MCQ ON INTERNATIONAL BUSINESS PART 2

TORAN LAL VERMA

1. Select the correct code of the following statements being correct or incorrecT

Statement (I) : A Global Depositary Receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign company.

Statement (II) : A GDR is very similar to American Depositary Receipt (ADR)

Statement (III) : GDRs are called EDRs when private markets are attempting to obtain Euros.

Code :

  1. Statements (I), (II) and (III) are correct.
  2. Statements (I) and (II) are correct but (III) is incorrect
  3. Statements (I) and (III) are correct but (II) is incorrect
  4. Statements (II) and (III) are correct but (I) is incorrect.
1. Statements (I), (II) and (III) are correct.

Please read about ADR, GDR and EDRs from reliable sources.

2. In December 1999, European commission members signed a treaty that committed them to adopting a common currency known as Euro. This is better known as :

  1. Treaty of Rome
  2. Treaty of Maastricht
  3. Treaty of Lisbon
  4. Treaty of London
2. Treaty of Maastricht

In December 1999, European commission members signed a treaty of Maastricht that committed them to adopt a common currency known as Euro. The treaty of Maastricht, in forming the European Union (EU), granted EU citizenship to every person with citizenship of a member state.

3. Which among the following is not a correct statement regarding patent ?

  1. A patent is a legal protection granted for an invention that is new, non-obvious and
    useful.
  2. The patent grants the patent holder the exclusive right to make use or sell the patented products or process.
  3. The exclusive purpose of the patent system is to benefit the patent holder
  4. The Indian Patent Act, 1970, was amended and made effective from January 1, 2005
3. The exclusive purpose of the patent system is to benefit the patent holder

Patent is a legal protection granted for an invention that is new, non-obvious and it is governed in India by Indian Patent Act, 1970, was amended and made effective from January 1, 2005. patent grants the patent holder the exclusive right to make use or sell the patented products or process. The purpose of the patent system is to encourage innovation by granting inventors a patent for their inventions. A patent is a governmental grant to inventors of a right to exclude others from making, using, offering for sale, or selling or importing to, the United States, their invention. useful

4. Choose the correct code

Assertion (A) : The Government of India has been opening up domestic market to foreign
players in baby steps

Reasoning (R) : Allowing foreign firms free play in India’s retail sector has always been a
political hot potato

Code :

  1. (A) and (R) both are correct ; and (R) is the right explanation of (A).
  2. (A) and (R) both are correct ; but (R) is not the right explanation of (A).
  3. (A) and (R) both are incorrect.
  4. (A) is correct ; but (R) is incorrect.
2. (A) and (R) both are correct ; but (R) is not the right explanation of (A).

Both the statements are independently true but R does not explain A. Infact R is the byproduct of A. useful

5. Which of the following is not the agency of World Bank ?

  1. MIGA
  2. ICSID
  3. ADB
  4. IDA
3. ADB

Asian Development Bank is not an agency of World Bank.

https://commercestudyguide.com/the-world-bank-group

6. In international trade which of the following is a non-tariff trade barrier ?

  1. Quotas
  2. Import bans
  3. Export controls
  4. Anti dumping laws
1. Quotas

A nontariff barrier is a trade restriction–such as a quota, embargo or sanction–that countries use to further their political and economic goals. Countries usually opt for nontariff barriers (rather than traditional tariffs) in international trade. Nontariff barriers include quotas, embargoes, sanctions, and levies.

7. Which of the following is not ensured to the consumer in the globalization ?

  1. Lower prices
  2. Better selection
  3. Clear origin of goods and services
  4. Improved services
1. Lower prices

Globalisation does not ensure lower prices. It may be possible that the local products may be available at cheaper rates

8. Match the following

(C) iv i iii ii

Current account shows all visible imports and exports whereas capital account shows the official capital. The reparation are unilateral payments made by one country to another country. Official statement accounts shows the official reserves of foreign countries.

9. Which among the following is closely associated with intellectual property rights ?

  1. GATS
  2. TRIMS
  3. TRIPS
  4. MFN
3. TRIPS

The TRIPS Agreement is a minimum standards agreement, which allows Members to provide more extensive protection of intellectual property if they so wish. Members are left free to determine the appropriate method of implementing the provisions of the Agreement within their own legal system and practice.

10. What is not correct about International Development Association (IDA) ?

a. Following the earthquake in 2015, IDA has helped Nepal rebuild and recover.

b. IDA ranks as the highest performing multilateral development bank in 2016

c. IDA is a subsidiary bank of IBRD.

d. India has procured the highest amount of international loan from IDA.

Codes :

  1. (a) and (b)
  2. (c)
  3. (d)
  4. (a) and (c)

3. (d)

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