International Business Multiple Choice Questions with answers

International Business Management (IB / IBM) Multiple Choice Questions for Management  (BBA, MBA, B Com etc.) students. Answers are given in Italic form. For example, answer of Q. 1 is The World War I.

1. The first phase of globalization started around 1870 and ended with …..

a. The World War I

b. The World War II

c. The Establishment of GATT

d. In 1913 when GDP was High

Ans: a

2. IBRD (International Bank for Reconstruction and Development) also known as

a. Exim Bank

b. World Bank

c. International Monetary fund

d. International Bank

Ans: b

3. Ultimately ………………was replaced by the …………….on 1st Jan 1995





Answer: c

4. Which is the right sequence of a stages of Internationalization

a. Domestic, Transnational, Global, International, Multinational

b. Domestic, International, Multinational, Global, Transnational

c. Domestic, Multinatinal, International, Transnational, Global

d. Domestic, Internatinal, Transnational, Multinational, Global

Answer: b

5. Subsidiaries consider regional environment for policy  / Strategy formulation is known as

a. Polycentric Approach

b. Regiocentric Approach

c. Ethnocentric Approach

d. Geocentric  Approach

Answer: b

6. According to this theory the holdings of  a country’s treasure primarily in the form of gold constituted its wealth.

a. Gold Theory

b. Ricardo Theory

c. Mercantilism

d. Hecksher Theory


7. The Theory of Absolute Cost Advantage is given by

a. David Ricardo

b. Adam Smith

c. F W Taylor

d. Ohlin and Heckscher


8. The Theory of Relative Factor Endowments is given by

a. David Ricardo

b. Adam Smith

c. F W Taussig

d. Ohlin and Hecksher

Answer: d

9. The theory of Comparative cost advantage is given by

a. David Ricardo

b. Adam Smith

c. F W Taussig

d. Ohlin and Hecksher

Answer: a

10. ……………is application of knowledge which redefine the boundaries of global business

a. Cultural Values

b. Society

c. Technology

d. Economy


11. Capitalistic, communistic and Mixed are the types of

a. Economic System

b. Social System

c. Cultural Attitudes

d. Political System


12. Which is not an Indian Multinational Company?

a. Unilever    

b. Asian Paints

c. Piramal

d. Wipro

Answer: a

13. Globalization refers to:

a)  Lower incomes worldwide

b) Less foreign trade and investment

c) Global warming and their effects

d) A more integrated and interdependent world

Answer: d

14. Which of the following is not a force in the Porter Five Forces model?

a. Buyers

b. Suppliers

c. Complementary products    

d. Industry rivalry


15. Comparative Cost Trade Theory is given by

a. Adam Smith

b. David Ricardo

c. Gottfried Haberler

d. Heckscher Ohlin

Answer: b

16. …….is the payment method most often used in International Trade which offers the exporter best assurance of being paid for the products sold internationally.

a. Bill of Lading

b. Letter of Credit

c. Open Account

d. Drafts

Answer: b

17. Key controllable factors in global marketing are:

a. Government policy and legislation

b. social and technical changes

c. marketing activities and plans

d. all of the above.

Answer: c

18. Select example of Indian Multinational Company

a. Hindusthan Unilever

b. Videocon

c. Cargill

d. Tesco


Multinational Corporations

19. …………………corporation produces in home country or in a single country and focuses on marketing these products globally or vice a versa.

a. Global

b. International

c. Transnational

d. None of the above

Ans: a

20. —————-comapny produces, markets, invests and operates across the world

a. Global

b. International

c. Transnational

d. Multinational

Ans: c

21. … only a legal agreementand it is not an institution, but ….. is a permanent institution.





ans: a

22. The WTO was established to implement the final act of Uruguay Round agreement of ……

a. MFA


c. TRIP’s

d. UNO


23. WTO stands for

a. World technology association

b. World time organization

c. World trade organization

d. World tourism organization

Ans: c

24. NAFTA stands for

a. North African trade association

b. North American free trade agreement

c. Northern Atlantic trade agreement

d. Northern association for trade

Ans: b

25. IPR stands for

a. Intellectual property rights

b. International property rights

c. Internal promotion rights

d. Interior promotional rights

Ans: a

26. The main promoter of trade liberalization was





Ans. a. GATT

27. MNC Stands for

a. Multi National Coopertion

b. Multi National Corporation

c. Multi Nation Company

d. Multi National Collaboration

Ans: b

28. _______ is the first step in the internationalization process.

a. License

b. Foreign Investment

c. Sales

d. Export

Answer: a

29. SMEs stands for:

a. Small and Medium Entrepreuners

b. Small Management of Enterprises

c. Small and Medium-sized Enterprises.

d. Societies for Managing Exports

Answer: c

30. The OECD stands for:

a. Organization for Economic Co-operation and Development

b. Organization for Economic Coordination and Development

c. Organization for Environmental Cooperation and Development.

d. Organization for Environmental Control and Development

Answer: a

Reference Books

International Business, P Subba Rao,  2nd Enlarged Edition, Himalaya Publication.