Students of class 11 Business Studies should refer to MCQ Questions Class 11 Business Studies International Business with answers provided here which is an important chapter in Class 11 Business Studies NCERT textbook. These MCQ for Class 11 Business Studies with Answers have been prepared based on the latest CBSE and NCERT syllabus and examination guidelines for Class 11 Business Studies. The following MCQs can help you to practice and get better marks in the upcoming class 11 Business Studies examination

Chapter 11 International Business MCQ with Answers Class 11 Business Studies

MCQ Questions Class 11 Business Studies International Business provided below have been prepared by expert teachers of grade 11. These objective questions with solutions are expected to come in the upcoming Standard 11 examinations. Learn the below provided MCQ questions to get better marks in examinations.

Question. A company can acquire full control over subsidiary’s operation in foreign market by owing—
(a) 85%
(b) 90%
(c) 100%
(d) 40%

Question. Goods that are tangible means ——
(a) Customized goods
(b) Merchandise
(c) Free goods
(d) Licensed goods

Question. Labour productivity and production cost differ among nations due to ——— —
(a) Geographical reason
(b) Agricultural reason
(c) Personal reason
(d) Government policies

Question. Manufacturing and trade beyond the boundaries if one’s own country is :-
(a) Foreign trade
(b) Local trade
(c) Retail trade
(d) Internal trade

Question. Currency used in International business is –
(a) Domestic currency
(b) International currency
(c) cryotocurrency
(d) visual currency

Question. Which factor of production is not a part of domestic business?
(a) Land
(b) Labour
(c) Customer
(d) Capital

Question. “The goods were not loaded on the ship as they did not get the custom clearance due to lack of one of the main document.”Identify the document which was required among the following:-
(a) Bill of clearance
(b) Custom bill
(c) Shipping bill
(d) Bill of exchange

Question. Portfolio investment means—–
(a) Providing services in another country.
(b) Investment in research industry.
(c) A company makes investment into another by acquiring shares.
(d) Production and marketing of goods.

Question. Permission for distribution of services in another country under a specific copyright is :-
(a) Merchandising
(b) Licensing
(c) Franchising
(d) Marketing

Question. Identify the first step in the export procedure-
(a) Receipt of enquiry
(b) export licence
(c) intent
(d) production of goods

Question. Which of the following document is required in connection with an import transaction?
(a) Certificate of origin.
(b) Shipping Bill
(c) Letter of credit.
(d) Mate’s receipt.

Question. Performa Invoice is issued by the-
(a) Shipping company of importer
(b) Exporter to importer
(c)Importer to exporter 
(d)Exporter to the shipping company 

Question. Which of the following documents is not required in connection with an import transaction?
(a) Bill of lading.
(b) Shipping bill.
(c) Certificate of origin.
(d) Shipment advice. 

Question. Intangible aspect of services in International business is known as
(a) Home trade
(b) Foreign trade
(c) Invisible trade
(d) Local trade

Question. Which of the following is not the objectives of import trade?
(a) To meet consumer demand.
(b) To improve the standard of living.
(c) To speed up industrialisation.
(d) To earn foreign exchange. 

Question. The International business as it exists today is to a great extent the result of—-
(a) Language specialization
(b) Geographical specialization
(c) Cultural differences
(d) Custom practices

Question. “Rajiv an exporter sent complete information about the quality ,grade, size, weight, type of packing about the product on his enquiry” .Such an above quotation prepared is known as –
(a) performa invoice
(b) intent
(c) letter of information
(d) enquiry performa

Question. Which of the following indicates the right procedure of import trade?
(a) Procurement of import license, Placing order or indent, Trade Enquiry, Customs clearance and release of goods.
(b) Trade enquiry, Procurement of import license, Obtaining letter of credit, arrival of goods.
(c) Arrival of goods, Retirement of import documents, Obtaining foreign exchange, Obtaining letter of credit.
(d) Receipt of shipment advice, Trade enquiry, Arranging for finance, Customs clearance and release of goods.

Question. A particular number that an export firm needs to have is known as –
(a) IEC Number
(b) IFC Number
(c) IIC Number
(d) IFC Code

Question. The document which contain the information regarding the country where the goods have been produced in connection to export-
(a) Shipping Bill
(b) Export Invoice
(c) Airway Bill
(d) Certificate of Origin

Question. The principal international body concerned with solving trade problems between countries and providing a forum for multilateral trade negotiations.
(a) World Health Organisation.
(b) World Trade Organization
(c) World Bank
(d) World International Bank.

Question. Certificate of inspection related to export trade is issued by-
(a) Government
(b) Inspector
(c) Exporter
(d) Importer

Question. World Trade Organization was founded on ——————
(a) 11Nov.2005
(b) 11Dec.2005
(c) 11 Jan.2015
(d) 11Dec 2015

Question. Which of the following was formed for looking after the promotion of free and fair trade among nations?
(a) International Monetary Fund
(b) World Bank
(c) World Trade Organisation
(d) General Agreement for Tariffs and Trade

Question. In which state export processing zone are not set up?
(a) Kerla
(b) Gujarat
(c) West Bengal
(d) Rajasthan 

Question. Which of the following is not a document related to export transaction?
(a) Shipping Bill
(b) Airway Bill
(c) Mate’s Receipt
(d) Bill of Entry

Question. Which of the following is a document related to payment in connection with export transactions?
(a) Export Invoice
(b) Shipping Bill
(c) Cart Ticket
(d) Letter of Credit

Question. One amongst the following in not the main objective of World Trade Organization
(a) To improve the standard of living in world economy
(b) To create employment in world economy.
(c) To increase income and effective demand in world economy.
(d) To disintegrate more viable and durable trading system in world economy.

Question. The year of establishment of international financial corporation.
(a) 1945
(b) 1988
(c) 1956
(d) 1966 

Question. Which of the bill is supplied by the customs office to the importer?
(a) Airway bill
(b) Bill of entry
(c) Bills of exchange
(d) Bill receivables 

Question. Which type of document contains a gurantee from the importer bank to the exporter bank?
(a) Letter of credit
(b) Airway bill
(c) Import order
(d) proforma invoice 

Question. Having identified the countries and firms that export the product, the importing firm approaches the export firms with the help of?
(a) Trade enquiry.
(b) Proforma invoice.
(c) Mate’s receipt.
(d) Sight draft.

Question. Name of the document that contain detail as to the quality, grade, design, size etc.
(a) Proforma invoice
(b) Purchase invoice
(c) Sale invoice
(d) Voucher 

Question. Identify the alternative which is not the objective of World Trade Organization.
(a) to ensure reduction of tariffs and other trade barriers imposed by different countries.
(b) To facilitate the optimal use of the world’s resources for sustainable development.
(c) To promote an integrated and more viable and durable trading system.
(d) To promote an orderly international monetary system 

Question. The document containing the guarantee of a bank to honour drafts drawn on it by an exporter is
(a) Letter of hypothetication
(b) Letter of credit
(c) Bill of lading
(d) Bill of exchange

Question. Which one of the following is not a document related to fulfill the customs formalities
(a) Shipping bill
(b) Export license
(c) Letter of insurance
(d) Proforma invoice

Question. SMEs stands for:
(a) Small and Medium Entrepreneurs
(b) Small Management of Enterprises
(c) Small and Medium-sized Enterprises.
(d) Societies for Managing Exports

Question. IPR stands for
(a) Intellectual property rights
(b) International property rights
(c) Internal promotion rights
(d) Interior promotional rights

Question. _____ is only a legal agreement and it is not an institution, but ….. is a permanent institution.
(a) GATT, WTO
(b) WTO, GATT
(c)WTO, IMF
(d) IMF, GATT

Question. Key controllable factors in global marketing are:
(a) Government policy and legislation
(b) social and technical changes
(c) marketing activities and plans
(d) all of the above.

Question. Globalization refers to:
(a) Lower incomes worldwide
(b) Less foreign trade and investment
(c) Global warming and their effects
(d) A more integrated and interdependent world

Question. The theory of comparative cost advantage is given by
(a) David Ricardo
(b) Adam Smith
(c) F W Taussig
(d) Ohlin and Hecksher

Question. Subsidiaries consider the regional environment for policy / Strategy formulation is known as
(a) Polycentric Approach
(b) Regiocentric Approach
(c) Ethnocentric Approach
(d) Geocentric Approach

Question. The first phase of globalization started around 1870 and ended with …..
(a) World War I
(b) World War II
(c) The Establishment of GATT
(d) In 1913 when GDP was High

Question. Which of the following document is prepared by the exporter and includes details of the cargo in terms of the shipper’s name, the number of packages, the shipping bill, port of destination, name of the vehicle carrying the cargo?
(a) Shipping bill
(b) Packaging list
(c) Mate’s receipt
(d) Bill of exchange

Question. Which of the following do not form part of duty drawback scheme?
(a) Refund of excise duties
(b) Refund of customs duties
(c) Refund of export duties
(d) Refund of income dock charges at the port of shipment

One Marks Questions

Question. Expand IEC.
Answer: Import Export Code.

Question. Mention any one document of export trade.
Answer: Shipping Bill

Question. Expand SEZ.
Answer: Special Economic Zones

Question. Expand IMF.
Answer: International Monetary Fund

Question. What is D.A bid?
Answer: DA in payment term of international trade means, Documents against Acceptance

Question. Expand EIC.
Answer: Export Inspection council

Question. Expand EPZ.
Answer: Export Processing Zones.

Question. Name any one export processing zone.
Answer: Cochin export processing zone

Fill in the blanks :

Question. Goods that are tangible are called——————– –.

Question. Manufacturing and trade beyond the boundaries if one’s own country is known as —————- .

Question. In ————————– business both buyers and sellers are from the same country.

Question. Business transactions taking place within the geographical boundaries of a nation is known as — ———————-.

Question. In ———————- business buyers and sellers can be from different countries.

Question. The fundamental reason behind International business is that the countries cannot produce — ——————–or ————————– all that they need.

True or False :

Question. Intangible aspect of services that trade in services is known as visible trade.

Question. Merchandise means goods that are intangible.

Question. Trading beyond the boundaries of one’s own country is known as domestic trade.

Question. Domestic markets are heterogeneous in nature.

Question. The degree of mobility of factors like labour and capital is generally less between countries than within a country.

Question. The differences in business systems and practices are much more amongst countries than within a country.

Question. Portfolio investment involves direct investment in abroad.

Question. In Internatioanl business there is use of domestic currency.

Question. Permitting another party in a foreign country to produce and sell goods under a specific patent is Licensing.

Question. Nationality of the key participants to the business deals differs between domestic and Internatioanl business.

We hope the above multiple choice questions for Class 11 Business Studies for Chapter 11 International Business provided above with answers based on the latest syllabus and examination guidelines issued by CBSE, NCERT and KVS are really useful for you. International Business is an important chapter in Class 11 as it provides very strong understanding about this topic. Students should go through the answers provided for the MCQs after they have themselves solved the questions. All MCQs have been provided with four options for the students to solve. These questions are really useful for benefit of class 11 students. Please go through these and let us know if you have any feedback in the comments section.