Business Environment

21. The main watchdog of international trade is

  1. IMF
  2. World Bank
  3. WTO
  4. UNCTAD
Correct answer: (C)
WTO

22. Who is the Chairman of NDC?

  1. Finance Minister
  2. Prime Minister
  3. Lok Sabha Speaker
  4. Minister of Planning
Correct answer: (B)
Prime Minister

23. India is not a member of

  1. G-15
  2. ASEAN
  3. UNO
  4. ILO
Correct answer: (B)
ASEAN

24. Stagflation means

  1. Inflation with recession
  2. Recession and stagnation
  3. Inflation galloping like a stag
  4. Inflation and increasing output
Correct answer: (A)
Inflation with recession

25. 'Level playing field' argument of industries requires

  1. MNCs to be stopped from investing in India
  2. Licence to MNCs be given only in environment-friendly technologies
  3. MNCs to be treated at par with the domestic industry
  4. Domestic industry to be given preference over MNCs.
Correct answer: (C)
MNCs to be treated at par with the domestic industry

26. Which two of the following are the most likely effects of the imposition of a tariff on an imported good?

  1. The domestic price of the imported good will fall
  2. Overseas production of the good may be stimulated
  3. Overseas employment will rise
  4. The domestic price of the imported good will rise
  5. Gain of tax revenue by the government
  1. (c) and (d)
  2. (a) and (c)
  3. (d) and (e)
  4. (b) and (d)
Correct answer: (C)
d) and (e)

27. Which two of the following arguments are most likely to be used to justify protectionism?

  1. To protect high cost domestic industries
  2. To protect strategically important industries
  3. To protect industries which are still immature
  4. To maximise government tax revenue
  5. To protect environmental standards
  1. (d) and (e)
  2. (a) and (b)
  3. (c) and (d)
  4. (b) and (c)
Correct answer: (D)
b) and c)

28. A protectionist measure whereby members of a regional trading bloc agree to impose an identical rate of protection on all goods imported from non-member countries.

  1. Common quota arrangements
  2. Non-tariff agreement
  3. Technological standards control
  4. VER agreements
Correct answer: (B)
Non-tariff agreement

29. A situation where any advantage given by one member of the WTO to another member must be extended to all WTO members.

  1. The excessive invoicing principle
  2. The intra-regional principle
  3. The trade diversion principle
  4. The most favoured nation principle
Correct answer: (D)
The most favoured nation principle

30. MNCs are in a good position to vary their strategies in different phases of the product life cycle. For instance in the ______________ phase(s) they will usually ___________

  1. decline, maintain high prices
  2. launch, move production to low-cost countries
  3. growth and maturity, move production to low-cost countries
  4. growth, maintain high prices
Correct answer: (C)
growth and maturity, move production to low-cost countries
Previous
Page 3 of 39
Next