1. The first phase of globalization started around 1970 and ended with .. a. The World War I b.

The World War II c. The Establishment of GATT d. In 1913 when GDP was High Ans: a 2. IBRD (International Bank for Reconstruction and Development) also known as a. Exim Bank b. World Bank c. International Monetary fund d. International Bank 3. Ultimately was replaced by the .on 1st Jan 1995 a. GATS, WTO b. WTO, GATT c. GATT, WTO d. IMF, GATT 4. Which is the right sequence of a stages of Internationalization a. Domestic, Transnational, Global, International, Multinational b. Domestic, International, Multinational, Global, Transnational c. Domestic, Multinatinal, International, Transnational, Global d. Domestic, Internatinal, Transnational, Multinational, Global 5. Subsidiaries consider regional environment for policy / Strategy formulation is known as a. Polycentric Approach b. Regiocentric Approach c. Ethnocentric Approach d. Geocentric Approach 6. According to this theory the holdings of a country's treasure primarily in the form of gold constituted its wealth. a. Gold Theory b. Ricardo Theory c. Mercantilism d. Hecksher Theory 7. The Theory of Absolute Cost Advantage is given by a. David Ricardo b. Adam Smith c. F W Taylor d. Ohlin and Heckscher 8. The Theory of Relative Factor Endowments is given by a. David Ricardo b. Adam Smith c. F W Taussig d. Ohlin and Hecksher 9. The theory of Comparative cost advantage is given by a. David Ricardo b. Adam Smith c. F W Taussig d. Ohlin and Hecksher 10. is application of knowledge which redefine the boundaries of global business a. Cultural Values b. Society c. Technology d. Economy

11. Capitalistic, communistic and Mixed are the types of a. Economic System b. Social System c. Cultural Attitudes d. Political System 12. Which is not an Indian Multinational Company? a. Hindusthan Unilever b.Asian Paints c. Piramal d. Wipro 13. 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 14. Which of the following is not a force in the Porter Five Forces model? a. Buyers b. Suppliers c. Complementary products d. Industry rivalry 15. Comparative Cost Trade Theory is given by a. Adam Smith b. David Ricardo c. Gottfried Haberler d. Heckscher Ohlin 16. .is the payment method most often used in International Trade which offers the exporter best assurance of being paid for the products sold internationally. a. Bill of Lading b. Letter of Credit c. Open Account d. Drafts 17. 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. 18. Select example of Indian Multinational Company a. Hindusthan Unilever b. Videocon c. Cargill d. Tesco Answers Correct answers are given in Italic format. For e.g. Answer of Question no. 18 is Videocon. Reference Books International Business, P Subba Rao, 2nd Enlarged Edition, Himalaya Publication.

History of International Business starte with the evolution of Human Civilization. The integration and Growth of economies and Societies was the main reason for the first phase of International Business and Globalization. History / Evolution of International Business/ Internationalization 19th Century: Broader concept of the integration of economies and societies 1870: Began first phase of Globalization 1919: World War II: End of first phase of Globalization, Industrial revolution in UK, Germany and the USA Sharp increase in the trade with import and export by colonial empires 1913: GDP 22.1 After 1913: Increased Trade Barriers to Protect Domestic Production 1930s: Declined Trade Ratio, GDP 9.1 After 1930s: World Nations felt the need for International Co-operation in global trade and balance of payments affairs Establishment of IMF and IBRD (World Bank) IMF: International Monetary Fund IBRD: International Bank for Reconstruction and Development 1947: 23 countries conducted negotiations in order to prevent the protectionist policies and to revive the economies from recession aiming at establishment of World Trade organization 1947: Establishment of GATT (General Agreement on Trade and Tariffs) 1980s: efforts to convert GATT into WTO 1st Jan 1995: GATT was replaced by WTO (World Trade Organization) Trade Liberalization 1990 2000: The Term IB (International Business) has emerged from the term International Marketing. There are two Phases of the evolution of the term International Business 1. International Trade to International Marketing 2. International Marketing to International Business After 1990: Rapid Internationalization ad globalization Today: Interpreting the PESTIN factors of International Trade environment more clearly.

1. International business environment changes, but very slowly over the years. 2. International trends like fluctuating interest rates and exchange rates are very difficult to predict in a medium or long term. 3. Companies should only look at opportunities while entering a specific country. 4. Analyzing the culture of the nation is not very important while planning to set up a business there. 5. Study of international business environment offers great scope for the businessmen who want to expand their business and grow. Fill in the blanks: 6. The companies that sell products in the global market without making any adaptations to their home made product are called ___________.. 7. Samsung Electronics is a MNCs with its base in _________________. 8. As per ______________ approach, every country has a unique business environment and therefore should be dealt with differently. 9. European Union is based on ________________ orientation. 10. Ethnocentric companies are ________________ in their business approaches. Answers to Self Assessment Questions

1. False 2. True 3. False 4. False 5. True 6. International Companies 7. South Korea 8. Polycentric 9. Regiocentric 10. Centralized