. 2009-2014 policy.
ANSWER: D
129. To encourage value addition in manufactured exports and towards this end, the stipulated a minimum
value addition on imported inputs under advance authorization scheme is
A. 10 per cent.
B. 12 per cent
C. 15 per cent.
D. 17 per cent.
ANSWER: C
130. The incentive available under Focus Market Scheme (FMS) is
A. 1.5 to 2 per cent.
B. 2 to 2.5 per cent.
C. 2.5 to 3 per cent.
D. 3 to 3.5 per cent.
ANSWER: C
131. The incentive available under Focus Product Scheme (FPS)
A. 1.5 to 2 per cent.
B. 2 to 2.5 per cent.
C. 2.5 to 3 per cent.
D. 3 to 3.5 per cent.
ANSWER: B
132. To double India's percentage share of global merchandise trade is the objective of
A. 1992- 2002 policy.
B. 2002-2007 policy.
C. 2004- 2009 policy.
D. 2009-2014 policy.
ANSWER: C
133. The increased per cent of duty free entitlements of import trimmings, embellishments and footwear
components for leather industry as per the 2004- 2009 policy is
A. 2 per cent of FOB value.
B. 3 per cent of FOB value.
C. 5 per cent o FOB value.
D. 7 per cent of FOB value.
ANSWER: B
134. The increased per cent of duty free import of trimmings and embellishments for Handlooms &
Handicrafts sectors as per the 2004- 2009 policy is
A. 2 per cent of FOB value.
B. 3 per cent of FOB value.
C. 5 per cent o FOB value.
D. 7 per cent of FOB value.
ANSWER: C
135. As per the Target Plus scheme, For incremental growth of over 20 per cent the duty free credits would
be
A. 5 per cent of FOB value of incremental exports
B. 10per cent of FOB value of incremental exports
C. 15per cent of FOB value of incremental exports.
D. 20 per cent of FOB value of incremental exports.
ANSWER: B
136. 133. As per the Target Plus scheme, For incremental growth of over 25 per cent the duty free credits
would be
A. 5 per cent of FOB value of incremental exports
B. 10per cent of FOB value of incremental exports
C. 15per cent of FOB value of incremental exports.
D. 20 per cent of FOB value of incremental exports.
ANSWER: C
137. As per the Target Plus scheme, For incremental growth of over 100 per cent the duty free credits would
be
A. 5 per cent of FOB value of incremental exports
B. 10per cent of FOB value of incremental exports
C. 15per cent of FOB value of incremental exports.
D. 20 per cent of FOB value of incremental exports.
ANSWER: A
138. 133. The foreign Trade (Regulation) Rules was passed in the year
A. 1991.
B. 1992.
C. 1993.
D. 1994.
ANSWER: B
139. 133. The Customs Act was enforced in the year
A. 1962.
B. 1964.
C. 1978.
D. 1992.
ANSWER: C
140. Exports and Imports come under the purview of
A. Ministry of Finance
B. Ministry of Commerce
C. Ministry of External Affairs
D. Ministry of Home Affairs
ANSWER: A
141. 141. Which one of the following is not a cause but a consequence of Globalisation?
A. Integration of Markets
B. Technology and know-how
C. Greater institutionalization abroad
D. Greater Risk Exposure
ANSWER: B
142. Basel Committee on Banking Supervision is also known as
A. BIS Committee
B. Bank for International Settlements Committee
C. Peter Cooke Committee
D. Banking Regulation Committee
ANSWER: D
143. Which one of the following systems occurred first in the history of international banking?
A. Post Bretton Woods.
B. European Monetary Union
C. Gold Standard
D. Gold Exchange Standard
ANSWER: D
144. 144. State Bank of India is maintaining account in Japanese Yen with American Express Bank, Tokyo. It
is known as
A. Vostro account.
B. Nostro account.
C. Loro account.
D. Escrow account.
ANSWER: C
145. Which one of the following is not an approved manner of payment for exports as per FEMA 1999 on
Exports?
A. Bank Draft, pay order, bankers, cheque or personal cheques
B. FC Notes/F. T/Cs from the buyer during his visit to India
C. a. Payment out of funds held in the FCNR/NRE account maintained by the buyer
D. a. Precious metals i.e. Gold/Silver/Platinum by Gems & Jewellery Units in SEZs and 100% EOUs in
equivalent value of jewellery exported subject to fulfillment of certain conditions.
ANSWER: B
146. . If a country is having more exports than imports in value terms, it can be said that the country is having
A. Deficit under BOP.
B. Deficit under BOT.
C. Surplus under BOT.
D. Surplus under BOP.
ANSWER: D
147. Which one of the following is not a part of institutions under Bretton Woods System?
A. IMF.
B. IBRD( World Bank).
C. IFC.
D. BIS.
ANSWER: D
148. 148. Which one of the following is not a source of fund available to banks Pre-shipment Credit In
Foreign Currency ( PCFC) Scheme?
A. EEFC A/c.
B. NRE A/c.
C. RFC A/c.
D. Escrow A/c.
ANSWER: D
149. Which of the following is not true regarding an AWB?
A. It is prima facie evidence of receipt of cargo.
B. It is a document of title to goods.
C. The date of dispatch indicated on the AWB will be deemed to be the date of shipment.
D. AWB serves as an instruction sheet giving all the instruction needed for moving the goods.
ANSWER: C
150. Which of the following statement is correct?
A. Foreign Exchange markets are localized markets.
B. Foreign Exchange markets operate within a country time zone.
C. Foreign Exchange markets are dynamic and round the clock markets.
D. Foreign Exchange markets are used only for trade related transactions.
ANSWER: B
151. Domestic sale contract in the US are controlled by the body of law know as
A. Convention on the International Sale of Goods.
B. Uniform Commercial code.
C. Domestic Contract Code.
D. Uniform Contract Code.
ANSWER: B
152. The almost universal adoption of the International Chamber of Commerce Incoterms and Uniform
Customs and Practices for Documentary Credits points to the growth of
A. International Treaty law.
B. Customary International business law.
C. International Commercial Juriprudence.
D. Convention driven international business law.
ANSWER: B
153. The effort to unify international sales law was significantly enhanced by the ratification of
A. The ICCs Incoterms.
B. The ICCs Uniform Customs and Practices for Documentary Credit.
C. The UN Convention on Contracts for the International Sale of Goods.
D. The UN Convention on International Sales Contract.
ANSWER: D
154. Development in international law is process. What does this process promote?
A. Mainly human development.
B. Mainly economic development.
C. Mainly social development.
D. Mainly political development.
ANSWER: B
155. Why is sustainable development a principle of paramount importance in international law?
A. Because it promotes world peace
B. Because it is a principle which did not exist before
C. Because it is a principle recognised by the International Court of Justice as well as bumber of leading
international organisations
D. Because non-governmental organisations support this principle
ANSWER: C
156. The court use which of the following to extend contractual liability to protect someone who reasonably
relied that the parties would conclude a final agreement
A. Guarantee theory.
B. Assurance theory.
C. Reliance theory.
D. Promissory theory.
ANSWER: D
157. In the civil law, pre- contractual liability premised on the implied duty of the parties to act in good faith
during the negotiations of a contract is known as
A. Culpa in contrahendo.
B. Contra proferentem.
C. Contract of honor.
D. Promissory estoppel.
ANSWER: A
158. The initial guiding principle behind the formation of GATT was
A. Free trade through reduction of tariff worldwide.
B. Free trade through the establishment of regional trading groups.
C. Free trade through the harmonious law in the industrial countries.
D. Free trade through the development of the less industrialized nations.
ANSWER: A
159. The three foundational principle of the GATT includes
A. Most favoured nations, national treatment principle, principle of transperancy.
B. Most favoured nation, non- discrimination principle, principle of transperancy.
C. National treatment principle, non- discrimination principle, principle of transperancy.
D. Most favoured nation, non- discrimination principle, principle of transparency.
ANSWER: D
160. A tariff is
A. a complete ban on trade with a nation.
B. a ban on the importation of certain products from a nation.
C. an import duty.
D. a tax on goods being imported into a country.
ANSWER: D
161. As a dispute resolution device, mediation refers to the process whereby
A. two parties in a dispute agree to binding arbitration.
B. Two parties in the dispute attempt to find a mutually satisfactory solution through use of third party.
C. a. Two parties in a dispute agree to have their case heard by a mutually agreed up court.
D. b. two parties in a dispute agree to binding understanding.
ANSWER: B
162. When a foreign company exports and sells below the market price, it is known as
A. subsidies.
B. Countervailing measures.
C. Dumping.
D. Punitive barriers.
ANSWER: C
163. International trade disputes handled by the WTO under the auspices of the
A. International Court of Justice.
B. Dispute Settlement Body.
C. International Chamber of Commerce Arbitration Panel.
D. World Court.
ANSWER: D
164. All of the following are fundamental factors used by the countries to determine the customs duties to be
paid for importing goods except
A. Country of origin.
B. Classification.
C. Valuation.
D. Markings.
ANSWER: D
165. The uniform classification system adopted by most countries to classify goods in international trade is
A. Harmonised commodity description.
B. Harmonised tariff schedule.
C. Harmonised coding system.
D. Harmonized classification schedule.
ANSWER: A
166. Foreign goods placed into which of the following are exempt from duties until officially entered into
countrys stream of commerce
A. Free trade zone.
B. Bonded warehouse.
C. Private warehouse.
D. Free port.
ANSWER: C
167. Which of the following is NOT protected by copyright?
A. Literary works.
B. Music.
C. Ideas and thoughts.
D. Typological arrangements of published editions.
ANSWER: A
168. In cases of literary and dramatic works, for how long will copyright exist?
A. 70 years after the end of the calendar year of the death of the person who created it.
B. 50 years after the end of the calendar year of the death of the person who created it.
C. 125 years after the end of the calendar year of the death of the person who created it.
D. 25 years after the end of the calendar year of the death of the person who created it.
ANSWER: D
169. Protection under the Registered Design Act 1949 exists for a period of:
A. 5 years (renewable).
B. 10 years (renewable).
C. 15 years.
D. 25 years.
ANSWER: C
170. In relation to the sporting goods manufacturer 'Nike,' its 'swoosh' is an example of
A. Copyright.
B. Design right.
C. Trade mark.
D. Patent.
ANSWER: A
171. Which of the following will be allowed a patent to be applied?
A. A new invention (such as a vacuum cleaner).
B. An artistic work.
C. The presentation of information.
D. A form of doing business.
ANSWER: A
172. Which of the following is NOT an example of an infringement of a patent?
A. Where the invention is a product, the person makes, disposes of, offers to dispose of, uses or imports
the product or keeps it whether for disposal or otherwise.
B. Where the invention is a process, the person uses it, or offers it for use in the uk knowing (or reasonably
ought to have known) that its use there without the consent of the proprietor would constitute an infringement.
C. Where the invention is a process, the person disposes of, offers to dispose of, uses or imports any
product obtained directly by means of that process or keeps any such product whether for disposal or
otherwise.
D. Where the invention is performed for research.
ANSWER: D
173. In relation to patents, where an employee creates an invention during the normal course of employment
and it relates to his/her duties at work, the intellectual property belongs to which of the following?
A. The employee.
B. It depends on the specific nature of the employment contract.
C. The board of directors (if applicable).
D. The employer.
ANSWER: D
174. Which of the following is an example of intellectual property?
A. Computer hardware.
B. Trademarks.
C. Textiles.
D. Electronics equipment.
ANSWER: B
175. Negotiations about intellectual property rights are most important to
A. India.
B. US.
C. The Czech republic.
D. . Russia.
ANSWER: B
176. The General Agreement on Tariff and Trade was replaced by
A. Cross Border Trade Group.
B. North American Free Trade Agreement.
C. Mutlilateral Agreement.
D. World Trade Organisation.
ANSWER: D
177. Trade in services includes which of the following?
A. Textiles.
B. Computer hardware.
C. Weapons.
D. Insurance.
ANSWER: D
178. _____________ emphasies conflicting interests in economic exchanges.
A. Merchantilism.
B. Neorealism.
C. Liberalism.
D. Keynesian economics.
ANSWER: A
179. In a centrally planned economy,
A. Government official set prices.
B. Supply and demand is key indicators of prices and production levels.
C. Business leaders set production quotas and report them to government, which holds them accountable.
D. All of the above.
ANSWER: A
180. Common market imperfections in international trade include
A. Taxation.
B. Corruptions.
C. Sanctions.
D. All of the above.
ANSWER: A
181. A new entry into an industry sector that is mature in other states and, therefore, is often protected by its
government is a
A. venture capital.
B. Infant firm.
C. Service industry.
D. Start up firm.
ANSWER: A
182. Which of the following is an example of portfolio investment?
A. buying stocks and bonds.
B. Paying subsidies.
C. Lowering tariff barriers.
D. Building a factory.
ANSWER: A
183. The state in which an MNC has its headquarters is called the
A. host state.
B. Home state.
C. Source state.
D. Export state.
ANSWER: B
184. Which of these groups welcomes the free trade that comes with globalization?
A. human rights NGOs.
B. Environmental groups.
C. Workers in industrialized countries.
D. None of the above.
ANSWER: D
185. Foreign investments in and by a country are referred to as
A. the capital account.
B. capital flows.
C. government transactions.
D. the current account.
ANSWER: B
186. A ________ is responsible for maintaining the value of a state's currency to the extent that it can by
limiting the amount of money printed and avoiding inflation.
A. Discount rate.
B. Central bank.
C. Regulatory commission.
D. Fiscal policy.
ANSWER: B
187. Almost all MNCs are based in
A. Latin America.
B. G- 8 states.
C. Japan.
D. Africa.
ANSWER: B
188. ______________ involves tangible goods such as factories and office buildings that cannot be traded
and moved freely like paper invesments.
A. Foreign Direct investment.
B. Currency investment.
C. Fiduciary investment.
D. Portfolio investment.
ANSWER: A
189. A unilateral move to reduce the value of one's own currency by changing a fixed or official exchange rate
is known as
A. Reduction.
B. Devaluation.
C. Revaluation.
D. Restructuring.
ANSWER: C
190. A tax imposed on certain type of imported goods is
A. a tariff.
B. a surcharge.
C. a severance tax.
D. a subsidy.
ANSWER: A
191. "Autarky" is (are)
A. interdependence.
B. state- sponsored. sanctions.
C. self- reliance.
D. market oriented.
ANSWER: C
192. Foreign exchange transactions involve monetary transactions
A. among residents of the same country.
B. between residents of two countries only.
C. between residents of two or more countries.
D. among residents of at least three countries.
ANSWER: C
193. Which of the following statements is true?
A. There is no link between foreign trade and foreign exchange.
B. Foreign exchange leads to foreign trade.
C. Foreign trade leads to foreign exchange.
D. No foreign exchange is involved in foreign trade.
ANSWER: C
194. A foreign currency account maintained by a bank abroad is its
A. Nostro account.
B. Vostro account.
C. Loro account.
D. Foreign bank account.
ANSWER: A
195. The number of nostro accounts that can be maintained by a bank in a particular currency is
A. one.
B. not exceeding three.
C. minimum two.
D. no such limit.
ANSWER: D
196. 'Non-resident Bank Accounts' refer to
A. Nostro account.
B. Vostro account.
C. Accounts opened in offshore centres.
D. Foreign bank account.
ANSWER: B
197. Non-resident bank accounts are maintained in
A. the permitted currencies.
B. the currency of the country of the bank maintaining the account.
C. the currencies in which FCNR accounts are permitted to be maintained.
D. Indian rupee.
ANSWER: D
198. Full fledged money changers are authorized to undertake
A. only sale transactions.
B. only purchase transactions.
C. all types of foreign exchange transactions.
D. purchase and sale of foreign currency notes, coins and travelers cheques.
ANSWER: D
199. The market forces influencing the exchange rate are not fully operational under
A. floating exchange rate system.
B. speculative attack on the market.
C. fixed exchange rate system.
D. current regulations of IMF.
ANSWER: B
200. According to classification by IMF, the currency system of India falls under
A. managed floating.
B. independently floating.
C. crawling peg.
D. pegged to basket of currencies.
ANSWER: A
201. Under the original scheme IMF, a member country had to obtain the permission of IMF for
A. any devaluation of its currency.
B. any devaluation or revaluation of its currency .
C. devaluation of its currency at a time exceeding 10%.
D. devaluation of its currency exceeding cumulatively 10%.
ANSWER: A
202. The Foreign Trade policy was first introduced in the year
A. 1981.
B. 1947.
C. 1992.
D. 2000.
ANSWER: C
203. The present share of India's trade in the world trade is
A. less than 1 per cent.
B. 1.2 per cent.
C. 2 per cent.
D. 3 per cent.
ANSWER: D
204. The apex body of the Foreign Trade is
A. The Central Government.
B. The State Government.
C. The Ministry of Commerce.
D. All the above.
ANSWER: C
205. The tenure of the Foreign Trade policy is
A. 3 years.
B. 5 years.
C. 1 year.
D. 7 years.
ANSWER: B
206. Vishesh Krishi and Gram Udyog Yojana is a scheme under
A. Leather industry.
B. Cottage industry.
C. Gems and Jewellery.
D. Agricultural industry.
ANSWER: D
207. The threshold limit for the handloom industry as per the recent EXIM policy is
A. Rs. 500 crores.
B. Rs. 350 crores.
C. Rs. 250 crores.
D. Rs. 100 crores.
ANSWER: C
208. The customs duty paid for the import of capital goods as per 2009-2014 policy is
A. 2 per cent.
B. 3 per cent.
C. 5 per cent.
D. 8 per cent.
ANSWER: C
209. The Imports and Exports (Control) Act was passed in the year
A. 1947.
B. 1977.
C. 1992.
D. 1955.
ANSWER: A
210. How many chapters are there in The Foreign Trade (Development and Regulation) Act, 1992?
A. 5
B. 4
C. 6
D. 7
ANSWER: C
211. The period of time permitted for the fulfillment of the export obligation under EPCG is
A. 5 years.
B. 8 years.
C. 7 years .
D. 10 years.
ANSWER: B
212. The geographically distributed area or zone where the economic laws are more liberal as compared to
other parts of the country is called
A. EOU.
B. SEZ.
C. AEZ.
D. FTZ.
ANSWER: B
213. The total number of functional SEZs in India is
A. 5
B. 7
C. 8
D. 10
ANSWER: C
214. Islamic nations follow
A. Common law.
B. Civil law.
C. Criminal Law.
D. Religious law.
ANSWER: D
215. What does CCIE stand for?
A. Chief Controller of Imports and Exports.
B. Central Cottage Industries Exports.
C. Control on Cotton Imports and Exports.
D. Commissioner of Central Imports and Exports.
ANSWER: A
216. Bill of Lading is issued by the
A. captain of the vessel.
B. shipping company.
C. customs authorities.
D. consignor.
ANSWER: B
217. The document used in the operation of tramp vessel is
A. Charter party.
B. Bill of Lading.
C. Bill of Entry.
D. Bill of exchange.
ANSWER: A
218. The notice for claim under the carriage of goods by rail is to be made within
A. 3 months.
B. 4 months.
C. 5 months.
D. 6 months.
ANSWER: D
219. The Warsaw Convention on the International Air transport was announced in
A. 1929.
B. 1934.
C. 1955.
D. 1972.
ANSWER: A
220. The process of acquiring technology from other country is called
A. Licensing.
B. Franchising.
C. Technology Transfer.
D. Joint Venture.
ANSWER: C
221. "Reverse Engineering" method of Technology Transfer is also called as
A. FDI.
B. Strategic Alliance.
C. Licensing.
D. Capital Goods trade.
ANSWER: D
222. The apex body of the Export Promotion organizations is
A. EPC.
B. Commodity Boards.
C. FIEO.
D. IIFT.
ANSWER: C
223. The EXIM policy 2002-2007 coincides with the
A. 7th Five year plan.
B. 8th Five year plan.
C. 9th Five year plan.
D. 10th Five year plan.
ANSWER: D
224. The cash subsidy scheme designed to compensate the exporters for rebated indirect taxes is
A. Duty drawback.
B. Duty Exemption.
C. Duty Remission.
D. Cash Compensatory Support.
ANSWER: D
225. The area where the goods are permitted to be imported and reexported without any processing in the
same form is called
A. Export Processing Zone.
B. Free Trade Zone.
C. Special Economic Zone.
D. Agri Export Zone.
ANSWER: B
226. India's first Free Trade Zone is
A. Santa Cruz.
B. Kandla.
C. Noida.
D. Falta.
ANSWER: A
227. The components of Balance of Payment includes
A. Current and Capital Account.
B. Current account and official reserves.
C. Capital Account and Official reserves.
D. Current account, capital account and official reserves.
ANSWER: D
228. The total value of the products and services marketed by a nation is called
A. Gross Domestic Product.
B. Gross National Product.
C. National Income.
D. Per capita income.
ANSWER: A
229. The legal settlement of international trade disputes is
A. Negotiation.
B. Arbitration.
C. Litigation.
D. Conciliation.
ANSWER: C
230. The statement by a manufacturer or seller concerning a product during a commercial transaction is called
as
A. Warranty.
B. Guarantee.
C. Lien.
D. Liability.
ANSWER: A
231. To what extent is FDI permitted in the FTWZ?
A. 50%
B. 60%
C. 75%
D. 100%
ANSWER: D
232. The certificate issued for the registration under Export Promotion Council is called
A. Registration Cum Membership Certificate.
B. Permanent Account Number.
C. Importer Exporter Code.
D. ITC number.
ANSWER: A
233. The exports made by an exporter or manufacturer on behalf of another exporter(s) are called
A. Registered Exporter.
B. Manufacturer Exporter.
C. Merchant Exporter.
D. Third Party Exporter.
ANSWER: D
234. The permitted limit of DTA sale as per the recent policy of Foreign Trade policy is
A. 5%.
B. 10%.
C. 25%.
D. 50%.
ANSWER: D
235. What is the permitted age limit for the import of second hand capital goods under EPCG scheme?
A. No age limit.
B. Minimum one year.
C. 2 years.
D. 3 years.
ANSWER: A
236. What is the permitted age limit for the import of second hand capital goods under EPCG scheme?
A. No age limit.
B. Minimum one year.
C. 2 years.
D. 3 years.
ANSWER: A
237. In the calculation of Value Addition under duty exemption scheme, 'A' represents
A. FOB value of the export realised /FOR value of supply received.
B. CIF value of the imported inputs.
C. CIF value of the export realized.
D. FOB value of the imported inputs.
ANSWER: A
238. A premier international trading house owned by the Government of India set up in 1956 is
A. Minerals and Metals trading Corp.
B. State Trading Corp.
C. Mica Trading Corp.
D. Handlooms and Handicrafts Export Council.
ANSWER: B
239. Tea Board is headquartered at
A. New Delhi.
B. Kolkatta.
C. Bengaluru.
D. Kerala.
ANSWER: B
240. The nodal agency of the Government of India for promoting the country's external trade is
A. Indian Trade Promotion Organisation.
B. Indian Institute of Foreign Trade.
C. Federation of Indian Exports.
D. Trade Development Authority of India.
ANSWER: A
241. Foreign Exchange Regulation Act was replaced with The Foreign Exchange Management Act in the year
A. 1973.
B. 1991.
C. 1995.
D. 1999.
ANSWER: D
242. The WTO Agreement related to investment measures is
A. TRIPS.
B. TRIMS.
C. GATS.
D. TCA.
ANSWER: B
243. The common types of Intellectual property include
A. Copyrights and trademarks.
B. Patents and industrial design rights.
C. Trade Secrets.
D. All of the above.
ANSWER: D
244. The insurance policy that covers exporters against commercial and political risk is
A. General insurance.
B. ECGC.
C. Marine insurance.
D. Fire insurance.
ANSWER: B
245. The penalty for the contravention of foreign trade rules is decided by
A. The Appellate authority.
B. The Adjudicating authority.
C. The Competing authority.
D. The Regional Licensing Authority.
ANSWER: B
246. The export promotion scheme that neutralizes the customs duty on the import content of the export
product is
A. DEPB.
B. Duty Drawback.
C. Duty Exemption.
D. Duty Remission.
ANSWER: A
247. Market Access Initiatives is not available for
A. conducting market studies.
B. participating in international trade fairs.
C. testing charges for engineering products.
D. None of the above.
ANSWER: D
248. Duty drawback is available for
A. import duty on imported components.
B. central excise on indigenous components.
C. both (i) and (ii) above.
D. (iii) above and VAT.
ANSWER: C
249. Confiscation refers to seizure of assets of a firm by
A. the government with adequate compensation.
B. the government without compensation
C. its rivals
D. the people of the country.
ANSWER: B
250. Antiboycott regulations provide that
A. domestic companies should not boycott any export order.
B. foreign companies should not boycott exports from the country.
C. domestic companies should not comply with boycott regulation imposed by the importing country.
D. trade should be liberal as provided under WTO charter.
ANSWER: C