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Test: International Business- Case Based Type Questions - Commerce MCQ


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15 Questions MCQ Test Business Studies (BST) Class 11 - Test: International Business- Case Based Type Questions

Test: International Business- Case Based Type Questions for Commerce 2024 is part of Business Studies (BST) Class 11 preparation. The Test: International Business- Case Based Type Questions questions and answers have been prepared according to the Commerce exam syllabus.The Test: International Business- Case Based Type Questions MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: International Business- Case Based Type Questions below.
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Test: International Business- Case Based Type Questions - Question 1

Direction: Match the following sources of finance given in column I with their merits given in column II.

Detailed Solution for Test: International Business- Case Based Type Questions - Question 1
1. Merchandise: Merchandising is the promotion of goods and/or services that are available for retail sale. Merchandising includes the determination of quantities, setting prices for goods and services, creating display designs, developing marketing strategies, and establishing discounts or coupons.

2. Franchising: A franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand's trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system.

3. Licensing: A business arrangement in which one company gives another company permission to manufacture its product for a specified payment. There are few faster or more profitable ways to grow your business than by licensing patents, trademarks, copyrights, designs, and other intellectual property to others.

4. Invisible trade: An invisible trade is an international transaction that does not include an exchange of tangible goods. Customer service outsourcing, overseas banking transactions, and the medical tourism industry all are examples of invisible trade.

Test: International Business- Case Based Type Questions - Question 2

Direction: Match the following documents given in column I with the information it contains given in column II.

Detailed Solution for Test: International Business- Case Based Type Questions - Question 2

1. Proforma Invoice: A proforma invoice is a preliminary bill or estimated invoice which is used to request payment from the committed buyer for goods or services before they are supplied. A proforma invoice includes a description of the goods, the total payable amount and other details about the transaction.

2. Shipping Bill: A shipping bill can be filed after the particular vessel/ship, etc., is granted with entry outwards that allows it to move out of the country. Once the bill is submitted, it is physically verified and the value of the goods intended for export are assessed by the customs authorities.

3. Export invoice: An export invoice is really an umbrella term that encompasses exporting forms like the Commercial Invoice and the Proforma Invoice forms that indicate the buyer and seller of the goods, a description of the items, the items' value, and the terms or proposed terms of the sale.

4. Certificate of origin: A Certificate of Origin is a certificate that is used to identify the country of manufacturing of any goods or commodity. The Certificate of Origin carries many other points of information such as what the product is, its destination and the countries of export.

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Test: International Business- Case Based Type Questions - Question 3

Direction: Match the following documents given in column I with the concerned authorities given in column II.

Detailed Solution for Test: International Business- Case Based Type Questions - Question 3
1. Shipping Order: Shipping order is a copy of the shipper's instruction issued by the shipping company to a shipper regarding the disposition of goods to be transported. Therefore, the shipping order accompanies the shipment, so that the recipient can verify and sign that the items listed were received.

2. Inspection Certificate: An inspection certificate indicates that the goods in the shipment have been inspected by a competent authority and certified that they conform to the terms stated on the sales contract.

3. Railway receipt: Railway receipt is a document which is issued by the railways for goods accepted by it from the consignor for sending the goods from one station to another. Railway receipt contains information about date and place of booking of goods, destination place name of consignor and consignee, description of goods, etc.

4. Excise Clearance: As soon as goods are ready for despatch to the port of shipment, exporter has to apply to the central excise authority for excise clearance of the cargo. The exporter has, now an option to remove the goods with inspection by the central excise or remove the goods without inspection.

Test: International Business- Case Based Type Questions - Question 4

Direction: Match the documents used in foreign trade given in column I with their respective features given in column II.

Detailed Solution for Test: International Business- Case Based Type Questions - Question 4
1. Proforma invoice: A proforma invoice is a preliminary bill or estimated invoice which is used to request payment from the committed buyer for goods or services before they are supplied. A proforma invoice includes a description of the goods, the total payable amount and other details about the transaction.

2. Procurement of import license: Import licensing can be defined as administrative procedures requiring the submission of an application or other documentation (other than those required for customs purposes) to the relevant administrative body as a prior condition for importation of goods.

3. Bill of entry: A bill of entry is a legal document that is filed by importers or customs clearance agents on or before the arrival of imported goods. It's submitted to the Customs department as a part of the customs clearance procedure. Once this is done, the importer will be able to claim ITC on the goods.

4. Dock Challan: The importer specifies the amount of dock dues in j a form known as dock challan.

Test: International Business- Case Based Type Questions - Question 5

Direction: Match the items given in column I with suitable statements in column II:

Detailed Solution for Test: International Business- Case Based Type Questions - Question 5
1. Bill of entry: A bill of entry is a legal document that is filed by importers or customs clearance agents on or before the arrival of imported goods. It's submitted to the Customs department as a part of the customs clearance procedure. Once this is done, the importer will be able to claim ITC on the goods.

2. Bill of Lading: A bill of lading (BL or BoL) is a legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried. A bill of lading also serves as a shipment receipt when the carrier delivers the goods at a predetermined destination.

3. Shipment Advice: A notice sent to a local or foreign buyer advising that shipment has gone forward and containing details of packing, routing, etc. A copy of the invoice is often enclosed and, if desired, a copy of the bill of lading.

Test: International Business- Case Based Type Questions - Question 6

Direction: Match the objectives given in column I with the suitable concept given in column II.

Detailed Solution for Test: International Business- Case Based Type Questions - Question 6
1. Exporting: The definition of an export is something that is shipped or brought to another country to be sold or traded. An example of export is rice being shipped from China to be sold in many countries. An example of export is Ecuador shipping bananas to other countries for sale.

2. Importing: Importing goods means bringing in something from another country and it passes through the customs clearance process on arrival. Import trade is regulated by customs authorities. They control the flow of goods and are responsible for collecting duties and taxes.

3. World Trade Organization: The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments.

4. DGFT: Directorate General of Foreign Trade (DGFT), formerly known as the Chief Controller of Imports and Exports (CCI&E), is India's official administrating body for imports and exports. It is an attached office of the Department of Ministry and Commerce and is headquartered in New Delhi.

Test: International Business- Case Based Type Questions - Question 7

Direction: Match the following documents given in column I with the concerned authorities given in column II.

Detailed Solution for Test: International Business- Case Based Type Questions - Question 7
1. Export Invoice: An export invoice is really an umbrella term that encompasses exporting forms like the Commercial Invoice and the Proforma Invoice forms that indicate the buyer and seller of the goods, a description of the items, the items' value, and the terms or proposed terms of the sale.

2. Marine Insurance Policy: Marine Insurance is a type of insurance policy that provides coverage against any damage/loss caused to cargo vessels, ships, terminals, etc. in which the goods are transported from one point of origin to another.

3. Bank Certificate of Payment: It is a certificate issued by the negotiating bank to the exporter that the bill covering the shipment has been negotiated through it and export proceeds have been received from the importer. The certificate indicates the details of the merchandise exported.

4. Dock Challan: The importer specifies the amount of dock dues in j a form known as dock challan.

Test: International Business- Case Based Type Questions - Question 8

Direction: Read the following text and answer the questions that follow.

Kalakriti Industries is a company manufacturing stationery items. The company has set its objective of increasing revenue from ₹ 50 crores to 100 crores within 2 years. Unfortunately with the saturating domestic demand, underutilization of production capacity, etc. their objectives could not be achieved even after 3 years. In a long discussion in the meeting with all the managers, the company discussed the scope of international business and reached the decision to extend its market territory beyond the nation’s boundaries by selling goods to foreign countries. For this, the company decided to import exclusive stationery items from Japan. After identifying a suitable exporter, Kalakriti Industries sent a written request to the exporter to provide information regarding price, terms and conditions, etc. on which basis the exporter will be able to supply goods.

Q. ................. to extend its market territory beyond the nation’s boundaries.’ Identify the means through which the company can do so in light of the given case.

Detailed Solution for Test: International Business- Case Based Type Questions - Question 8
Exports are goods and services that are produced in one country and sold to buyers in another. Exports, along with imports, make up international trade.
Test: International Business- Case Based Type Questions - Question 9

Direction: Read the following text and answer the questions that follow.

Kalakriti Industries is a company manufacturing stationery items. The company has set its objective of increasing revenue from ₹ 50 crores to 100 crores within 2 years. Unfortunately with the saturating domestic demand, underutilization of production capacity, etc. their objectives could not be achieved even after 3 years. In a long discussion in the meeting with all the managers, the company discussed the scope of international business and reached the decision to extend its market territory beyond the nation’s boundaries by selling goods to foreign countries. For this, the company decided to import exclusive stationery items from Japan. After identifying a suitable exporter, Kalakriti Industries sent a written request to the exporter to provide information regarding price, terms and conditions, etc. on which basis the exporter will be able to supply goods.

Q. ________ is a written request to the exporter to provide information regarding price, terms and conditions, etc. on which the exporter will be able to supply goods.

Detailed Solution for Test: International Business- Case Based Type Questions - Question 9
Trade enquiry is essential in Import Trade as it enables the importer to mention all the details regarding the quantity of items needed. It is a written request regarding the price and the terms on which the exporter will be able to supply goods.
Test: International Business- Case Based Type Questions - Question 10

Direction: Read the following text and answer the questions that follow.

Kalakriti Industries is a company manufacturing stationery items. The company has set its objective of increasing revenue from ₹ 50 crores to 100 crores within 2 years. Unfortunately with the saturating domestic demand, underutilization of production capacity, etc. their objectives could not be achieved even after 3 years. In a long discussion in the meeting with all the managers, the company discussed the scope of international business and reached the decision to extend its market territory beyond the nation’s boundaries by selling goods to foreign countries. For this, the company decided to import exclusive stationery items from Japan. After identifying a suitable exporter, Kalakriti Industries sent a written request to the exporter to provide information regarding price, terms and conditions, etc. on which basis the exporter will be able to supply goods.

Q. ’Unfortunately with the saturating domestic demand ..................’. In the reference of the given statement which of the benefits of international trade suits this case?

Detailed Solution for Test: International Business- Case Based Type Questions - Question 10
The definition of a prospect is an expected outcome or a likely customer. An example of prospect is a new client with whom a company is counting on signing a contract. The direction in which an object, such as a building, faces; an outlook. Something presented to the eye; a scene.
Test: International Business- Case Based Type Questions - Question 11

Direction: Read the following text and answer the questions that follow.

Kalakriti Industries is a company manufacturing stationery items. The company has set its objective of increasing revenue from ₹ 50 crores to 100 crores within 2 years. Unfortunately with the saturating domestic demand, underutilization of production capacity, etc. their objectives could not be achieved even after 3 years. In a long discussion in the meeting with all the managers, the company discussed the scope of international business and reached the decision to extend its market territory beyond the nation’s boundaries by selling goods to foreign countries. For this, the company decided to import exclusive stationery items from Japan. After identifying a suitable exporter, Kalakriti Industries sent a written request to the exporter to provide information regarding price, terms and conditions, etc. on which basis the exporter will be able to supply goods.

Q. How will an increase in the production capacity of Kalakriti Industries benefit it?

Detailed Solution for Test: International Business- Case Based Type Questions - Question 11
Industrialization provides increased employment opportunities in small- and large-scale industries. In an industrial economy, industry absorbs underemployed and unemployed workers from the agricultural sector, thereby increasing the income of the community.
Test: International Business- Case Based Type Questions - Question 12

Direction: Read the following text and answer the questions that follow.

Paras Manek is a successful businessman who is engaged in manufacturing auto spare parts. The products manufactured by his business enterprise Paras Manek Ltd. are sold not only in India, but also exported to various countries such as Singapore, Switzerland, China, North Korea, etc. Trudy Ltd., a Russian company wants to import auto spare parts from Paras Manek Ltd. Paras Manek Ltd. has received an enquiry regarding the goods and trade. Paras Manek Ltd. has replied to it in the form of a quotation. Finding it favourable, Trudy Ltd. has placed an order containing description of goods, price and other instructions, etc. But before exporting the goods it has to fulfill certain legal formalities like procuring export license and preparing the documents related to goods, shipment, and payment.

Q. “.................... but also exported to various countries such as Singapore, Switzerland, China, North Korea, etc.” Identify the type of business discussed above.

Detailed Solution for Test: International Business- Case Based Type Questions - Question 12
International business refers to the trade of goods, services, technology, capital and/or knowledge across national borders and at a global or transnational scale. It involves cross-border transactions of goods and services between two or more countries. International business is also known as globalization.
Test: International Business- Case Based Type Questions - Question 13

Direction: Read the following text and answer the questions that follow.

Paras Manek is a successful businessman who is engaged in manufacturing auto spare parts. The products manufactured by his business enterprise Paras Manek Ltd. are sold not only in India, but also exported to various countries such as Singapore, Switzerland, China, North Korea, etc. Trudy Ltd., a Russian company wants to import auto spare parts from Paras Manek Ltd. Paras Manek Ltd. has received an enquiry regarding the goods and trade. Paras Manek Ltd. has replied to it in the form of a quotation. Finding it favourable, Trudy Ltd. has placed an order containing description of goods, price and other instructions, etc. But before exporting the goods it has to fulfill certain legal formalities like procuring export license and preparing the documents related to goods, shipment, and payment.

Q. Which of the following documents contains a description of goods, price and other instructions.

Detailed Solution for Test: International Business- Case Based Type Questions - Question 13
Indent Order means an order placed with the Company by the Buyer whereby the Company, in order to satisfy that order, is required to specifically purchase goods or services from a third party because such goods or services are not usually stocked or provided by the Company.
Test: International Business- Case Based Type Questions - Question 14

Direction: Read the following text and answer the questions that follow.

Paras Manek is a successful businessman who is engaged in manufacturing auto spare parts. The products manufactured by his business enterprise Paras Manek Ltd. are sold not only in India, but also exported to various countries such as Singapore, Switzerland, China, North Korea, etc. Trudy Ltd., a Russian company wants to import auto spare parts from Paras Manek Ltd. Paras Manek Ltd. has received an enquiry regarding the goods and trade. Paras Manek Ltd. has replied to it in the form of a quotation. Finding it favourable, Trudy Ltd. has placed an order containing description of goods, price and other instructions, etc. But before exporting the goods it has to fulfill certain legal formalities like procuring export license and preparing the documents related to goods, shipment, and payment.

Q. In case of export, a buyer sends an enquiry to exporter to seek information about:

Detailed Solution for Test: International Business- Case Based Type Questions - Question 14
An inquiry is a request from the prospective buyer to keep him informed of the terms and conditions of sale. Any export inquiry has to be attended with promptness and meticulous care. It is desirable to send samples as they speak better about quality, which is the main criterion for selection of exporter.
Test: International Business- Case Based Type Questions - Question 15

Direction: Read the following text and answer the questions that follow.

Paras Manek is a successful businessman who is engaged in manufacturing auto spare parts. The products manufactured by his business enterprise Paras Manek Ltd. are sold not only in India, but also exported to various countries such as Singapore, Switzerland, China, North Korea, etc. Trudy Ltd., a Russian company wants to import auto spare parts from Paras Manek Ltd. Paras Manek Ltd. has received an enquiry regarding the goods and trade. Paras Manek Ltd. has replied to it in the form of a quotation. Finding it favourable, Trudy Ltd. has placed an order containing description of goods, price and other instructions, etc. But before exporting the goods it has to fulfill certain legal formalities like procuring export license and preparing the documents related to goods, shipment, and payment.

Q. “Paras Manek Ltd. has replied to it in the form of a quotation.” Identify the document stated here.

Detailed Solution for Test: International Business- Case Based Type Questions - Question 15
Proforma invoices are sent to buyers ahead of a shipment or delivery of goods or services. Most pro forma invoices provide the buyer with a precise sale price. A pro forma invoice requires only enough information to allow customs to determine the duties needed from a general examination of the included goods.
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