BUS502
Global Business Environment
Comprehensive Finals Review (Qns & Ans)
2025
1. Which of the following is a major driver of globalization
impacting the global business environment?
a) Local Market Saturation
b) Technological Advancements
c) Decreased Population Growth
d) Increased Regional Conflicts
ANS: b) Technological Advancements
©2024/2025
, Rationale: Technological advancements facilitate
communication, reduce costs, and increase the scale and scope of
global business operations.
2. The concept of comparative advantage is primarily associated
with:
a) Michael Porter
b) David Ricardo
c) Adam Smith
d) John Maynard Keynes
ANS: b) David Ricardo
Rationale: David Ricardo introduced the theory of comparative
advantage, explaining how countries benefit from specializing in
and trading goods they can produce most efficiently.
3. Which organization replaced the General Agreement on Tariffs
and Trade (GATT) in 1995?
a) International Monetary Fund (IMF)
b) United Nations Conference on Trade and Development
(UNCTAD)
c) World Trade Organization (WTO)
d) World Bank
©2024/2025
, ANS: c) World Trade Organization (WTO)
Rationale: The WTO succeeded GATT in 1995 to provide a
more robust framework for negotiating global trade agreements.
4. What does the acronym BRICS stand for?
a) Belgium, Russia, India, China, Sweden
b) Brazil, Russia, India, China, South Africa
c) Brazil, Romania, Indonesia, Chile, Singapore
d) Bangladesh, Russia, Iran, Colombia, Spain
ANS: b) Brazil, Russia, India, China, South Africa
Rationale: BRICS is a group of five major emerging
economies: Brazil, Russia, India, China, and South Africa.
5. A voluntary export restraint (VER) is a trade restriction on the:
a) Quantity exported by the importing country
b) Quantity imported from a specific country
c) Quantity exported by the exporting country
d) Price of goods exported
©2024/2025
, ANS: c) Quantity exported by the exporting country
Rationale: VERs are self-imposed limits by exporting countries
to pacify importing countries fearing damage to their domestic
industries.
6. Which term is used to describe a country's acquisition of assets
in foreign countries, where the influence over management
decisions is exerted?
a) Foreign Portfolio Investment (FPI)
b) Foreign Direct Investment (FDI)
c) Venture Capital
d) Merger and Acquisition
ANS: b) Foreign Direct Investment (FDI)
Rationale: FDI involves investing in a foreign country to gain
lasting interest and control over business operations.
Fill-in-the-Blank Questions
7. The __________ index is designed to measure and rank the
business environment across countries based on regulatory
practices.
©2024/2025
Global Business Environment
Comprehensive Finals Review (Qns & Ans)
2025
1. Which of the following is a major driver of globalization
impacting the global business environment?
a) Local Market Saturation
b) Technological Advancements
c) Decreased Population Growth
d) Increased Regional Conflicts
ANS: b) Technological Advancements
©2024/2025
, Rationale: Technological advancements facilitate
communication, reduce costs, and increase the scale and scope of
global business operations.
2. The concept of comparative advantage is primarily associated
with:
a) Michael Porter
b) David Ricardo
c) Adam Smith
d) John Maynard Keynes
ANS: b) David Ricardo
Rationale: David Ricardo introduced the theory of comparative
advantage, explaining how countries benefit from specializing in
and trading goods they can produce most efficiently.
3. Which organization replaced the General Agreement on Tariffs
and Trade (GATT) in 1995?
a) International Monetary Fund (IMF)
b) United Nations Conference on Trade and Development
(UNCTAD)
c) World Trade Organization (WTO)
d) World Bank
©2024/2025
, ANS: c) World Trade Organization (WTO)
Rationale: The WTO succeeded GATT in 1995 to provide a
more robust framework for negotiating global trade agreements.
4. What does the acronym BRICS stand for?
a) Belgium, Russia, India, China, Sweden
b) Brazil, Russia, India, China, South Africa
c) Brazil, Romania, Indonesia, Chile, Singapore
d) Bangladesh, Russia, Iran, Colombia, Spain
ANS: b) Brazil, Russia, India, China, South Africa
Rationale: BRICS is a group of five major emerging
economies: Brazil, Russia, India, China, and South Africa.
5. A voluntary export restraint (VER) is a trade restriction on the:
a) Quantity exported by the importing country
b) Quantity imported from a specific country
c) Quantity exported by the exporting country
d) Price of goods exported
©2024/2025
, ANS: c) Quantity exported by the exporting country
Rationale: VERs are self-imposed limits by exporting countries
to pacify importing countries fearing damage to their domestic
industries.
6. Which term is used to describe a country's acquisition of assets
in foreign countries, where the influence over management
decisions is exerted?
a) Foreign Portfolio Investment (FPI)
b) Foreign Direct Investment (FDI)
c) Venture Capital
d) Merger and Acquisition
ANS: b) Foreign Direct Investment (FDI)
Rationale: FDI involves investing in a foreign country to gain
lasting interest and control over business operations.
Fill-in-the-Blank Questions
7. The __________ index is designed to measure and rank the
business environment across countries based on regulatory
practices.
©2024/2025
