Class 11 Business Studies

International Business

NCERT Solution

MCQ Answers

Question 1: 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

Question 2: 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

Question 3: 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

Question 4: 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

Question 5: Which one of the following modes of entry requires higher level of risks?

  • Licensing
  • Franchising
  • Contract manufacturing
  • Joint venture

    Answer: (d) Joint venture

Question 6: 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

Question 7: 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

Question 8: 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

Question 9: 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

Question 10: 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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