International Business and E-Commerce

JKPSC Assistant Professor (Commerce) · Commerce · 55 practice questions with answers and explanations: 10 Easy, 43 Medium, 2 Hard.

Sample questions

Sample Easy question 1

A digital wallet is used to:

  1. Store papers
  2. Store coins
  3. Print notes
  4. Store money electronically for payments
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Answer: D. Paytm and PhonePe are examples.

Sample Easy question 2

A portal on the internet is:

  1. A telephone
  2. A printer
  3. A website that brings together information and services
  4. A router
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Answer: C. Yahoo is a classic example.

Sample Easy question 3

The theory of absolute advantage was given by:

  1. David Ricardo
  2. Michael Porter
  3. Heckscher and Ohlin
  4. Adam Smith
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Answer: D. A country should export what it produces with fewer resources than others.

Sample Medium question 4

A Special Economic Zone is:

  1. A war zone
  2. A forest area
  3. A residential zone
  4. A designated area with special incentives for export production
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Answer: D. India's SEZ Act dates from 2005.

Sample Medium question 5

The Information Technology Act, 2000 gives legal recognition to:

  1. Electronic records and digital signatures
  2. Paper currency
  3. Radio licences
  4. Print media
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Answer: A. It is India's main e-commerce law.

Sample Medium question 6

Which of the following is a B2B e-commerce model?

  1. An online auction between individuals
  2. Online grocery sales to a household
  3. Electronic data interchange between firms
  4. A government tax portal
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Answer: C. It links the systems of two businesses.

Sample Hard question 7

Purchasing power parity states that the exchange rate between two currencies tends to reflect:

  1. The gap in their interest rates
  2. Their trade balances
  3. The ratio of their price levels
  4. Their foreign exchange reserves
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Answer: C. A basket of goods should cost the same in both.

Sample Hard question 8

Transfer pricing refers to:

  1. The pricing of goods and services transferred between related units of a multinational
  2. The price of imported goods at customs
  3. The price set by a regulator
  4. The price in a futures market
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Answer: A. Tax authorities watch it to prevent profit shifting.

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