International Business - International Business Objective Questions

11:  
The payment of interest on loans and dividend payments are recorded in the
A.

Unilateral transfer account

B.

Official settlements account

C.

Capital account

D.

Current  account

 
 

Option: C

Explanation :

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12:  
Consider the following 'Debit' entries in the Balance of Payments Account
1. Direct investments abroad
2. Tourist expenditure abroad
3. Income paid on loans and investments in the home country
4. Services purchased from abroad.
Which of the above are a part of the current account of balance of payment?
A.

1,2 and 3

B.

2,3 and 4

C.
1,2 and 4
D.

1,2,3 and 4

 
 

Option: B

Explanation :

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13:  
Consider the following
1. Incentives for foreign investment
2. Tourism development
3. Import substitution
4. Foreign loans
The above measures for correction of balance of payments disequilibrium, are collectively known as
A.

Monetary measures

B.

Trade measures

C.

Miscellaneous measures

D.

None of the above

 
 

Option: C

Explanation :

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14:  
Where do the members allow full freedom of factor flows among themselves, in addition to having a free-trade area?
A.

Free economic zone

B.

Customs-union

C.

Common market

D.

Economic-union

 
 

Option: C

Explanation :

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15:  
A case of international price discrimination in which an exporting firm sells at a lower price in a foreign market than it charges in other markets, is known as
A.

Dumping

B.

Non-Dumping

C.

Anti-Dumping

D.

None of the above

 
 

Option: A

Explanation :

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