www.vutube.edu.

pk

INTERNATIONAL BUSINESS (MGT 520)

SEMESTER SPRING (2008)
QUIZ NO. 02
DUE DATE: JULY 24 , 2008TH

TOTAL MARKS: 10

Instructions

• This quiz covers lesson No. 24 – 30

• Last date for submission of quiz is 24/07/2008
• Don’t rely only on handouts; use other reference books & material as
well.
• All questions carrying equal marks and there is no any negative
marking.
• Cheating or copying of quiz is strictly prohibited; No credit will be
given to copied quiz.
• Make sure that you upload the solution before due date. No
assignment will be accepted through e-mail after the due date under
any condition.
• Once you upload the assignment on LMS, it will not be replaced
under any condition.

Multiple Choice Questions:

1. It is a way that firms can unload excess production into foreign markets is called:
• Shipping
• Trucking
• Smuggling
• None of the given options

2. It is an economic benefit provided by the government to exporters, which gives them an

 www.vutube.edu.pk
undue advantage in foreign markets.
• Subsidy
 • Royalty
• Margin
• Quota

3. Leontief postulated that the __________ should be an exporter of capital intensive

goods and importer of labor intensive goods.
• UK
• USA
• China
• Germany

4. Countries are held together by a common sense of:

• Image
• Psyche
• Identity
• None of the given options

5. Large country has variety in __________, making them more self-sufficient then
smaller countries.
• Services
• Technology
• Corporate Culture
• Natural Resources

True / False:

1. In countries where little capital is available for investment and where the amount of
investment per worker is low, then high labor rates would also be expected.
• True
• False

2. The legal system is based on a detailed set of laws that make up a code is known as
Common Law.
• True
• False
3. PPP theory predicts that changes in relative prices will result in a change in exchange
rates.
• True
• False

4. Copyrights, patents, trademarks and brand names are fall in the TRIMS agreement.
• True
• False

5. A pegged exchange rate means the value of the currency is fixed relative to a reference
currency, such as the U.S dollar.
• True
• False