Pokhara Lincoln International College

Subject: International Business management

SECTION A
Multiple Choice question: Answer all the questions (15 x 1) = 15
1. What is low contest culture?
a. Culture that focus non-verbal message.
b. Culture that views communication as a means to promote harmonious relations.
c. Culture that relies on elaborate verbal explanation.
d. Culture that focus on creating smooth relationship.
2. What does most favored nations clause means?
a. It calls for each member country to grant every other member country the same
treatment that it accords with any other country with respect to import and exports.
b. It calls for each member country to grant every other member country the different
treatment that it accords with any other country with respect to import and exports.
c. It calls for each member country to grant every other member country the limited tariffs
with respect to import and exports.
d. It calls tariffs concession to limit the level of tariffs that would be imposed on GATT
member countries.
3. Many countries including USA passed laws which help domestic industries by
restricting foreign product being sold below the cost of production, or price lower than those in
the home market.
a. Tariff barrier
b. Non tariff barrier
c. Antidumping
d. Dumping
4. Government action that distort free flows of trade in goods, services or ideas for adversarial and
political, rather than economic purpose is called..
a. Sanction
b. Embargo
c. Licensing
d. Tariff barriers
5. According to mercantilism theory nationals wealth depends on.
a. Gold and treasure
b. Resources
c. Economy
d. Environment
6. What is principle of comparative advantages theory?
a. There are still gains to be made if the country all products
b. There are still gains to be made if the country focuses on several products.
c. There are still global gains to be made if the country specializes in products.
 d. All of the above
7. The records flow of export, imports, imports, investments income and international financial
transfer is called.
a. Current BOP Accounts
b. Reserve BOP Accounts
c. Capital BOP Account
d. Miscellaneous BOP Account
8. The international capital market driver is..
a. Information technology
b. Deregulation
c. Financial Instruments
d. All of the above
9. Exchange rate calculated using two other exchange rate is called.
a. Spot rate
b. Cross rate
c. Forward rate
d. All of the above
10. Which is the political environment transformation?
a. Reshaping political blocks.
b. Formation of new political groupings.
c. Breakup of old coalitions
d. All of the above
11. .. is simultaneous purchase and sale of foreign exchange for two different rates.
a. Currency swap
b. Currency option
c. Currency future
d. Future contract
12. Which is not a proactive motivation for going international?
a. Profit advantages
b. Technological advantages
c. Excess capacity
d. Economies of scale
13. Profit growth strategy is measured by the.
a. Reduce cost
b. Add value and price rise prices
c. Sell more in existing markets
d. Enter new markets
14. The role of strategy is..
a. Value creation
b. Lower costs
c. Differentiate products
d. Quality service
15. What is the need for consideration of local economies?
a. Transportation cost
b. Trade barriers
c. Economic risk
d. Above all

Section B

Attempt any seven questions 5*4= 20

1. What is international business? Explain its importance in globalize world.

2. Explain the conflict between industrialized and developing nations.
3. Define political risk. Explain three types of political risk.
4. What is balance of payment? Explain different types balance of payments accounts.
5. Explain the various international capital market drivers.
6. Explain international market entry strategies.
Section C
Attempt any one questions 15*1= 15
1. What is mercantilism theory? Make a critical review on mercantilism theory.
2. Define international business environments. How government policy does influences
international business?