EGMC001-BUSINESS ENVIRONMENT

1-The basic objective of the second industrial policy resolution is?

Ans-ALL OF THESE

2-What are the modes of entry into foreign markets?

Ans-ALL OF THESE

3-External macroenvironment of business includes the

Ans-Global Environment

4-Which one of the following is the factor of macroenvironment

Ans-ALL OF THESE

5-Transfer of _ percent or more equity of a public sector undertaking to private sector is called
privatization.

Ans-51%

6-Transfer of ownership of a public sector undertaking to private sector wholly or partially is called-

Ans-Privatization.

7-Balance of private capital transactions, official capital transaction, direct investment & portfolio
investments of a country with the rest of the world is shown in the _of balance of payments.

Ans-Capital Account

8-In life cycle model foreign production of a product begins at which stage?

Ans-Growth

9-Capital account of balance of payments will not include.

Ans-Cross border joint Ventures

10-The 1991 Industrial policy resolution-

Ans- Abolished licenses for all industries except in 18 industries

11-Current account of balance of payments will not include

Ans-NRI deposits

12-Construction services will be recorded under

Ans-Services account of balance of payments

13-Cross holding is a method of-

Ans-Disinvestment

14-in a _economy private ownership of factors of production in not allowed.

Ans-Socialist

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 15-Grants given by government of India to south Africa & Bangladesh will be recorded in

Ans- current account of BOP

16- The world bank group consists of

Ans- Four institutions (IBRD, IDA, IFC,MIGA )

17- Official transaction of capital account of balance of payments show:

Ans- Transaction affecting assets and liabilities by individual, businesses and non government
entities

18- FDI in India can lead to :

Ans- Improvement in quality of product.

19- Joint venture between company XYZ of India and company ABC of Japan will be recorded in

Ans-Capital account of balance of payment

20- Currently how many industries are exclusively reserved for public sector

Ans-2

21- Champagne tequila or Roquefort are examples of

Ans- Geographical indicators.

22- What do you mean by Foreign direct investment?

Ans- Investment made by a company in another country.

23- In 2001, the agriculture negotiations were brought into the Doha Round of talks with the
objective to reduce distortion in agricultural trade caused by

Ans- All of these (high tariffs and other barriers, export subsidies, some kinds of domestic support)

24- India has achieved

Ans- Current account convertibility

25- Which one of the following statement is NOT true

Ans- The MFN clause under WTO mandates that the preferential trading agreements received by
one country should be extended to other member countries.

26- What does liberalization aimed at?

Ans- Economic reforms

27- In a rapidly globalizing world, management of technology has assumed increasing importance
due to which of the following reason?

Ans-Technology is a major source of global competitive advantage. Time is of vital importance

28- Marketing Intermediaries and suppliers are a part of

Ans-External Micro environment

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 29-Current account of balance of payment will NOT include income from:

Ans-NRI Deposits

30- Which one of the following is a feature of Globalization

Ans-All of These

31- In the pre-liberalization era imports of inputs and technology were regulated by ______ to save
foreign exchange.

Ans-FEMA

32-Current account of balance of payments will include income from abroad from.

Ans- All of these (finance, software and business)

33- Intellectual property rights include

Ans Both inventions (protected by patents) and industrial design and trade secrets

34- Intellectual property rights are customarily divided into

Ans- Both copyrights and industrial property

35- The only international organization dealing with the rules of trade in goods, services, intellectual
property and investment between nations is

Ans- World trade organization (WTO)

36- Acquisition made by a company M/s ABC of India in Australia will be recorded as

Ans- Capital account of Balance of payment

37- Under ______ there is a partial sale of equity if a public enterprise to a private party.

Ans- Denationalisation

38- The industrial policy resolution statement 1980 focused on the need to promote.

Ans- All of these(competition in the domestic market, technology up gradation, modernization)

39- The Public sector enterprises in India are categorized as

Ans- Mini ratna. Navratna and Maharatna

40- Which one of the following was the aim behind the formation of the world Trade Organization
(WTO)?

Ans- All of these (Free trade/intellectual property/trade among nations)

41- The investment in productive assets and participation in management as stakeholders in

Ans- Foreign Direct Investment

42- Balance of exports and imports of goods and services and unilateral transfer is shown in the
_______ of balance of payment.

Ans- Current account

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 43- Which one of the following is most required to empower people

Ans- Good governance and people oriented policies

44- WTO aimed to reduce

Ans- Both production and consumption distortion created by tariffs.

45- The ______ offers support to developing countries through policy advice, research and analysis
and technical assistance.

Ans- World bank Group

46- The 1991 industrial policy resolution abolished license for all industries except _______
industries.

Ans- 18

47- National Account that shows the net change in asset ownership for a nation is called as?

Ans- Capital Account

48- Deficit in Balance of payment does not occur due to:

Ans- Deflation in the economy.

49- Deficit in Balance of Payment is due to

Ans- Large scale imports by a country compared to export.

50- The 1956 Industrial Policy Resolution

Ans-• Aims to achieve a socialist pattern of society

51-In a ______ economy decisions of what to produce are taken by a central planning authority.

Ans- Socialist

52- Capital account of Balance of Payment will NOT include

Ans- NRI deposits

53- The industrial policy initiatives undertaken by the government since July 1991 have been
designed to

Ans- Promote industrialization.

54- The aim of world bank group is

Ans-Eliminate poverty and improve the standard of living of the people by promotion sustainable
growth and investment

55- In a _____ economy allocation of resources is decided partly by the central planning authority
and partly by market mechanism.

Ans-Mixed economy

56-The core responsibility of IMF is to

Ans-Deal with the rules of trade between nations.

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 57-GATT stands for

Ans-General agreement for tariffs and trade

58-In the _____ period the indian government emphasised greater role of foreign investment in
economic development of the country?

Ans-Pre-Liberalisation

59-Which one of the following indicators is/are used to assess the knowledge?

Ans-Gross enrolment ratio

60-The goal of ______ is to create and sustain fair competition in the Indian economy that will
provide a ‘level playing field’ to the producers.

Ans-Competition act, 2002

61-The International Monetary Fund (IMF) came into existence on 27th December 1945
with__________ members countries?

Ans-29 members

62-In India, liberalization of trade sector does NOT comprise of:

Ans- decrease in the role of public sector.

63- Which one of the following is/are the main objective of MNC’s

Ans- All of these (to expand business beyond the boundaries of the home country, minimize the cost
of production especially the labour cost, avail the competitive advantage internationally.)

64- The Uruguay round of WTO did not lead to

Ans- Setting of Currency exchange rates

65- If you send a gift to your relatives in Germany from India, the transaction will be recorded in

Ans-Current Account of balance of payments

66-Remittances by Diaspora are includes under

Ans-Current Account of balance of payments

67-which of the following is a feature of Globalisation

Ans-All of these

68-Trade related intellectual property rights cover

Ans-Copyright & patent, trademarks, geographical indications and industrial designs

69-Political and legal framework of a country constitute

Ans-External macro environment

70-The goal of world trade organisation(WTO) is to

Ans-

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 71-Globalisation has led to the flow of ideas across-

Ans-National Boundaries

72-Filing of an application by Tea board of India against registration of Darjeeling Tea& Darjeeling
Logo by international Tea KK a Japanese company in 2002 comes under

Ans-TRIPS

73-What was the first economic theory of international trade to be developed-

Ans-The theory of Mercantilism

74-In a ______ economy decisions of what to produce are taken by the private entrepreneurs

Ans-Capitalist

75-The ______ lends to governments of middle income and creditworthy low income countries

Ans-IBRD (International Bank for Reconstruction and Development)

76- In a _____ economy allocation of resources of the economy is decided by the central planning
authority.

Ans-Capitalist

77-Under_there is a 100% sale of a public enterprise to a private party

Ans-Denationalisation

78-which of the following combination of a few crucial positives and negatives reflects the WTO
policies

Ans-All of these

79-Some of the projects of_ are co-financed by the governments, multilateral institutions
commercial banks export credit agencies , and private sector investors

Ans-World bank group

80 -communication services will be recorded under

Ans-Services account of balance of payments

81-Which of the following is a part of business environment-

Ans-all of these

82-In the short run, the deficit in balance of payment can be adjusted through

Ans-All of these

83-The concept of Mixed economy relates to-

Ans-The coexistence of public and private sector

84-The current account of balance of payments includes trade balance and?

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 Ans-Services Balances

85 the WTO agreements are

Ans-Negotiate and signed by the bulk of worlds trading nations and ratified in their parliament.

86 Case study the clothing plus –

Answers-US12.4billion

Duty free access has been granted to Bangladesh for knitwear imports by USA and EU

Knitwear

Both low wages and supporting industries

87.the claim by the members of the Miles group of Bangladesh that core elements of the song
‘Phiriye Dao Amar Prem’ were copied in the soundtrack Jana jane jana of the movie murder by Anu
Malik and group is an example of

Ans-Copyright

88-which one of the following is not a characteristic of business environment

Ans-Strategy

89-The 1991 industrial policy resolution reduced the number of industries reserved for _sector to
eight

Ans-Public sector

90-What is the systematic record of all transactions of a country in a year is referred as

Ans- Balance of payment

91- in a_ economy allocation of resources of the economy decided by the free market mechanism

Ans-Capitalism

92-the theory of comparative cost advantage is put forward by?

Ans- David Ricardo

93-Which one of the following is an objective of industrial policy resolution,1991

Ans-To maintain sustained growth in productivity and employment

94- which one of the following right is an exclusive right to explore the invention for a limited period
provide licence to others to use it and stop or unauthorised exploitation of the invention/
innovations

Ans-Patent/Right

95- setting up of subsidiaries of MNCs in foreign countries will be recorded under

Ans-Capital Account

96- economic environment in socio cultural environment in a country Constitue

Ans-external macroenvironment of envt

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 97- In the long run deficit in Balance of payments can be adjusted through.

Ans-Increase in both interest rates and devaluation

98-The 1956 industrial policy resolution gave the _a strategic role in the economy

Ans-Public sector

99-Transfer of 49 percent equity of a public sector undertaking to private sector is called

Ans-disinvestment or none of these

100-The TRIPS agreement of WTO deals with

Ans-Protection of industrial designs and the layout of integrated circuits

101-sales of textiles by Raj export house to foreign countries will be recorded under

Ans-Capital Account

102-which one of the following defines the growth of the human development

Ans-All of These

103-The core responsibility of the world bank is to-

Ans-provide long term loans to member countries

104-which one of the following factor/determine the foreign investment

Ans-All of these

105- Globalisation refers to

Ans-Free movement of products

106-Liberalised exchange rate management system (LERMS) was introduced by the RBI on

Ans-March 1992

107-Devaluation of country’s currency leads to

Ans both 2 and 3

108-In the short run the deficit in balance of payments can be adjusted through

Ans All of these

109 Public and competitors are a part of

Ans micro Environment

110- Private transaction of capital account of balance of payment show

Ans-Purchase of an asset and acquiring control o

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