Students get through the TN Board 11th Commerce Important Questions Chapter 25 International Business which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 25 International Business

Very short answer questions

Question 1.
What is the share of India’s exports in world exports?
Answer:
0.8%

Question 2.
Which service has got a dominating share in foreign trade in services?
Answer:
Software and miscellaneous.

Question 3.
India is ……… largest economy in the world.
Answer:
10th

TN Board 11th Commerce Important Questions Chapter 25 International Business

Question 4.
Name of the country whose shares in largest in India’s exports and imports.
Answer:
The United States of America.

Question 5.
Reebok orders footballs to local manufacturers of Ludhiana and then sells it all over the world it is an example of what?
Answer:
Contract manufacturing.

Question 6.
The license of franchisee pays a fee licensor .or franchisor. What is it called?
Answer:
Royalty.

Question 7.
Give one point of difference between licensing and franchising.
Answer:
Licensing is used for goods and franchising is used for services.

TN Board 11th Commerce Important Questions Chapter 25 International Business

Short answer questions

Question 1.
List major items of India’s import?
Answer:
India’s major items of imports include crude oil and petroleum products, capital goods, electronic goods, pearls, precious and semi-precious stones gold, silver, and chemicals.

Question 2.
What are the major items that are exported from India?
Answer:
India’s major items of exports include textiles garments, gems and jewelry, engineering products and chemicals, agriculture, and allied products.

Question 3.
List the major countries with whom India trade:
Answer:
India’s major trading partners are the USA, UK, Germany, Japan, Belgium, Hongkong, UAE, China, Switzerland, Singapore, and Malaysia.

Question 4.
Define International business.
Answer:
According to Michael R.Q. Zinkota “International business consists of transactions that are devised and carried out across national borders to satisfy the objectives of the individuals.” Companies and organizations these transactions take on various forms.

TN Board 11th Commerce Important Questions Chapter 25 International Business

Question 5.
Mention methods of conducting International Business.
Answer:

  1. Exporting and Importing.
  2. Contract manufacturing.
  3. Licensing and Franchising.
  4. Joint venture.
  5. Foreign direct investment.

For Future learning

1. Scope of international business.
Answer:
Involvement of countries. International business can take place only when transactions occur across different countries.

2. Wide range of international business.
Answer:
Geographical specialization optimum use of Natural resources, Economic development.

For Own Thinking

Take interest in export or import trade Try to become an exporter.
Answer:
In export – take interest in exporting all types of dress materials. Like Sarees, Chudithars.
First I select Importer: To follow export trade procedure.

  1. Receiving inquiries.
  2. Receipt of order or indent.
  3. Obtaining a letter of credit.
  4. Obtaining export license.
  5. Obtaining shipping order.
  6. Packing, marking, and forwarding.
  7. Preparation of Invoice.
  8. Obtaining customs clearance.
  9. Paying dock dues.
  10. Verification of goods to be shipped.
  11. Bill of lading.
  12. Certificate of origin.
  13. Receiving payments.

TN Board 11th Commerce Important Questions Chapter 25 International Business

Multiple-choice questions

1. In which of the following modes of entry does the domestic manufacturer give the right to use intellectual property such as patent and trademark to a manufacturer in a foreign country for a fee:
(a) licensing
(b) contract manufacturing
(c) joint venture
(d) none of these
Answer:
(a) licensing

2. Outsourcing a part of or entire production and concentrating on marketing operations in international business is known as:
(a) licensing
(b) franchising
(c) contract manufacturing
(d) joint venture
Answer:
(c) contract manufacturing

3. When two or more firms come together to create a new business entity that is legally separate and distinct from its parents it is known as:
(a) contract manufacturing
(b) franchising
(c) joint ventures
(d) licensing
Answer:
(c) joint ventures

4. Which of the following is not an advantage of exporting?
(a) Easier way to enter into international markets
(b) Comparatively lower risks
(c) Limited presence in foreign markets
(d) Fewer investment requirements
Answer:
(a) Easier way to enter into international markets

TN Board 11th Commerce Important Questions Chapter 25 International Business

5. Which one of the following modes of entry requires a higher level of risk?
(a) Licensing
(b) Franchising
(c) Contract manufacturing
(d) Joint venture
Answer:
(c) Contract manufacturing

6. Which one of the following modes of entry permits a greater degree of control over overseas operations?
(a) Licensing/franchising
(b) Wholly owned subsidiary
(c) Contract manufacturing
(d) Joint venture
Answer:
(b) Wholly owned subsidiary

7. Which one of the following modes of entry brings the firm closer to international markets.
(a) Licensing
(b) Franchising
(c) Contract manufacturing
(d) Joint venture
Answer:
(c) Contract manufacturing

8. Which one of the following is not amongst India’s major export items?
(a) Textiles and Garments
(b) Germs and Jewellery
(c) Basmati rice
(d) Oil and Petroleum products
Answer:
(c) Basmati rice

TN Board 11th Commerce Important Questions Chapter 25 International Business

9. Which one of the following is not amongst india’s major import items?
(a) Ayurvedic medicines
(b) Oil and petroleum products
(c) Pearls and Precious stones
(d) Machinery
Answer:
(b) Oil and petroleum products

10. Which one of the following is not amongst India’s major trading partners?
(a) USA
(b) UK
(c) Germany
(d) Newzealand
Answer:
(d) Newzealand