This a MCQ (Multiple Choice Question) based practice test of Chapter 10 - International Business of Business Studies of Class XI (11) for the quick revision/preparation of School Board examinations
Q. In which of the following modes of entry, does the domestic manufacturer give the right to use intellectual property such as patent and trademark to a manufacturer in a foreign country for a fee
Licensing means a business arrangement in which one company gives another company permission to manufacture its product for a specified payment. Such permission includes right to use intellectual property.
Outsourcing a part of or entire production and concentrating on marketing operations in international business is known as
Contract manufacturing refers to a type of outsourcing in international business where a firm enters into a contract with one or a few local manufacturers in foreign countries to get certain components or goods produced as per its specifications.
When two or more firms come together to create a new business entity that is legally separate and distinct from its parents it is known as
Which of the following is not an advantage of exporting?
In exporting the physical presence is missing in the foreign markets. As the exporter/owner does not have the knowledge of the market trend in other countries due lack of his presence in those markets, it is one the disadvantages of exporting.
Which one of the following modes of entry requires higher level of risks?
Joint Ventures definitely is one of the solutions when a business is facing high risk. A joint venture helps a company or business to share the risk with other company. They allow companies to share the risks and resources required to enter international markets.
Which one of the following modes of entry permits greatest degree of control over overseas operations?
Which one of the following modes of entry brings the firm closer to international markets?
Which one of the following is not amongst India's major export items?
Oil and petroleum products are not amongst the largest export item of India.
Saudi Arabia is the largest exporter of Oil and Petroleum Products.
Which one of the following is not amongst India’s major export items :
Correct Answer :- d
Explanation : Oil and petroleum are natural products and are mostly found in Middle East countries. Crude oil is imported from these countries by India and is then refined to obtain petroleum and petroleum products. We are the importers of oil rather than exporters.
Which one of the following is not amongst India?s major trading partners?