Consider the following statements.Statement I: During the period of prosperity changes in incomes of the people and prices of goods affect exports and imports of goods and thereby influence the balance of payments.Statement II: Cyclical disequilibrium is caused by the fluctuations in the economic activity or what are known as trade cycles.
A. Statement I is correct, but II is incorrect
B. Statement II is correct, but I is incorrect
C. Both the statements I and II are correct
D. Both the statements I and II are incorrect
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With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?
A. (i) only
B. (ii) and (iii)
C. (i) and (iii)
D. (i), (ii) and (iv)
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For the following statements of Assertion (A) and Reason (R), indicate the correct answer:Assertion (A): Liberalization means corporatization of departmental undertakings and public undertakings.Reason (R): Freedom to public sector undertakings to access capital market.
A. Both (A) and (R) are true and (R) is correct explanation of (A)
B. Both (A) and (R) are true but (R) is not a correct explanation of (A)
C. (A) is true but (R) is false
D. (A) is false but (R) is true
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World Trade Organization is the only global international organization dealing with the rules of trade between nations. Which of the following statements support this?Statement I: At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments.Statement II: The goal is to ensure that trade flows as smoothly, predictably and freely as possible.
A. Only Statement I is true
B. Only Statement II is true
C. Both Statements are true
D. None of the above statement is true
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Match the following.
List-I (Concepts)List-II (Advantages)
a. Foreign direct investment
1. It gives a boost to the industrial activities of home country
b. Multinational corporations
2. It enables the owners or creators to protect their work
c. Intellectual property rights
3. It helps strengthen the political relationships between various nations
A. a-3, b-1, c-2
B. a-2, b-3, c-1
C. a-3, b-2, c-1
D. a-1, b-2, c-3
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Key currencies acceptable internationally are
A. US dollar
B. UK pound sterling
C. Both A and B
D. Neither A nor B
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Match the following.
List-I List-II
a. Social factors
1. Increment and reduction in price of fuel
b. Political factors
2. Primary function of business
c. Economic factors
3. Customs, traditions and assumptions
d. Analysis of needs and interest of customers
4. Industrial policy of government
A. a-4, b-2, c-1, d-3
B. a-3, b-4, c-1, d-2
C. a-1, b-2, c-3, d-4
D. a-4, b-3, c-2, d-1
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According to which of the following management thinkers, business environment is defined as total of all things external to firms and industries which effect their organization and operations?
A. Arthur M. Welmer
B. John Wick
C. Bayord O. Wheeler
D. Mathew Smith
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Suppose a Mexican firm imports bananas at 1000 an d se l l s t h e m f or
A. the GDP will decrease by $ 3000
B. the GDP will increase by $ 3000
C. the GDP will increase by $ 2000
D. the GDP will increase by $ 1000
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What is not the advantage of SEZ?
A. improvement of infrastructure in the hinterland
B. diversion of large tracts of farm land
C. attracting foreign investment
D. all of the above
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Which among the following is not a correct sequential combination?
A. Macro Environment → Economic Environment → National Income → Pattern of Income Distribution
B. Business Environment → Internal Environment → Business Ethics → Payment of Fair Wages
C. Business Environment → External Environment → Micro Environment → Suppliers
D. Macro Environment → External Environment → Customers → Prospects of Business Development
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Which of the following are not effects of dumping on an importing country?
A. (i), (ii), (iii) and (iv)
B. (ii), (iii) and (iv)
C. (iii) and (iv)
D. Only (iv)
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Arrange the following organisations in the increasing order of their establishment years.
A. 3, 2, 1
B. 3, 1, 2
C. 2, 3, 1
D. 1, 2, 3
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In the Five Forces framework, threat of entrants means
A. The possibility of an existing competitor capturing the entire market
B. The possibility of an existing competitor with drawing from the market
C. The possibility of a new competitor entering the market
D. The possibility of a potential competitor entering a different market
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Which of the following pairs is not correct?
A. Items in the negative list of imports and exports are prohibited goods
B. Permit issued by custom authorities to export goods is dock warrant
C. Items which require license for export and import are restricted goods
D. None of the above
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The existence of international trade is best explained by the fact that countries:
A. use different currencies
B. have different economic systems
C. have different endowments of factors of production
D. have specialized in different goods and services
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Which is one of an advantage to adopt shared value approach while practicing CSR for an organisation?
A. Integrates the needs of both the business and the charitable cause
B. Contributes to the firm by solving only environmental issues
C. Contributes fastest way to form an alliance and increase engagement among the stakeholders
D. Creates and interdependence of long-term business success on balanced social system
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Match the following.
List-I (Concepts)List-II (Features)
a. Absolute advantage
1. State, in which exports equal imports
b. Balance of trade
2. Ability of a country to produce a good more efficiently
c. Static equilibrium
3. It is a long-term phenomenon
d. Secular disequilibrium
4. Difference between merchandise exports and imports
A. a-3, b-2, c-4, d-1
B. a-3, b-4, c-1, d-2
C. a-2, b-4, c-1, d-3
D. a-4, b-3, c-2, d-1
Select an option to see the answer and solution.
A tariff rate quota
A. is a limit on the number of tariff that a country can place on imports
B. uses a single tariff along with import quotas to restrict import
C. is designed to avoid the price increases caused by simple tariffs
D. is a two-tier tariff system intended to restrict imports
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Which of the following can be taken as the most valid description of business purpose?
A. Create a customer
B. Maximize profits
C. Serve the society
D. Increase the wealth in the firm
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