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Economics

Trade Cycle MCQ
Economics

( Best 20+ ) Trade Cycle MCQ

by Mr. DJ
written by Mr. DJ

Trade Cycle MCQ

A trade cycle refers to fluctuations in economic activities specially in employment, output and income, prices, profits etc. It has been defined differently by different economists. According to Mitchell, “Business cycles are of fluctuations in the economic activities of organized communities.

Trade Cycle MCQ

Trade Cycle MCQ

1. The trough of a business cycle occurs when _____ hits its lowest point.

A. inflation

B. the money supply

C. aggregate economic activity

D. the unemployment rate

Answer: –

C. aggregate economic activity

2. The low point in the business cycle is referred to as the

A. expansion.

B. boom.

C. trough.

D. peak.

Answer: –

C. trough.

3. When aggregate economic activity is increasing, the economy is said to be in

A. an expansion.

B. a contraction.

C. a peak.

D. a turning point.

Answer: –

A. an expansion.

4. In a boom:

A. Unemployment is likely to fall

B. Prices are likely to fall

C. Demand is likely to fall

D. Imports are likely to fall

Answer: –

A. Unemployment is likely to fall

5. Peaks and troughs of the business cycle are known collectively as

A. volatility.

B. turning points.

C. equilibrium points.

D. real business cycle events.

Answer: –

B. turning points.

Also Read :-

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6. When aggregate economic activity is declining, the economy is said to be in

A. a contraction.

B. an expansion.

C. a trough.

D. a turning point.

Answer: –

A. a contraction.

7. Industries that are extremely sensitive to the business cycle are the

A. durable goods and service sectors.

B. nondurable goods and service sectors.

C. capital goods and nondurable goods sectors.

D. capital goods and durable goods sectors.

Answer: –

D. capital goods and durable goods sectors.

8. Economists use the term shocks to mean

A. unexpected government actions that affect the economy.

B. typically, unpredictable forces that have major impacts on the economy.

C. sudden rises in oil prices.

D. the business cycles.

Answer: –

B. typically, unpredictable forces that have major impacts on the economy.

9. Primarily, macroeconomists use microeconomic principles to study

A. business cycles and trends in the stock market.

B. long-run economic growth and antitrust policies.

C. trends in the stock market and long-term economic growth.

D. long-run economic growth and business cycles.

Answer: –

D. long-run economic growth and business cycles.

10. The two most important American business cycle events of the twentieth century were

A. the Great Depression and stagflation.

B. World War II and the Great Depression.

C. the productivity slowdown and the Great Depression.

D. government budget deficits and World War II.

Answer: –

B. World War II and the Great Depression.

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Indian Industrial Policies
EconomicsMBA Corner

Indian Industrial Policies

by Mr. DJ
written by Mr. DJ

Indian Industrial Policies

Meaning

  • Government action to influence the ownership & structure of the industry and its performance. It takes the form of pay­ing subsidies or providing finance in other ways, or of regulation.
  • It includes procedures, principles (i.e., the philosophy of a given economy), policies, rules and regulations, in­centives and punishments, the tariff policy, the labour policy, government’s attitude towards foreign capital, etc.

Indian Industrial Policies

Industrial Policy Resolution of 1948:

In a mixed economy of our sort, the govern­ment should declare its industrial policy clearly indicating what should be the sphere of the State and of the private enterprise. A mixed economy means co-existence of the two sectors public and private. This the Govern­ment of India did by a policy resolution on 30 April 1948 called the first Industrial Policy Resolution of 1948, which made it clear that India was going to have a mixed economy.

The Industrial Policy Resolution, 1948, drawn in the context of our objectives of Democratic Socialism through mixed eco­nomic structure, divided the industrial structure into four groups:

1. Basic and strategic industries such as arms and ammunition, atomic energy, railways, etc., shall be the exclusive mo­nopoly of the State.

2. The second group consisted of key indus­tries like coal, iron and steel, ship-build­ing, manufacture of telegraph, telephone, wireless apparatus, mineral oils, etc. In such cases the State took over the exclu­sive responsibility of all future develop­ment and the existing industries were al­lowed to function for ten years after which the State would review the situa­tion and explore the necessity of nation­alisation.

3. In the third group, 18 industries includ­ing automobiles, tractors, machine tools, etc., were allowed to be in the private sec­tor subject to government regulation and supervision.

4. All other industries were left open to the private sector. However, the State might participate and/or intervene if circum­stances so demanded.

To ensure the supply of capital goods and modern technology, the 1PR1948, encouraged the free flow of foreign capital. The Govern­ment ensured that there would be no discrimi­nation between Indian and foreign undertak­ings; facilities would be given for remittance of profit and due compensation would be paid in case a foreign undertaking was national­ised. The IPR also emphasised the importance of small-scale and cottage industries in the In­dian economy.

The Industries (Development and Regula­tion) Act was passed in 1951 to implement the Industrial Policy Resolution, 1948.

Industrial Policy Statement of 1956:

On 30 April 1956, the Government revised its first Industrial Policy (i.e., the policy of 1948), and announced the Industrial Policy of 1956. The reasons for the revision were: (i) introduc­tion of the Constitution of India, (ii) adoption of a planned economy, and (iii) declaration by the Parliament that India was going to have a socialist pattern of society.

All these principles were incorporated in the revised industrial policy as its most avowed objectives. And this revised policy provided the basic framework for the government’s policy in regard to in­dustries till June 1991.

The 1956 Policy empha­sises, inter alia, the need to expand the public sector, to build up a large and growing coop­erative sector and to encourage the separation of ownership and management in private in­dustries and, above all, prevent the rise of pri­vate monopolies. “The IPR 1956 has been known as the Economic Constitution of India” or “The Bible of State Capitalism”.

The Resolution classified industries into three categories having regard to the role which the State would play in each of them:

1. Schedule A consisting of 17 industries would be the exclusive responsibility of the State.

2. Out of these 17 industries, four industries, namely arms and ammunition, atomic en­ergy, railways and air transport would be Central Government monopolies; new units in the remaining industries would be developed by the State Governments.

3. Schedule B, consisting of 12 industries, would be open to both the private and public sectors; however, such industries would be progressively State-owned.

4. All the other industries not included in these two Schedules constituted the third category which was left open to the pri­vate sector. However, the State reserved the right to undertake any type of indus­trial production.

The classification of industries into three categories did not mean that they were being placed in water-tight compartments. In appro­priate cases, the private sector might be al­lowed to produce an item falling within Schedule A for meeting its own requirements. Further, heavy industries in the public sector might obtain their requirements from the pri­vate sector while the private sector, in turn, would rely on the public sector for many of its requirements.

Objectives Of Industrial Policies

The main objectives of the Industrial Policy of the Government in India are:

  • to maintain a sustained growth in productivity;
  • to enhance gainful employment;
  • to achieve optimal utilisation of human resources;
  • to attain international competitiveness; and
  • to transform India into a major partner and player in the global arena.

Also Read MCQs or Objective Questions

New Industrial Policy During Economic Reforms of 1991

The long-awaited liberalised industrial policy was announced by the Government of India in 1991 in the midst of severe economic instability in the country. The objective of the policy was to raise efficiency and accelerate economic growth.

Features of New Industrial Policy

  • De-reservation of Public sector: Sectors that were earlier exclusively reserved for public sector were reduced. However, pre-eminent place of public sec­tor in 5 core areas like arms and ammu­nition, atomic energy, mineral oils, rail transport and mining was continued.
    • Presently, only two sectors- Atomic Energy and Railway operations- are reserved exclusively for the public sector.
  • De-licensing: Abolition of Industrial Licensing for all projects except for a short list of indus­tries.
    • There are only 4 industries at present related to security, strategic and environmental concerns, where an industrial license is currently required-
      • Electronic aerospace and defence equipment
      • Specified hazardous chemicals
      • Industrial explosives
      • Cigars and cigarettes of tobacco and manufactured tobacco substitutes
  • Disinvestment of Public Sector: Government stakes in Public Sector Enterprises were reduced to enhance their efficiency and competitiveness.
  • Liberalisation of Foreign Investment: This was the first Industrial policy in which foreign companies were allowed to have majority stake in India. In 47 high priority industries, upto 51% FDI was allowed. For export trading houses, FDI up to 74% was allowed.
    • Today, there are numerous sectors in the economy where government allows 100% FDI.
  • Foreign Technology Agreement: Automatic approvals for technology related agreements.
  • MRTP Act was amended to remove the threshold limits of assets in respect of MRTP companies and dominant undertakings. MRTP Act was replaced by the Competition Act 2002.

Outcomes of New Industrial Policies

  • The 1991 policy made ‘Licence, Permit and Quota Raj’ a thing of the past. It attempted to liberalise the economy by removing bureaucratic hurdles in industrial growth.
  • Limited role of Public sector reduced the burden of the Government.
  • The policy provided easier entry of multinational companies, privatisation, removal of asset limit on MRTP companies, liberal licensing.
    • All this resulted in increased competition, that led to lower prices in many goods such as electronics prices. This brought domestic as well as foreign investment in almost every sector opened to private sector.
  • The policy was followed by special efforts to increase exports. Concepts like Export Oriented Units, Export Processing Zones, Agri-Export Zones, Special Economic Zones and lately National Investment and Manufacturing Zones emerged. All these have benefitted the export sector of the country.

Limitations of Industrial Policies in India

  • Stagnation of Manufacturing Sector: Industrial policies in India have failed to push manufacturing sector whose contribution to GDP is stagnated at about 16% since 1991.
  • Distortions in industrial pattern owing to selective inflow of investments: In the current phase of investment following liberalisation, while substantial investments have been flowing into a few industries, there is concern over the slow pace of investments in many basic and strategic industries such as engineering, power, machine tools, etc.
  • Displacement of labour: Restructuring and modernisation of industries as a sequel to the new industrial policy led to displacement of labour.
  • Absence of incentives for raising efficiency: Focussing attention on internal liberalisation without adequate emphasis on trade policy reforms resulted in ‘consumption-led growth’ rather than ‘investment’ or ‘export-led growth’.
  • Vaguely defined industrial location policy: The New Industrial Policy, while emphasised the detrimental effects of damage to the environment, failed to define a proper industrial location policy, which could ensure a pollution free development of industrial climate.
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EconomicsEconomy

( Best ) FERA And FEMA, Meaning, Act and Diffrence

by Mr. DJ
written by Mr. DJ

FERA And FEMA

FEMA stands for Foreign Exchange Management Act which was introduced in the year 1999 and it acts as a replacement for the FERA (Foreign Exchange Regulation Act). FEMA was enforced on June 1, 2000. This Act aims to make all the offenses relating to foreign exchange from criminal to civil offenses. The main purpose behind the Foreign Exchange Control Act (1999) is to consolidate and amend the foreign exchange legislation with the aim of facilitating foreign trade and payments. FEMA was also formulated to maintain foreign exchange market in India and to promote the orderly development of the same. FEMA applies to all parts of India. The law also applies to all branches, offices, and agencies outside India owned or controlled by a person who is a resident of India.

FERA And FEMA 

Features of FERA:

(1) This Act may be called the Foreign Exchange Regulation Act, 1973.

(2) It extends to the whole of India.

(3) It applies also to all citizens of India outside India and to branches and agencies outside India of companies or bodies corporate, registered or incorporated in India.

(4) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf:

Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

According to these guidelines, the principal rule was that all branches of foreign companies operating in India should convert themselves into Indian companies with at least 60 per cent local equity participation. Furthermore all subsidiaries of foreign should bring down the foreign equity share to 40% or less.  The actual impact of this act was completely negative on the economic development of the country, because it tied the hands of big corporate houses to expand their business, so it was felt by the policy makers that there should be some relaxation in the act so that the economic development through industrialization can be speed up in the country.

Features of the FEMA

The following are some of the important features of Foreign Exchange Management Act:

a. It is consistent with full current account convertibility and contains provisions for progressive liberalisation of capital account transactions.

b. It is more transparent in its application as it lays down the areas requiring specific permissions of the Reserve Bank/Government of India on acquisition/holding of foreign exchange.

c. It classified the foreign exchange transactions in two categories, viz. capital account and current account transactions.

d. It provides power to the Reserve Bank for specifying, in , consultation with the central government, the classes of capital account transactions and limits to which exchange is admissible for such transactions.

e. It gives full freedom to a person resident in India, who was earlier resident outside India, to hold/own/transfer any foreign security/immovable property situated outside India and acquired when s/he was resident.

f. This act is a civil law and the contraventions of the Act provide for arrest only in exceptional cases.

g. FEMA does not apply to Indian citizen’s resident outside India.

Read More Than 100+ MCQ on FEMA and FERA

Differences between FERA and FEMA

Sr. No DIFFERENCES FERA FEMA
1 PROVISIONS FERA consisted of 81 sections, and was more complex FEMA is much simple, and consist of only 49 sections.
2 FEATURES Presumption of negative intention ( Mens Rea ) and joining hands in offence (abatement) existed in FEMA These presumptions of Mens Rea and abatement have been excluded in FEMA
3 NEW TERMS IN FEMA Terms like Capital Account Transaction, current Account Transaction, person, service etc. were not defined in FERA. Terms like Capital Account Transaction, current account Transaction person, service etc., have been defined in detail in FEMA
4 DEFINITION OF AUTHORIZED PERSON Definition of ” Authorized Person” in FERA was a narrow one ( 2(b) The definition of Authorized person has been widened to include banks, money changes, off shore banking Units etc. (2 ( c )
5 MEANING OF “RESIDENT” AS COMPARED WITH INCOME TAX ACT. There was a big difference in the definition of “Resident”, under FERA, and Income Tax Act The provision of FEMA, are in consistent with income Tax Act, in respect to the definition of term ” Resident “. Now the criteria of “In India for 182 days” to make a person resident has been brought under FEMA. Therefore a person who qualifies to be a non-resident under the income Tax Act, 1961 will also be considered a non-resident for the purposes of application of FEMA, but a person who is considered to be non-resident under FEMA may not necessarily be a non-resident under the Income Tax Act, for instance a business man going abroad and staying therefore a period of 182 days or more in a financial year will become a non-resident under FEMA.
6 PUNISHMENT Any offence under FERA, was a criminal offence , punishable with imprisonment as per code of criminal procedure, 1973 Here, the offence is considered to be a civil offence only punishable with some amount of money as a penalty. Imprisonment is prescribed only when one fails to pay the penalty.
7 QUANTUM OF PENALTY. The monetary penalty payable under FERA, was nearly the five times the amount involved. Under FEMA the quantum of penalty has been considerably decreased to three times the amount involved.
8 APPEAL An appeal against the order of “Adjudicating office”, before ” Foreign Exchange Regulation Appellate Board went before High Court The appellate authority under FEMA is the special Director ( Appeals ) Appeal against the order of Adjudicating Authorities and special Director (appeals) lies before “Appellate Tribunal for Foreign Exchange.” An appeal from an order of Appellate Tribunal would lie to the High Court. (sec 17,18,35)
9 RIGHT OF ASSISTANCE DURING LEGAL PROCEEDINGS. FERA did not contain any express provision on the right of on impleaded person to take legal assistance FEMA expressly recognizes the right of appellant to take assistance of legal practitioner or chartered accountant (32)
10 POWER OF SEARCH AND SEIZE FERA conferred wide powers on a police officer not below the rank of a Deputy Superintendent of Police to make a search The scope and power of search and seizure has been curtailed to a great extent

Withdrawal of Foreign Exchange

Now, the restrictions on withdrawal of Foreign Exchange for the purpose of current Account Transactions, has been removed. However, the Central Government may, in public interest in consultation with the Reserve Bank impose such reasonable restrictions for current account transactions as may be prescribed.

FEMA has also by and large removed the restrictions on transactions in foreign Exchange on account of trade in goods, services except for retaining certain enabling provisions for the Central Government to impose reasonable restriction in public interest.

Conclusion

FEMA does not see the exchange rate flow as an evil Act but works to factor it in to manage the exchange rate process. The goal is to manage the exchange rate more efficiently, rather than retain it. It applies general asset management rules to foreign exchange management and aims to optimize it instead of maximizing it. It promotes a more liberal form of economy.

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Micro Economics MCQ
EconomicsMBA Corner

( Best 300+ ) Micro Economics MCQ

by Mr. DJ
written by Mr. DJ

Micro Economics MCQ

Micro Economics MCQ Definition: Microeconomics is the study of individuals, households and firms’ behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.

Micro Economics MCQ

1. The curve showing the possibilities of production of desired good is known as:
(A) Indifference curve
(B) Production possibility curve
(C) Revealed preference curve
(D) None of these

Answer:B

2. Which one of the following definition of Economics is associated with the name  of Lionel Robbins?
(A) Welfare definition
(B) Scarcity definition
(C) Growth definition
(D) Wealth definition

Answer:B

3. A hypothesis is tested by:
(A) The realism of its assumptions
(B) The lack of realism of its assumptions
(C) Its ability to predict accurately an outcome that follows logically from the
assumptions
(D) None of these

Answer:C

4. In a free enterprise economy, the problems of what, how and for whom to produce are solved by :
(A) A Planning Committee
(B) The Price mechanism
(C) The Planning Commission
(D) None of these.
Answer:B

5. Who considered Political Economy as “an enquiry into the nature and causes of the
wealth of nations”?
(A) Adam Smith
(B) J.B.Say
(C) Marshall
(D) Keynes

Answer:A

6. Which of the following definitions of Economics include the economic concept of
‘scales of Preferences’?
(A) Wealth definition
(B) Welfare definition
(C) Scarcity definition
(D) Growth definition

Answer:C

7. Which of the following embodies a more widely accepted definition of economics?
(A) Science of material welfare
(B) Science of wealth
(C) A study of mankind in the ordinary business of life
(D) Science of making choice.

Answer:D

8. The fundamental problem faced by an economy is one of :
(A) Exchange
(B) Decision making by the government
(C) Economic welfare
(D) Scarcity of resources and multiplicity of wants.

Answer:D

9. Production possibilities curve does not show:
(A) What to produce
(B) How to produce
(C) For whom to produce
(D) Productive potential under conditions of underemployment

Answer:D

10. State whether Economics is :
(A) A positive science only
(B) Neither a positive science
(C) A science but not art
(D) A science or an art depending on who uses Economics and for what
purpose.

Answer:D

Also Read:-

200+ Best Macro Economics MCQ

Best 200+ Economics MCQs

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Macro Economics MCQ
EconomicsEconomyMBA Corner

( Best 200+ ) Macro Economics MCQ

by Mr. DJ
written by Mr. DJ

Macro Economics MCQ

Macro Economics MCQ Meaning :- Macroeconomics is the branch of economics that deals with the structure, performance, behavior, and decision-making of the whole, or aggregate, economy. The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles.

Macro Economics MCQ

1. The first National Income calculation on a scientific basis in India is in the year
A. 1947-48

B. 1951-52

C. 1931-32

D. 1990-91

Answer:- c

2. NNP means
A) GDP – depreciation

B. GDP + depreciation

C. NNP – depreciation

D. GNP – depreciation

Answer:- d

3. “Rest of the world” is the major element in
A. Two sector model

B. Three sector model

C. Four sector model

D. All the above

Answer .c

4. Cotton yarns purchased by handloom worker is
A. An intermediate good

B. A consumer good

C. A capital good

D. None of these

Answer:a

5. “ Inflation is always and everywhere a monetary phenomenon” these are the famous words of Milton Friedman B. Adam Smith C. David Ricardo  D. J M Keynes When the rise prices is very slow like that of a snail is called
A. Hyper inflation

B. Running inflation

C. Creeping inflation

D. Walking inflation

Answer:a

6.The concept of “ laissez-faire” was the contribution of
A. Classical economist

B. Neo Classical economist

C. Keynesian economist

D. Supply side economist

Answer:c

7.“ Supply creates its own demand” is the idea of
A. JB Say

B. Samuelson

C) JM Keynes

D) Milton Friedman

Answer:a

8.Which of the following is not an assumption of classical theory
A Neutrality of money

B Wage price flexibility

C. Involuntary unemployment

D. Long run

Answer:a

10. Defects in SNA include
A. Neglects depletion of natural capital

B. Neglects environmental pollution

C. Expenditure to defend the effects of pollution

D. All of the above

Answer:d

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Best 200+ Micro Economic MCQ

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Indian Contract Act 1872 MCQ
EconomicsMBA Corner

( Best 40+ ) Indian Contract Act 1872 MCQ

by Mr. DJ
written by Mr. DJ

Indian Contract Act 1872 MCQ

What is a Contract according to Indian Contract Act 1872 ?

Indian Contract Act frames and validates the contracts or agreements between various parties. Contract Act is one of the central laws that regulate and oversee all the business wherever there is a case of a deal or an agreement. The following section will tell us what a contract is.

We will see how the Indian Contract Act, 1872 defines a contract. We will also define the terms as per the Act and see what that means. In these topics, we will decipher all the vivid aspects of the Contract Act. Let us begin by understanding the concept of a contract.

Indian Contract Act 1872 MCQ

1.An agreement consists of reciprocal promises between at least 

(a) four parties.

(b) six parties.

(c) three parties.

(d) two parties.

Answer – d

2.  Every promise and every set of promise forming the consideration for each other is a/an 

(a) contract.

(b) agreement.

(c) offer.

(d) acceptance.

Answer – b

3. Contract is defined as an agreement enforceable by law, vide Section … of the Indian Contract Act. 

(a) Section 2(e)

(b) Section 2(f)

(c) Section 2(h)

(d) Section 2(i)

Answer –  c

4. In agreements of a purely domestic nature, the intention of the parties to create legal relationship is 

(a) to be proved to the satisfaction of the court.

(b) presumed to exist.

(c) required to the extent of consideration.

(d) not relevant at all.

Answer  -a

5. A makes a contract with B to beat his business competitor. This is an example of 

(a) valid contract.

(b) illegal agreement.

(c) voidable contract.

(d) unenforceable contract

Answer – b

6. Which of the following legal statement is incorrect?
(a) An agreement enforceable by law is a contract [Section 2]

(b) All agreements are contracts [Section 10]

(c) A proposal when accepted becomes a promise [Section 2]

(d) Every promise and every set of promise forming the consideration for each other is an agreement [Section 2(e)]

Answer – a

7.  Agreement the meaning of which is uncertain is 
(a) Void

(b) Valid

(c) Voidable

(d) Illegal Answer:

Answer – a

8.  …………….. is a one-sided contract in which only one party has to perform his promise or obligation. 
(a) Void contract

(b) Illegal agreement

(c) Unilateral contract

(d) Bilateral contract

Answer – c

9.  All Contract is a/an ……………..
(a) Offer

(b) Agreement

(c) Acceptance

(d) Transaction

Answer – b

10.  A/an …………… is every Promise and every set of promises , forming consideration for each other
(a) Offer

(b) Agreement

(c) Acceptance

(d) Transaction

Answer – b

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International Business MCQ
Economics

( Best 60+ ) International Business Environment MCQ with Answers

by Mr. DJ
written by Mr. DJ

International Business Environment MCQ with Answers 

International Business Environment MCQ Multiple Choice Questions with answers, these notes are useful for the preparation of various competitive and academic exams like UGC, NET, BCOM, MCOM, MBA, BBA and many other regular and distance education exams. International Business Environment MCQ Multiple Choice Questions. International Business Environment MCQ Multiple Choice Questions with answers are available here:- Join Our Telegram Channel

International Business Environment MCQ with Answers 

  1. Geographical indications specify

A. Place of origin of goods.

B. Special characteristics of the product associated with the place of origin.

C. Place and special characters of the product.

D. Place or special characters of the product.

ANSWER: C

2. Business across several countries with some decentralization of management decision making to subsidiaries is

A. International business.

B. Multinational business

3. By entering into international business, a firm expects an improvement in

A. Marketing.

B. All spheres of marketing, operation and finance simultaneously.

C. Any or all spheres of marketing, operation and finance.

D. Finance only.

ANSWER: C

4. By having business in different countries, a firm reduces

A. credit risk.

B. political risk.

C. financial risk.

D. business risk.

ANSWER: B

5. Wholly owned subsidiary can be set up

A. as a Greenfield venture.

B. to acquire an existing firm.

C. to have products marketed overseas.

D. to have management is overseas.

ANSWER: A

6. The essential feature of FDI is

A. Investment of very high value.

B. Investment in shares.

C. Investor’s influence on the management of the enterprise.

D. Investment of low value.

ANSWER: C

7. No new investment in the host country is created in the case of

A. Greenfield FDI.

B. Acquisition.

C. Horizontal FDI.

D. Vertical FDI.

ANSWER: B

8. A firm investing in a foreign country to distribute the products therein creation of

A. Asset seeking FDI.

B. Backward vertical FDI.

C. Forward vertical FDI.

D. Distribution FDI.

ANSWER: C

9. The disadvantages of Greenfield FDI as compared to acquisition is

A. Profit will be less.

B. Size of investment will be high.

C. Lesser control in management.

D. Delay in the establishment.

ANSWER: D

10. Conglomerate FDI refers to

A. FDI made by a group of firms.

B. FDI made in subsidiaries.

C. FDI made in similar products.

D. FDI made in unrelated products.

ANSWER: D

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Economics

( Best ) MCQ Questions on Internal Trade

by Mr. DJ
written by Mr. DJ

MCQ Questions on Internal Trade

MCQ Questions on Internal Trade: Below, You will find a list of Commerce MCQ Questions as per the latest prescribed syllabus. Ace up your preparation with the Objective Questions available on Internal Trade and enhance your subject knowledge. Understand the concept clearly by consistently practicing the Multiple Choice Questions and score well in your exams.

MCQ Questions on Internal Trade

MCQ Questions on Internal Trade

  1. Purchasing goods from foreign country is called
    (a) Import
    (b) Entrepot
    (c) Export
    (d) Re-Export

Answer: (a)

  1. Goods imported for the purpose of export is known as
    (a) Home trade
    (b) Foreign trade
    (c) Entrepot
    (d) Trade

Answer: (c)

  1. Agents are appointed by?
    (a) Manufacturer
    (b) Wholesaler
    (c) Retailer
    (d) Principal

Answer: (d)

  1. Who among these can check the price fluctuations in the market by holding back the goods when prices fall and releasing the goods when prices rise
    (a) Agent
    (b) Mercantile agent
    (c) Wholesaler
    (d) Retailer

Answer: (c)

  1. These are agents whose function is to bring the buyer and the seller into contact.
    (a) Commission agent
    (b) Selling agent
    (c) Broker
    (d) Stockist

Answer: (c)

  1. Who among the following appoints the agent
    (a) Principal
    (b) Retailer
    (c) Manufacturer
    (d) Wholesaler

Answer: (a)

  1. Which among the following is not concerned with Chambers of Commerce & Industry
    (a) CII
    (b) FICCI
    (c) ICICI
    (d) ASSOCHAM

Answer: (c)

  1. Mobile traders who deal in low priced articles with no fixed place of business are called
    (a) Street stalls
    (b) Retailers
    (c) Agents
    (d) Itinerant traders

Answer: (d)

  1. One example of Small scale Fixed retailers among these is
    (a) Pedlars
    (b) General stores
    (c) Hawkers
    (d) Cheap Jacks

Answer: (b)

  1. This retail business acts as a universal supplier of a wide variety of products.
    (a) Multiple shop
    (b) Mail order Business
    (c) Tele-shopping
    (d) Departmental store

Answer: (d)

 

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MCQ Questions on International Trade and Finance
Economics

(Best 30+ ) MCQ Questions on International Trade and Finance

by Mr. DJ
written by Mr. DJ

MCQ Questions on International Trade and Finance

MCQ Questions on International Trade and Finance: Below, You will find a list of Commerce MCQ Questions as per the latest prescribed syllabus. Ace up your preparation with the Objective Questions available on International Trade and Finance and enhance your subject knowledge. Understand the concept clearly by consistently practicing the Multiple Choice Questions and score well in your exams. Join Our Telegram Channel.

MCQ Questions on International Trade and Finance

MCQ Questions on International Trade and Finance

  1. Trade between two countries can be useful if cost ratios of goods are:
    (a) Undetermined
    (b) Decreasing
    (c) Equal
    (d) Different

Answer: (d)

  1. The term Euro Currency market refers to
    (a) The international foreign exchange market
    (b) The market where the borrowing and lending of currencies take place outside the country of issue
    (c) The countries which have adopted Euro as their currency
    (d) The market in which Euro is exchanged for other currencies

Answer: (b)

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

Answer: (b)

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

Answer: (b)

  1. International trade and domestic trade differ because of:
    (a) Different government policies
    (b) Immobility of factors
    (c) Trade restrictions
    (d) All of the above

Answer: (d)

  1. The margin for a currency future should be maintained with the clearing house by
    (a) The seller
    (b) The buyer
    (c) Either the buyer or the seller as per the agreement between them
    (d) Both the buyer and the seller

Answer: (d)

  1. The following statement with respect to currency option is wrong
    (a) Foreign currency- Rupee option is available in India
    (b) An American option can be executed on any day during its currency
    (c) Put option gives the buyer the right to sell the foreign currency
    (d) Call option will be used by exporters

Answer: (d)

  1. Govt. policy about exports and imports is called:
    (a) Commercial policy
    (b) Fiscal policy
    (c) Monetary policy
    (d) Finance policy

Answer: (a)

  1. Which of the following is international trade:
    (a) Trade between countries
    (b) Trade between regions
    (c) Trade between provinces
    (d) Both (b) and (c)

Answer: (a)

  1. Market in which currencies buy and sell and their prices settle on is called the
    (a) International bond market
    (b) International capital market
    (c) Foreign exchange market
    (d) Eurocurrency market

Answer: (c)

Pages: 1 2 3

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International Business MCQ
Economics

List of International Business MCQ ( Best )

by Mr. DJ
written by Mr. DJ

List of International Business MCQ

This is a list of International Business MCQ questions with answers. These IB multiple-choice questions will help to study International Trade, International Marketing, and international finance concepts.

MBA, MMS, MCA, BBA, B. Com, BBA, PGDM, IBM specialization, and other management students can use these MCQs for international business management. It’s also useful for NET, SET, and Ph.D. entrance exams. Join Our Telegram Channel.

List of International Business MCQ

List of International Business MCQ

The first phase of globalization started around 1870 and ended with …..

a. World War I

b. World War II

c. The Establishment of GATT

d. In 1913 when GDP was High

Ans: a

IBRD (International Bank for Reconstruction and Development) also known as

a. Exim Bank

b. World Bank

c. International Monetary fund

d. International Bank

Ans: b

Ultimately ………………was replaced by the …………….on 1st Jan 1995

a. GATS, WTO

b. WTO, GATT

c. GATT, WTO

d. IMF, GATT

Answer: c

Which is the right sequence of 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

Answer: b

Subsidiaries consider the regional environment for policy / Strategy formulation is known as

a. Polycentric Approach

b. Regiocentric Approach

c. Ethnocentric Approach

d. Geocentric Approach

Answer: b

According to this theory, the holdings of a country’s treasure primarily in the form of gold constituted its wealth.

a. Gold Theory

b. Ricardo Theory

c. Mercantilism

d. Hecksher Theory

Answer: c

The Theory of Absolute Cost Advantage is given by

a. David Ricardo

b. Adam Smith

c. F W Taylor

d. Ohlin and Heckscher

Answer: b

The Theory of Relative Factor Endowments is given by

a. David Ricardo

b. Adam Smith

c. F W Taussig

d. Ohlin and Hecksher

Answer: d

  1. The theory of comparative cost advantage is given by

a. David Ricardo

b. Adam Smith

c. F W Taussig

d. Ohlin and Hecksher

Answer: a

……………is the application of knowledge which redefines the boundaries of global business

a. Cultural Values

b. Society

c. Technology

d. Economy

Answer: c

Capitalistic, communistic and Mixed are the types of

a. Economic System

b. Social System

c. Open Account

d. Drafts

Answer: b

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