Chapter 25: International Business — Online MCQ Test
COMMERCE · CLASS 11th · Tamil Nadu State Board
Practice Chapter 25: International Business with a free chapter-wise online MCQ test.
This chapter covers: This chapter examines international commerce methods rationale and structural characteristics. Students analyze key distinctions separating domestic business operations from intern....
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Chapter 25: International Business — Important Questions & Answers
What is defined as the exchange of goods and services between countries?
- A. Domestic Business
- B. International Business
- C. Local Trade
- D. Barter System
Answer: B. International Business
International business refers to the commercial activities that take place between two or more countries.
International business refers to the commercial activities that take place between two or more countries.
Which of the following is a main characteristic of international business?
- A. Transactions within state boundaries
- B. Use of only local currency
- C. Involvement of more than one country
- D. Lack of government regulation
Answer: C. Involvement of more than one country
The fundamental nature of international business is that it crosses national borders.
The fundamental nature of international business is that it crosses national borders.
Why do nations engage in international business?
- A. To avoid global taxes
- B. Due to uneven distribution of natural resources
- C. To stop industrialization
- D. To eliminate the need for currency
Answer: B. Due to uneven distribution of natural resources
Nations trade because no country is self-sufficient in all natural resources and productive capabilities.
Nations trade because no country is self-sufficient in all natural resources and productive capabilities.
Compare domestic and international business: Which factor is usually constant in domestic trade but varies in international trade?
- A. Management style
- B. Production technique
- C. Currency
- D. Accounting standard
Answer: C. Currency
Domestic trade uses a single national currency, whereas international trade involves multiple currencies with varying values.
Domestic trade uses a single national currency, whereas international trade involves multiple currencies with varying values.
If a government imposes a 'Quota' on the import of electronics, what is the most likely result?
- A. The price of local electronics will decrease
- B. The volume of imported electronics is physically limited
- C. International trade will be completely banned
- D. The quality of imports will improve
Answer: B. The volume of imported electronics is physically limited
A quota is a government-imposed trade restriction that limits the quantity or monetary value of goods that can be imported.
A quota is a government-imposed trade restriction that limits the quantity or monetary value of goods that can be imported.