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

  1. Licensing
  2. Contract manufacturing
  3. Joint venture
  4. 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

  1. Licensing
  2. Franchising
  3. Contract manufacturing
  4. 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

  1. Contract manufacturing
  2. Franchising
  3. Joint ventures
  4. Licensing

    Answer: (c) Joint ventures

Question 4: Which of the following is not an advantage of exporting?

  1. Easier way to enter into international markets
  2. Comparatively lower risks
  3. Limited presence in foreign markets
  4. 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?

  1. Licensing
  2. Franchising
  3. Contract manufacturing
  4. Joint venture

    Answer: (d) Joint venture

Question 6: Which one of the following modes of entry permits greatest degree of control over overseas operations?

  1. Licensing/franchising
  2. Wholly owned subsidiary
  3. Contract manufacturing
  4. Joint venture

    Answer: (b) Wholly owned subsidiary

Question 7: Which one of the following modes of entry brings the firm closer to international markets?

  1. Licensing
  2. Franchising
  3. Contract manufacturing
  4. Joint venture

    Answer: (d) Joint venture

Question 8: Which one of the following is not amongst India’s major export items?

  1. Textiles and garments
  2. Gems and jewellery
  3. Oil and petroleum products
  4. Basmati rice

    Answer: (c) Oil and petroleum products

Question 9: Which one of the following is not amongst India’s major import items?

  1. Ayurvedic medicines
  2. Oil and petroleum products
  3. Pearls and precious stones
  4. Machinery

    Answer: (b) Oil and petroleum products

Question 10: Which one of the following is not amongst India’s major trading partners?

  1. USA
  2. UK
  3. Germany
  4. New Zealand

    Answer: (d) New Zealand

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