Class 11 Business Studies

International Business

NCERT Solution: MCQ

In which of the following modes of entry, does the domestic manufacturer give the right to use intellectual property such as patent and trademark to a manufacturer in a foreign country for a fee

  • Licensing
  • Contract manufacturing
  • Joint venture
  • None of these

    Answer: (a) Licensing


  • Outsourcing a part of or entire production and concentrating on marketing operations in international business is known as
    • Licensing
    • Franchising
    • Contract manufacturing
    • Joint venture

      Answer: (c) Contract manufacturing
  • When two or more firms come together to create a new business entity that is legally separate and distinct from its parents it is known as
    • Contract manufacturing
    • Franchising
    • Joint ventures
    • Licensing

      Answer: (c) Joint ventures
  • Which of the following is not an advantage of exporting?
    • Easier way to enter into international markets
    • Comparatively lower risks
    • Limited presence in foreign markets
    • Less investment requirements

      Answer:(c) Limited presence in foreign markets
  • Which one of the following modes of entry requires higher level of risks?
    • Licensing
    • Franchising
    • Contract manufacturing
    • Joint venture

      Answer: (d) Joint venture
  • Which one of the following modes of entry permits greatest degree of control over overseas operations?
    • Licensing/franchising
    • Wholly owned subsidiary
    • Contract manufacturing
    • Joint venture

      Answer: (b) Wholly owned subsidiary


  • Which one of the following modes of entry brings the firm closer to international markets?
    • Licensing
    • Franchising
    • Contract manufacturing
    • Joint venture

      Answer: (d) Joint venture
  • Which one of the following is not amongst India’s major export items?
    • Textiles and garments
    • Gems and jewellery
    • Oil and petroleum products
    • Basmati rice

      Answer: (c) Oil and petroleum products
  • Which one of the following is not amongst India’s major import items?
    • Ayurvedic medicines
    • Oil and petroleum products
    • Pearls and precious stones
    • Machinery

      Answer: (b) Oil and petroleum products
  • Which one of the following is not amongst India’s major trading partners?
    • USA
    • UK
    • Germany
    • New Zealand

      Answer: (d) New Zealand

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