Foreign Direct Investment (FDI) CDS Questions

CDS Economy

Foreign Direct Investment (FDI) MCQ Questions


1.
International business refers to activities that take place across:
A.
Cities
B.
Nations
C.
Continents
D.
Regions
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ANSWER :
B. Nations
2.
The primary reason for international business is:
A.
Efficiency in production
B.
Equal distribution of resources
C.
Cost advantage in goods/services
D.
Availability of technology
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ANSWER :
C. Cost advantage in goods/services
3.
Which of the following is an example of invisible trade?
A.
Export of garments
B.
Import of machinery
C.
Tourism services
D.
Manufacturing of goods
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ANSWER :
C. Tourism services
4.
What is a key distinction between licensing and franchising?
A.
Licensing applies to services, franchising to goods
B.
Licensing applies to goods, franchising to services
C.
Both apply to services
D.
None of the above
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ANSWER :
B. Licensing applies to goods, franchising to services
5.
What is the term for outsourcing a part of production to another country?
A.
Contract manufacturing
B.
Licensing
C.
Joint venture
D.
Franchising
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ANSWER :
A. Contract manufacturing
6.
Which country is India’s leading trade partner?
A.
China
B.
USA
C.
Germany
D.
UK
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ANSWER :
B. USA