CHAPTER 11 INTERNATIONAL BUSINESS SECTION A

CHAPTER – 11 INTERNATIONAL BUSINESS SECTION-A (One Mark Questions) 1. Give an example for international Trade in Services. Ans:- Transportation is an example for international Trade in Services. 2. Name any one mode of entering intointernational business. Ans:- Exporting and Importing of goods and services is one mode of entering intointernational business. 3. What is export trade? Ans:- Exporting refers to sending of goods and services from the home country to a foreign country. 4. What is import trade? Ans:- Importing is purchase of foreign products and bringing them into one’s home country. 5. Which is the easiest mode of gaining entry into international markets? Ans:- Exporting/importing is the easiest way of gaining entry into international markets. 6. Give an example of a business organization that has entered into international business through licensing system. Ans:-Coco-Cola is an example of a business organization that has entered intointernational business through licensing system. 7. Give an example of a business has entered into international business throughfranchising system. Ans:- McDonald is an example of a business has entered into international businessthrough franchising system. 8. What is Contract Manufacturing known as? Ans:- Contract manufacturing, also known as outsourcing. CHAPTER 11 INTERNATIONAL BUSINESS SECTION A 9. Mention one type of foreign investment. Ans:-Direct investment is one type of foreign investment 10. Name the parties in licensing system. Ans: - licensor and licensee are the parties in licensing system. 11. Name the parties in franchising system. Ans:- Franchiser and franchisee are the parties in franchising system. 12. State any one way by which wholly owned subsidiaries enter into international business. Ans:- Setting up a new firm altogether to start operations in a foreign country — also referred to as a green field venture. 13. EXPAND DGFT. Ans:-Directrorate General for Foreign Trade 14. Expand IEC. Ans:- Import-Export Code 15. Expand FTZ. Ans:- FREE TRADE ZONES 16. Expand EPZ. Ans:- Export Processing Zones 17. Expand SEZ. Ans:- Special Economic Zones 18. Expand ITO. Ans;- International Trade Organisation 19. Expand GATS. Ans:- General Agreement on Trade and Tariffs 20. Expand EXIM. Ans;- Export Import Policy 21. Name any one document of export business. Ans:- Export invoice is one document of export business 22. Name any one document of import business. Ans:- Airway bill is one document of import business. 23. How many commodity boards are working at present in India? Ans:- There are seven commodity boards in India. 24. Name any one commodity board working in India. Ans:- Coffee Board is one commodity board working in India. 25. At present, how many export promotion councils are working in India? Ans:- At present there are 21 EPC’s dealing with different commodities. 26. Name any one Export Processing Zone (EPZ). Ans:- Kandla (Gujarat) is one Export Processing Zone. 27. Name any one institution set up by the Indian government to promote export trade. Ans:- Indian Institute of Foreign Trade(IIFT) is one institution set up by the Indian government to promote export trade. 28. State any one scheme undertaken by the government to promote foreign trade. Ans:- Duty drawback scheme is one scheme undertaken by the government to promote foreign trade. 29. Name the authority to issue bill of lading. Ans:- Shipping company issue bill of lading. 30. Name the authority to issue airway bill. Ans:- Airline company issue airway bill. 31. Name any one International Trade Institution. Ans:- State Trading Organisations is one International Trade Institution SECTION-A(Multiple Choices One Mark Questions) 1. In which of the following modes of entry, does the domestic manufacturer give theright to use intellectual property such as patent and trademark to a manufacturer in a foreign country for a fee (a) Licensing (b) Contract Manufacturing (c) Joint Venture (d) None of these Ans:- (a) Licensing 2. Outsourcing a part or entire production and concentrating on marketing operations in international business is known as (a) Licensing (b) Franchising (c) Contract Manufacturing (d) Joint Venture Ans:- (c) Contract Manufacturing 3. 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 (a) Contract manufacturing (b) Franchising (c) Joint ventures (d) Licensing Ans:- (c) Joint ventures