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