Benefits of International Business to Nations

Q.

Write the features of small scale industries (SSI).

Q.

What is international business? How is it different from domestic business?

Q.

What benefits do nations derive by entering into international business?

Q.

Why is it necessary for an export firm to go in for pre-shipment inspection ?

Q.

Preet Food Industries set up food and beverages processing plant in the rural area of Haryana and opted for labour intensive technique due to easy availability of labour and to provide employment to local people. Board of directors decided to invest 50 lakhs to acquire plant & machinery, Rs. 1 crore to buy land, Rs. 20 Lakhs to buy raw materials and Rs. 20 lakhs to maintain day to day expenses.

(a) Name the Act of Industries which is applicable to the above industry.

(b) Which category of part (a) will the above industry came?

(c) State the investment limit in this category.

(d) What value have been followed by the above company?

Q.

How does international trade contributes to the economic growth and development of economy especially of underdevelopment and developing nations?

Q.

Which one of the following is not amongst India's major trading partners?

1. Germany

2. USA

3. UK

4. New Zealand

Q.

What was the reason for launching the scheme of 100% export oriented units.

Q.

FDI refers to a) Fixed Direct Investment b) Foreign Direct Investment c) Future Derivative Investment d) Fixed Deposit Investment

Q. The direct investment provides the investor with a controlling interest in a foreign company. This is known as.

1. FDI
2. MNC
3. SEBI
4. WTO

Q.

Mention one benefit of international business between nations.

Q.

International trade gives the following benefits:

1. Promotes territorial specialisation.

2. Way out for intense competition.

3. Employment generation.

4. Optimum utilisation of resources.

Identify the values involved in the above benefits of international trade.

Q.

What is the full form of FDI?

Q.

___, ___, and ___ have adopted an ‘export and flourish’ strategy.

1. India, Singapore, Mauritius

2. China, UK, USA

3. Singapore, Mauritius, Maldives

4. Singapore, South Korea, China

Q.

International trade promotes growth prospects for nations.

1. True

2. False

Q. International markets lack due to differences in language, preferences, customs, etc., across markets.

1. monopoly
2. heterogeneity
3. homogeneity

Q.

Countries can produce a surplus of of products and export them. Similarly, they can import products that they are deficient in.

1. False

2. True

Q.

If a country produces only for domestic consumption, production capacity of the company is not fully utilized.

1. True

2. False

Q.

Countries can earn foreign exchange through international businesses.

1. True

2. False

Q.

Localisation refers to the process whereby a company takes steps to increase its footprint or client base outside of its country of domicile and into international markets.

1. True

2. False

Q. Coupled with its socio-economic environment and philosophy, each country evolves its own set of business laws and regulations.

1. cultural
2. political
3. history
4. international

Q. State with reasons whether the following statements are true or False.

Small business is not suitable for developing countries.

Q. Very often we read about Special economic Zones (SEZs) in newspapers. What is the purpose of promoting SEZs in lndia?
A. They are established to promote exports.
B. They are established to attract investments from foreign countries.
C. They are established to help the poorest of the poor in India as the activities of these zones are reserved only for the poors and those living below poverty line.

1. Only (A)
2. Both (A) and (B) only
3. Only (B)
4. Only (C)

Q.

Countries can earn foreign exchange through international businesses.

1. True

2. False

Q. Write a word or phrase or term which can substitute each one of the following statements.

Type of goods produced in cottage industry.

Q. Import merchandise means receiving the goods from other nations.

1. False
2. True

Q. Select the proper option from the options given below and rewrite the sentences.

When a company directly invests in properties such as plant and machinery in foreign countries, ________ takes place

(a) Portfolio investment
(b) Indirect Exporting
(c) Direct Investment

Q. "Multinational companies are a mixed blessing to the developing countries.*' In the light of this statement explain the return of MNC.

Q. We read in the newspaper that the foreign direct investment are preferred over the capital inflow. In this context, please consider the following.
Which statement is more suitable for this statement ?

1. FDI brings in latest technology
2. FDI does not involve large outflow
3. FDI improves efficiency of the economy
4. None of the above

Q. We read in the newspaper that the foreign direct investments are preferred over the capital inflow. In this context, please consider the following. Which statement is more suitable for this statement?

1. FDI brings in latest technology
2. FDI does not involve large outflow
3. FDI improves efficiency of the economy
4. None of the above