Key MCQs and Answers for Class 11 Business Studies International Business
MCQs for Business Studies Class 11 Chapter 11, International Business, are crucial for school, board, and admission tests. This topic helps students understand global business, trade procedures, and practical international processes. Practicing these MCQs improves problem-solving and exam readiness in Commerce subjects.
| Key Concept | Explanation | Example in MCQ |
|---|---|---|
| Export Procedure | Steps a business follows to sell goods/services abroad | First step: Receipt of enquiry |
| Import Trade Objectives | Reasons to import goods into a country | To meet consumer demand |
| Trade Documents | Papers required for legal international trade | Shipping bill, Letter of credit |
| Invisible Trade | Export and import of services | Banking, insurance, tourism |
MCQs for Business Studies Class 11 Chapter 11 (International Business)
MCQs for Class 11 Business Studies Chapter 11—International Business—focus on global trade concepts, export/import processes, and related documents. These questions model CBSE and competitive exam patterns, giving you direct practice for real exams. Answer explanations are provided for conceptual clarity.
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Which document is required for customs clearance during export?
a) Bill of clearance
b) Custom bill
c) Shipping bill
d) Bill of exchange
Answer: c) Shipping bill
Explanation: A shipping bill is mandatory for customs approval. -
What is invisible trade?
a) Trade involving physical goods
b) Trade of intangible services
c) Illegal trade
d) Barter transactions
Answer: b) Trade of intangible services
Explanation: Invisible trade includes export/import of services like IT, tourism. -
NAFTA stands for:
a) North African Trade Association
b) North American Free Trade Agreement
c) Northern Atlantic Trade Agreement
d) Northern Association for Trade
Answer: b) North American Free Trade Agreement
Explanation: NAFTA links the US, Canada, and Mexico for free trade. -
Portfolio investment means—
a) Providing services in another country
b) Investment in the research industry
c) A company makes an investment in another by acquiring shares
d) Production and marketing of goods
Answer: c) A company makes an investment in another by acquiring shares
Explanation: Portfolio investment involves share purchase, not direct management. -
Identify the first step in the export procedure:
a) Receipt of enquiry
b) Export license
c) Intent
d) Production of goods
Answer: a) Receipt of enquiry
Explanation: Export begins with receiving a trade enquiry from abroad. -
A letter of credit is used in international trade to:
a) Prove product quality
b) Ensure payment to the exporter
c) Arrange for transportation
d) Issue import license
Answer: b) Ensure payment to the exporter
Explanation: Banks guarantee exporter payment via letter of credit. -
Which of these is a mode for entering international business allowing complete control?
a) Franchising
b) Contract manufacturing
c) Wholly owned subsidiary
d) Exporting
Answer: c) Wholly owned subsidiary
Explanation: Full ownership gives total control in foreign markets.
Exam Preparation Strategy: MCQs for Business Studies Class 11
- Read the chapter concepts and definitions from your NCERT book thoroughly.
- Practice previous years’ MCQs and sample papers for pattern familiarity.
- Time yourself during mock tests to improve speed and accuracy.
- Clarify doubts on terms like portfolio investment, invisible trade, and trade enquiry.
- Review answer explanations, especially for questions you answered incorrectly.
Tricky Terms from International Business MCQs
| Term | Definition | Example |
|---|---|---|
| Trade Enquiry | Request for info on products/prices by a potential importer | An email asking for bulk export rates |
| Letter of Credit | Bank’s guarantee of payment to exporter | Issued for safe payments between unknown foreign partners |
| Invisible Trade | Trade of services rather than goods | Software exports, tourism, insurance |
| Wholly Owned Subsidiary | A foreign firm owned 100% by the parent company | Toyota owning a US manufacturing plant fully |
Downloadable Resources – Practice Offline
- For a detailed PDF with more MCQs and answer keys, download it here: MCQs for Class 11 Business Studies Chapter 11 PDF
- For step-by-step notes and export/import details, see: International Business on Vedantu.
Related Concepts and Useful Internal Links
- Review core export steps and documents using: Export Procedures and Documentations
- Understand the Balance of Payment and its significance for trade MCQs.
- Learn about the Difference Between International and Internal Trade.
- Explore more about a Letter of Credit and its importance.
- See common business structures and subsidiary models here: Features of Company.
- For tricky business conversations, read about Trade Enquiry in Business.
- For a broader business view, study Globalisation and Import Trade in detail.
At Vedantu, we simplify Commerce topics like International Business so students are well-prepared for both exams and practical life. MCQs for Business Studies Class 11 Chapter 11 build your foundation in world trade, key procedures, and business vocabulary. Regular practice will enhance your speed, accuracy, and conceptual strength for all assessments.
FAQs on MCQs for Business Studies Class 11 Chapter 11: International Business
1. What is International Business in Class 11 Business Studies?
International Business in Class 11 Business Studies focuses on the concepts and practices of companies engaging in cross-border transactions. It covers topics like export and import procedures, trade documents, entry modes, and the global business environment. Understanding this chapter is crucial for success in the CBSE exams.
2. How many MCQ questions are asked from Chapter 11 in exams?
The number of MCQs from Chapter 11 (International Business) varies from exam to exam. However, consistent preparation across all CBSE syllabus topics is key. Reviewing previous years' question papers gives you an idea of the common question types and weightage. Focus on understanding core concepts, procedures, and definitions.
3. Where can I download MCQs for Business Studies Class 11 Chapter 11 as PDF?
Many educational websites and platforms offer downloadable PDFs with MCQs for Class 11 Business Studies Chapter 11. Always verify the source's credibility and ensure the content aligns with the latest CBSE syllabus. Check with your school or trusted teachers for reliable resources.
4. Are answer keys provided for all MCQs?
Reputable resources providing MCQs for Class 11 Business Studies usually include answer keys with explanations. These keys are vital for understanding why an answer is correct or incorrect, allowing for targeted learning and improvement. Look for resources which explicitly mention detailed answer keys.
5. What are examples of export procedure questions in MCQ?
Export procedure MCQs might ask about required trade documents (Shipping Bill, Letter of Credit), different entry modes, or challenges faced during the export process. Understanding the steps involved in exporting goods or services is essential.
6. How important is International Business MCQ practice for board exams?
MCQ practice for International Business is highly important for CBSE board exams. MCQs often test detailed understanding of concepts, procedures and terminology. Consistent practice improves speed, accuracy, and confidence. It helps in identifying knowledge gaps and refining exam techniques.
7. What is the first chapter of business studies class 11?
The first chapter of Class 11 Business Studies varies depending on the specific textbook and syllabus. Consulting your textbook or syllabus will clarify which chapter initiates the curriculum. Familiarizing yourself with the entire syllabus scope is crucial for effective study.
8. How many chapters in business studies class 11?
The total number of chapters in Class 11 Business Studies depends on the specific CBSE textbook and syllabus. Refer to your official syllabus for the exact number and titles of chapters. Planning your studies based on the chapter weightage will optimize your exam preparation.
9. What is International Business?
International business involves cross-border transactions of goods, services, and resources. It encompasses various activities like exporting, importing, foreign investment, and global operations management. Understanding the factors affecting international trade and business strategies is vital for success in Class 11 Business Studies.
10. What are the differences between visible and invisible trade with real-world examples?
Visible trade (also called merchandise trade) involves the exchange of tangible goods like cars or electronics; invisible trade deals with the exchange of intangible services, like tourism or banking. For example, exporting cars is visible trade, while receiving payments for online services is invisible. Both contribute to a country's balance of payments.
11. How does a letter of credit reduce risks in international trade?
A letter of credit (LC) mitigates risk by acting as a payment guarantee. The importer's bank promises payment to the exporter once the exporter provides proof of shipment meeting pre-agreed terms. This assures the exporter of payment and protects the importer from paying before receiving goods, reducing both credit and fraud risk in international trade.
