International Business

What is the central idea of the chapter "International Business"?

1. International business is identical to domestic business.
2. International business involves cross-border trade and investment, offering opportunities for market expansion, economic growth, and foreign exchange earnings while requiring businesses to manage risks related to currencies, laws, culture, transportation, and government regulations.
3. Only multinational companies participate in international business.
4. Imports are more important than exports.

Why do countries engage in international business?

1. To avoid production completely
2. To obtain goods unavailable domestically and improve economic growth
3. To eliminate competition permanently
4. To reduce employment

Which risk is unique to international business?

1. Exchange Rate Risk
2. Employee Attendance
3. Office Maintenance
4. Local Advertising

Which international business document serves as evidence that goods have been loaded onto a ship?

1. Invoice
2. Bill of Lading
3. Letter of Credit
4. Certificate of Origin

Which mode of international business allows a company to grant another firm the right to use its intellectual property?

1. Exporting
2. Licensing
3. Importing
4. Retailing

What is the primary objective of international business?

1. Restrict global trade
2. Expand markets and earn foreign exchange
3. Reduce production completely
4. Eliminate imports

Which factor creates greater complexity in international business compared to domestic business?

1. Uniform laws everywhere
2. Cultural and legal differences among countries
3. Same currency worldwide
4. No transportation cost

Which type of trade involves buying goods from one country and selling them to another country without bringing them into the home country?

1. Import Trade
2. Export Trade
3. Entrepot Trade
4. Internal Trade

Which document guarantees payment to the exporter by the importer's bank?

1. Marine Insurance Policy
2. Letter of Credit
3. Bill of Exchange
4. Shipping Bill

Which document is issued by the exporter requesting payment from the importer?

1. Bill of Lading
2. Invoice
3. Insurance Policy
4. Letter of Credit

Which organization promotes international trade by reducing trade barriers?

1. Reserve Bank of India (RBI)
2. World Trade Organization (WTO)
3. State Bank of India (SBI)
4. SEBI

Which of the following is NOT a feature of international business?

1. Involves multiple currencies
2. Subject to different legal systems
3. Operates only within one country
4. Greater degree of risk

Which activity is known as export?

1. Buying machinery from Japan.
2. Selling Indian textiles to France.
3. Purchasing wheat from local farmers.
4. Transporting goods within India.

Which of the following is an example of import?

1. India sells tea to the United Kingdom.
2. India purchases crude oil from Saudi Arabia.
3. A company sells products within India.
4. A retailer buys goods from a wholesaler.

What is meant by International Business?

1. Buying and selling goods within a city
2. Business transactions conducted between two or more countries
3. Production of goods within one state only
4. Selling goods only through retail shops